Full Judgment Text
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PETITIONER:
GANESH SHET
Vs.
RESPONDENT:
DR. C.S.G.K. SETTY & ORS.
DATE OF JUDGMENT: 15/05/1998
BENCH:
S.B. MAJMUDAR, M. JAGANNADHA RAO
ACT:
HEADNOTE:
JUDGMENT:
THE 15TH DAY OF MAY, 1998
Present:
Hon’ble Mr. Justice S.B. Majmudar
Hon’ble Mr. Justice M. Jagannadha Rao
R.F. Nariman, Sr.Adv., Girish Ananthamurthy, G.V.
Chandrasekhar, B.Y. Kulkarni, Advs. With him for the
appellant
M.Rama Jois, Sr. Adv., P. Mahale, Adv. with him for the
Respondent in No.1
G.L. Sanghi, Sr.Adv., T.V. Ratnam., Adv. with him for the
Respondent Nos. 2-3
J U D G M E N T
The following Judgment of the Court was delivered:
M. JAGANNADHA RAO. J.
The appellant is the plaintiff. He filed the suit O.S
No. 50 of 1985 for specific performance of an agreement of
sales of house property located at Shimoga, Karnataka State
executed in his favour. He succeeded in the trial court but
on appeal by the Vendors-defendants, the Judgment of the
trial court was set aside by the High Court and the suit was
dismissed. Against the said Judgment of the High Court, this
appeal was preferred.
The case of the appellant in the suit filed on the file
of the Civil Judge, Shimoga was as follows : The defendants
1 to 3 are three brothers and are joint owners of the house
at Shimoga. The Ist defendant who was a Professor was
working at Delhi ( now retired); the 2nd defendant was at
Madras and the third defendant was at Bangalore. The
defendants 2 and 3 gave powers-of-attorney to the Ist
defendant. There were consultations between plaintiff and
the Ist defendant which started in 1983 by way telephone
calls and letters and ’after the negotiations reached a
final stage’ the Ist defendant wanted the plaintiff to come
to Delhi "for finalising" the proposals. The plaintiff took
along with him, one Mr. R.K. Kalyankar (PW 2) to help him in
the negotiations. They took two bank drafts for Rs. 50,000/-
and Rs . 10,000/- respectively and reached Delhi in January
1984. On 25.1.1984, at the residence of the Ist defendant, a
draft agreement of sale was ’approved’ by the Ist defendant
with small changes made in his own handwriting and the Ist
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defendant told the plaintiff ’that he was approved the draft
and "the contract was concluded". (The photocopy of the
agreement was filed and its original was marked as Ex. p3).
The agreed consideration was Rs. 5 lakhs and the purchaser
agreed to bear the stamps and registration charges. It was
also agreed that the sale deed was to be executed on or
before 30.6.1984 or within a reasonable time and that
thereafter the plaintiff would be put in possession. The Ist
defendant did not accept the Bank drafts but said he would
accept the entire consideration in one lump sum at the time
of registration. The plaintiff returned to Shimoga and the
further correspondence ’only confirmed that the defendants
would execute the sale deed’. The plaintiff received a
telegram (Ex. p7 dated 4.4.84) addressed to PW 2 that the
terms of the agreement were acceptable. Further, the 3rd
defendant also "confirmed" the terms of the agreement by
letter dated 11.4.84 (Ex .P6). The plaintiff received
another letter dated 18.4.1984 (Ex.P4) which stated that 1st
defendant would be coming over to Bangalore on 28.4.1984.
They met at Bangalore and it was agreed that plaintiff was
to be ready with the entire sale consideration by about 3rd
week of June 1984. The plaintiff raised finances by selling
some of his properties. The plaintiff was ready and willing
to perform the contract. The Ist defendant came to Shimoga
on or about 17.6.1984 but surprisingly he did not meet the
plaintiff. On the other hand defendants gave a paper
advertisement on 26.6.84 for sale of the house. Plaintiff
then got a regd. notice dated 2.7.84 (Ex.P12) issued and
defendants 2 and 3 give a reply dated 31.7.84 (Ex . P16).
