Tag: Specific Performance

Supreme Court Rules on Loan Disguised as Property Deal, Protects Homeowner from Forced Sale
6Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules on Loan Disguised as Property Deal, Protects Homeowner from Forced Sale

The Supreme Court held that the plaintiff failed to prove the existence of a valid sale agreement, a prerequisite for specific performance under Man Kaur v. Hartar Singh Sangha. The burden of proof was not discharged as the sole evidence was self-serving and key witnesses were not examined. The High Court's reversal of concurrent factual findings was erroneous. Facts Of The Case: The respondents (original plaintiffs) filed a suit for specific performance of an alleged sale agreement dated 12.02.1999, claiming the appellant (defendant) had agreed to sell his house for Rs. 70,000. They asserted having paid Rs. 55,000 as advance and taken possession, subsequently renting the property back to the appellant. The appellant contested the suit, denying any agreement to sell. His defense was that...
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Supreme Court Rules: GMADA Not Liable for Homebuyers’ Loan Interest in Delayed Housing Project
16Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: GMADA Not Liable for Homebuyers’ Loan Interest in Delayed Housing Project

The Supreme Court ruled that while consumer commissions can award compensation for deficiency in service, including mental harassment and litigation costs, they cannot award interest on a loan taken by the consumer in addition to the stipulated contractual interest (8% compounded annually) on the refunded amount. The Court emphasized that the awarded interest sufficiently compensates for the deprivation of investment, and awarding interest under multiple heads for the same default is unsustainable. Facts Of The Case: The Greater Mohali Area Development Authority (GMADA) launched a residential scheme called 'Purab Premium Apartments' in 2011. Anupam Garg and Rajiv Kumar (respondents) applied for flats, with Anupam Garg paying an earnest money of ₹5,50,000 for a 2-BHK + Servant Room apar...
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Public Trust Doctrine Violated in Hasty Land Allotment :Supreme Court Upholds Land Allotment Cancellation
14Jun By The Legal ChamberNo Comments
Supreme Court

Public Trust Doctrine Violated in Hasty Land Allotment :Supreme Court Upholds Land Allotment Cancellation

The Supreme Court upheld the cancellation of land allotment by UPSIDC due to the allottee's persistent payment defaults and failure to fulfill contractual obligations. The Court found that UPSIDC had followed the prescribed procedure for cancellation, including issuing multiple notices. The Court also annulled a subsequent allotment of the same land, emphasizing the need for transparent and non-discriminatory allocation of public resources in line with the Public Trust Doctrine Facts Of The Case: Kamla Nehru Memorial Trust (KNMT) applied in March 2003 to purchase 125 acres of land in Uttar Pradesh for floriculture. On September 18, 2003, Uttar Pradesh State Industrial Development Corporation (UPSIDC) allotted the land, conditional upon certain terms, including a payment schedule. KNMT de...
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Supreme Court : Sale Deeds Executed After Property Power of Attorney Revoked Are Invalid
10Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court : Sale Deeds Executed After Property Power of Attorney Revoked Are Invalid

The Supreme Court clarified that an unregistered agreement to sell or power of attorney does not confer title or interest in immovable property. The Court emphasized that property transfer requires a registered deed of conveyance. It also ruled that a plaint cannot be rejected entirely under Order VII Rule 11 CPC if even one distinct cause of action is triable. Facts Of The Case: Vinod Infra Developers Ltd. (appellant) claimed ownership of agricultural land and obtained a loan of Rs. 7.5 crores from Mahaveer Lunia (Respondent No. 1) in May 2014. The appellant's Board of Directors authorized their Managing Director and Respondent No. 1 to sell the property. Subsequently, an unregistered power of attorney and agreement to sell were executed in favor of Respondent No. 1 on May 24, 2014.In A...
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Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala
7Jun By The Legal ChamberNo Comments
Supreme Court

Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala

The Supreme Court dismissed an appeal challenging the impleadment of a party in execution proceedings, holding that the application for deletion was barred by res judicata as objections were not raised earlier. It ruled that a decree for specific performance implicitly includes possession unless contested by a third party. The Court rejected claims of tenancy rights under the Kerala Rent Control Act due to lack of evidence and upheld the lower courts' findings, emphasizing that frivolous pleas cannot delay execution. Costs of ₹25,000 were imposed for protracting litigation. The Executing Court was directed to ensure possession is handed over within two months Facts Of The Case: The case originated from a 1996 agreement to sell between the original plaintiff (Prakasan) and defendant (Jame...
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