IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

REPORTABLE

CIVIL APPEAL NO. 6437 OF 2011 (Arising out of Spe i!" Le!#e Petition (C$ No%&'&()*&++'$ M*s Cit!,e" Fine P-!r.! euti !"s Appe""!nt(s$ - Versus M*s R!.!ni/!. Re!" Est!tes P% Lt,% 0 Anr% %%%Respon,ent(s$ WITH CIVIL APPEAL NO. 6438 OF 2011 (Arising out of Spe i!" Le!#e Petition (C$ No%1)&23*&++'$ M*s R!.!ni/!. Re!" Est!tes P% Lt,% Appe""!nt(s$ 4 Versus M*s Cit!,e" Fine P-!r.! euti !"s 0 Anr% %%%Respon,ent(s$ J U D G M E N T GANGULY J.
1

%%%

%%%

)%

Le!#e is gr!nte, in 5ot- t-e spe i!" "e!#e petitions%

2.

T-ese !ppe!"s -!#e 5een preferre, fro. t-e 6u,g.ent Septe.5er7 No%11&*&++8 !n, fin!" or,er ,!te, in &n,

&++' !n,

p!sse,

O%S%A% 5/ t-e

C%M%P%

No%)*&++8

Di#ision 9en - of t-e M!,r!s Hig- Court%

1%

T-e

ontro#ers/ !rose out of ! suit of perfor.!n e% M*s% Cit!,e" No%)$7 22 ents Fine ! of

spe ifi

P-!r.! euti !"s p!rtners-ip fir.7

(,efen,!nt o:ne,

!gri u"tur!" "!n, (-erein!fter ;t-e suit propert/<$7 for.ing ! p!rt of tot!" of

&%'8 ! res of !gri u"tur!" "!n, in sur#e/ nos% 1217 12=7 122*) of Ve"! -er/ #i""!ge7 M!.5"!.7 >uin,/ T!"u?7 Registr!tion

Distri t of M!,r!s7 !n, entere, into !n !gree.ent for s!"e of t-e suit propert/ (-erein!fter onsi,er!tion ;t-e of
2

!gree.ent<$

for

Rs%)7++7++7+++*4

:it-

M*s%

R!.!ni/!.

Re!"

Est!tes

Pri#!te o.p!n/

Li.ite, (p"!intiff$7 :-i - :!s !

in orpor!te, un,er t-e Co.p!nies A t7 )3(2 !n, eng!ge, in t-e 5usiness of

onstru ting 5ui",ings%

4.

T-e !gree.ent ,!te, 8t- Ju"/7 )33( :!s t-e su56e t .!tter of suit 5et:een t-e !5o#e p!rties% As per t-e !gree.ent7 onsi,er!tion

Rs%)+7++7+++*4 of t-e s!"e

:!s to 5e p!i, upfront !s e!rnest .one/7 !n, t-e re.!in,er of Rs%3+7++7+++*4 :!s to 5e p!i, !t t-e ti.e of t-e registr!tion of t-e s!"e ,ee,% At t-e ti.e of !gree.ent7 t-e suit propert/ :!s en u.5ere, 5/ :!/ of se urit/ :it- M*s% St!te 9!n? of In,i!7 >uin,/ t-erefore 9r!n one of (,efen,!nt t-e No%&$ of !n, t-e

on,itions

!gree.ent :!s t-!t ,efen,!nt No% ) :ou", get t-e suit propert/ re"e!se, fro. su en u.5r!n e 5efore
3

t-e

fin!"

p!/.ent

of

Rs%3+7++7+++*4 :!s to 5e .!,e% Ap!rt fro. t-is en u.5r!n e7 t-e it :!s st!te, :!s in to t-e 5e

!gree.ent7 :it-out

suit ot-er

propert/

!n/

en u.5r!n e@

#i,e

"!uses & !n, 2 of t-e !gree.ent%

(%

Of t-e s!i, 22 :ere

ents7 -o:e#er7 )3

ents

onsi,ere, eA ess ur5!n #! !nt "!n,

un,er t-e T!.i" N!,u Ur5!n L!n, (Cei"ing !n, Regu"!tions$ A t (&= of )38'$7

(-erein!fter ;t-e T!.i" N!,u A t<$% As per "!use 8 of t-e !gree.ent7 it :!s for t-e p"!intiff s!"e to -!#e t-e t-e "!n, "e!re, for

fro.

ur5!n

"!n,

ei"ing

!ut-orities% Un,er t-e !gree.ent7 t-e

"!uses '7 )+ !n, )) of s!"e :!s .!,e ti.e

5oun,% C"!use )+ st!te, t-!t ti.e :!s t-e essen e of t-is ontr! t% C"!use '

.!n,!te, t-!t un,er !""

ir u.st!n es7 t-e

s!"e -!, to .!teri!"iBe :it-in ! /e!r fro. t-e ,!te of t-e !gree.ent% In ter.s of
4

"!use 37 if t-e s!"e f!i"e, on !

ount of

"!pses on p"!intiff<s p!rt7 t-e s!"e :!s to st!n, o.p"ete"/ !n e""e,7 !n, t-e

e!rnest .one/ of Rs%)+7++7+++*4 :!s to 5e returne,% As per "!use ))7 -o:e#er7 if

t-e s!"e f!i"e, 5e !use of ,efen,!nt No% )7 t-e p"!intiff :!s !t "i5ert/ to sue for spe ifi perfor.!n e of t-e ontr! t%

2%

In pursu!n e to t-e !gree.ent7 t-e e!rnest .one/ :!s p!i, 5/ t-e p"!intiff !n,

re ei#e, 5/ ,efen,!nt No% )% T-e p"!intiff t-en preferre, !n !pp"i !tion in For. 184I pres ri5e, un,er Ru"e ='4L of t-e In o.e T!A Ru"es7 )32&7 5efore t-e Appropri!te

Aut-orit/ for t-e

"e!r!n e of t-e suit

propert/ for s!"e #i,e se tion &23UC in C-!pter CC of t-e In o.e T!A A t7 )32)%

8%

Ho:e#er7 t-e In o.e T!A Aut-orit/ refuse, su "e!r!n e on t-e groun, t-!t !s per
5

se tion 2 of t-e T!.i" N!,u A t7 !gree.ent to se"" ! pie e of ur5!n "!n, ,e "!re, eA ess #! !nt "!n,7 or ! pie e of "!n,7 p!rt of :-i -!, 5een ,e "!re, eA ess

#! !nt ur5!n "!n,7 :!s ,ee.e, !s nu"" !n, #oi,%

8.

Fro. t-e St!te.ent !n, O56e ts !n, Re!sons of t-e T!.i" N!,u A t it !ppe!rs t-!t it :!s en! te, to i.pose ! Du!ntu. of "!n, t-!t ei"ing on t-e 5e -e", or

ou",

o:ne, :it-in !n ur5!n !gg"o.er!tion% T-e o56e t of t-e A t :!s to pre#ent

on entr!tion of o:ners-ip of ur5!n "!n, in t-e -!n,s of ! fe:7 !n, to regu"!te t-e onstru tion of 5ui",ings on su - "!n,s7 spe u"!ti#e tr!,ing of ur5!n "!n, !n,

i""eg!" profiteering% Un,er t-e A t7 t-e ei"ing "i.it -!, 5een fiAe, 5/ Se tion (% Se tion 2 of t-e A t pre#ente, tr!nsfer of

su - eA ess #! !nt ur5!n "!n, 5/ its o:ner to !n/ ot-er person% Se tion 2 is set outE 2% T!"#$%&! '% (")"#* +"#,% F No person -o",ing in eA ess of t-e ei"ing "i.it i..e,i!te"/ 5efore t-e o..en e.ent of t-is A t7 #! !nt "!n,7 s-!"" tr!nsfer !n/ su - "!n, or p!rt t-ereof 5/ :!/ of s!"e7 .ortg!ge7 gift7 "e!se or ot-er:ise unti" -e -!s furnis-e, ! st!te.ent un,er se tion 8 !n, ! notifi !tion reg!r,ing t-e eA ess #! !nt "!n, -e", 5/ -i. -!s 5een pu5"is-e, un,er su5 se tion ()$ of se tion ))@ !n, !n/ su - tr!nsfer .!,e in ontr!#ention of t-is pro#ision s-!"" 5e ,ee.e, to 5e nu"" !n, #oi,%

