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Atma Ram v. Charanjit Singh

Punjab & Haryana High Court
May 20, 2016
Smart Summary (Beta)

Factual and Procedural Background

The appellant-plaintiff entered into an agreement to sell dated 12.10.1994 for the disputed property, with a total sale consideration of Rs. 4,38,000/- and an earnest money payment of Rs. 1,00,000/-. The stipulated date for execution and registration of the sale deed was 7.10.1996. A legal notice was served on 12.11.1996. The appellant initially filed a suit for mandatory injunction on 13.10.1999, which was later converted into a suit for specific performance by the trial Court on 9.8.2003. The trial Court decreed the suit for specific performance, but the Lower Appellate Court reversed this decision and dismissed the suit. The appellant challenges this reversal before the present Court.

Legal Issues Presented

  1. Whether the suit for specific performance was barred by the law of limitation, given the delay between the stipulated date for sale deed execution and the filing of the suit.
  2. Whether the appellant-plaintiff was continuously ready and willing to perform the contract as required under Section 16(c) of the Specific Relief Act, 1963.
  3. Whether the findings of the Lower Appellate Court in dismissing the suit were legally sustainable, especially regarding the evidence of the agreement to sell and the lease deed.
  4. Whether the conversion of the suit from mandatory injunction to specific performance affects the limitation period for seeking specific performance.

Arguments of the Parties

Appellant's Arguments

  • An agreement to sell was executed on 12.10.1994 with earnest money paid and a stipulated date of 7.10.1996 for sale deed execution.
  • The suit for specific performance was not barred by limitation since it was initially filed as a suit for mandatory injunction and converted later.
  • The appellant had been continuously approaching the respondent for performance, who delayed on various pretexts.
  • The vendor had attempted to sell the property to a third party, but that suit was dismissed.
  • A lease deed executed on 8.10.1994 in favor of the appellant's son gave possession and rights to the appellant to seek possession after sale deed execution.
  • The trial Court found the signatures on the lease deed and agreement to sell to be identical despite expert evidence presented by both sides.
  • The respondent, being an advocate, used tactics to delay the suit, while the appellant was continuously ready and willing.
  • The Lower Appellate Court wrongly focused on the lease deed and surmised about the case instead of relying on admitted facts and documentary evidence.

Respondent's Arguments

  • The execution of the agreement to sell was denied; the agreement bore only initials while other documents had full signatures of the defendant.
  • The plaintiff failed to produce evidence that he used initials or full signatures consistently.
  • Key witnesses, such as the scribe and stamp vendor, were not examined, raising doubts about the execution of the agreement.
  • The suit is barred by limitation because the specific performance suit was converted only in 2003, long after the stipulated date of 1996.
  • The Lower Appellate Court, as the final fact-finding authority, correctly dismissed the suit based on facts and statutory provisions.
  • Relied on several precedents emphasizing limitation and procedural requirements, including Tarlok Singh v. Vijay Kumar Sabharwal and State of Punjab v. Phoola Singh.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tarlok Singh v. Vijay Kumar Sabharwal, (1996) 8 SCC 367 Limitation and procedural requirements in suits for specific performance. Supported the view that conversion of suit does not relate back to original filing date for limitation purposes.
T.L. Muddukrishana v. Smt. Lalitha Ramchandra Rao, 1997 (2) R.C.R. (Civil) 154 Principles relating to readiness and willingness in specific performance suits. Reinforced the necessity of readiness and willingness to perform contract as a condition precedent.
Phool Singh v. Ram Rattan, 2012 (4) PLR 366 Application of limitation in specific performance cases. Used to affirm that delay in instituting suit affects maintainability.
Virender Pal v. Parmod, 2012 (4) PLR 170 Readiness and willingness requirement in specific performance claims. Supported the principle that absence of readiness and willingness defeats specific performance.
State of Punjab v. Phoola Singh, 2011 AIR CC 990 Effect of amendment and conversion of suit on limitation period. Confirmed that amendment converting suit does not alter limitation reckoning date.

