M/S. SHIVALI ENTERPRISES VERSUS SMT. GODAWARI (DECEASED) THR. LRS. AND OTHERS
M/S. SHIVALI ENTERPRISES VERSUS SMT. GODAWARI (DECEASED) THR. LRS. AND OTHERS
Landmark Cases of India / सुप्रीम कोर्ट के ऐतिहासिक फैसले
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 89048907 OF 2010
M/S. SHIVALI ENTERPRISES ...APPELLANT(S)
VERSUS
SMT. GODAWARI (DECEASED)
THR. LRS. AND OTHERS ...RESPONDENT(S)
J U D G M E N T
B.R. GAVAI, J.
1. These appeals challenge the judgment dated 3rd
March 2008 passed by the learned Single Judge of the High
Court of Punjab and Haryana at Chandigarh in Regular
Second Appeal Nos. 1206 and 1207 of 2005, thereby allowing
the appeals filed by the respondentsdefendants challenging
the concurrent judgments and decrees dated 3rd January
2001 passed by the Additional Civil Judge (Senior Division),
Faridabad (hereinafter referred to as the “trial court”) in RBT
329/90/2000, and 8th February 2005 passed by the learned
1
District Judge, Faridabad (hereinafter referred to as the
“Appellate Court”) in Civil Appeal No. 11 of 2001. Vide the
impugned judgment, the learned Single Judge of the High
Court directed that, if the plaintiff desires to get the sale deed
executed pursuant to the agreement(s) to sell, he would do so
by paying the present prevalent market value as sale
consideration. The appellantplaintiff has also assailed the
order dated 10th April 2008 passed by the learned Single
Judge of the High Court, thereby dismissing the review
applications being R.A. No. 19C of 2008 in R.S.A. No. 1206
of 2005 and R.A. No. 18C of 2008 in R.S.A. No. 1207 of
2005, filed by the appellantplaintiff.
2. Facts in brief giving rise to the present appeals are
as under:
The appellantplaintiff through its partner Raj
Kumar, entered into an agreement to sell dated 29th October
1983 with the respondentsdefendants No. 1 to 4 with regard
to the suit property, which was situated in the revenue estate
of Chak Salarpur, Tehsil Dadri, District Ghaziabad (U.P.), at
the rate of Rs. 2900/ per Bigha. Though the suit property
initially was in the State of U.P., vide notification of the
2
Central Government dated 15th September 1983, it became a
part of the State of Haryana. At the time of agreement to sell
dated 29th October 1983, earnest amount of Rs.50,000/ was
paid by the appellantplaintiff to the respondentsdefendants.
3. Due to a dispute between the State of U.P. and
Haryana, the aforesaid sale deed could not be executed in
favour of the appellantplaintiff. Therefore, another
agreement to sell was executed between the parties on 23rd
August 1985. At the time of execution of the said agreement,
an additional amount of Rs.1,00,000/ was paid by the
appellantplaintiff to the respondentsdefendants. It is not in
dispute that the total amount payable as per the terms of the
agreement to sell dated 29th October 1983 was Rs.
1,65,000/ out of which, an amount of Rs. 1,50,000/ was
duly received by the respondentsdefendants on or before
23rd August 1985. As per the terms of the agreement(s) to
sell, the remaining sale price was to be paid before the SubRegistrar at the time of execution and registration of sale
deed. It is not in dispute that the physical possession of the
suit property was also delivered to the appellantplaintiff by
the respondentsdefendants at the time of execution of the
3
agreement(s) to sell. It is also not in dispute that the
appellantplaintiff is thereafter in continuous possession of
the suit property.
4. As per the terms of the agreement(s) to sell, the
respondentsdefendants were required to obtain IncomeTax
Clearance (for short “ITC”) Certificate and to also get the
revenue records mutated to show them as the owners
inasmuch as the Central Government was shown as the
owner mistakenly. The agreement to sell further stipulated
that, in case of default by the respondentsdefendants, the
appellantplaintiff was at liberty to get the sale deed executed
and registered.
5. After coming to know that the respondentsdefendants were trying to create 3rd party rights, the
appellantplaintiff filed a suit for specific performance with
further prayer for permanent injunction as against the
respondentsdefendants. The said suit was resisted by the
respondentsdefendants by filing their written statement.