3%

T-e se tion t-us en6oine, t-!t "!n,o:ners -o",ing eA ess #! !nt "!n, !re to furnis! st!te.ent un,er Se tion 8% In t-is )3 ents :ere onsi,ere, eA ess !se7 ur5!n

#! !nt "!n, #i,e

!se no% R%C%2)2+*'2 !n,

,efen,!nt No% ) fi"e, its st!te.ent un,er Se tion 8%

)+% Se tion 3 pro#i,e, for prep!r!tion of ! ,r!ft st!te.ent !s reg!r,s t-e eA ess

#! !nt "!n,% Un,er

7

"!use (($ of Se tion

37 t-e Co.petent Aut-orit/7 so ,esign!te, un,er t-e T!.i" N!,u A t7 :!s to onsi,er

o56e tions preferre, 5/ ! "!n, o:ner7 !n, t-en p!ss or,ers :itrespe t to t-e

Duestion of eA ess "!n,% Defen,!nt no% ) preferre, Co.petent its o56e tions T-e 5efore t-e

Aut-orit/%

o56e tions

-o:e#er :ere ,is.isse,% T-e ,efen,!nt no% ) t-en preferre, !n !ppe!" (L!n, 5efore t-e

Spe i!"

Co..issioner

Refor.s$7

M!,r!s !n, t-e !ppe!" :!s ?ept pen,ing%

))% In

or,!n e

:it-

Se tion

))

()$7

notifi !tion reg!r,ing t-e )3

ents 5eing

eA ess #! !nt "!n, :!s pu5"is-e, !n, !n/ tr!nsfer .!,e in ontr!#ention of t-is

pro#ision :!s ,ee.e, to 5e nu"" !n, #oi,% Se tion su )) pro#i,e, ur5!n for "!n, ! Duisition 5/ t-e of

#! !nt

St!te

>o#ern.ent%

)&% Defen,!nt

no%

!"so

preferre,

!n ents

!pp"i !tion for eAe.ption of t-!t )3

of "!n, un,er t-e pro#isions of Se tion &)% Se tion to &) e.po:ere, ! pie e t-e of St!te #! !nt

>o#ern.ent eA ess !5o#e%

eAe.pt fro.

"!n,

! Duisition

.entione,

13.

T-!t

!pp"i !tion no% No% )

:!s t-en

!"so

,is.isse,% Grit Hig-

Defen,!nt Petition Court

preferre, 5efore t-e

)13+2*&++'

-!""enging t-e ,e "!r!tion in R% C%

2)2+*'2% In t-e :rit petition7 ,efen,!nt no% ) pr!/e, for ! st!/ of t-e pro ee,ings !n, :-i - :!s !""o:e,% Ho:e#er7 ,uring t-e pen,en / of t-is :rit petition t-e T!.i" N!,u A t :!s repe!"e, on )2t- June7 )333 5/ t-e T!.i" N!,u Ur5!n L!n, (Cei"ing !n,

Regu"!tion$ Repe!" A t7 )333 (&+ of )333$ (-erein!fter ;t-e Repe!"ing A t<$% Se tion = of t-e
9

Un,er !""

repe!"ing

A t7

pro ee,ings re"!ting to !n/ or,er .!,e or purporte, to 5e .!,e un,er t-e Prin ip!" A t7 t-!t is t-e T!.i" N!,u A t7 s-!"" !5!te% Se tion = of t-e Repe!"ing A t is

!s fo""o:sE4

H4. A-"*&.&#* '% +&/"+ 0!')&&,1#/$% 4 pro ee,ings re"!ting to !n/ or,er .!,e purporte, to 5e .!,e un,er t-e Prin ip!" pen,ing i..e,i!te"/ 5efore t-e o..en e.ent t-is A t 5efore !n/ ourt7 tri5un!" or !ut-orit/ s-!"" !5!te%

A"" or A t of !n/

Pro#i,e, t-!t t-is se tion s-!"" not !pp"/ to t-e pro ee,ings re"!ting to Se tions )&7 )17 )=7 "(7 )(49 !n, )2 of t-e Prin ip!" A t in so f!r !s su - pro ee,ings !re re"!t!5"e to t-e "!n,7 possession of :-i - -!s 5een t!?en o#er 5/ t-e St!te >o#ern.ent of !n/ person ,u"/ !ut-orise, 5/ t-e St!te >o#ern.ent in t-is 5e-!"f or 5/ t-e o.petent !ut-orit/%I

)=% A,.itte,"/7

possession

of

)3

ents

of

"!n,7 in respe t of :-i - pro ee,ing :!s pen,ing7 :!s not t!?en o#er 5/ t-e

>o#ern.ent%

So t-e pen,ing pro ee,ing in

respe t of t-!t "!n, un,er t-e Prin ip!" A t7 t-!t is t-e T!.i" N!,u A t7 s-!""
10

!5!te

in

#ie:

of

Se tion

of

t-e

Repe!"ing A t%

)(% Ho:e#er7 In o.e T!A !ut-orities7 !s note, !5o#e7 -!, refuse, to pro ess For. 184I in #ie: t-e of t-e pro ee,ings A t% t-e initi!te, un,er to

T!.i" 2

N!,u of

H!#ing t-e

referre,

se tion

A t7

!ppropri!te for. 184I

!ut-orit/7 st!te,E

:-i"e

re6e ting

HJIn o"u.n '7 it -!s 5een .entione, t-!t !n eAtent of )3 ents -!s 5een ,e "!re, !s eA ess #! !nt "!n, un,er se tion 3 (($ of T!.i" N!,u Ur5!n L!n, (Cei"ing !n, Regu"!tions$ A t7 )38' t-!t !n !ppe!" is pen,ing 5efore t-e Spe i!" Co..issioner (L!n, Refor.s$7 M!,r!s !n, t-!t t-e tr!nsferor -!s !"so !pp"ie, to t-e St!te >o#ern.ent for eAe.ption un,er Se tion &) of t-e s!i, A t 5ut t-e s!.e -!s 5een re6e te, !n, t-e .!tter is pen,ing in G% P% No% )13+2*)3''7 5efore t-e Hig- Court7 M!,r!s% &% It tr!nspires7 t-erefore7 t-!t t-e tr!nsferor inten,s to tr!nsfer t-e entire eAtent of 22 ents7 in "usi#e of t-e )3 ents of "!n, :-i - is ,e "!re, !s eA ess #! !nt "!n, 5/ t-e Co.petent Aut-orit/ un,er t-e Ur5!n L!n, Cei"ing A t7 :-i - is pro-i5ite, 5/ se tion 2 of t-e T!.i" N!,u Ur5!n L!n, (Cei"ing !n, Regu"!tions$ A t7 )38'% J% In #ie: of t-e pro-i5ition ont!ine, in se tion 27 Duote, !5o#e7 t-e !gree.ent entere, into 5et:een t-e p!rties on 8%8%3( to tr!nsfer
11

t-e entire "!n,7 in "u,ing t-e eA ess #! !nt "!n, of )3 ents7 s-!"" 5e ,ee.e, to 5e nu"" !n, #oi,% In #ie: of t-is "eg!" pro-i5ition7 :e !re un!5"e to pro ess t-e 184I st!te.ent fi"e, 5/ /ou !n, t-erefore7 t-e s!.e is "o,ge, in t-is offi e% If /ou !re so !,#ise,7 /ou .!/ fi"e ! fres- 184I st!te.ent for tr!nsfer of t-e 5!"!n e "!n, on"/%I

16.