The suit was laid for specific performance of the agreement
of sale said to be dated 25.1.84 entered into at Delhi and
for posession and also for permanent injunction restraining
alienation by defendants.
A written statement was filed by the Ist defendant
contending mainly that there was correspondence between
parties, the negotiations did not reach any ’final’ stage
and that there was ’no concluded contract’. There were only
proposals and counter proposals. Sale consideration was not
Rs .5 lakhs. The Ist defendant had an obligation to consult
his brothers. They were not willing for a consideration of
Rs.5 lakhs. The Ist defendant did not state, as contended,
in any telegram dated 4.4.84 nor any letter dated 11.4.84.
PW 2 sent another draft agreement(Ex. D11) alongwith his
letter dated 29.31984 (Ex .P8) and the Ist defendant made
corrections therein, especially regarding consideration,
correcting the figure Rs .5 lakhs as Rs.6.50 lakhs - apart
from other corrections. The Ist defendant did not ask the
plaintiff to be ready by June 1984 for registration as
alleged by plaintiff. The agreement produced alongwith
plaint was only a proposal. Plaintiff was, in the meantime,
negotiating for another property at Davangere. Plaintiff was
not ready and willing. The plaintiff did not product the
letter of PW 2 dated 11.4.84 addressed to Ist defendant. The
suit was liable to be dismissed. These were the allegations
in the said written statement of the 1st Defendant.
Defendants 2 and 3 adopted the written statement of Ist
defendant.
The trial court after considering the oral and
documentary evidence held on issue 1,3 & 4 that a contract
was concluded at Delhi between Plaintiff and defendants on
25.1.1984 for Rs .5 lakhs as per Ex .P3 draft, that the said
agreement dated 25.1.84 was not materially altered later and
the sale deed was agreed to be executed by 30.6.84. On issue
2, it held that plaintiff was ready and willing and that
plaintiff was entitled to specific performance of the
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agreement dated 25.1.1984 and for permanent injuction
against defendants not to alienate the property to others.
The defendants 1 to 3 appealed to the High Court. The
High Court reversed the decree and dismissed the suit. It
held that there was no concluded contract on 25.1.1984 at
Delhi and this was clear from the subsequent correspondence.
So far as the subsequent correspondence was concerned, it
was clear from Ex.P5 dated 10.4.84 written by Ist defendant
that the Ist defendant was ready to execute the agreement as
per the "talks" that took place at Delhi on 25.1.1984 and he
had written to the plaintiff to go over to Delhi or he would
come to Bangalore. He requested the plaintiff to inform him
about the plaintiff’s decision in regard to the matter.
Ex.P23 letter addressed to plaintiff also said the same
thing. As per Ex .P6 letter dated 11.4.84 of defendants the
ball was left in the court of the plaintiff ’awaiting his
confirmation’, but the plaintiff did not send any reply. Ex
.P4 letter dated 18.4.84 of Ist defendant showed that he had
sent the agreement sent by the Plaintiff with certain
alterations and that he would be reaching on 28th. But after
Ist defendant arrived at Bangalore on 27.4.84 , plaintiff
did not meet him. It was not possible to say that parties
had agreed for Rs. 5 lakhs at any stage. The draft sent to
the ist defendant alongwith Ex.P4 letter was of course, Ex
P3 as contended by plaintiff and not the other draft Ex.
D11, as contended by the 1st defendant. But it was not
possible to accept that plaintiff agreed to pay Rs.5 lakhs.
Inasmuch as the relief was for specific performance of an
agreement of sale dated 25.1.1984 and no such agreement was
proved, it must be held that plaintiff did not come to Court
with clean hands and discretion could not be exercised in
his favour. It was also stated that plaintiff, when he was
asked if he wanted to rely on any agreement of April 1984
and if he would amend the plaint, the plaintiff’s counsel
was not willing to amend the plaint. Hence the suit was
liable to be dismissed. The appeal was allowed accordingly.
In this appeal elaborate arguments were advanced by
learned senior counsel Sri R.F. Nariman for the plaintiff-
appellant, learned senior counsel by Sri Rama Jois for the
Ist defendant and senior counsel Sri G.L. Sanghi for
defendants 2 and 3.
