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No.MHSN060004912012 1 R.C.S.No.66/2012 (Judgment)
Received on 16.01.2012.
Registered on 16.01.2012.
Decided on 28.02.2019.
Duration Ys. Ms. Ds.
07 01 22
IN THE COURT OF JOINT CIVIL JUDGE, JUNIOR DIVISION
MIRAJ, DISTRICT SANGLI
(Presided over by N.M.Wali)
REGULAR CIVIL SUIT NO. 66 OF 2012. Exh.118
(Old Special Civil Suit No.138/2006)
Vinayak Dinkar Gokhale,
Age 47 yrs., Occu. Agri. & Architect
R/o Pratap Colony, Miraj, .. Plaintiff.
Tal.Miraj, Dist. Sangli.
Versus
1. Shri Shivaji Dattatrya Bharati,
Age 36 yrs., Occu. Agri. .. Defendants.
R/o At post Tarewadi, Tal.
Gadhinglaj, Dist. Kolhapur,
Now R/o C/o Sanjay Laxman Buva,
Nipani Ves, Kagal, Tal.Kagal,
Dist. Kolhapur.
2. Shreyas Ganpati Bharati,
Age 22 yrs., Occu. Education,
R/o C/o Dr.Ganapati Shivram Bharati,
Shivajinagar, Miraj, Tal.Miraj,
Dist.Sangli.
3. Shri Narayan Namdeo Sanap,
Age Major, Occu. Agri.
CNR No.MHSN060004912012 2 R.C.S.No.66/2012 (Judgment)
4. Shri Shivaji Namdeo Sanap,
Age Major, Occu. Agri. .. Defendants.
5. Shri Tukaram Namdeo Sanap,
Age Major, Occu. Agri.
6. Shri Tanaji Namdeo Sanap,
Age Major, Occu. Agri.
7. Smt. Dhondubai Namdeo Sanap,
Age Major, Occu. Agri.
Nos.3 to 7 R/o Bedag, Tal.Miraj,
Dist.Sangli.
Suit for Specific Performance of Contract.
Shri P.V.Narwadkar, learned advocate for plaintiff.
Shri S.A.Sutar, learned advocate for defendant No.1 (Without
written statement).
Shri S.G.Malgaonkar, learned advocate for defendant No.2.
Shri C.A.Patil, learned advocate for defendant Nos.3 to 6.
Defendant No.7 – Ex parte.
J U D G E M E N T
(Delivered on 28.02.2019)
*****
This is a suit for specific performance of contract.
Brief facts of the plaintiff's case are as follows
2. Agricultural property bearing Gat No.776 situated at
Bedag, Tal. Miraj, Dist. Sangli, admeasuring, 3 Acre 5.5 Gunthas
land of southern side out of total admeasuring Hector 2.53 Are
CNR No.MHSN060004912012 3 R.C.S.No.66/2012 (Judgment)
(hereinafter referred as the suit property) is owned and possessed
by defendant No.1 Shivaji.
defendant No.2 Shreyas. It is bogus, hollow and so it is illegal. It
is not binding on the plaintiff. Therefore, the plaintiff filed the
present suit for specific performance of contract dated 19.06.2006
with alternative prayer for refund of earnest money along with
compensation.
5. Defendant No.1 appeared but failed to file his written
statement within time, hence suit proceeded without written
statement of defendant No.1.
defendant No.1 authorized Dr.Ganpati to do the transaction on
behalf of him in respect of the suit property.
8. Defendant Nos.3 to 6 appeared and filed their written
statement at Exh.49 and denied all the contentions in the plaint.
There is no partition between defendants. Suit property is not yet
measured by Govt. Surveyor. These defendants are not necessary
party to suit, hence, suit is bad for misjoinder of necessary
parties. Hence, defendant Nos.3 to 6 prayed to dismiss the suit.
CNR No.MHSN060004912012 6 R.C.S.No.66/2012 (Judgment)
9. Defendant No.7 remained absent even after of service
of summons, hence, suit proceeded ex parte against defendant
No.7.
1. Does plaintiff prove that defendant No.1
agreed to sell suit property to him on Yes.
19.06.2006 for consideration of
Rs.4,55,000/ ?
4. Does plaintiff prove that defendant No.1 Yes.
has committed the breach of the
contract ?
6. In the alternative, is plaintiff entitled for Partly Yes,
damage of Rs.4,55,000/ with interest ? Rs.25,000/ along
with interest @ 6%
p.a. from 19.06.2006
till its full
realization.
CNR No.MHSN060004912012 7 R.C.S.No.66/2012 (Judgment)
7. What order and decree ? As per final
order.