Court's Reasoning and Analysis

The Court analyzed the delay in seeking specific performance, noting that the stipulated date for sale deed execution was 7.10.1996, but the suit was filed only on 13.10.1999 as a suit for mandatory injunction and converted into specific performance in 2003. The Court emphasized the settled principle under Section 16(c) of the Specific Relief Act, 1963, that a plaintiff must be ready and willing to perform his part of the contract at the time of filing suit. The appellant failed to provide any explanation for the delay or demonstrate continuous readiness and willingness. The Court also noted the absence of examination of critical witnesses who could have clarified the authenticity of the agreement to sell. The Lower Appellate Court's reliance on suspicious circumstances surrounding the agreement and the lease deed was found to be reasonable. The Court agreed that the conversion of the suit does not relate back to the original filing date for limitation purposes, making the suit time barred. The Court found no illegality or perversity in the Lower Appellate Court's decision and concluded that no substantial question of law arose for its determination.

Holding and Implications

The appeal is dismissed.

The Court upheld the judgment and decree of the Lower Appellate Court dismissing the suit for specific performance. The direct effect is that the appellant-plaintiff's claim for specific performance fails due to delay and lack of readiness and willingness. No new precedent was established; the decision reaffirms established principles regarding limitation and conditions precedent under the Specific Relief Act, 1963.

Show all summary ...

Amit Rawal, J.:— Appellant-plaintiff is aggrieved of the judgment and decree rendered by the Lower Appellate Court, whereby the suit for seeking specific performance of the agreement to sell has been dismissed, in essence the judgment and decree of the trial Court decreeing the suit, has been reversed.

2. Mr. Lokesh Sinhal, learned counsel for the appellant-plaintiff, in support of the grounds of appeal, submits that an agreement to sell dated 12.10.1994 in respect of the disputed property was entered into for a total sale consideration of Rs. 4,38,000/- against the receipt of earnest money of Rs. 1,00,000/-. The stipulated date for execution and registration of the sale deed was 7.10.1996. A legal notice was also served on 12.11.1996.

3. However, suit for mandatory injunction was filed on 13.10.1999, which was converted into suit for specific performance by the trial Court vide order dated 9.8.2003. Thus, the relief of specific performance cannot be said to be barred by law of limitation. It is a categoric averment in the plaint that the appellant-plaintiff had been approaching the respondent-defendant for performance of the agreement to sell and the defendant had been putting off the matter on one pretext or the other. Having left with no other choice, the appellant-plaintiff filed the suit, aforementioned.

4. He further submits that the vendor had also agreed to sell the land to third party, who had instituted a suit, which was dismissed on 28.5.2002. Prior to the date of agreement, on 8.10.1994 lease deed in respect of the disputed property was entered into between the vendor and the son of the plaintiff. The trial Court, on the basis of examination of the oral and documentary evidence, much less summoning of the file from the concerned HUDA office where the lease deed, aforementioned, was submitted, found that the signatures on the lease deed and the agreement to sell tallied, though both the parties examined Handwriting and Finger Print Experts, but they deposed in favour of the respective parties. Even the trial Court also noticed the conduct of the defendant and called upon him to make a writing in the similar fashion as has been effected on the agreement to sell qua receipt of Rs. 1,00,000/- as earnest money and after comparing the signatures, found that both are of the same and identical person. Defendant is a practising Advocate and he knew the intricacies of law, yet adopted all possible tactics in thwarting the claim for specific performance. Readiness and willingness was continuous.

5. The Lower Appellate Court has gone into arena of surmises and conjectures by laying much emphasis on the execution of the lease deed. He further submits that once lease deed had been admitted, there was no occasion for the Lower Appellate Court to render finding vis-a-vis the same. It is the conceded position on record that by virtue of the lease deed, possession of the disputed property was handed over to the son of the plaintiff and it was agreed that the plaintiff shall be entitled to seek the possession after execution of the sale deed, meaning thereby that the defendant had given all rights to the plaintiff to seek possession in accordance with law. The agreement to sell has been proved through the testimony of attesting witnesses, thus, urges this Court to formulate the substantial questions of law culled out in the memorandum of appeal.