The learned trial court vide judgment and decree dated 3rd
January 2001 decreed the suit. In an appeal filed by the
respondentsdefendants, the learned Appellate Court upheld
4
the findings of the trial court vide judgment and decree dated
8
th February 2005.
6. Being aggrieved thereby, the respondentsdefendants
filed second appeals before the High Court. Vide the
impugned judgment, the High Court reversed the concurrent
findings recorded by the trial court and the Appellate Court
and passed the judgment as aforesaid. Being aggrieved
thereby, the present appeals have been preferred by the
appellantplaintiff.
7. We have heard Shri Rishi Malhotra, learned counsel
appearing on behalf of the appellantplaintiff and Shri S.R.
Singh, learned Senior Counsel appearing on behalf of the
respondentsdefendants.
8. Shri Malhotra submitted that the High Court has
grossly erred in interfering with the concurrent findings
passed by the trial court and the Appellate Court. He
submitted that, since no substantial question of law arose for
consideration before the High Court, the appeals deserve to
be allowed on this short ground alone. He relies on the
judgment of this Court in the case of Kondiba Dagadu
5
Kadam v. Savitribai Sopan Gujar and Others1
in this
regard.
9. Shri Malhotra further submitted that, even
assuming that in view of the provisions of Section 41 of the
Punjab Courts Act, 1918 (hereinafter referred to as the
“Punjab Act”) it is not necessary to frame a substantial
question of law, the jurisdiction of the learned Single Judge
of the High Court would still be circumscribed by the
provisions of Section 41 of the Punjab Act and any
interference in second appeal would only be warranted if the
case falls within the limited area as earmarked in Section 41
of the Punjab Act.
10. He further submitted that the respondentsdefendants have not entered into the witness box and as
such, the case of the appellantplaintiff on the basis of the
agreement(s) to sell has gone unchallenged. He therefore
submitted that the appeals deserve to be allowed and the
impugned judgments are liable to be quashed and set aside.
11. Shri Singh, on the contrary, submitted that the High
Court has rightly allowed the second appeals. He submitted
1 (1999) 3 SCC 722
6
that, as per the terms of the agreement(s) to sell, the sale
deed was to be registered only after the ITC Certificate was
obtained and the property was mutated in the name of the
respondentsdefendants. He submitted that the respondentsdefendants had filed a suit for getting the suit property
mutated in their names on 4th June 1986 and the said suit
came to be decreed only on 22nd December 2006. It is
therefore submitted that the suit filed by the appellantplaintiff on 17th October 1989 was premature.
12. Shri Singh submitted that in view of the Punjab Act,
no substantial question of law was required to be framed. He
relies on the judgment of this Court in the case of Kulwant
Kaur and Others v. Gurdial Singh Mann (Dead) By LRs.
and Others2
. The learned Senior Counsel further relies on
the judgments of this Court in the cases of Kirodi (since
deceased) Through His Legal Representatives v. Ram
Parkash and Others3
and Satyender and Others v. Saroj
and Others4
in support of this proposition. Shri Singh,
further relying on the judgment of this Court in the case of
2 (2001) 4 SCC 262
3 (2019) 11 SCC 317
4 2022 SCC OnLine SC 1026
7
Nirmala Anand v. Advent Corporation (P) Ltd. and
Others5
, submitted that there is no reason to interfere with
the direction of the trial court which directs that if the
plaintiff desires to get the specific performance, the same
shall be done at the prevalent market rate. He further
submitted that the suit itself was not tenable in view of
Section 14 of the Specific Relief Act, 1963.
13. Section 41 of the Punjab Act reads thus:
“41. Second appeals — (1) An appeal shall lie
to the High Court from every decree passed in
appeal by any Court subordinate to the High
Court on any of the following grounds, namely:
(a) the decision being contrary to
law or to some custom or usage
having the force of law:
(b) the decision having failed to
determine some material issue of
law or custom or usage having the
force of law:
(c) a substantial error or defect in
the procedure provided by the Code
of Civil Procedure 1908 [V of 1908],
or by any other law for the time
being in force which may possibly
have produced error or defect in the
decision of the case upon the
merits;
[Explanation — A question relating
to the existence or validity of a
custom or usage shall be deemed to
5 (2002) 5 SCC 481
8
be a question of law within the
meaning of his section:]
(2) An appeal may lie under this section from
an appellate decree passed ex parte.”