11. To prove the claim, plaintiff Vinayak Dinkar Gokhale
has examined himself on oath by filing his affidavit of chief
examination at Exh.32. Plaintiff also examined PW2 Pradip
Moreshwar Patwardhan at Exh.52.
12. Plaintiff has also filed on record 7/12 extract of Gat
No.776 i.e. suit property at Exh.8, Extract of defendant No.1 at
Exh.9, agreement to sale dated 19.06.2006 at Exh.59, Public
notice dated 23.06.2006 issued by plaintiff in Daily Sakal at
Exh.60 and notice dated 04.07.2006 given by plaintiff to
defendant No.1 at Exh.61.
: R E A S O N S :
AS TO ISSUE NOS.1 AND 2 :
16. As both these issues are corelated with each other,
they are discussed together.
17. To prove his case, plaintiff has examined himself at
Exh.32. It is the case of the plaintiff that defendant No.1 has
executed agreement to sell in respect of the suit property on
19.06.2006 and the consideration was decided at Rs.4,55,000/,
out of which Rs.25,000/ was paid as earnest money by plaintiff
to defendant No.1. For this purpose he has relied upon the
agreement to sell at Exh.59. On perusal of the same, it reflects
that the defendant No.1 has agreed to sell the suit property to
plaintiff for consideration of Rs.4,55,000/. This fact is not denied
by the defendant No.1 and remained unchallenged. Thus, the
contention of execution of agreement to sell of suit property
dated 19.06.2006, which is produced at Exh.59, is duly proved by
the plaintiff. Though this fact is denied by defendant No.2, as he
is not party nor witness on the said document. Thus, the denial by
defendant No.2 will not effect upon the fact about execution of
agreement to sell at Exh.59 by defendant No.1 in favour of
plaintiff. Thus, plaintiff has proved that defendant No.1 has
agreed to sell the suit property to him on 19.06.2006 for
consideration of Rs.4,55,000/.
CNR No.MHSN060004912012 9 R.C.S.No.66/2012 (Judgment)
18. The fact that plaintiff has advanced earnest money of
Rs.25,000/ for the part performance of agreement to sell at
Exh.59 is not denied by the defendant No.1. Plaintiff on oath has
stated that he has advanced a sum of Rs.25,000/ to defendant
No.1 on 19.06.2006, which remained unchallenged by defendant
No.1. Thus, plaintiff has proved that he has paid Rs.25,000/ to
defendant No.1 as earnest money. It is the contention of plaintiff
that the agreement to sell at Exh.59 is executed by defendant
No.1 in his favour and the consideration agreed between him and
defendant No.1 is of Rs.4,55,000/. Plaintiff by his affidavit
contended that defendant No.1 executed the agreement to sell at
Exh.59. PW2 Pradip Patwardhan also stated that defendant No.1
has signed before him on agreement to sell at Exh.59. PW2 is
witness upon the agreement to sell at Exh.59. These facts
remained unchallenged by defendant No.1. Thus, plaintiff has
proved that defendant No.1 has executed agreement to sell at
Exh.59 in his favour. Hence, I answer issue Nos.1 and 2 in
affirmative.
AS TO ISSUE NO.3 :
19. It is the contention of plaintiff that he was ready and
willing to perform his part of contract. For this purpose he has
relied upon documentary evidence at Exh.61. At Exh.61 plaintiff
has produced the notice sent by him to defendant No.1 stating
that he is ready and willing to perform his part of contract and to
complete the agreement to sale. It is further contention of the
CNR No.MHSN060004912012 10 R.C.S.No.66/2012 (Judgment)
AS TO ISSUE NO.4 :
20. It is the contention of the plaintiff that defendant
No.1 has committed breach of contract. It is pleaded by plaintiff
that though defendant No.1 has agreed to sell the suit property to
him, defendant No.1 failed to execute the sale deed of the suit
property as per part performance of agreement at Exh.59. To
prove this fact, plaintiff has relied upon documentary evidence at
Exh.59 and Exh.61. Plaintiff contended that the defendant No.1
though executed agreement to sale of suit property failed to
execute the sale deed. Thus, he has sent notice for calling to fulfill
CNR No.MHSN060004912012 11 R.C.S.No.66/2012 (Judgment)
obligations by defendant No.1. By said notice, plaintiff shown his
willingness and readiness to perform his part of contract. On
perusal of said notice at Exh.61, plaintiff has contended in said
notice that defendant No.1 failed to execute the sale deed within
time limited and joining hands with Dr.G.S.Bharati and defendant
No.2, executed sale deed in respect of suit property in favour of
defendant No.2. It is further stated in the notice that defendant
No.1 to cancel the said sale deed and to execute the sale deed in
favour of plaintiff. Thus, it seems from the evidence on record
that on 04.07.2006 plaintiff has well knowledge that defendant
No.1 through power of attorney holder Dr.G.S.Bharati has
executed sale deed in respect of suit property in favour of
defendant No.2. It also seems from the record that plaintiff is
with knowledge of sale deed between defendant No.1 through
power of attorney holder Dr.G.S.Bharati and defendant No.2, has
sent notice to execute the agreement to sell and also filed this
suit. It is clear from evidence on record that defendant No.1 has
agreed to execute sale deed in favour of plaintiff by agreement to
sell dated 19.06.2006, but he failed to execute the sale deed in
favour of the plaintiff. Thus, plaintiff has proved that defendant
No.1 has committed the breach of contract. Hence, I answer issue
No.4 in the affirmative.