Four points arise for consideration :
(1) Whether there was a concluded contract between the
parties on 25.1.1984 at Delhi when plaintiff and PW 2 (Mr.
Kalyankar) met the Ist defendant at his Delhi residence?
(2) Having not agreed in the High Court to amend the plaint
and plead that there was a concluded contract at Bangalore
on 28.4.84 and having thus refused to seek for a relief for
specific performance of an agreement dated 28.4.84, whether
the plaintiff could contend that there was an agreement of
sale dated 28.4.84 at Bangalore?
(3) What are the legal principles applicable to suits for
specific performance under section 20 of the Specific Relief
Act, 1963 where there is variation between pleadings and
evidence in regard to the date or other terms of the
contract? To what extent can relief be given under the
heading ’general relief’ in suits for specific performance
under Order 7 Rule 7 CPC?
(4) Alternatively, whether, on the plaint as it stands, and
the prayer made therein without seeking amendment, the
plaintiff can get a decree for specific performance of an
agreement dated 28.4.84 said to have been concluded at
Bangalore?
Point 1:
On this point, as to whether there is a concluded
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agreement at Delhi on 25.1.1984. there is abundant evidence
to say that there is no such concluded agreement. This is
clear from the suit-notice Ex.P12 dated 2.7.84 wherein
plaintiff has stated clearly that at the Delhi meeting the
ist defendant said that he is yet to consult his two
brothers. The correspondance between the parties and PW2
subsequent to 25.1.84 has been read to us by the learned
senior counsel for the appellant-plaintiff and on reading
the same, we are clear that the finding of the High Court
that there is no concluded agreement on 25.1.1984 at Delhi
is unassailable and is absolutely correct. The tenor of
several letters from PW2 to 1st defendant after 25.1.1984
shows that consideration for sale was not finalised at
Delhi. Learned senior counsel for the appellant, after
elaborate submissions has more or less accepted this
position and has concentrated on the question which we have
set out under the third and fourth points. Hence there can
be no decree for specific performance of any agreement dated
25.1.84 as none has been concluded on that day. We hold on
Point 1 accordingly.
Point 2;
The learned senior counsel for the appellant has argued
before us that plaintiff must be given relief in respect of
the agreement which, according to him, has been concluded at
Bangalore on 28.4.1984 and specific performance can be
granted in respect of such an agreement.
We have already stated that, in the High Court, when
and opportunity for amendment of plaint was given by the
High Court to the plaintiff the same was spurned and not
accepted by the plaintiff’s counsel. That being the attitude
of the appellant in the High Court, we are of the view that
the plaintiff can not be given any relief for specific
performance of any such agreement allegedly concluded at
Bangalore on 28.4.1994. Point 2 is also held against the
appellant.
Point 3 and 4:
These are the points upon which the appellants counsel
made elaborate submissions citing several rulings of this
Court and the High Courts under Order 6 and Order 7 CPC. It
has been argued that, without amendment of plaint, plaintiff
can ask the Court to construe the pleadings liberally.
Inasmuch as both sides have adduced evidence on the question
whether there has been an agreement at Bangalore on
28.4.1984 or not, the plaintiff can still be given relief of
specific performance on the basis of the original plaint as
it stands, even assuming there is no specific reference to a
contract being concluded at Bangalore on 28.4.84. Several
rulings have been cited before us to the effect that if
parties have led evidence on a point which has not been
pleaded, no prejudice will be caused if relief is granted on
the basis of what emerges from the evidence. We do not
propose to refer to these rulings as the said propositions
are not in dispute.
(A) Point 3:
(a) We shall first refer to certain special principles
of law applicable to suits for specific performance in
regard to the discretion which is to be exercised under
section 20 of the Specific Relief Act, 1963, when there is a
conflict between the pleading and the evidence.