14. This Court, in the case of Randhir Kaur v. Prithvi
Pal Singh and Others6
, after considering the scope of
interference under the old Section 100 of the Civil Procedure
Code, 1908 (for short “CPC”) and Section 41 of the Punjab
Act, has observed thus:
“15. A perusal of the aforesaid judgments
would show that the jurisdiction in second
appeal is not to interfere with the findings of
fact on the ground that findings are erroneous,
however, gross or inexcusable the error may
seem to be. The findings of fact will also
include the findings on the basis of
documentary evidence. The jurisdiction to
interfere in the second appeal is only where
there is an error in law or procedure and not
merely an error on a question of fact.”
15. It could thus be seen that this Court has held that,
even when a court exercises jurisdiction under Section 41 of
the Punjab Act, it cannot interfere with the findings of fact in
second appeal on the ground that the said findings are
erroneous, howsoever gross or inexcusable the error may
6 (2019) 17 SCC 71
9
seem to be. It has been held that the findings of fact would
also include the findings on the basis of documentary
evidence. The jurisdiction under Section 41 of the Punjab Act
would be available only when there is a substantial error or
defect in the procedure provided by the CPC or by any other
law for the time being in force.
16. A bench of three learned Judges of this Court, in a
recent judgment in the case of Satyender and Others
(supra), has observed thus:
“17. Be that as it may, though the requirement of
formulation of a substantial question of law was not
necessary, yet Section 41 of the Punjab Courts
Act, requires that only such decisions are to be
considered in second appeal which are contrary
to law or to some custom or usage having the
force of law or the court below have failed to
determine some material issue of law or custom
or usage having the force of law. Therefore, what
is important is still a “question of law”. In other
words, second appeal is not a forum where court
has to reexamine or reappreciate questions of
fact settled by the Trial Court and the Appellate
Court. The plaintiffs had claimed right over certain
agricultural land and their case was that they have
the right to be declared the owner of this property
and the possession be handed over to the them, for
the reasons that on this particular property
defendants and their predecessorsininterest were
the tenants of the plaintiffs. Their case was that
defendant No. 2 was their tenant who had sublet
the property in favour of his son, that is defendant
10
No. 1 and therefore, the property should be reverted
back to the plaintiffs and they should be declared
the owner and should be given the possession of the
property as well. Both the Trial Court as well as the
First Appellate Court had held after evaluating the
evidence placed by the plaintiffs that the defendant
No. 2 and his brothers (who were not even made a
party by the plaintiffs) were the tenants on the
property and defendant No. 2 had not sublet the
property in favour of his son that is defendant No. 1
and the revenue entries being made in this regard
in the year 1978 are wrong and without any basis
as there was no order of any revenue authority for
making such an entry. In short, the plaintiffs had
failed to prove their case as owner of the land in
dispute. Hence their case of declaration and
possession was dismissed. The Second Appellate
Court however, quite erroneously, and without any
justification, gave an entirely new finding regarding
two Killa Nos. 21//3/2 and 7//13 on which the
plaintiffs claimed relief of declaration and
possession, on the same grounds as raised by them
for the other Killa Nos. The pleadings also show that
the defendants had made a general denial of the
plaintiffs' claim for all the plots. Yet, the High Court
held that since the defendants had not made any
claim for plot nos. 21//3/2 and 7//13 and
therefore by logic a decree of declaration of
possession ought to have been given to the plaintiffs
for these plots! This reasoning of the second
Appellate Court is erroneous for the simple reason
that the burden of proof was on the plaintiffs to
prove their case, which they had failed. They have
not been able to prove to the satisfaction of the Trial
Court as well as the First Appellate Court about
their claim of any kind over this property. Merely
because the defendant did not raise a counter claim
on this property it would not ipso facto mean that a
decree ought to have been granted in favour of the
plaintiffs. Plaintiffs have to prove their case on the
strength of their evidence. For this reason, the
reasoning given by the Second Appellate Court for
11
decreeing the claim of the plaintiff for plot nos.
21//3/2 and 7//13 is incorrect and to that extent
is liable to be set aside.”