6. Mr. Jatin Hans, learned counsel for the respondent-defendant submits that the execution of the agreement to sell was emphatically denied as on all the documents, including lease deed, the defendant has been putting complete signatures, whereas agreement to sell bears only initials. Plaintiff has failed to bring on record any document to show that he has been putting his initials and as well as full signatures. One of the attesting witness stated that the agreement to sell was performed in Subzi Mandi and the stamp papers were also brought by him. Neither the scribe nor the stamp vendor has intentionally been examined as plaintiff was afraid of surfacing of the truth. No explanation has come forth in seeking the specific performance after the expiry of the stipulated date as the plaintiff was not arrayed as party in the suit, referred above. The suit is, ex-facie, barred by law of limitation as the date of converting the suit for mandatory injunction into specific performance is to be reckoned and the same, as noticed above, was done in 2003, i.e., almost seven years of the expiry of the stipulated date. In support of his contentions, relies upon the following judgments:—

1) Tarlok Singh v. Vijay Kumar Sabharwal., (1996) 8 SCC 367;

2) T.L. Muddukrishana v. Smt. Lalitha Ramchandra Rao, 1997 (2) R.C.R. (Civil) 154;

3) Phool Singh v. Ram Rattan, 2012 (4) PLR 366;

4) Virender Pal v. Parmod, 2012 (4) PLR 170; and

5) State of Punjab v. Phoola Singh, 2011 AIR CC 990.

7. He further submits that the aforementioned facts had not been examined by the trial Court and the Lower Appellate Court, being the last Court of fact and law, after examining the aforementioned facts and the statutory provisions of law, declined the relief and, thus, urges this Court for affirming the findings of the Lower Appellate Court as no substantial question of law arises for determination by this Court.

8. I have heard the learned counsel for the parties and appraised the paper book and of the view that appeal sans merit, for, no explanation has come forth in seeking the relief of specific performance immediately after expiry of stipulated date. Once the relief of specific performance was available on the expiry of the stipulated date, yet the plaintiff chose to file suit for mandatory injunction on 13.10.1999, whereas the stipulated date was 7.10.1996. It is settled law that the person must claim specific performance as per the ingredients of Section 16(c) of the Specific Relief Act, 1963 (for short “1963 Act”) and should always be ready and willing to perform part of the contract. In the instant case, the readiness and willingness is conspicuously wanting as no explanation has come forth even in the plaint or in the evidence. Legal notice is also dated 12.11.1996. There is a gap of almost three years in filing the suit. Even if the Court had converted the suit without there being any application seeking amendment of the plaint, but the principle of law of limitation, in such situation, would be same when specific performance is sought to be incorporated. Suit for mandatory injunction has been converted into suit for specific performance on 9.8.2003 and three years taken from the stipulated date expired in October, 1999. Witness Sanjay, in cross-examination, admitted that the agreement to sell was entered into in the Subzi Mandi. No explanation has come forth in not examining the scribe and the stamp vendor to show that who had actually purchased the stamp papers for execution of the agreement to sell. It is matter of common knowledge that the person, who purchases the stamp papers, append his signature on register of stamp vendor. Perhaps the plaintiff was afraid that the cat may not be out of the bag if the register, brought on record, may not be read against him. Against the payment of earnest money of Rs. 1,00,000/-, period of two years had been fixed for execution and registration of the sale deed. Plaintiff has also failed to bring on record evidence vis-a-vis the practice being adopted by defendant for appending full signature or initials. In the absence of direct and cogent evidence, rightly so, the Lower Appellate Court formed an opinion that the agreement to sell was surrounded by suspicious circumstances, particularly when four days before the agreement to sell, lease deed in respect of the disputed property was executed in favour of the son of the plaintiff, who was handed over the possession thereof, though, it is a matter of record that a suit for ejectment at the instance of the vendor and lessor against the lessee is stated to be pending. Be that as it may, I am of the view that there is no illegality and perversity in the findings rendered by the Lower Appellate Court as the trial Court had delved on the matters, which were not required. There is no adjudication with regard to the readiness and willingness, much less compliance of statutory provisions of Section 16(c) of 1963 Act.

9. I am in agreement with the submission of Mr. Jatin Hans duly supported by the ratio decidendi culled out in the judgments cited supra, though in all the cases, application under Order 6 Rule 17 CPC had been moved, but the fact remains that even if the Court converted the suit into specific performance, the amendment shall not relate back to filing of the suit. The reckoning date would be date of conversion which concededly was 9.8.2003, therefore, the suit for specific performance was also, ex-facie, time barred.

10. For the foregoing reasons, I do not find any illegality and perversity in the judgment and decree of the Lower Appellate Court, much less no substantial question of law arises for determination by this Court. Resultantly, the appeal stands dismissed.