As per

"!use (8$ of t-e !gree.ent7 it :!s

t-e p"!intiff<s responsi5i"it/ to -!#e t-e suit propert/ "e!re, for s!"e 5/ t-e

ur5!n "!n,

ei"ing !ut-orities% Sin e For. "e!re,7 t-e p"!intiff sent

18FI :!s not

t:o "etters ,!te, )+t- June7 )332 !n, 1r, Ju"/7 )332 to t-e ,efen,!nt reDuesting

t-!t t-e s!"e 5e sp"it up !n, t:o sep!r!te !gree.ents 5e entere, into% T-e first for t-e unen u.5ere, =8 for )3 t-e ents !n, t-e se on,

ents ter.e, !s t-e eA ess "!n, 5/ "!n, ei"ing !ut-orit/% T-is

ur5!n

propos!" :!s re6e te, 5/ t-e ,efen,!nt no% ) on t-e groun,s t-!t t-e !gree.ent is not ,i#isi5"e% A or,ing
12

to

,efen,!nt

No%)7

t-e sp"itting up of t-e !gree.ent into t:o in effe t .e!nt t-e :riting of !n entire"/ ne: ontr! t% T-e 5!r un,er se tion 2 of

t-e T!.i" N!,u A t7 !s pointe, out 5/ t-e Appropri!te Aut-orit/ :!s !pp"i !5"e not on"/ in respe t of t-e )3 ents of "!n,

ter.e, !s eA ess7 5ut in f! t t-e entire 22 ents for t-e re!son t-!t t-e s!i, )3 ou", not 5e se#ere, fro. t-e 22

ents

ents% T-e ,efen,!nt No%) urge, t-!t t-e ontr! t :!s -it 5/ i""eg!"it/ !n, :!s

t-us frustr!te,%

17.

T-e

p"!intiff7

t-e

propose,

pur -!ser7

un,er t-ese Septe.5er7

ir u.st!n es institute, on 3t)33' t-e suit for spe ifi

perfor.!n e of t-e

ontr! t7 #iB% C% S% ents of "!n,%

('3*)332 for t-e entire 22

)'% T-e p"!int

!se is t-!t !t t-e ti.e t-e

!gree.ent for s!"e :!s entere, into7 it

13

:!s

?no:n of

to t-e

5otsuit

t-e

p!rties

t-!t -!,

)3

ents

propert/

5een

,e "!re, eA ess "!n, un,er t-e T!.i" N!,u A t7 !n, t-!t !n !ppe!" to t-e Spe i!" Co..issioner pen,ing% p!rties It ?ne: (L!n, !"so t-!t Refor.s$7 su5.itte, ! :rit M!,r!s t-!t :!s t-e

petition

-!""enging t-e St!te >o#ern.ent<s refus!" to eAe.pt t-e propert/ un,er se tion &) of t-e T!.i" N!,u A t :!s !"so pen,ing% Git?no:"e,ge t-e p!rties entere, into t-e

!gree.ent to se""% T-e p"!intiff su5.itte, t-!t t-is .eeting of .in,s :!s ref"e te, in t-us "!use 8 of t-e !gree.ent% T-ere :!s no ne: !n, unforeseen ,e#e"op.ent ontr! t !s perfor.!n e or in t-e

"e!,ing to t-e frustr!tion of su - t-e re"ief for spe ifi of t-e ontr! t :!s pr!/e,

!"tern!ti#e7 it :!s pr!/e, t-e p"!intiff 5e !""o:e, ! refun, of t-e e!rnest .one/ :it!n interest
14

of

&(K

per

!nnu.

!n,

"iDui,!te,

,!.!ges

to

t-e osts%

tune

of

Rs%8(7++7+++*4 !"ong :it-

19.

T-e

,efen,!nt7

t-e

propose,

#en,or7

resiste, t-e suit 5/ su5.itting t-!t t-e !gree.ent to se"" :!s :it- respe t to t-e entire suit propert/7 i%e% 22 t-us ou", not -!#e 5een ents7 !n, sp"it into ents

sep!r!te !gree.ents to se"" for =8 !n, )3

ents% It su5.itte, t-!t in #ie: of

t-e 5!r p"! e, 5e !use of se tion 2 of t-e T!.i" N!,u A t !n, t-e onseDuenti!"

refus!" 5/ t-e !ppropri!te !ut-orit/ un,er t-e in o.e t!A ,ep!rt.ent to !""o: t-e

eAe ution of t-e s!"e7 t-e -!, 5e o.e frustr!te,

ontr! t itse"f !n, t-us

unenfor e!5"e in "!:%

20.

It :!s furt-er urge, t-!t ti.e :!s t-e essen e of t-e ontr! t !n, it :!s for t-e

p"!intiff pur -!ser to see? eAe.ption for

15

t-e s!i, )3 ei"ing

ents "!n, fro. t-e ur5!n "!n, :-i -o:e#er it

,ep!rt.ent7

f!i"e, to ,o% As ! resu"t of t-is f!i"ure7 t-e s!"e /e!r<s ou", not 5e !ffe te, :it-in ! T-is "e!r"/ ren,ere, t-e

ti.e%

ontr! t #oi, in ter.s of insof!r !s t-e

"!uses ' !n, )+

ontr! t :!s not perfor.e, "!use 3 :!s !n e""e,

:it-in ! /e!r<s ti.e% Hen e7 !ttr! te, !n, t-e

ontr! t stoo,

for ,ef!u"t of t-e p"!intiff% It su5.itte, t-!t in ter.s of #en,or (,efen,!nt "!use 37 t-e propose, no%)$ refun,e, t-e

e!rnest .one/ to t-e p"!intiff4pur -!ser% Ho:e#er t-e post !.e -eDue sent un,er registere, 5! ? It to t-e ,efen,!nt t-!t t-e no% )

;refuse,<%

!ppe!rs

s!.e

refuse, 5/ t-e p"!intiff4pur -!ser eit-er 5/ 2t- or 8t- Septe.5er7 )332%

&)% As su - t-e ,efen,!nt no% ) pr!/e, for ,is.iss!" of t-e

16

suit

in

#ie:

of

i.possi5i"it/ ontr! t p"!intiff !n, of

of

perfor.!n e

of 5/ un,er

t-e t-e t-e

non4perfor.!n e its o5"ig!tion

ontr! t :it-in t-e stipu"!te, ti.e%

&&% Ho:e#er7

t-e

"e!rne,

Sing"e

Ju,ge

-e",

t-!t t-e suit propert/ :!s in respe t of !gri u"tur!" "!n, !n, not !5out !n ur5!n "!n, !s A t% onte.p"!te, un,er t-e T!.i" N!,u

It :!s furt-er note, 5/ t-e "e!rne,

Ju,ge t-!t !s t-e T!.i" N!,u A t -!, 5een repe!"e, in )3337 its !pp"i !tion itse"f :ou", 5e "i.ite, to on"/ t-ose inst!n es :-ere possession of t-e eA ess #! !nt "!n, -!, 5een t!?en o#er 5/ t-e St!te

>o#ern.ent%

&1% T-e

"e!rne, in

Ju,ge t-e

note, inst!nt

t-!t !se

t-e ,i,

suit not

propert/

!ttr! t !n/ of t-e pro#isions .entione, in Se tion 1 of t-e Repe!"ing A t% A

17

or,ing

to

t-e

"e!rne,

Ju,ge7

t-ere

:ere

t:o

re!sons for :-i - t-e pro#isions of T!.i" N!,u A t :ou", not !pp"/ to t-e inst!nt !gree.entE first"/7 t-e suit propert/ :!s !gri u"tur!" in n!ture !n, t-us t-e s!.e :!s outsi,e t-e pur#ie: of t-e A t%

Se on,"/7 !fter t-e repe!" of t-e T!.i" N!,u A t in )3337 none of its pro#isions !ffe te, t-e !gree.ent% t-!t not ! It T-e Ju,ge -e",

"!use (8$ in itse"f7 -o:e#er7 :!s on,ition pre e,ent to t-e st!te, t-!t "e!r!n e ontr! t% of t-e