[emphasis supplied]
17. It would thus be clear that this Court has held that,
though it is not necessary to formulate a substantial
question of law, the jurisdiction under Section 41 of the
Punjab Act would permit only such decisions to be
considered in second appeal which are contrary to law or to
some custom or usage having the force of law, or when the
courts below have failed to determine some material issue of
law or custom or usage having the force of law. The Court
held that second appeal is not a forum where the court is to
reexamine or reappreciate the question of fact settled by the
trial court or the Appellate Court. It could thus clearly be
seen that though in view of Section 41 of the Punjab Act, it is
not necessary to frame a substantial question of law, the
jurisdiction of the High Court under second appeal cannot be
exercised for reappreciation of evidence.
18. A perusal of the plaint filed by the appellantplaintiff
would reveal that the appellantplaintiff has specifically
referred to the terms of the agreement(s) to sell. He has
specifically stated that the respondentsdefendants have
12
received an amount of Rs.1,50,000/. He has further
specifically stated that the respondentsdefendants have
delivered the actual possession of the suit property to him. It
is averred that after the respondentsdefendants obtained the
requisite ITC Certificate and got the revenue records
corrected, they were required to serve a notice upon the
appellantplaintiff informing him about the same having been
done. After the receipt of such notice, the appellantplaintiff
was required to make the balance payment and get the sale
deed executed. The appellantplaintiff was also given liberty
to use the suit property in any manner so as to plant trees,
raise construction, install tubewells etc. It has been averred
in the plaint as under:
“10. That all the defendants have been
admitting and acknowledging the plaintiff firm
to be in possession of the suit land and seeing
them spending huge amount over it. The
plaintiff has been affecting costly
improvements over the suit land and the
defendants have been seeing plaintiff spending
huge amount objected to it. They are estopped
from denying the fact by their acts, conduct,
omissions, laches and admissions.
11. That the rates of the land in the dispute
have started rising and the defendants out of
sheer greed have threatened to take forcible
possession, dispossess the plaintiff and to
interfere in the peaceful enjoyment of the suit
13
land by the plaintiff about a month ago. They
have also threatened to alienate the suit land
in favour of the third parties. They have also
refused to obtain the requisite Income Tax
Clearance certificate and to execute the sale
deed in favour of the plaintiff firm as agreed
upon in accordance with the terms of the
agreement of sale dated 23.8.1985.
12. That defendants No.1 to 4 were repeatedly
approached to execute the sale deed in favour
of the plaintiff in accordance with the terms of
the agreement of sale dated 23.8.1985. The
defendants were also further requested to
desist from dispossessing the plaintiff, taking
forcible possession or otherwise interfering in
the peaceful enjoyment of the suit land by the
plaintiff. However, defendants after
prevarication for some time have finally
refused to accede to the reasonable, just and
legal request of the plaintiff about a week ago.
Hence this suit.
13. That the plaintiff firm has all along been
ready and willing to perform its part of the
contract and is still ready and willing to do so.
It has all along got the requisite amount of
balance sale consideration and expense etc.
with it. The defendants have thus committed
breaches of agreement of sale as per details
above with malafide intention.
14. That cause of action arose about a month
ago and again about a week ago on the final
refusal of the defendants.”
19. It can thus clearly be seen that the appellantplaintiff has specifically averred that due to the rising rate of
the suit property, the respondentsdefendants, out of sheer
14
greed, had threatened to take forcible possession and also
threatened to alienate the suit property in favour of a 3rd
party.
20. In the written statement, the respondentsdefendants have stated that the appellantplaintiff had
obtained Power of Attorney from the respondentsdefendants
and had undertaken to obtain the ITC Certificate. It was
further stated by the respondentsdefendants that they had
executed the Power of Attorney and one Mukhtar, an agent of
the appellantplaintiff, was required to take all the requisite
steps to get the revenue records corrected. It will be relevant
to refer to paragraph (11) of the written statement of the
respondentsdefendants as under:
“11. In reply to Para No.11 it is denied that the
plaintiffs are in possession of the land in suit;
it is also denied that defendants Nos. l to 4
had to obtain the ITCC; it is also denied that
the Plaintiff had the financial capability to
purchase the land; it is submitted that
defendants Nos. 1 to 4 are in possession of
the suit land as owners thereof and an
entitled to alienate the same if so desired.
