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Shamsher Singh v. Rajinder Kumar

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 4597-4598 of 2014)Decided 16 Apr 2014
Civil Appeal Nos. 4597-4598 of 2014
Justice Sudhansu Jyoti Mukhopadhaya · Justice V. Gopala Gowda

Background

Purchasers sought an order compelling transfer of land under an alleged ₹3 lakh sale agreement, claiming to have paid ₹2 lakh in advance. The owners denied agreeing to sell and said they had sought a loan against their land. The trial court ordered repayment instead of transfer, but the appellate courts ordered specific performance.

Decision Breakdown

The Court allowed the owners' appeals and replaced the transfer order with repayment of ₹2 lakh plus six per cent annual interest, payable within six weeks of receiving the certified judgment. Under the discretionary specific-performance framework then applicable, it found the document's one-sided clauses, contradictory payment figures and the parties' compromise supported refusing to compel the sale. The compromise contemplated return of the earnest money, and the appellate courts had failed to examine these features adequately before reversing the trial court. They also overlooked admitted bank mortgages and the need to address redemption and discharge where unencumbered title was promised. The repayment amount was corrected from the trial court's ₹3 lakh to the ₹2 lakh advance claimed.

Lesson Learnt

In this dispute, inconsistent documents and terms giving the purchaser an unfair advantage supported repayment instead of a forced land transfer under the then applicable law. Buyers seeking clear title must also address existing mortgages rather than overlook them.

Official source (sci.gov.in)View Judgment (PDF)

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