Section 20 of the Act reads as
follows:
"S .20: Discretion as to decreeing
specific performance:(1) The
jurisdiction to decree specific
performance is discretionary, and
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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)--------------------------------
(3)--------------------------------
(4)------------------------------"
It is well settled that the circumstances referred to in
dub-clauses (2) to (4) in regard to exercise of discretion
for granting a decree for specific performance are not
exhaustive. The relief for specific performance is
discretionary and is not given merely because it is legal
but it is governed by sound judicial principles. (See
Madamsetty Satyanarayana vs. G. Yellogi Rao & Two Others
[1965 (2) SCR 221] and Sardar Singh vs. Smt. Krishna Devi &
Another [1994 (4) SCC 18]).
It is again well settled that, in a suit for specific
performance, the evidence and proof of the agreement must be
absolutely clear and certain.
In Pomeroy on ’Specific Performance of Contracts’ (3rd
Edn) (para 159) it is stated clearly, that a "greater amount
or degree of certainly is required in the terms of an
agreement, which is to be specifically executed in equity,
than is necessary in a contract which is to be the basis of
an action at law for damages. An action at law is founded
upon the mere non-performance by the defendant, and this
negative conclusion can often be established without
determining all the terms of the agreement with exactness.
The suit in equity is wholly an affirmative proceeding. The
mere fact of non performance is not enough; its object is to
procure a performance by the defendant, and this demands a
clear, definite, and precise understanding of all the terms;
they must be exactly ascertained before their performance
can be enforced. This quality of certainty can best be
illustrated by examples selected from the decided
cases........"
The question is whether, when parties have led evidence
in regard to a contract not pleaded in the evidence, relief
can be granted on the basis of the evidence and whether the
plaintiff can be allowed to give a go-bye to the specific
plea in the plaint. Is there any difference between suits
for specific performance and other suits?
It appears to us that while normally it is permissible
to grant relief on the basis of what emerges from the
evidence - even if not pleaded, provided there is no
prejudice to the opposite party, such a principle is not
applied in suits relating to specific performance. In Gonesh
Ram vs. Ganpat Rai [AIR 1924 Cal 461], the Calcutta High
Court has considered the same question. There the agreement
pleaded was not proved but plaintiff wanted to prove an
antecedent agreement based on correspondence. It was held
that the plaintiff, in a suit for specific performance,
could not be permitted to abandon the case made out in the
plaint and to invite the Court to examine whether a
completed agreement may or may not be spelt out of the
antecedent correspondence. In that connection Sir Asutosh
Mookerjee observed:
"The Court would not in a case of
this description permit the
plaintiffs to depart from the case
made in the plaint as the Court
discourages, as a rule, variance
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between pleading and proof. The
test to be applied in such cases is
whether if the variance were
permitted in favour of the
plaintiffs, defendants would be
taken by surprise and be prejudiced
thereby .........This rule is
applied with special strictness in
cases of specific performance of
contracts. In Hawkins vs.
Maltby(1868) 3 Ch.A. 188, one
contract was alleged and another
was proved, with the result that
the bill was dismissed. No doubt
where there has been part
performance, the Court may struggle
with apparently conflicting
evidence rather than dismiss the
suit. This appears to have been the
view adopted by Lord Cottenham in
Mundy vs. Jolliffe 5 Myl 8 C167:
(1939) 9 LJ ch. 95. In the case
before us there is no question of
part performance".
A.N. Ray (as he then was) in Md. Ziaul Haque vs.
Calcutta Vyapar Pratisthan ([AIR 1966 Cal 605] referred to
the special rule applicable to suits for specific
performance and also relied upon Hawkins vs. Maltby [1867] 3
Ch.A.188. The learned judge observed;
"In Nil Kanta’s case 19 C.W.N. 933
= AIR 1916 Cal 774, it was said
that when a plaintiff alleged a
contract of which he sought
specific performance and failed to
establish in the court would not
make a decree for specific
performance of a different four
specific performance of a different
contract. Reliance was placed on
Hawkins vs. Maltby reported in
[1867] 3 Ch.A. 188.
.......Emphasis was rightly placed
on the aspect of the plaintiff’s
case pleaded that there was an
agreement in the month of August
and that the plaintiff failed to
prove that case and the plaintiff
having completely abandoned that
case of agreement in the month of
August, any attempt on behalf of
the plaintiff to make recourse to
May agreement would be to have a
decree for specific performance of
an agreement which was not the
agreement of the parties according
to the plaintiff".
