You are on page 1of 24

CNR 

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.

3. It   is   the   case   of   the   plaintiff   that   defendant   No.1


Shivaji was in need of money. So defendant No.1 decided to sell
the   suit   property   and   plaintiff   agreed   to   purchase   the   suit
property for total consideration of Rs.4,55,000/­. Accordingly, an
agreement to sale was executed between plaintiff and defendant
No.1 on 19.06.2006. Defendant No.1 accepted earnest amount of
Rs.25,000/­   from   plaintiff   and   executed   the   agreement.   It   is
agreed that the sale deed is to be executed within 15 days and at
the time of sale deed plaintiff has to pay remaining amount of
Rs.4,30,000/­ to defendant No.1 Shivaji and he has to hand over
possession   of   the   suit   property   to   plaintiff   on   the   date   of   sale
deed. 

4. Thereafter,   on   20.06.2006,   plaintiff   issued   public


notice   inviting   the   objections   from   public.   The   notice   was
published on 23.06.2006 in daily Sakal, but nobody objected to
said   notice.   Thereafter,   defendant   No.1   Shivaji,   his   relative
Dr.Ganpati   Shivram   Bharati   and   son   of   Dr.Ganpati   Bharati
viz.Shreyas i.e. defendant No.2, in collusion with each other and
in  order to deceive  the plaintiff, prepared one  false  and bogus
sale deed dated 27.06.2006. It is executed by Dr.Ganpati Bharati
on   the   basis  of  power of attorney executed by defendant No.1
Shivaji   in   his   favour   and   sale   deed   was   executed   in   favour   of
CNR No.MHSN060004912012    ­ 4 ­     R.C.S.No.66/2012 (Judgment)

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.

6. Defendant   No.2   resisted   the   suit   by   filing   written


statement at Exh.19 and denied all the contentions in the plaint
except the fact that the suit property is owned by defendant No.1.
It is denied that defendant No.1 agreed to sell the suit property to
plaintiff and accordingly an agreement to sale was executed on
19.06.2006   by   accepting   earnest   amount   of   Rs.25,000/­.   It   is
contended   by   defendant   No.2   that   power   of   attorney   holder
Dr.Ganpati   Shivram   Bharati   is   uncle   of   defendant   No.1.   He
incurred the expenses of education, day to day maintenance and
illness and marriage of defendant No.1. Defendant No.1 could not
do agricultural work and he requested Dr.Ganpati Bharati to give
him   Bajaj   Tempo   Trax   and   accordingly   Tempo   Trax   bearing
No.MH­13/1501   was   purchased   for   defendant   No.1   by
Dr.Ganpati.   Thereafter,   defendant   No.1   started   to   deceive
persons   and   due   to   which   Dr.Ganpati   got   executed   power   of
attorney   from   defendant   No.1   in   respect   of   suit   property   and
CNR No.MHSN060004912012    ­ 5 ­     R.C.S.No.66/2012 (Judgment)

defendant No.1 authorized Dr.Ganpati to do the transaction on
behalf of him in respect of the suit property. 

7. It   is   further   contention   of   defendant   No.2   that


defendant No.1 is unemployed. Dr.Ganpati Bharati advised him
to behave like a responsible person and asked defendant No.1 not
to come to his hospital. But being angry with Dr.Ganpati Bharati,
defendant   No.1   went   away   and   for   taking   revenge,   he   started
mortgaging the property by accepting the amount from various
financial   institution   and   persons   by   accepting   loan   from   them.
Plaintiff   has   knowledge   about   the   same.   Because   the   land
property of plaintiff is adjacent to the suit property. The dispute
started   between   the   plaintiff   and   Dr.Ganpati   on   the   ground   of
access   from   Sarbandh.   So   by   taking   advantage   of   this   fact,
plaintiff  come   close   to  defendant   No.1 and filed  this  false  and
bogus   suit   by   preparing   the   false   documents.   Defendant   No.2
purchased the suit property for doing agricultural work. He is not
alienating the suit property to anybody. Defendant No.2 prayed to
dismiss the suit with compensatory costs. 

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. 

10. From  the   rival  pleadings of  the  parties,  my  learned


predecessor   framed   the   following   issues   at   Exh.30.   Same   are
reproduced   along   with   findings   thereon   for   the   reasons   given
thereunder :­
Sr.No. Issues. Findings

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/­ ?

2. Does   plaintiff   prove   that   he   paid


Rs.25,000/­   to   defendant   No.1   and   he Yes.
executed earnest note on 19.06.2006 ?

