Abp Network Private Limited vs Malika Malhotra on 12 October, 2021
26. I am of the considered opinion that the suit of the plaintiff deserves
to be dismissed. The judgment APB Network Private Limited's case
(supra), on which reliance has been placed by the plaintiff, is
distinguishable as in the said matter, the Hon'ble High Court was
dealing with the specific performance of a contract of employment.
In the present matter, the initial collaboration agreement dated
31.12.2012, which is the foundation of the claim of the plaintiff, was
merely a construction agreement between the owner and the builder.
The collaboration agreement falls short of being construed as an
agreement to sell. Defendant No.3 did not file suit for specific
performance of collaboration agreement dated 31.12.2012 and he
acquired no right or title in the property as the construction was not
completed. The subsequent agreements entered on the force of the
collaboration agreement were not valid contracts. Plaintiff entered
into an agreement to sell with defendant No.1 & 2 on 24.05.2014
before defendant No.2 acquired any right in respect of the property in
terms of agreement-to-sell dated 29.05.2014. No case is made out
either for granting specific performance or permanent and mandatory
injunction as the agreement-to-sell dated 24.05.2014 is void. The suit
Civil Suit No.56011/2016 Sanjeet Dagar Vs Sandeep Verma & Ors. Page 20 of 21
is dismissed. However, plaintiff is entitled to the refund of the part
payment made under the agreement-to-sell as Section 65 of the
Indian Contract Act creates an obligation on a person having received
any advantage under a void agreement, to restore it, or to make
compensation for it, to the person from whom it was received. In
view of this, defendant No.1 & 2 are directed to return the amount of
Rs.4,00,000/- received by them under the agreement dated
24.05.2014 along with an interest at the rate of 6% per annum from
the date of the agreement till realization.