The above special principles applicable to cases of specific
performance can be also gathered from standard works under
the England Law, where the above English cases and other
cases have been cited.
Halsbury’s Law of England (Vol 44, 4th Edn.1984)
(Specific Performance, para 443) (f .n.1) states, after
referring to Pillage vs. Armitage [(1805) 12 Ves 78], that
the plaintiff having failed to prove an agreement which he
had set up, was refused specific performance of a different
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agreement admitted by the defendant cf . Legal vs. Miller
[(1750) 2 Ves. Sen. 299].
Fry on ’Specific Performance’ (6th Ed) (PP. 298-302)
deals with the exact point in issue before us. The another
refers to four types of cases: (1) Where the defendant
admits the contract alleged; (2) Where the defendant denies
the contract as alleged and the plaintiff supports his case
by one witness only; (3) Where the defendant denies the
contract as alleged and the evidence proves a contract, but
different from that alleged by the plaintiff; and (4) where
the defendant denies the contract as alleged and admits
another contract.
On the assumption that plaintiff has proved an
agreement at Bangalore on 28.4.84 (which question we shall
deal with under Point 4), it is obvious that we are here
concerned with category, Fry says (p. 299) (paras 634 to
638) as follows:
"(3): In considering the case in
which a Variation has arisen
between the contract alleged and
that proved, it must be borne in
mind that the burthen of providing
his case rests, of course on the
plaintiff, and therefore, if there
by any such conflict of evidence as
leaves any uncertainty in the mind
of the court as to what the terms
of the parole contract were its
interference will be refused
(Lindsay vs. Lynch 2, Sch. & Lef.
1; cf Price vs. Salusbury 2 Beav,
446)"
Fry also refers to a case where one contract has been
alleged in the bill, another has been proved by the
plaintiffs’ one witness and a third contract has been
admitted by the two defendants and where initially. Specific
performance has been granted a per the contract set up by
the answers. Fry says: "but Lord Rosslyn considered that in
strictness the bill ought to have been dismissed. (Mortimer
vs. Orchard, (2 Ves,. Jun, 243; London and Birmingham Rly .
Co. vs. Winter: (Cr. & Ph. 57). In a more recent case, where
one contract was alleged and another proved, the bill was
dismissed without prejudice to the filing of another bill
(Hawkins vs. Maltby L.R. 3 Ch.A. 188; the fresh bill was
filed (L.R. 6 Eq.505 and 4 Ch.200). The inclination of Lord
Cottenham’s mind seems to have been to struggle with
apparently conflicting evidence rather than to dismiss the
bill, where there had been part performance’ (Mundy vs.
Jollife 5 Myl. Cr.p.167). In one case Turner L.J observed
that there are cases in which the court will go to a great
extent in order to do justice between the parties when
possession has been taken, and there is an uncertainty about
the terms of the contract (East India Co. vs. Nuthumbadoo
Veerasawmy Moodelly [7 Moo PCC p.482 at 497]). In the case
of part performance, it is said, similar views were
expressed in the Privy Council by Sir William Erle (Oxford
vs. Provand L.R. 2 P.C.135) as follows:
"With respect to the supposed
vagueness of the memorandum of
agreement, their Lordships propose
to consider what is the true
construction of that memorandum,
having regard to the terms of the
instrument and, and to the
surrounding circumstances, and also
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in reference to this suit for
specific performance, and, to the
conduct of the parties in the
interval between the making of the
agreements and the commencement of
the suit".
Fry also refers to Hart vs. Hart (18 ch.D.670 at 685) in
that context. The author then refers to cases where the
variation between the contract alleged and proved is an
immaterial variation and says that in such cases, the bill
is granted. He says (p. 301) that this is the position under
the old practice of the Court of Chancery but the High Court
can permit amendment to put that contract in issue; but
"that if there was not (i.e.amendment), it will generally
give judgment for the defendant, without reserving any right
to the plaintiff to institute fresh proceedings. But the
circumstances will govern the discretion of the Court in
each case which may arise".