3. Does   plaintiff   prove   that   he   was   ready


and   willing   to   perform   his   part   of   the Yes.
contract ?

4. Does plaintiff prove that defendant No.1 Yes.
has   committed   the   breach   of   the
contract ?

5. Is   plaintiff   entitled   for   specific No.


performance of 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. 

13. Defendant  No.2 examined  himself  on   oath by  filing


his affidavit of examination in chief at Exh.68. Defendant No.2
also examined witness Mahadeo Aba Omase at Exh.90, witness
Rajkumar   Jalindar   Buva   at   Exh.94   and   witness   Vijaykumar
Shantaram Ranagi at Exh.100. Defendant No.2 has relied upon
Sale   deed   at   Exh.114   and   power   of   attorney   at   Exh.113.
Defendant No.2 filed evidence close pursis at Exh.104. 
14. Defendant   Nos.3   to   6   filed   evidence   close   pursis   at
Exh.107. 

15. I   have   heard   learned   advocate   for   plaintiff   and


defendants at considerable length.
CNR No.MHSN060004912012    ­ 8 ­     R.C.S.No.66/2012 (Judgment)

: 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)

plaintiff   that   said   notice   is   received   by   defendant   No.1   but   he


failed to execute sale deed in his favour as per performance of
agreement to sale at Exh.59. Though plaintiff has not produced
any receipt of notice at Exh.61 by defendant No.1, the non receipt
of said notice is not contended by defendant No.1. The fact of
sending notice at Exh.61 by plaintiff to defendant No.1 remained
unchallenged by defendant No.1. Thus, plaintiff has proved that
he has sent notice to defendant No.1 for making compliance of
the   agreement   at   Exh.59.   On   perusal   of   notice   at   Exh.61,   it
reveals   that   plaintiff   has   stated   about   his   readiness   and
willingness   to   fulfill   the   obligation   on   his   part   by   paying
remaining amount of consideration and he is ready to perform his
part of contract. Thus, as this fact is remained unchallenged by
defendant   No.1,   plaintiff   has   proved   that   he   was   ready   and
willing to perform his part of contract. 

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)

favour  for  consideration   of  Rs.4,55,000/­  and out   of  it  earnest


money of Rs.25,000/­ is paid by him to defendant No.1. Plaintiff
has   examined   himself   and   PW­2   Pradip   Patwardhan.   It   is
contended by both of these witnesses that agreement at Exh.59 is
executed by defendant No.1 and the contents in said agreement
to sell is also agreed by both parties. Plaintiff in his evidence has
stated that defendant No.1 by agreement at Exh.59 admitted that
he has not executed any document in respect of suit property to
anyone. Further the defendant No.1 has also satisfied to him that
there   is   no   encumbrance   on   said   property.   The   agreement   is
produced at Exh.59. On perusal of said agreement, it reveals that
the agreement is stipulated with some conditions which have to
be   fulfilled   by   defendant   No.1  and  it   is  also   admitted  by  both
parties   that   on   fulfillment   of  those  stipulations  and  conditions,
sale deed of suit property to be executed by defendant No.1 in
favour of plaintiff. On perusal of said sale deed, it is one of the
condition that the consent of other co­owners and tenants has to
be obtained by defendant No.1, within 15 days. The agreement
also contents that defendant No.1 to satisfy and give assurance
that there is no grievance, complaint, court matters, agreement
with relatives, in respect of suit property. Thus, it is the condition
that within 15 days, defendant No.1 have to take consent of other
co­owners and tenants in said Gat numbers and also to satisfy the
plaintiff about no grievance, complaint, court matters, agreement
with relatives, in respect of suit property. For that purpose, as per
condition   mentioned   in   agreement   to   sell,   plaintiff   has   issued
CNR No.MHSN060004912012    ­ 13 ­     R.C.S.No.66/2012 (Judgment)