It is also denied that the agreement to sell
dated 23.8.1985 is in force.”
[emphasis supplied]
15
21. A perusal of the aforesaid paragraph would reveal
that the respondentsdefendants had denied that the
appellantplaintiff was in possession of the suit property.
The respondentsdefendants further asserted their right to
alienate the suit property, if they so desired.
22. The trial court, after perusal of the evidence, came to
a finding that the execution of the agreement(s) to sell was
admitted by the respondentsdefendants. The trial court
further came to a specific finding of fact that the appellantplaintiff was always ready and willing to perform his part of
contract. It found that, upon the respondentsdefendants
complying with the conditions as provided in the
agreement(s) to sell, they were required to issue a notice to
the appellantplaintiff and after receipt of the said notice, the
sale consideration was required to be paid within 30 days
from receipt of the said notice.
23. In appeal, the learned Appellate Court affirmed the
findings of fact recorded by the trial court. It held that the
execution of the agreement to sell (Ex. PW1/3) and the
16
receipt of earnest money of Rs. 1,50,000/ was not disputed.
It found that, as per the terms of the agreement(s) to sell, it
was for the respondentsdefendants No. 1 to 4 to get the
revenue records corrected and they had also agreed to obtain
the ITC Certificate and to send a copy of the same to the
vendee. The learned Appellate Court held that even oral
evidence to controvert these conditions incorporated in the
written statement cannot be led in view of Section 92 of the
Evidence Act, 1872. It held that the selfserving oral
statement of Ajit Singh, defendant No. 7 was not sufficient to
controvert the terms and conditions incorporated in the
agreement(s) to sell. Insofar as the argument that the suit
for specific performance was filed without the correction of
revenue records, the learned Appellate Court found that
since the respondentsdefendants were intending to alienate
the suit property, the appellantplaintiff was justified in filing
the suit.
24. The learned Appellate Court came to a specific
finding that none of the respondentsdefendants No. 1 to 4,
who were signatories to the agreement, had entered into the
witness box. Though Ajit Singh, defendant No. 7, who is the
17
husband of defendant No. 3, had appeared as a witness, the
Appellate Court found that he was not a good substitute for
defendants No. 1 to 4, who, being vendors, were the material
witnesses. The learned Appellate Court, relying on the
judgment of this Court in the case of Vidhyadhar v.
Manikrao and Another7
, held that on account of nonexamination of any of the vendors, an adverse inference
could be drawn against them.
25. The learned Single Judge of the High Court, vide the
impugned judgment, has held that the appellantplaintiff
could seek specific performance of the contract only after the
revenue record was corrected. It held that the suit for
correction of the revenue record was filed by the
respondentsdefendants on 4th June 1986 and the same was
decreed on 22nd December 2006. It therefore held that the
suit of the appellantplaintiff which was filed on 17th October
1989 was not tenable. The learned Single Judge therefore
allowed the appeals and held that, in view of the judgment of
this Court in the case of Nirmala Anand (supra), if the
7 (1999) 3 SCC 573
18
plaintiff desires to get the sale deed executed, he is required
to pay the present prevalent market rate of the suit property.
26. We find that the learned Single Judge of the High
Court has erred in interfering with the concurrent findings of
fact recorded by the trial court as well as by the Appellate
Court. The trial court as well as the Appellate Court had
specifically found on the basis of the evidence that, though
as per the terms and conditions of the agreement(s) to sell,
the sale deed was to be executed only after the respondentsdefendants obtained the ITC Certificate and got the revenue
records corrected, the appellantplaintiff was compelled to file
the suit since the respondentsdefendants were trying to
alienate the suit property.
27. It is pertinent to note that the appellantplaintiff has
specifically averred that, though the respondentsdefendants
had neither obtained the ITC Certificate nor had the revenue
records corrected, they were threatening to dispossess him
and create 3rd party rights over the suit property. In these
circumstances, the appellantplaintiff was constrained to file
the suit. In the written statement, the respondentsdefendants have specifically stated that they were entitled to
19
create 3rd party rights. In this factual situation, the
concurrent findings of the trial court and the Appellate Court
that the appellantplaintiff was justified in filing the suit
could not have been faulted with.