The above principles are, it is clear, special
principles applicable to suits for specific performance. The
case before us does not fall within the exceptions namely, -
part performance or immaterial variations. Nor is it a case
where the plaintiff has agreed to amend his plaint. On the
other hand, as already stated, the plaintiff spurned the
opportunity given to him by the High Court for amendment of
plaint. The case is in no way dissimilar to the cases in
Gonesh Ram vs. Ganpat Rai and to Mohd. Ziaul Jaque, referred
to above.
(b) Yet another aspect of the matter is whether in a
suit for specific performance the plaintiff can be given
relief under the general prayer "such other relief as this
Hon’ble Court may deem fit to grant in the circumstances of
the case", in the light of Order 7 Rule 7 CPC. order 7 Rule
7 CPC reads as follows:
"Relief to be specifically stated:
Every plaint shall state
specifically the relief which the
plaintiff claims either simply or
in the alternative, and it shall
not be necessary to ask for general
or other relief which may always be
given as the Court may think just
to the same extent as if it had
been asked for. And the same rule
shall apply to any relief claimed
by the defendant in his written
statement."
Mulla(CPC) Vol.2 (15th Ed.p.1224) says that such relief may
always be given to the same extent as if it had been asked
for, provided it is not inconsistent with that specifically
claimed, and with the case raised in the pleading. (See
Cargil vs. Bower [1878 Ch. D.502, 508]; Kidar Lall Seal &
Another vs. Hari Lall Seal [1952 SCR 179]).
It is stated in Corpus Juris Secundum (Vol. 81A,
Specific Performance) (Para 189) as follows:
"In accordance with general rules,
the relief awarded in a suit for
specific performance would be based
on the issues raised by the
pleadings and supported by the
proof. More specifically, relief
awarded for the plaintiff must be
authorised by or be in conformity
with his pleading in respect of the
contract to be enforced and the
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parties thereto".
As to the ’general relief’ in suits for specific
performance it is stated:
"In accordance with the general
rules and its qualifications and
limitations where the bill or
complaint in a suit for specific
performance contains a prayer for
general relief, the court may
grant relief consistent with the
facts pleaded and proved and the
court may in some cases grant or
award partial relief."
In other words, other relief to be granted must be
consistent with both pleading and proof, in suits for
specific performance. The principles stated above under (a)
and (b) appear to us to be the broad principles which are to
be borne in mind while dealing with exercise of discretion
in cases of specific performance. We decide Point 3
accordingly.
(B) Point 4:
Strictly, this point does not arise in view of the
principles stated under Point 3. But even so, as the counsel
have made elaborate submissions we shall decide the same.
(a) We shall initially analyse the plaint averments and
then examine the evidence limited to the agreement dated
28.4.1984.
In para 3 of the plaint it is stated, referring to
25.1.84 meeting of the parties at Delhi, that ’the contract
was also concluded’, and that it was decided that the
registration should take place in June 1984.
The plaint states :
’further correspondance which only
confirmed that the defendants would
execute the registered sale deed.
The plaintiff also received
telegram addressed to Sri R.K.
Kalyankar that the terms of the
agreement are acceptable and this
was received on 4.4.1984. Further,
the 3rd defendant also confirmed
the terms of the agreement and
wrote a letter to the plaintiff on
11.4.1984.
Adverting to the Bangalore meeting the plaint merely stated
as follows:
"The defendants informed the
plaintiff that the first defendant
is purchasing a flat in University
Compound, Delhi and that he
requires the amount and that he
would receive the entire amount at
the time of executing the sale
deed. The defendant also said that
the plaintiff is to be ready with
the entire amount at the time of
executing the sale deed. .....The
defendant also told the plaintiff
to be ready with the entire sale
consideration by about the 3rd week
of June 1984".
If, as stated under Point 1, there was no concluded
contract at Delhi on 25.1.1984, then the above, averments in
the plaint do not show that there was an independent
concluded agreement at Bangalore. The plaint proceeds on the
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basis that the concluded agreement, if any, was the one
dated 25.1.1984 at Delhi. The paragraph dealing with cause
of action (paragraph 9) also, states thus:
"When the defendants concluded the
contract on 25.1.1984 and also on
subsequent dates when the
defendants further confirmed the
agreement of sale....."