paper   notice   dated   20.06.2006   and   published   on   23.06.2006


(Exh.60) calling objections. On perusal of said notice at exh.60,
plaintiff has mentioned that the objection be given to him within
7 days from the date of notice. It is the defence of the defendant
No.2   that   he   has   no   knowledge   about   the   agreement   to   sell
(Exh.59)   and   thus   he   has   purchased   the   suit   property   on
27.06.2006. It is also argued by defendant No.2 that the power of
attorney   holder   of   defendant   No.1   has   also   given   reply   paper
notice   (Exh.114)   which   is   dated   29.06.2006   and   published   on
01.07.2006. The said reply notice is produced by plaintiff himself.
On   perusal   of   said   notice,   it   reveals   that   he   has   specifically
mentioned that the suit property is transferred by him to another
and   general   public   is   cautioned   not   to   make   any   contract   in
respect of the suit property with defendant No.1. The said paper
notice has also cautioned the plaintiff not to take further steps in
respect of the suit property as it is previously sold by him. Thus,
as   per   documents   on   record   from   date   of   calling   objection   by
paper notice within time, plaintiff received objection and he got
knowledge   about   the   sale   deed   in   respect   of   suit   property.
Plaintiff has also not pleaded about the stipulations to be fulfilled
by   defendant   No.1   for   concluding   the   contract   into   sale   deed.
Plaintiff has not also produced any evidence in respect of consent
of other co­owners and of tenants. But it seems from the defence
of   defendant   Nos.3   to   7   that   the   suit   property   is   not   yet
partitioned and they have not given consent to defendant No.1
for sale. Hence, the plaintiff has well knowledge on 01.07.2006
CNR No.MHSN060004912012    ­ 14 ­     R.C.S.No.66/2012 (Judgment)

that   the   conditions   as   mentioned   in   agreement   to   sell   are   not


fulfilled by defendant No.1 and the suit property is purchased by
defendant No.2. Being this situation, plaintiff has sent notice to
defendant No.1 which is produced at Exh.61. Though there are
conditions to be fulfilled by defendant No.1 for the execution of
sale   deed   of   the   suit   property   in   his   favour,   plaintiff   has   not
required vide his notice (Exh.61) from defendant No.1 to fulfill
those conditions of agreement to sell. Thus, before completing the
conditions   of   agreement,   plaintiff   has   required   from   defendant
No.1 execution of sale deed. Thus, plaintiff has suppressed the
material   facts   of   the   agreement   and   came   before   Court   for
seeking equitable relief of specific performance of contract. 

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)

23. Section   20   of   the   Specific   Relief   Act   (before


amendment), reads as follows ­
Section   20­  Discretion   as   to   decreeing   specific
Performance. 
(l)   The   jurisdiction   to   decree   specific   performance   is
discretionary, and the court is not bound to grant such
relief   merely   because   it   is   lawful   to   do   so;   but   the
discretion   of   the   court   is   not   arbitrary   but   sound   and
reasonable, guided by judicial principles and capable of
correction by a court of appeal.

(2)   The   following   are   cases   in   which   the   court   may


properly   exercise   discretion   not   to   decree   specific
performance—

(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.

(4)   The   court   shall   not   refuse   to   any   party   specific


performance of a contract merely on the ground that the
contract is not enforceable at the instance of the other
party.
 
24. In   the   present   case,   defendant   No.1   has   executed
registered power of attorney in favour of Dr.G.S.Bharati in respect
of suit property on 21.01.1999. But he later on has executed the
agreement   to   sell   at   Exh.59   dated   19.09.2006   in   favour   of
plaintiff. It seems from the record that the plaintiff is in hurry to
purchase   the   suit   property.   It   is   admitted   fact   on   record   that
plaintiff   is   land   developer   and   having   knowledge   that   before
purchasing any immovable property, the person have to take the
search in respect of any agreement, encumbrance, if any, on the
said property; But plaintiff failed to take the search of the suit
property,  if he has taken search of the suit property, he might
found   that   defendant   No.1   has   executed   registered   power   of
attorney in  favour  of  Dr.G.S.Bharati. The  time period from the
agreement to sell till filing of the suit creates doubts about the
behaviour   and   intention   of   the   plaintiff.   Plaintiff   having
CNR No.MHSN060004912012    ­ 17 ­     R.C.S.No.66/2012 (Judgment)

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.  

26. It   is   admitted   position   that   possession   of   the   suit


CNR No.MHSN060004912012    ­ 18 ­     R.C.S.No.66/2012 (Judgment)

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)

specific   details   and   circumstance   for   the   granting   damages   as


claimed by him. Plaintiff has also not stated that due to breach of
contract he has suffered any special damages as per section 73 of
the Contract Act. Section 73 of the Indian Contract Act, 1872 read
as follows ­

Section   73.­Compensation   for   loss   or   damage


caused by breach of contract. ­ When a contract has been
broken, the party who suffers by such breach is entitled to
receive,   from   the   party   who   has   broken   the   contract,
compensation   for   any   loss   or   damage   caused   to   him
thereby,   which   naturally   arose   in   the   usual   course   of
things   from   such   breach,   or   which   the   parties   knew,
when they made the contract, to be likely to result from
the breach of it. 