.ere"/

s!i, )3

ents fro. t-e ur5!n "!n, :!s upon t-e

ei"ing !n,

!ut-orities

p"!intiff7

t-!t in t-e e#ent t-e p"!intiff :!s un!5"e to -!#e it "e!re,7 t-e ,efen,!nt no% )

s-!"" not 5e pro#i,e, :it- !n/ !"tern!ti#e pie e of "!n, or !n/ o.pens!tion% T-us7

t-e "e!rne, Ju,ge -e", t-!t t-e p"!intiff :!s t-e entit"e, to spe ifi perfor.!n e of

ontr! t !n, ,e ree, t-e suit%

18

&=% Aggrie#e,7 t-e ,efen,!nt no% ) preferre, !n !ppe!"% T-e "e!rne, it Di#ision t-!t 9en t-e

p!rt"/

!""o:e,

-o",ing

respon,ents spe ifi =8

ou", 5e gi#en t-e re"ief of

perfor.!n e on"/ to t-e eAtent of

ents of t-e "!n,s t-!t :ere not p!rt

of t-e pro ee,ings un,er t-e T!.i" N!,u A t%

&(% Ap!rt fro. up-o",ing t-e 6u,g.ent of t-e "e!rne, Ju,ge :itrespe t to t-e

!gri u"tur!" n!ture of t-e suit propert/7 t-e Di#ision 9en - note, t-!t in none of t-e "etters eA -!nge, 5et:een t-e p!rties it -!, -!, o.e on re or, t-!t t-e !gree.ent i""eg!" in #ie: of t-e

5e o.e

pro#isions of Se tion 2 of t-e T!.i" N!,u A t% On t-e ontr!r/7 in !"" t-ese

o..uni !tions7 t-e on"/ position t-!t t-e ,efen,!nt no% ) -!, insiste, upon :!s t-e
19

s!tisf! tion of t-e in "!use (8$ of

on,itions .entione, t-e !gree.ent7 #iB%7

per.ission for t-e s!"e of )3 ur5!n "!n, ei"ing

ents 5/ t-e T-e

!ut-orities%

"e!rne, Di#ision 9en - note, t-!t if t-is :!s t-e st!n e of t-e ,efen,!nt no% )7 it ou", not 5e !""o:e, to resist t-e suit on t-e groun,s of i""eg!"it/ of ontr! t%

26.

Ho:e#er7 it ,is!gree, :it- t-e ,e ision of t-e "e!rne, Ju,ge to t-e eAtent t-e repe!" of t-e T!.i" N!,u A t ,i, not in itse"f re"e!se, )3 ents of t-e eA ess #! !nt

"!n, fro. t-e pro ee,ings initi!te, un,er t-!t A t% It -e", t-!t Se tion 1 of t-e Repe!" A t pro#i,e, t-!t repe!"ing of t-e T!.i" #esting N!,u of A t !n/ :ou", #! !nt not "!n, !ffe t un,er t-e su5

se tion (1$ of Se tion )) of t-e T!.i" N!,u A t in !ses :-ere t-e possession of

su - #! !nt "!n, -!, 5een t!?en o#er 5/

20

t-e

St!te

>o#ern.ent%

Re"/ing

upon

!n,

fo""o:ing ,e ision of ! Fu"" 9en - of t-e Hig- Court in P. Gopirathnam and 4 Others v. Ferrodous Estate by G. its "ohn (Private) Power of Limited, Attorney )333 (&$

represented Ho der !ri

Arthur7

Current T!.i" N!,u C!ses )')7 t-e "e!rne, 9en respe t -e", to t-!t t-e t-e )3 pro ee,ings ents -!, :it5een

s!i,

initi!te, !n, t-!t t-e s!.e :ere pen,ing% T-e Di#ision 9en - -e", t-!t ,e ree for spe ifi perfor.!n e !s gi#en 5/ t-e

"e!rne, Ju,ge -!, to 5e .o,ifie, to t-e eAtent t-!t t-e s!.e :!s possi5"e on"/ to t-e eAtent of t-e unen u.5ere, portion of t-e "!n,%

&8% One of t-e .!in Duestions :-i - !rise for onsi,er!tion in t-e f! ts of t-is Court is :-et-er in t-e s!i, !gree.ent ti.e is of t-e essen e of t-e
21

ontr! t%

In or,er

to !ppre i!te t-is Duestion7 t-e Court -!s to onsi,er se#er!" T-e "!uses in t-e s!i, "!uses !re

!gree.ent%

re"e#!nt

"!uses 87 '7 3 0 )+7 :-i - !re set out 5e"o:E H8% T-e #en,or st!tes t-!t !n eAtent of 88+ sD%.ts% in S%No%121*)9 0 121*)C for.ing p!rt of t-e propert/ ,es ri5e, 5e"o: !n, !gree, to 5e so", -!s 5een ,e "!re, !s eA ess #! !nt "!n, un,er Se 3(($ of t-e T!.i" N!,u Ur5!n L!n, Cei"ing (C0R$ A t7 )38'% An !ppe!" is pen,ing 5efore t-e Spe i!" Co..issioner (L!n, Refor.s$7 M!,r!s% T-e Ven,or !"so !pp"ie, to t-e St!te >o#ern.ent for eAe.ption un,er Se &) of t-e A t 5ut t-e s!.e -!s 5een re6e te, !n, t-e .!tter is pen,ing in G%P%)13+2*)3'' 5efore t-e Hig- Court7 M!,r!s% It s-!"" 5e t-e so"e responsi5i"it/ of t-e Pur -!ser to get "e!r!n e fro. t-e Ur5!n L!n, Cei"ing Aut-orities 5/ negoti!tion or getting eAe.ption un,er t-e A t or per.ission to se""7 !t -is o:n ost !n, t-e Ven,or s-!"" not 5e responsi5"e for t-e s!.e% 9ut7 t-e Ven,or s-!"" sign !"" !pp"i !tions or petitions ne ess!r/ for t-is purpose% G-i"e7 getting per.ission to se"" or eAe.ption un,er t-e A t in respe t of t-e propert/ !gree, to 5e so",7 t-e Pur -!ser s-!"" ensure t-!t no o.pens!tor/ "!i. or !"tern!te "!n, is "!i.e, 5/ t-e Ur5!n L!n, Cei"ing !ut-orities in t-e rest of t-e "!n, to 5e ret!ine, 5/ t-e Ven,or% '% T-e ti.e for o.p"etion of t-e s-!"" 5e one /e!r fro. t-e ,!te !gree.ent% pur -!se of t-is

22

3% If t-e pur -!ser f!i"s to o.p"ete t-e tr!ns! tion :it-in t-e ti.e stipu"!te,7 t-is !gree.ent s-!"" st!n, !n e""e, !n, ! su. of Rs%)+7++7+++*4 (Rupees Ten L!?-s on"/$ p!i, !s e!rnest .one/ :i"" 5e returne, :it-out interest to t-e Pur -!ser !n, t-e Ven,or s-!"" 5e !t "i5ert/ to se"" t-e propert/ to :-o.soe#er -e "i?es% )+% Ti.e s-!"" 5e t-e essen e of t-e ontr! t%I

28.

A,.itte,"/7 t-e !gree.ent :!s entere, into on 8t- Ju"/7 )33( !n, t-e perio, of one /e!r eApire, 5/ 2t- Ju"/7 )332% Git-in t-!t perio, t-e p"!intiff4pur -!ser get ou", not

"e!r!n e fro. t-e Ur5!n L!n, Cei"ing nor ou", t-e/ o5t!in t-e

Aut-orities

eAe.ption un,er t-e A t for per.ission to se"" ! p!rt of t-e propert/ in respe t of :-i t-e suit for spe ifi perfor.!n e

:!s fi"e,%

29.