Therefore, there is no specific allegation of any fresh
agreement of sale dated 28.4.1984 in the plaint. Further,
the relief asked for in para 11 is only with regard to the
’concluded’ agreement of 25.1.1984 and reads as follows :
"(a) Specific performance of the
agreement of sale concluded between
the parties on 25.1.1984 and
direct........."
(b) Permanent injunction..........
(c) Cost of this suit and such
other reliefs as this Hon’ble Court
may deem fit to grant in the
circumstances of the case".
The main difficulty for the plaintiff in this case is that
he was thrown away the opportunity granted by the High Court
to amend the plaint for proof of an agreement of sale dated
28.4.1984 and for specific performance of such an agreement
of sale dated 28.4.1984.
(b) We shall next deal with the evidence on this aspect.
Learned senior counsel on both sides have referred us to the
evidence adduced by the parties in relation to the agreement
dated 28.4.1984. PW 2 the person who was corresponding and
negotiating on behalf of plaintiff stated in his evidence-
"We did not get agreement on
28.4.1984 from the first
defendant."
He stated in regard to the concluded agreement of 25.1.1984
as follows:
"It is not correct to say on
25.1.1984 no transaction (was
settled) and sale price was not
settled".
As already stated, this runs counter to the suit notice sent
wherein it is admitted that on 25.1.1984, Ist defendant said
at Delhi that he has still to consult his brothers.
Subsequent correspondance after 25.1.1984 on this aspect, as
already stated, is very clear that there is no concluded
contract as on 25.1.1984.
So far as the plaintiff is concerned, as PW1 he says
that the agreement is concluded at Delhi on 25.1.1984 for
Rs.5 lakhs and Ist defendant "confirmed negotiation. I gave
first defendant a rupee coin". This version of giving a
rupee coin at Delhi also shows that, even at the stage of
the evidence, PW 1 stuck to a case, of a concluded contract
on 25.1.1984 at Delhi which is totally contrary to the suit
notice and the correspondance after 25.1.1984.
In respect of the 28.4.1984 meeting at Bangalore, PW1
stated that the Ist defendant was alone at Bangalore and
they meet him and he said he had to correct some question-
papers from Andhra Pradesh and that he had to go to Delhi
urgently and that he asked the plaintiff "to come again in
the second week June 1984 and also he told that he would
come to Shimoga to execute registered deed. He told us to
keep entire amount ready and there shall not (be) give
trouble". From the above evidence, it could not be said that
parties negotiated afresh at bangalore and concluded any
fresh agreement on 28.4.1984.
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Learned senior counsel for appellant relied upon a
telegram dated 4.4.84 (Ex .P7) which reads as follows:
"Agreement acceptable. You come to
Delhi for agreement, if unable,
inform"
Ex. P5 letter dated 10.4.84 of Ist defendant to plaintiff
stated that he has received the letter of PW2 on 6.4.84 and
it further states:
"I agree to make agreement in
accordance with talks at Delhi by
us. It may be done at Delhi if you
come to Delhi......Mainly, if mind
satisfied regarding money, it may
be done, if it is less or more. As
it is said by Kalyankar, we must
have due it seems".
On the next day 11.4.84, the 3rd defendant writes to
PW1 Ex P6 dated 11.4.84 (produced by plaintiff PW1) as
follows:
"I understood from my brother,
Dr.C.S.G.K. Setty at Delhi, that he
has conveyed to you both by
telephone and by letter, that you
should meet him at Bangalore during
the end of April 1984, when he will
be visiting Bangalore for
finalising the agreement as he had
discussed with you earlier. he
writes me that he is awaiting your
confirmation"
Ex. D9 dated 6.4.84 by PW 2 to Ist defendant shows that
plaintiff was in a dilemne whether to purchase this property
or some other property and that plaintiff and ist defendant
should talk over the matter. This letter would be
inconsistent with there being any concluded contract by
4.4.84 when telegram Ex.P7 was issued by Ist defendant.