AS TO ISSUE NO.5 :
21. It is the case of the plaintiff that defendant No.1 has
executed agreement to sell in respect of suit property in his
CNR No.MHSN060004912012 12 R.C.S.No.66/2012 (Judgment)
22. Plaintiff has on oath stated that he has not received
any objection to his paper notice and thus he has required the
execution of sale deed from defenant No.1. But on perusal of
notice (Exh.61) sent by plaintiff to defendant No.1, it reveals that
plaintiff has well knowledge about the objection as raised by
power of attorney holder of defendant No.1 and in tune by
defendant No.2. The objection received to plaintiff's notice is
produced by plaintiff himself at Exh.114. The agreement at
Exh.59 is coupled with the conditions to be fulfilled by defendant
No.1. But plaintiff has not pleaded nor required the fulfillment of
these conditions from defendant No.1 and prayed for specific
performance of agreement by defendant No.1.
CNR No.MHSN060004912012 15 R.C.S.No.66/2012 (Judgment)
(a) where the terms of the contract or the conduct of the
parties at the time of entering into the contract or the
other circumstances under which the contract was
entered into are such that the contract, though not
voidable, gives the plaintiff an unfair advantage over the
defendant; or
(b) where the performance of the contract would involve
some hardship on the defendant which he did not foresee,
whereas its nonperformance would involve no such
hardship on the plaintiff;
(c) where the defendant entered into the contract under
circumstances which though not rendering the contract
voidable, makes it inequitable to enforce specific
performance.
Explanation 1: Mere inadequacy of consideration, or the
mere fact that the contract is onerous to the defendant or
improvident in its nature, shall not be deemed to
constitute an unfair advantage within the meaning of
clause (a) or hardship within the meaning of clause (b).
Explanation 2: The question whether the performance of
a contract would involve hardship on the defendant
CNR No.MHSN060004912012 16 R.C.S.No.66/2012 (Judgment)
within the meaning of clause (b) shall, except in cases
where the hardship has resulted from any act of the
plaintiff subsequent to the contract, be determined with
reference to the circumstances existing at the time of the
contract.
(3) The court may properly exercise discretion to decree
specific performance in any case where the plaintiff has
done substantial acts or suffered losses in consequence of
a contract capable of specific performance.
knowledge of the sale deed of defendant No.2 denied the reply
paper notice of vendee of the suit property to defendant No.2.
Thus, I hold that the defendant No.1 entered into the contract i.e.
agreement at Exh.59 under circumstance which though not
rendering the contract voidable, the specific performance of the
agreement makes it inequitable. Thus, as per sub section 2C of
section 20, as it is inequitable, I hold that plaintiff is not entitled
for specific performance of the Contract.
25. The agreement (Exh.59) is unregistered one and sale
deed (Exh.114) and power of attorney (Exh.113) are registered.
It is defence of defendant No.2 that he has no knowledge of
agreement (Exh.59) due to its non registration. From perusal of
notice at Exh.60, it reveals that plaintiff has not finally concluded
the contract in respect of suit property, but if no objection is
raised, he will conclude the contract. Thus, as agreement
(Exh.59) is non registered, it bears less evidentiary value than the
sale deed (Exh.114) and power of attorney (Exh.113) which are
registered. Power of Attorney is registered on 21.01.1999, thus it
shall be presumed that plaintiff has knowledge of the same before
his agreement. The said power of attorney is not cancelled by
defendant No.1 till the execution of sale deed (Exh.114), hence, it
is valid one and by using of it, the sale deed is also valid and
enforceable at law.
property is handed over to defendant No.2 by sale deed. Plaintiff
having knowledge of power of attorney has made agreement,
thus it is not enforceable. It reflects from evidence of defendant
No.2 that the power of attorney holder has an interest in the suit
property, thus in absence of an express contract for termination of
his agency, the power of attorney cannot be terminated to the
prejudice of such interest. The power of attorney is in effect and
not cancelled by defendant No.1 on the date of sale deed, hence,
the use of power of attorney is legal one and by use of it, the
execution of sale deed is also valid one.