It

is

not

t-e t-!t

!se t-e

of

t-e in

p"!intiff4 !n/ :!/ or su -

pur -!ser ,e"!/e, petition

#en,or of for

t-e

signing

!pp"i !tion getting

ne ess!r/
23

per.ission

for

"e!r!n e% eA -!nge,

Fro. 5et:een

so.e t-e

orrespon,en e p!rties it is fe: steps 5ut

"e!r t-!t pur -!ser too? ! ou", not get t-e "e!r!n e

:it-in t-e ti.e !gree, 5/ it% T-e Ven,or7 -o:e#er7 5/ ! "etter ,!te, =t- Septe.5er7 )332 !n e""e, t-e !gree.ent in ter.s of

"!use 3 of t-e !gree.ent !n, returne, t-e !,#!n e -eDue .one/ in of Rs%)+7++7+++*4 of "!use 3% #i,e T-e !

ter.s

s!i,

"etter :ritten 5/ t-e #en,or is set out 5e"o:E4

HCITADEL FINE PHARMACEUTICALS RefE 1'(&*32 =t- Septe.5er )332 M*s% R!.!ni/!. Re!" Est!tes P#t% Lt,%7 Rep% 5/ Mr% V% J!g!nn!t-!n7 M!n!ging Dire tor7 ;Srut-i<% No%))7 &n, M!in R!o,7 >!n,-i N!g!r7 M!,r!s 2++ +&+% De!r Sir7 ReE )% &% Our "etter ,!te, ))%8%32 Lour "etter ,!te, )3%8%32%

24

As :ou", 5e !ppre i!te, 5/ /ou7 !t t-e .eeting -!, :it- /ou7 5/ ourse"f t-roug- our Mr% R!6i# !n, furt-er 5/ te"ep-one on 1+%'%)332 !s /ou -!#e eApresse, /our re"u t!n e in ! epting our ter.s put to /ou on t-e s!"e of t-e propert/7 :e !re returning t-e !,#!n e .one/ of Rs%)+7++7+++*4 #i,e S9I7 >uin,/7 C-eDue No%3+=+)= ,t%=%3%)332 in ter.s of C"!use 3 of t-e Agree.ent ,!te, 8t- Ju"/7 )33(% Min,"/ ! ?no:"e,ge t-e re eipt of t-is% T-!n?ing /ou7 Lours f!it-fu""/7 For CITADEL FINE PHARMACEUTICALS S,*4 P!rtner En "E !s !5o#eI

1+% Un,er t-ese

ir u.st!n es7 t-e Duestion is !se #en,or suit for

:-et-er fro. t-e f! ts of t-is !n r!ise ! ,efen e to t-e

spe ifi ti.e

perfor.!n e of t-e of t-e Court

ontr! t t-!t of or,er t-is its

5eing

essen e !nnot

ontr! t7 spe ifi to

t-e

perfor.!n e :-en p"!intiff f!i"e, its p!rt of t-e ontr! t

,is -!rge

:it-in ti.e !n, :-en !fter eApir/ of ti.e7

25

t-e

ontr! t :!s

!n e""e, 5/ t-e #en,or

in ter.s of

"!use 3 of t-e Contr! t%

1)% T-e sett"e, "!: see.s to 5e t-!t in ! for spe ifi perfor.!n e of

!se

ontr! t

re"!ting to i..o#!5"e propert/ ti.e is not nor.!""/ of t-e essen e% Ho:e#er7 t-is is not !n !5so"ute proposition !n, it -!s

se#er!" eA eptions%

32.

Referen e in t-is to t-e ,e ision 32',"!".

onne tion .!/ 5e .!,e of Pri#/ Coun i" #% in

J".$2&,

I!"#1

B4!5'!51

D24#51-2"1 reporte, in ()3)(4)2$ =1 I%A% &2% Vis ount H!",!ne ,e"i#ering t-e

6u,g.ent for t-e Ju,i i!" Co..ittee of t-e Pri#/ Coun i" -e", t-!t t-e "!: !pp"i !5"e to t-is Duestion is (( of t-e In,i!n ont!ine, in Se tion A t !n, t-e

Contr! t

"e!rne, L!: Lor, :!s of t-e opinion t-!t Se tion (( of t-e In,i!n Contr! t A t ,oes
26

not

"!/

,o:n fro. of

!n/ t-ose

prin ip"e :-i :it-

:-i -

is

,ifferent t-e "!:

o5t!in

un,er to

Eng"!n,

reg!r,

ontr! ts for s!"e of "!n,% It :!s furt-er -e", t-!t in perfor.!n e7 rig-ts !":!/s of !t !ses re"!ting to spe ifi eDuit/7 t-e t-e :-i go#erns not of t-e "oo? t-e

p!rties7 eApress

,oes ter.

!gree.ent 5ut !t t-e su5st!n e of it in or,er n!.e, to ! !s ert!in spe ifi :-et-er ti.e t-e :it-in p!rties :-i -

o.p"etion :!s to t!?e p"! e !n, :-et-er t-e p!rties in su5st!n e inten,e, t-!t t-e o.p"etion s-ou", t!?e p"! e :it-in !

re!son!5"e ti.e% !s fo""o:sE4

T-e "eg!" position :!s

HJA Court of EDuit/ :i"" in,ee, re"ie#e !g!inst !n, enfor e spe ifi perfor.!n e7 not:it-st!n,ing ! f!i"ure to ?eep t-e ,!tes !ssigne, 5/ t-e ontr! t@ eit-er for o.p"etion or for t-e steps to:!r,s o.p"etion7 if it !n ,o 6usti e 5et:een t-e p!rties7 !n, if (!s Lor, Justi e Turner s!i, in Ro5erts #% 9err/ N1 D%M%0 >% &'= !t &'3O t-ere is not-ing in t-e ;eApress stipu"!tion 5et:een t-e p!rties7 t-e n!ture of
27

t-e propert/7 or t-e surroun,ing ir u.st!n es<7 :-i - :ou", .!?e it ineDuit!5"e to interfere :it- !n, .o,if/ t-e "eg!" rig-tJ%I (p!ge 1& of t-e report$

11% T-e "e!rne, L!: Lor, .!,e it eDuit/ ! !n oper!te in t-e

"e!r t-!t

onstru tion of "e!r"/ it :!s

ontr! t Hun"ess eA "u,e, 5/ !n/ stipu"!tionI% t-!t eDuit/ Ho:e#er7 :i"" not

eApresse, .!,e "e!r

!ssist

:-ere t-ere -!s 5een un,ue ,e"!/ on t-e p!rt of one p!rt/ to t-e ontr! t !n, one

p!rt/ -!s gi#en noti e to t-e ot-er p!rt/ t-!t t-e t-e ,ef!u"ting :it-in p!rt/ ! .ust o.p"ete ti.e% A

ontr! t

,efinite

furt-er eDuit/

!ution :!s !,,e, 5/ s!/ing t-!t :i"" not !ssist :-en ot-er

ir u.st!n es :i"" resu"t in in6usti e on !pp"i !tion of eDuit!5"e prin ip"e% In t-e :or,s of Lor, H!",!ne t-e prin ip"es -!#e 5een for.u"!te, !s fo""o:sE4 HJNor :i"" it (eDuit/$ eAer ise its 6uris,i tion :-en t-e -!r! ter of t-e propert/ or ot-er
28

ir u.st!n es :ou", ren,er su - eAer ise "i?e"/ to resu"t in in6usti e% In su !ses t-e ir u.st!n es t-e.se"#es7 !p!rt fro. !n/ Duestion of eApresse, intention7 eA "u,e t-e 6uris,i tion% EDuit/ :i"" furt-er infer !n intention t-!t ti.e s-ou", 5e of t-e essen e fro. :-!t -!s p!sse, 5et:een t-e p!rties prior to t-e signing of t-e ontr! tJ%I (P!ge 11 of t-e report$

1=% In t-is

!se7 prior to t-e signing of t-e t-e ter.s !n, :ere t-e ,is usse, p"!intiff

!gree.ent7 5et:een t-e

p!rties

pur -!ser :i""ing"/ too? upon itse"f t-e 5ur,en of o5t!ining t-e "e!r!n e :it-in

t-e ti.e stipu"!te, in t-e !gree.ent%

35.