Such   compensation   is   not   to   be   given   for   any


remote an indirect loss or damage sustained by reason of
the breach. 

Compensation   for   failure   to   discharge   obligation


resembling those created by contract.­ …........

Explanation.­   In   estimating   the   loss   or   damage


arising   from   a   breach   of   contract,   the   means   which
existed of remedying the inconvenience caused by the non
performance of the contract must be taken into account.  

29. Thus,   as   per   section   73   of   the   Contract   Act   as


defendant   No.1   has   broken   the   contract   made   by   him,   hence,
plaintiff is entitled for damages. As per explanation of section 73,
the means which existed of remedying if taken into consideration
CNR No.MHSN060004912012    ­ 20 ­     R.C.S.No.66/2012 (Judgment)

the plaintiff also has opportunity for mitigating the damages as
claimed by him. 

30. Damages   will   not   be   payable   if  loss   is  abnormal   in


nature.   The   non   breaching   party   is   obligated   to   mitigate,   or
minimize   the   amount   of   damages   to   the   extent   reasonable.
Damages   cannot   be   recovered   for   losses   that   could   have   been
reasonably avoided or substantially ameliorated after the breach
occurred.   The   non   breaching   party's   failure   to   use   reasonable
diligence   in   mitigating   the   damage   means   that   any   award   of
damages  will   be   reduced  by  the   amount   that   could  have  been
reasonably   avoided.   The   plaintiff   has   claimed   Rs.4,55,000/­
including earnest amount as damages from defendants. As I have
answered issue No.5 in the negative, plaintiff is entitled only to
the damages which are normal in course of business and which is
loss   directly   occurred   due   to   breach.   From   the   evidence   on
record, plaintiff has proved that he has advanced Rs.25,000/­ to
defendant No.1 on 19.06.2006, which is till today not repaid by
the defendant No.1. Thus, for the discussion as above, I think it
proper to return earnest amount of Rs.25,000/­ to plaintiff along
with   interest   @   6%   per   annum   from   19.06.2006   till   its   full
realization, as amount of damages. Hence, I answer issue No.6 in
partly affirmative.   

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)

Issar   and   others"  reported   in   "(2018)   7   Supreme   Court   Cases


636   :    wherein   it   is   held   that   the   registered   general   power   of
attorney   will   require   stamp   duty   as   applicable   to   deed   of
convenience instead of duty of Rs.100/­ only. In case in hand the
plaintiff has not sought any relief in respect of neither power of
attorney   executed   by   defendant   No.1   nor   sought   any   relief   in
respect of sale deed executed by defendant No.1 by using said
power of attorney. Considering the ratio laid down in case cited
supra and the facts of case in hand are not identical. Therefore,
the ratio relied upon is not applicable to the facts of the present
case. 

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)

registered   power   attorney   given   by   him   to   Dr.G.S.Bharati,


therefore, the ratio relied upon is not applicable to the facts of the
present case and not helpful to the plaintiff. 

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. 

34. Learned   advocate   for   defendant   No.2   relied   upon


ratio   laid   down   in   case   of  "Ramti   Devi   Vs.   Union   of   India"
reported in "(1995) (1) Supreme Court Cases 198 :  wherein it is
held   that  when   there   is  duly  registered  document  in  favour  of
person against whom the relief is sought, until the said document
is avoided or cancelled by proper declaration the duly registered
document   remains   valid   and   binds   the   parties.   In   the   present
case,   defendant   No.2   has   purchased   the   suit   property   by   duly
CNR No.MHSN060004912012    ­ 23 ­     R.C.S.No.66/2012 (Judgment)

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. 

35. Learned   advocate   for   defendant   No.2   relied   upon


ratio   laid   down   in   case   of  "Suhrid   Sing   @   Sardool   Singh   Vs.
Randhir   Singh   and   Others"  reported   in   "(2010)   (12)   Supreme
Court Cases 112 :  wherein it is held that when there is prayer for
declaration that the sale deeds were void and not binding on the
coparcenery   and   consequential   relief   of   joint   possession   and
injunction, the Court fee applicable in such cases will be as per
section 7 (IV) (C) r.w.section 7 (V) of the Court fee Act. But the
facts in the case cited supra and case in hand are not identical.
Therefore, the ratio relied upon is not 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.
    
*****

You might also like