27. Thus, from evidence on record it reflects that plaintiff
has not come before the Court with clean hands and also
suppressed the material facts from the Court, and as conditions of
agreement not fulfilled, he is not entitled for equitable relief of
specific performance. Hence, I answer issue No.5 in the negative.
AS TO ISSUE NO.6.
28. I have answered issue No.4 of breach of Contract in
affirmative. The remedy for breach of contract in this case is to
claim damages, which is claimed by plaintiff. Plaintiff in
alternative of specific performance has claimed damages from
defendant Nos.1 and 2. Plaintiff has specified the amount of
damages in his plaint para 8B. Plaintiff has sought Rs.25,000/,
the earnest money and Rs.4,30,000/ as damages from
defendants. Otherwise, than this plaintiff has not mentioned any
CNR No.MHSN060004912012 19 R.C.S.No.66/2012 (Judgment)
the plaintiff also has opportunity for mitigating the damages as
claimed by him.
31. Learned advocate for plaintiff relied upon ratio laid
down in case of "Ameer Minhas Vs. Dierdre Elizabeth (Wright)
CNR No.MHSN060004912012 21 R.C.S.No.66/2012 (Judgment)
32. Learned advocate for plaintiff relied upon ratio laid
down in case of "Barses J.A. Dsouza Vs. Municipal Corporation of
Greater Brihan Mumbai and others" reported in "(2003) (6)
Bom.C.R.846 : wherein it is held that instrument i.e. attorney,
empowering specific person to act for person executing it, acts as
a agent of donor and said attorney can be terminated by principal
by revoking authority unless prohibited by section 202 of the
Contract Act or any other Law. Mere mentioning that it is
irrevocable does not make it irrevocable. If agent has interest in
subject matter, agency cannot in absence of express contract be
terminated. In the case cited supra power of attorney was
terminated by person giving it by giving notice to the person to
whom it was given. But in present case, no such pleading by
plaintiff that defendant No.1 has by notice terminated the
CNR No.MHSN060004912012 22 R.C.S.No.66/2012 (Judgment)
33. Learned advocate for plaintiff also relied upon ratio
laid down in case of "Dilip Bastimal Jain Vs. Baban Bhanudas
Kamble and others" reported in "(2001) (3) Mh.L.J. 730: wherein
it is held that in the suit for specific performance of contract of
sale, subsequent transferees to be impleaded as parties without
seeking any specific declaration against them. In present case, it is
the objection of the defendant No.2 that plaintiff has not sought
any relief in respect of his sale deed, thus suit is not maintainable.
But after considering the evidence on record, I have hold that
plaintiff is not entitled for specific performance. Thus, this
citation is not helpful to the plaintiff as this issue not framed due
to non pleading by the parties. Therefore, the ratio relied upon is
not applicable to the facts of the present case.
registered sale deed but plaintiff has not sought any declaration
in respect of the same. Though it is defence of the plaintiff that
the power of attorney holder has no right to execute sale deed of
suit property, he has not sought any relief in respect of power of
attorney or sale deed. Thus, as no declaration is sought the
registered sale deed is valid and enforceable, therefore, the ratio
relied upon is applicable to the facts of the present case.
36. Learned advocate for defendant No.2 also relied upon
ratio laid down in case of "Suraj Lamp & Industries Pvt. Ltd. Vs.
State of Haryana and another Special Leave Petition © No.13917
of 2009 dated 11.10.2011" reported in "(2012) (1) Supreme
Court Cases 656 : wherein it is held that until the date of this
judgment where transfer of property is made through power of
CNR No.MHSN060004912012 24 R.C.S.No.66/2012 (Judgment)
attorney holder is valid and the validity of sale agreement and
power of attorney executed before this judgment are not affected.
In the present case, the sale deed and power of attorney both are
before the date of this judgment, hence the sale transaction made
by power of attorney of defendant No.1 in favour of defendant
No.2 is held as valid. Therefore, the ratio relied upon is applicable
to the facts of the present case.
AS TO ISSUE NO.7.
37. Therefore, considering all above discussion,
submissions of learned counsels, findings on issue Nos.1 to 6, the
suit is liable to be partly decreed. Hence, I proceed to pass
following order.
O R D E R
1. The suit is partly decreed.
2. Defendant No.1 is directed to repay the earnest amount of
Rs.25,000/ to plaintiff with interest @ 6% per annum
from the date of agreement to sale dated 19.06.2006 till its
full realization.
3. Parties to bear their own costs.
4. Decree be drawn up accordingly.
( Dictated and pronounced in open Court )
Sd/xxx
Place Miraj (N.M.Wali)
Date 28.02.2019. Jt. Civil Judge, Jr. Dn., MIRAJ.
*****