T-e

!fores!i,

prin ip"es

in

J".$2&,

32',"!". (supr!$ :ere !

epte, 5/ ! t-ree4 !se of #%

Ju,ge 9en - of t-is Court in t-e G'."*21#"6"/". P1++"1 "#,

'*2&!$

P"+"#1$7".1 N","! reporte, in AIR )328 SC '2'%

29

12% Fro. t-e ter.s of !gree.ent in t-is

!se

:-i - -!#e 5een set out in t-e e!r"ier p!rt of t-e 6u,g.ent it is "e!r t-!t t-e "e!r"/

ti.e is of t-e essen e !n, t-is is

stipu"!te, !n, un,erstoo, 5/ t-e p!rties -!#ing reg!r, to t-e pre#ious

orrespon,en e !n, !"so -!#ing reg!r, to t-e "!i, ,o:n ter.s of t-e espe i!""/ o.p"etion :-en of t-e t-e ontr! t !n, of non4

onseDuen e ter.s 5/

pur -!ser

:it-in t-e stipu"!te, ti.e :!s spe"t out in "!use 3%

37.

In ! t-e

!se :-ere ti.e is of t-e essen e of ontr! t7 of t-e su onseDuen e ter. 5/ -!s of 5een Chitty non4 #er/ on

perfor.!n e su in t"/

eAp"!ine,

Contracts, (Volume 1, Thirteenth Edition, Sweet & Ma well in !ara"ra!h #1-$1%& !n, t-e s!.e is set outE

30

HConseDuen es of ti.e 5eing Pof t-e essen eP% In ,eter.ining t-e onseDuen es of ! stipu"!tion t-!t ti.e is to 5e Pof t-e essen eP of !n o5"ig!tion7 it is #it!" to ,istinguis5et:een t-e !se :-ere 5ot- p!rties !gree t-!t ti.e is to 5e of t-e essen e of t-e o5"ig!tion !n, t-e !se :-ere7 fo""o:ing ! 5re! - of ! non4 essenti!" ter. of t-e ontr! t7 t-e inno ent p!rt/ ser#es ! noti e on t-e ot-er st!ting t-!t ti.e is to 5e of t-e essen e% In t-e for.er !se t-e effe t of ,e "!ring ti.e to 5e of t-e essen e is to e"e#!te t-e ter. to t-e st!tus of ! P on,itionP :it- t-e onseDuen es t-!t ! f!i"ure to perfor. 5/ t-e stipu"!te, ti.e :i"" entit"e t-e inno ent p!rt/ toE (!$ ter.in!te perfor.!n e of t-e ontr! t !n, t-ere5/ put !n en, to !"" t-e pri.!r/ o5"ig!tions of 5otp!rties re.!ining unperfor.e,@ !n, (5$ "!i. ,!.!ges fro. t-e ontr! t45re!?er on t-e 5!sis t-!t -e -!s o..itte, ! fun,!.ent!" 5re! - of t-e ontr! t (H! 5re! - going to t-e root of t-e ontr! tI$ ,epri#ing t-e inno ent p!rt/ of t-e 5enefit of t-e ontr! t (H,!.!ges for "oss of t-e :-o"e tr!ns! tionI% (p!ge )=)+$

38.

'ry

in

-is

Treaties

on

the

S!eci(ic

)er(ormance of Contracts (Si th Edition& -!s ,e!"t :it- t-is !spe t in p!r!gr!p)+8(E4

HTi.e is origin!""/ of t-e essen e of t-e ontr! t7 in t-e #ie: of ! Court of EDuit/7 :-ene#er it !ppe!rs to -!#e 5een p!rt of t-e re!" intention of t-e p!rties t-!t it s-ou", 5e so7 !n, not to -!#e 5een inserte, !s ! .ere"/
31

for.!" p!rt of t-e ontr! t% As t-is intention .!/ eit-er 5e sep!r!te"/ eApresse,7 or .!/ 5e i.p"ie, fro. t-e n!ture or stru ture of t-e ontr! t7 it fo""o:s t-!t ti.e .!/ 5e origin!""/ of t-e essen e of ! ontr! t7 !s to !n/ one or .ore of its ter.s7 eit-er 5/ #irtue of !n eApress on,ition in t-e ontr! t itse"f .!?ing it so7 or 5/ re!son of its 5eing i.p"ie,J% I (p!ge (+&$

13% In p!r!gr!p- )+837 t-e "e!rne, !ut-or -!s eAp"!ine, t-e position furt-er 5/ s!/ing t-e ti.e .!/ 5e i.p"ie, !s essenti!" in ! ontr! t fro. t-e n!ture of t-e su56e t .!tter :it- :-i - t-e p!rties !re ,e!"ing% T-e "e!rne, !ut-or eAp"!ine, t-is 5/

s!/ingE4

H)+83% Ti.e .!/ 5e i.p"ie, !s essenti!" in ! ontr! t7 fro. t-e n!ture of t-e su56e t4.!tter :it- :-i - t-e p!rties !re ,e!"ing% HIf7 t-erefore7I s!i, A",erson 9%7 Ht-e t-ing so", 5e of gre!ter or "ess #!"ue ! or,ing to t-e eff"uAion of ti.e7 it is .!nifest t-!t ti.e is of t-e essen e of t-e ontr! tE !n, ! stipu"!tion !s to ti.e .ust t-en 5e "iter!""/ o.p"ie, :it- in EDuit/ !s :e"" !s in L!:J%I (p!ge (+=$

32

=+% At p!r!gr!p- )+') p!ge (+(7 t-e "e!rne, !ut-or .!,e it #er/ "e!r t-!t in !

ontr! t re"!ting to t-e Court is

o..er i!" enterprise in "ine, to -o",

strong"/

ti.e to 5e essenti!"7 :-et-er t-e

ontr! t

is for t-e pur -!se of "!n, or for su purposes or .ore ;,ire t"/ for t-e

prose ution of tr!,e<%

T-e e"!5or!tion of

t-is point 5/ t-e "e!rne, !ut-or is !s fo""o:sE4

H)+')% An, so7 !g!in7 :-ere t-e o56e t of t-e ontr! t is ! o..er i!" enterprise7 t-e Court is strong"/ in "ine, to -o", ti.e to 5e essenti!"7 :-et-er t-e ontr! t 5e for t-e pur -!ser of "!n, for su - purposes7 or .ore ,ire t"/ for t-e prose ution of tr!,e% T-is prin ip"e -!s 5een ! te, on in t-e .!tter of ! ontr! t respe ting "!n, :-i -!, 5een pur -!se, for t-e ere tion of .i""s7 !"so in re"!tion to ! s!"e of p!sture "!n,s7 reDuire, 5/ t-e pur -!ser7 !s t-e #en,or ne:7 for sto ?ing7 !n, in se#er!" !ses of ontr! ts for t-e s!"e of pu5"i 4-ouses !s going on ernsJ%I (p!ge (+($

=)% T-e !fores!i, prin ip"es sDu!re"/ !pp"/ to t-e f! ts of t-e present
33

!se%

Here t-e

pur -!ser is !,.itte,"/ in t-e 5usiness of 5ui",ing !gree.ent onstru tion !n, is entering :itfor pur -!sing t-e p"ot on

o..er i!" 5!sis%

42.

