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CHANDA (DEAD) THROUGH LRS. versus RATTNI AND ANR.

Citation: [2007] 4 S.C.R. 402 · Decided: 23-03-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Dismissed

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Judgment (excerpt)

A 
CHANDA (DEAD) THROUGH LRS. 
v. 
RA TTNI AND ANR. 
MARCH 23, 2007 
B 
[DR.ARIJITPASAYATANDLOKESHWARSINGHPANTA,JJ.] 
Specific Relief Act, 1963: 
S.28-Power under-Held, is discretionary-On facts, decree of specific 
C performance of contract passed-In execution proceedings, plaintiff's failure 
to deposit the balance sale consideration-No prayer made by plaintiff 
before trial Court and High Court for deposit or extension of time-Order 
of rescission of contract rightly passed on application filed by defendant-
Specific Relief Act, 1877-s.35(c). 
D 
The defendant-respondent enteretJ into an agreement to sell land to 
' plaintiff-appellant and received earnest money. The sale deed was to be 
executed on payment of balance sale consideration. Appellant filed suit for 
specific performance of agreement to sell on the promise that respondent did 
not execute the sale deed. Trial Court decreed the suit and directed respondent 
E to execute sale deep on receipt of balance sale price and also to get it registered 
within 2 months from the date of decree. 
Appellant did not deposit the balance sale price within the time allowed 
by Court. The respondents did not execute the sale deed. 
F 
Appellant moved an application for execution of decree pleading that 
since the respondents had failed to execute sale deed the same was to be 
executed through Court. Respondents moved an application u/s.28 of the 
Specific Relief Act, 1963 praying for rescission of the agreement to sell as 
appellant had failed to deposit the balance sale consideration. The trial Court 
allowed the application and rescinded the contract Accordingly, the execution 
G application by appellant was dismissed. High Court dismissed the revision 
petition. Hence the present appeal. 
Dismissing the appeal, the Court 
H 
402 
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CHANDA (DEAD) THROUGH LRS. v. RA TTNI 
403 
HELD: I. Section 28 of the Specific Relief Act, 1963 corresponds to s. 
35 (c) of the Specific Relief Act, 1877 (the 'repealed Act') under which it was 
open to the Vendor or lessor in the circumstances mentioned in that Section 
to bring a separate suit for rescission; but this Section goes further and gives 
to the Vendor or lessor the right to seek rescission in the same suit, when 
after the suit for specific performance is decreed the plaintiff fails to pay the 
purchase money within the period fixed. The present section, therefore, seeks 
to provide complete relief to both the parties in terms of a decree for specific 
performance in the same suit without requiring one of the parties to initiate 
separate proceedings. The object is to avoid multiplicity of suits. Likewise 
under the present provision where the purchaser or lessee has paid the money, 
he is entitled in the suit for specific performance to the reliefs as indicated 
in sub-section (3) like, partition, possession etc. A suit for specific 
performance does not come to an end on passing of a decree and the Court 
which as passed the decree for specific performance retainsยทthe control over 
the decree even after the decree has been passed. (Para 9) (407-E-G; 408-A) 
2. The decree for specific performance has been described as a 
preliminary decree. The power under s. 28 of the Act is discretionary and 
the Court cannot ordinarily annul the decree once passed by it. Although the 
power to annul the decree exists yet s.28 of the Act provides for complete 
relief to both the parties in terms oftbe decree. The Court does not cease to 
have the power to extent the time even though the trial Court had earlier 
directed in the decree that payment of balance price to be made by certain 
date and on failure suit would stand dismissed. The power exercisable under 
this Section is discretionary. (Para 10) (408-A-B) 
3. The stand now taken by appellant that there was no direction to pay 
within a particular time was not pleaded before the trial Court and High Court 
and is clearly unsustainable. [Para 11) [408-D) 
Kumar Dhirendra Mullick and Ors. v. Tivoli Park Apartments (P) Ltd, 
[2005) 9 sec 262, distinguished. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5494 of2000. 
From the Final Judgment Order dated 21.5.1999 of the High Court of 
Punjab and Haryana at Chandigarh in C.R.No. 4509 of 1998. 
A 
B 
c 
D 
E 
F 
G 
Neeraj Kr. Jain, Sanjay Singh, Sandeep Chaturvedi and Ugra Shankar H 
Prasad for the Appellants. 
A 
404 
SUPREME COURT REPORTS 
[2007] 4 S.C.R. 
Naresh Kaushik, B.S. Methaila, Arnit

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