CS(OS) No.1409/2007. Case: J.M. Construction Pvt. Ltd. Vs Krishna Sachdev & Ors.. High Court of Delhi (India)
| Case Number | CS(OS) No.1409/2007 |
| Counsel | For Appellant: Mr. N.K. Vohra, Adv. and For Respondents: Mr. Vijay Kishan, Adv. with Mr. Vikram Jetly, Adv. |
| Judges | Rajiv Sahai Endlaw, J. |
| Issue | Specific Performance Act, 1963 - Section 14(3)(c); Code of Civil Procedure, 1908 - Order VII Rule 11 |
| Judgement Date | April 26, 2017 |
| Court | High Court of Delhi (India) |
Judgment:
IA.No.1138/2016 (of the defendants no.1 to 9 under Order VII Rule 11 CPC).
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The defendants no.1 to 9 in this suit for specific performance of an Agreement relating to immoveable property and for permanent injunction restraining the defendants from dealing with the property seek rejection of the plaint on the ground of the claim therein being barred by time.
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The plaintiff instituted this suit pleading (i) that one Sheela Devi (since deceased) was the exclusive owner of property no.C-10, Defence Colony, New Delhi ad measuring 325 sq. yds. and construction thereon; (ii) that the said Sheela Devi vide Memorandum of Understanding executed on 17th June, 1996 (MoU) agreed to sell the said property to the plaintiff for a total sale consideration of Rs.2,60,00,000/-; (iii) that the MoU inter alia required the plaintiff to from its own funds make payment of charges for conversion of leasehold rights in the land underneath the property into freehold; the plaintiff in discharge of the said obligation deposited a sum of Rs.77,955/- with the Land & Development Officer (L&DO); (iv) the plaintiff on 18th September, 1996 paid an amount of Rs.2,00,000/- to Sheela Devi and receipt whereof was acknowledged in writing by Sheela Devi on 18th September, 1996; (v) the plaintiff, on payment of the remainder sale consideration of Rs.2,58,00,000/-, was/is entitled to get the transaction completed in its favour; (vi) the plaintiff, since the date of the MoU has been solvent, ready and willing to pay remainder part of the sale consideration and complete the transaction; (vii) that on many occasions the plaintiff called upon and reminded Sheela Devi of her obligation under the MoU and for completing the transaction; (viii) however disputes had broken out amongst the family members of Sheela Devi with regard to distribution of sale consideration and owing whereto Sheela Devi could not complete the transaction but kept the performance of her part of obligations in abeyance; (ix) in May, 1997 Sheela Devi informed that the internal family disputes amongst her family members could not be resolved and as an alternative requested the plaintiff to execute a collaboration agreement for demolition of the property and construction of new building by the plaintiff on joint venture basis; (x) after discussions, the parties entered into and executed a Collaboration Agreement dated 22nd May, 1997; as per the said Agreement the plaintiff was to demolish the existing structure on the property and thereafter at its own costs construct a new building comprising of basement, ground, first and barsati floors and of which Sheela Devi was to own and retain the entire ground floor and the plaintiff to own and retain the entire basement, first and barsati floors with terrace; "cash consideration for Collaboration Agreement authorising the plaintiff company to demolish the then existing structure of the building on the plot of suit property, and reconstruct a new building on space sharing basis was settled at Rs.1,50,00,000/- [Rupees One Crore and Fifty lacs Only] out of which, simultaneously along with the execution of the aforesaid collaboration agreement on 22.05.1997, the plaintiff company paid to late Smt. Sheela Devi Rs.2,82,045/- (Rupees two lacs eighty two thousand and forty five only) in cash being part payment of cash consideration specified in the collaboration agreement. Of this part cash consideration, the owner paid Rs.1,00,000/- to the defendant no.7"; that the balance Rs.1,46,90,000/- was required to be paid by the plaintiff to Sheela Devi within 30 days after getting permission in Form 37-I under the Income Tax laws and simultaneously at the time of taking vacant physical possession of the property; (xi) the plaintiff immediately after signing the Collaboration Agreement handed over Form 37-I to Sheela Devi for countersigning the same and returning to the plaintiff for onward submission to the Income Tax Department; (xii) the plaintiff repeatedly informed Sheela Devi during the months of June, 1997 to March, 1998 to come forward to complete her part of obligations; (xiii) Sheela Devi kept on delaying the handing over of possession of the property in terms of Collaboration Agreement; resultantly the balance amount payable by the plaintiff also could not be paid; in addition Sheela Devi did not hand over Form 37-I either; Sheela Devi died on 5th May, 1998; she never revoked or cancelled the Agreement in her lifetime; (xiv) the defendants no.1 to 9 herein namely Krishna Sachdev, Lt. Col. (Dr.) Deepti Sablok, Major Deepak Sachdev, Neelima Bhalla, Sarvadaman Bhalla, Anuradha Chopra, Shano Prakash, Lt. (I.N.) Pradeep Prakash Sachdev and Vishal Prakash Sachdev are the natural heirs of Sheela Devi; (xv) the plaintiff contacted the defendants no.1 to 9 in November, 1998 immediately on coming to know of the demise of Sheela Devi and the defendants no.1 to 9 being fully aware of the Agreement qua the suit property promised to perform the obligations of Sheela Devi after their inter se disputes over the distribution of balance consideration are resolved; (xv) "that the defendants during the years 1998-2005 repeatedly expressed their inability to hand over vacant, peaceful and physical possession and take balance consideration for the suit property. However, the defendants promised that they shall not dispose off the suit property in any manner to any third person or enter into collaboration agreement in respect of the suit property and shall complete their part of pending obligations as required by the aforesaid agreements with the plaintiff...
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