*areth +ones and ,illiam *oodhart in t-eir Treaties on S!eci(ic )er(ormance (Second Edition, -utterworths& eApresse, si.i"!r

#ie:s 5/ s!/ingE

HIf t-e p!rties -!#e eApress"/ !gree, t-!t ti.e is to 5e of t-e essen e7 t-e ourts :i"" gener!""/ if not !":!/s gi#e effe t to t-!t stipu"!tion% An intention t-!t ! stipu"!tion !s to ti.e s-ou", 5e of t-e essen e .!/ 5e i.p"ie, fro. t-e ir u.st!n es% In t-e !5sen e of !gree.ent to t-e ontr!r/7 ti.e :i"" gener!""/ 5e onsi,ere, of t-e essen e in .er !nti"e ontr! ts !n, in ontr! ts for t-e s!"e of ! 5usiness or of propert/ :-i - -!s ! f"u tu!ting or spe u"!ti#e #!"ueJ%I (p!ge 8=$

=1% T-e inst!nt ontr! t in Court

!se o5#ious"/ re"!tes to ! o..er i!" tr!ns! tion !n, t-e

!n t!?e 6u,i i!" noti e of t-e f! t it/ of C-enn!i t-e pri e of

34

t-!t in t-e

re!" est!te is t-e

onst!nt"/ es !"!ting !n,

"e!r intention of t-e p!rties7 !s it fro. :!s t-e to stipu"!tions tre!t ti.e of !s t-e t-e

!ppe!rs

!gree.ent7

essen e of t-e

ontr! t%

==% H!#ing reg!r, to t-e !fores!i, prin ip"es t-e ourt !nnot to t-e !ttri5ute p!rties ! ,ifferent !nnot

intention

!n,

spe ifi !""/ enfor e t-e inst!n e -!s of t-e to

ontr! t !t t-e :-o t-e

p"!intiff4pur -!ser -is p!rt of

f!i"e,

perfor.

o5"ig!tion :it-in t-e ti.e stipu"!te,%

45.

In 3.8. V1,6"#",". "#, '*2&!$ #% V"1!"("# reporte, eAp"!ine, eAer ise, spe ifi t-!t in in ()338$ -o: 5/ t-e 1 SCC ) t-is is Court 5e

,is retion Court

to

5efore T-is

gr!nting -e",

perfor.!n e%

Court

!ses of ur5!n properties in In,i!

it is :e"" ?no:n t-!t pri es !re going up

35

s-!rp"/

o#er

t-e !fter ourt

"!st )381% :!s

fe: In

,e !,es

p!rti u"!r"/ (supr!$ t-e

V1,6"#",". :it!

,e!"ing

propert/ in M!,ur!i in t-e St!te of T!.i" N!,u !n, it :!s !rgue, 5efore t-is Court 5/ referring in to 8.V. t-e M!,r!s HigCourt #%

6u,g.ent

8"#9"!"+1#/"

N","!

P.T.8. R"*#"$7".1 N","! (AIR )3(& M!, 1'3$ t-!t .ere rise in pri e is no groun, for ,en/ing t-e spe ifi perfor.!n e% T-is

Court ,i, not !gree :it- t-e ,e ision of t-e M!,r!s Hig- Court !n, -e", t-!t t-e Court of !nnot 5e o5"i#ious of t-e re!"it/ !n, ontinuous properties% rise in In t-e t-!t

onst!nt of

#!"ue

ur5!n

onteAt t-e ti.e "i.it set in t-e -!s to 5e stri t"/ of V1,6"#",". onstrue,% t-ere

ontr! t !se su -

In t-e is no

(supr!$

stri t stipu"!tion !s ti.e 5eing of t-e essen e inst!nt of t-e ontr! t !s is in t-e

!se e#en t-en t-e Court refuse,

36

to

gr!nt

t-e

re"ief

of

spe ifi

perfor.!n e%

46.

In V1,6"#",". (supr!$ referen e :!s .!,e to ! Constitution 9en - 6u,g.ent of t-is Court in C2"#, R"#1 :8.*.; :D&",; -6 LR$. #% 3"."+ R"#1 :8.*.; :D&",; -6 LR$.

reporte, in ()331$ ) SCC ()3%

T-e s!.e

Duestion7 :-et-er ti.e :!s of essen e of t-e ontr! t :!s ,is usse, in C2"#, R"#1 T-e Constitution 9en - of t-is ,e!"ing :itt-is Duestion

(supr!$% Court

:-i"e

referre, to !not-er ,e ision of t-is Court in t-e !se of -6 M<$. 1*$ H1#, $'+& C'#$*!4)*1'# 0!'0!1&*'!

C'#*!")*'!$

B219".)2"#, M4+)2"#, J"1# :D&",; -6 LR$. #% 8*"*& '% M"2"!"$2*!" reporte, in ()383$ & SCC 8+% 9/ referring to #!rious

6u,g.ents7 t-e Constitution 9en - in C2"#, R"#1 t-!t (supr!$ e#en for.u"!te, p!rties
37

t-e

proposition eApress"/

:-ere

-!#e

pro#i,e, ti.e to 5e of t-e essen e of t-e ontr! t7 su - ! stipu"!tion :i"" -!#e to 5e re!, !"ong :itot-er ter.s of t-e

ontr! t%

Su - ot-er ter.s7 on ! proper .!/ eA "u,e of t-e inferen e 5/ to ! 5e

onstru tion7 t-!t t-e

o.p"etion ,!te :!s

:or?

p!rti u"!r fun,!.ent!"% t-e

.e!nt

T-e "e!rne, Ju,ges in,i !te, ir u.st!n es :-i .!/

fo""o:ing

in,i !te ! ontr! t eAtension

ontr!r/ inferen e@ (!$ if ! "!uses ti.e pro#i,ing in for

in "u,es of

ert!in "!uses

ontingen ies7 or (5$ if t-ere !re

for p!/.ent of fine or pen!"t/ for e#er/ ,!/ or :ee? t-e :or? un,ert!?en re.!ins unfinis-e, !fter t-e eApir/ of ti.e% Constitution 9en - -e", t-!t su :ou", 5e onstrue, !s T-e

"!uses

ren,ering

ineffe ti#e t-e eApress pro#ision re"!ting to ti.e 5eing of t-e essen e of ontr! t

(see p!r! && !t p!ge (&' of t-e report$%

38

=8% In t-e inst!nt no su -

!se7 in t-e s!i, !gree.ent !s !fores!i,7 eAists%

"!use7

R!t-er t-e stipu"!tion !s ti.e 5eing of t-e essen e of t-e in ontr! t "!use )+ :!s !n, !re t-e t-e

spe ifi !""/ t-e

.entione, of

onseDuen es in

non4 o.p"etion 3% So ontr! t fro. !n,

.entione, eApress

"!use of t-e

ter.s

o..er i!" n!ture of t-e tr!ns! tion !n, t-e surroun,ing ir u.st!n es .!?e it

"e!r t-!t t-e p!rties inten,e, ti.e in t-is !se :!s inten,e, ontr! t% to 5e of t-e

essen e of t-e

='% Meeping t-e !5o#e prin ip"e if :e "oo? !t t-e portion of L!: in In,i!7 it is t-!t Re"ief un,er A t7 Se tion )321 3 it of is t-e "e!r

Spe ifi !s

pro#i,e,

fo""o:sE4

39

H3% Defen es respe ting suits for re"ief 5!se, on ontr! t%4 EA ept !s ot-er:ise pro#i,e, -erein7 :-ere !n/ re"ief is "!i.e, un,er t-is C-!pter in respe t of ! ontr! t7 t-e person !g!inst :-o. t-e re"ief is "!i.e, .!/ p"e!, 5/ :!/ of ,efen e !n/ groun, :-i - is !#!i"!5"e to -i. un,er !n/ "!: re"!ting to ontr! ts%I

=3% It is

"e!r fro. Se tion 3 of t-e Spe ifi

Re"ief A t7 )321 t-!t Se tion (( of T-e In,i!n Contr! t !g!inst perfor.!n e A t7 :-o. -!s )'8& suit 5een en!5"es for fi"e, ! t-e to

,efen,!nt spe ifi

r!ise t-e ,efen e un,er Se tion (( of t-e In,i!n Contr! t A t%

(+% Se tion

((

of

t-e

In,i!n

Contr! t

A t

:-i - ,e!"s :it- !

ontr! t7 in :-i - ti.e

is of essen e is !s fo""o:sE4

HSe tion (( 4 Effe t of f!i"ure to perfor. !t ! fiAe, ti.e7 in ontr! t in :-i - ti.e is essenti!"% 4 G-en ! p!rt/ to ! ontr! t pro.ises to ,o ! ert!in t-ing !t or 5efore ! spe ifie, ti.e7 or ert!in t-ings !t or 5efore spe ifie, ti.es7 !n, f!i"s to ,o !n/ su - t-ing !t or 5efore t-e spe ifie, ti.e7 t-e ontr! t7 or so .u - of it !s -!s not 5een perfor.e,7
40

5e o.es #oi,!5"e !t t-e option of t-e pro.isee7 if t-e intention of t-e p!rties :!s t-!t ti.e s-ou", 5e of t-e essen e of t-e ontr! t%I

51.