28. The respondentsdefendants cannot be permitted to
blow hot and cold at the same time. On one hand, they
contended that the suit could not have been filed without
getting the ITC Certificate and correction of revenue records,
whereas on the other hand, they assert their right to alienate
the suit property.
29. Shri Singh has heavily relied on the judgment of this
Court in the case of Kulwant Kaur and Others (supra). No
doubt that where it is found that the findings of the trial
court and the Appellate Court are vitiated on wrong test and
on the basis of assumptions and conjectures and resultantly,
there is an element of perversity, the High Court will be
within its jurisdiction to deal with the same. However, this
can be permitted only in the event where such a fact is
brought to light by the High Court explicitly and the
judgment should also be categorical as to the issue of
perversity visàvis the concept of justice.
20
30. In the present case, apart from there being no
perversity in the concurrent findings of fact, there is not even
an observation in the judgment of the High Court to that
effect. The judgment of the learned Single Judge of the High
Court also does not discuss the issue of perversity visàvis
the concept of justice. As such, the said judgment, in our
view, is not applicable to the facts of the present case.
31. Insofar as the reliance placed by the respondentsdefendants on the judgment of this Court in the case of
Nirmala Anand (supra) is concerned, the said judgment,
rather than supporting the case of the respondentsdefendants, would support the case of the appellantplaintiff.
In the said case, the suit filed by the appellant was partly
decreed, thereby only awarding damages. The same was
upheld by the Division Bench of the High Court. The defence
of the defendant therein was with regard to impossibility of
performance of the agreement entered into by the appellant
with the respondents No. 1 and 2. In the said case, this
Court found that the respondentsdefendants could not be
solely blamed for delay inasmuch as the completion of the
building was dependent upon certain acts that were to be
21
done by the Corporation and the Government. In this
background, this Court directed an additional amount to be
paid by the appellantplaintiff to the respondentsdefendants
to get the sale deed executed in her favour.
32. In the present case, it would be seen that out of an
agreed amount of Rs.1,65,000/, the appellantplaintiff has
already paid an amount of Rs.1,50,000/ on or before 23rd
August 1985. He was already put in possession at the time
of execution of the agreement(s) to sell. The balance sale
consideration that was to be paid was only about 10% of the
total agreed amount. Though the sale deed was to be
executed upon the respondentsdefendants getting the ITC
Certificate and getting the revenue records corrected in the
year 1986, in view of their greed since the prices were
escalating, the respondentsdefendants had tried to create 3rd
party rights. In these circumstances, the appellantplaintiff
was required to file the suit. The respondentsdefendants
have also asserted in their written statement that they were
entitled to alienate the suit property. Having accepted the
agreement(s) to sell and the receipt of an amount of Rs.
1,50,000/ out of the total amount of Rs.1,65,000/, the
22
respondentsdefendants could not have been permitted to
take a contrary stand that on one hand, the suit could not be
filed before the ITC Certificate was obtained and the revenue
records were corrected, and on the other hand that they were
entitled to alienate the suit property.
33. We are of the considered view that the learned Single
Judge of the High Court has erred in interfering with the
concurrent findings of fact arrived at by the trial court and
the Appellate Court upon correct appreciation of
documentary as well as oral evidence.
34. In the result, we pass the following order:
(i) The appeals are allowed;
(ii) The judgment 3
rd March 2008 passed by the High
Court in Regular Second Appeal Nos. 1206 and 1207
of 2005 and order dated 10th April 2008 passed by
the High Court in R.A. No. 19C of 2008 in R.S.A. No.
1206 of 2005 and R.A. No. 18C of 2008 in R.S.A. No.
1207 of 2005 are quashed and set aside; and
(iii) The judgments and decrees dated 3
rd January 2001
passed by the trial court in RBT 329/90/2000 and
23
dated 8
th February 2005 passed by the Appellate
Court in Civil Appeal No. 11 of 2001 are upheld.
35. Pending application(s), if any, shall stand disposed of
in the above terms. No order as to costs.
…..….......................J.
[B.R. GAVAI]
…….......................J.
[C.T. RAVIKUMAR]
NEW DELHI;
SEPTEMBER 13, 2022.
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