Further, Ex.P6 would throw a doubt as to whether there was
any concluded contract by 10.4.84 when Ex. P5 was written by
Ist defendant. In fact, the argument before us, on the
contrary, was that there was a concluded agreement on
28.4.1984 when Ist defendant came to Bangalore.This proceeds
on the basis that there was no concluded agreement before
28.4.1984.
No doubt the High Court has stated that plaintiff and
Ist defendant have not met at Bangalore on 28.4.1984. This
finding is wrong as it does not take into account the other
telegram of Ist defendant Ex. p8 dated 28.4.1984 about his
arrival at Bangalore and the oral evidence. But from what
all PW1, PW2 stated as to what happened on 28.4.84, it
appears to us that there is no fresh agreement on 28.4.84 at
Bangalore and that Ist defendant asked the plaintiff to come
to Delhi.
Considerable argument has been advanced before us
regarding Ex.P6 dated 11.4.84 which is an inland letter by
the 3rd defendant to plaintiff that it is not genuine. It
being an Inland letter bearing postal seals, we cannot
accept the contention that the letter is not genuine. There
is no such evidence on plaintiff’s side nor any cross-
examination of the 1st defendant.
Another argument was that in his evidence, 1st
defendant admitted that he signed the draft agreement.
Appellant’s counsel has contended that this is with
reference to Ex.P3 while Respondent’s counsel has submitted
that this evidence of the 1st defendant has reference to
Ex.D11, the draft set up by Ist defendant for Rs.6.50 lakhs.
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It has also been contended for respondents that there is no
signature of 1st defendant on Ex. P3.
Applying the legal principles referred under Point 3 to
the above facts it will be noticed - even assuming that a
contract dated 28.4.1984 at Bangalore is proved, which in
our view, is not proved - that this case does not fit into
the exceptions stated by Fry on Specific Performance
inasmuch as this is not a case where there has been part
performance by delivery of possession. Nor can it be said
that the variation between pleading and proof is immaterial
or insignificant. Plaintiff has also refused to amend the
plaint to seek relief on the basis of an agreement dated
28.4.84, keeping the plaint as it is.
Nor can this case be brought with the principles
applicable to ’general relief’ because the plaint
specifically says that there is a concluded contract on
25.1.1984 at Delhi which is belied by the oral and
documentary evidence. However liberally the plaint is
construed, all that it says is that the 1st defendant came
to Bangalore and asked the plaintiff to be ready. It does
not speak of any fresh agreement entered into at Bangalore
on 28.4.1984. Nor are we able spell out any such agreement
concluded on 28.4.1984. The grant of any general relief on
the basis of an agreement of sale dated 28.4.84 - even if
proved - will be doing violence to the language in the
plaint to the effect that the parties concluded an agreement
on 25.1.1984.
The High Court on the basis of its findings has held in
para 13 as follows: "if only the plaintiff was able to prove
the agreement as pleaded by him there was no difficulty in
granting a decree for specific performance, as the evidence
on record does not disclose that the case falls within any
of the exceptions mentioned either in Section 16 or Section
20 of the Specific Relief Act. No doubt specific relief is
an equitable remedy and (it is the ) discretion is required
to be exercised judicially on the basis of establishment
principles of equity, justice and fairplay". The High Court
then stated:
"The party has to approach the
Court with clean hands. The
contract sought to be enforced must
be established. As the agreement
pleaded by the plaintiff has not
been established, on Point No. 3,
it is held that the plaintiff is
not entitled for a decree for
specific performance."
Having regard to the principles laid down in Gonesh
Ram’s case [AIR 1924 Cal 461], Ziaul Haque’s case [AIR 1966
Cal 605) Halsbury’s Laws of England. Fry on Specific
Performance and Corpus Juris Secundum as set out under Point
3, we are unable to say that the discretion exercised by the
High Court in refusing specific performance is contrary to
established principles. Nor can we say that discretion has
been exercised in a perverse manner. Finally, we do not also
think that this is a fit case for exercising our
jurisdiction under Article 136 of the Constitution of India.
The appeal fails and is dismissed without costs.