On !

o.5ine, re!,ing of Se tion 3 of t-e Re"ief A t !n, Se tion (( of T-e "e!r t-!t in

Spe ifi

In,i!n Contr! ts A t it is t-is

!se t-e #en,or !s ! pro.isee7 :!s ontr! t

:it-in its rig-t to ter.in!te t-e

5/ sen,ing t-e "etter ,!te, =t- Septe.5er7 )332 in ter.s of C"!use 3 of t-e Contr! t :-i"e returning t-e It not !,#!n e is "e!r .one/ t-!t its !n, of t-e

Rs%)+7++7+++*4% p"!intiff :it-in -!s

,is -!rge, spe ifie,

5ur,en is not

t-e

ti.e

entit"e, to ! spe ifi ontr! t%

perfor.!n e of t-e

(&% T-erefore7 t-e !ppro! - of t-e Hig- Court 5ot- 5/ t-e Sing"e Ju,ge !n, t-e Appe""!te 9en !nnot 5e sust!ine,%

41

(1% T-ere !"so%

is

!not-er

!spe t

of

t-e

.!tter

In t-e inst!nt

!se 5/ !s?ing for ontr! t7 t-e for !

spe ifi

perfor.!n e of t-e is

p"!intiff4pur -!ser ,is retion!r/

pr!/ing It is

re.e,/%

!Aio.!ti

t-!t :-en ,is retion!r/ re.e,/ is pr!/e, for 5/ ! p!rt/7 su - p!rt/ .ust o.e to T-e

ourt on proper ,is "osure of f! ts%

p"!int :-i - it fi"e, 5efore t-e Court in su !ses .ust st!te !"" f! ts :it-

suffi ient inst!nt !n

!n,our !n,

"!rit/%

In t-e

!se t-e p"!intiff4pur -!ser .!,e in t-e p"!int t-!t t-e

!#er.ent

,efen,!nt4#en,or 5e ,ire te, to return t-e !,#!n e r!te of !.ount &=K of of Rs%)+7++7+++*4 fro. t-e !t ,!te ti"" t-e of t-e

interest t-e s!i,

p!/.ent

!.ount

re!"iB!tion !n, !n !"tern!ti#e pr!/er to t-!t effe t :!s !"so .!,e in t-e pr!/er "!use ( $%

42

54.

Ho:e#er7 t-e f! t re.!ins t-!t prior to t-e fi"ing of t-e suit t-e ,efen,!nt4 !.ount ,!te, of =t-

#en,or

returne, 5/

t-e its

s!i, "etter

Rs%)+7++7+++*4

Septe.5er7 )332 5/ !n !

ount p!/ee

-eDue

in f!#our of t-e p"!intiff !n, t-e s!.e :!s sent to t-e p"!intiff un,er registere, post :-i - :!s refuse, 5/ t-e p"!intiff on 2%3%)332% T-e p"!intiff suppresse, t-is

f! t in t-e p"!int !n, fi"e, t-e suit on 3%3%)332 :it! tot!""/ ontr!r/

represent!tion 5efore t-e

ourt !s if t-e

!.ount -!s not 5een returne, to it 5/ t-e #en,or% f! t7 T-is is suppression of ! .!teri!" !n, ,isentit"es t-e p"!intiff4

pur -!ser fro. getting !n/ ,is retion!r/ re"ief of spe ifi perfor.!n e 5/ Court%

55.

In t-is

onne tion :e .!/ refer to t-e

Prin ip"e of EDuit!5"e Re.e,ies 5/ I%C%F% SPRL7 FourtE,ition

43

(S:eet

M!A:e""7

)33+$% De!"ing :it- t-e Duestion of ;C"e!n H!n,s< :-ere t-e t-e "e!rne, p"!intiff .is"e, t-e !ut-or is opine, to to t-!t -!#e -!#e

s-o:n ourt or

.!teri!""/

!5use, its pro ess7 or to -!#e !tte.pte, to ,o so7 t-e ,is retion!r/ re"ief of

spe ifi

perfor.!n e

!n 5e ,enie, to -i.%

In "!/ing ,o:n t-is prin ip"e7 t-e "e!rne, !ut-or re"ie, on ! ,e ision of t-e Eng"isCourt in t-e !se of A!.$*!'#/ #% 82&00"!,

= 82'!* L*,. ()3(3$ & Q%9% 1'= !t p!ge 138% &=1$% (See SPRL EDuit!5"e Re.e,ies p!ge

56.

T-is Court -!s !"so t!?en t-e s!.e #ie: in t-e !se of A!4#1." B"!4"2 #% U#1'# '%

I#,1" "#, '*2&!$ reporte, in (&++8$ 2 SCC )&+% At p!r!gr!p)&7 p!ge )&( of t-e

report7 t-is Court -e", t-!t it is trite "!: t-!t to en!5"e t-e eAer ise its ourt to refuse to 6uris,i tion

,is retion!r/
44

suppression .ust 5e of ! .!teri!" f! t% T-is Court7 of ourse7 -e", :-!t is !

.!teri!" f! t7 suppression :-ereof :ou", ,isentit"e t-e suitor to o5t!in ,epen, !

,is retion!r/ t-e f! ts !n, Ho:e#er7 5/

re"ief7

:ou",

upon !se% Court

ir u.st!n es of e! :!/ of gui,!n e t-is

-e", t-!t .!teri!" f! t :ou", .e!n t-!t f! t :-i - is .!teri!" for t-e purpose of ,eter.in!tion of t-e "is%

(8% Fo""o:ing t-e !fores!i, tests7 t-is Court is of t-e opinion t-!t t-e suppression of t-e ! 5/ f! t ept t-e t-e t-!t t-e p"!intiff refuse, to

-eDue of Rs%)+ "! un,er of

sent to it post t-e

,efen,!nt in

registere, C"!use 3 of

:it-

A%D%

ter.s

Contr! t is ! .!teri!" f! t% So on t-!t groun, entit"e, spe ifi t-e to p"!intiff4pur -!ser !n/ re"ief in its is suit not of

perfor.!n e%
45

58.

For

t-e

re!sons

!fores!i,7

t-is

Court

!""o:s t-e !ppe!" fi"e, 5/ M*s% Cit!,e" Fine P-!r.! euti !"s !n, ,is.isses t-e NSLP(C$ !ppe!"

No%&'&()*&++'O

fi"e, 5/ t-e M*s R!.!ni/!. Re!" Est!tes P% Lt,%7 NSLP(C$ No%1)&23*&++'O%

59.

T-e

Court

,ire ts to

M*s% return

Cit!,e" t-e

Fine of

P-!r.! euti !"s

!.ount

Rs%)+7++7+++*4 5/ !n !

ount p!/ee

-eDue

to M*s% R!.!ni/!. Re!" Est!tes P% Lt,%7 if not !"re!,/ returne,7 :it-in = :ee?s fro. ,!te% In ,ef!u"t M*s% Cit!,e" Fine

P-!r.! euti !"s :i"" -!#e to p!/ interest !t t-e r!te of )&K per !nnu. on t-e s!.e fro. t-e eApir/ of t-e perio, of = :ee?s fro. ,!te ti"" ! tu!" p!/.ent%

46

2+% H!#ing

reg!r,

to

t-e

f! ts

!n,

ir u.st!n es of t-is no or,er !s to osts%

!se t-ere :i"" 5e

%%%%%%%%%%%%%%%%%%%%%%%J% (>%S% SIN>HVI$

%%%%%%%%%%%%%%%%%%%%%%%J% Ne: De"-i (ASOM MUMAR >AN>ULL$ August +'7 &+))

47