The Apex Court in 09.10.2018, in SUSHIL KUMAR AGARWAL v MEENAKSHI SADHU & ORS. dismissed the appeal filed by the appellant.
The appeal hailed from the Division Bench of the High Court of Calcutta’s judgment.The appellant being a builder had instituted a specific performance suit arising from a development agreement, against the owner of the premises(respondents), that was dismissed by the City Civil Court and The High Court .
According to the concerned agreement the respondents had made an approach to the appellant for constructing a building upon the land and various terms were agreed upon by both the parties in connection to it.
The appellant had alleged that on the agreement’s execution ,it was discovered that premises had been encumbered; further, many dues had arisen accompanied by other miscellaneous disputes. The respondent had been alleged to have made requests to the appellant for making payments while assuring reimbursement prior to the sanctioning of the building to be obtained. The appellant had claimed of paying Rs.₹ 7,03,000/-, while the respondent went on denying agreement ‘s execution which was subsequently protested by the appellant while requesting the respondent to hand him the authority for securing sanction of the building plans. Further, a notice was issued by the appellant to the respondent for paying his share connected to the fees sanctioned. A letter was written by the owner where he denied the notice content and requesting for returning of all the documents and to collect the concerned deposit. As such a suit was instituted in the Civil Court to seek a declaration and a permanent injunction in which an amendment of the plaint was allowed by the Court, by seeking for specific performance . However, the suit was dismissed.
Being aggrievd by the City Civil Court’s judgment and order, an appeal in the High Court of Calcutta was filed that was also later on dismissed , on the ground of the suit being not maintainable . An appeal was then made before the Apex Court.
DECISION OF THE SUPREME COURT OF INDIA:
The Apex Court dismissed the appeal by upholding that the agreement concluded between the parties as vague. However, the Hon’Ble Supreme Court of India, did conclude that the developer did incur a massive expenditure in connection to the clearance of dues and other expenses and hence entitled to a compensation. However, there had been a failure from the part of the developer in satisfying the requisites required under the Specific Relief Act and as such specific performance could not be granted.
https://sci.gov.in/supremecourt/2009/16566/16566_2009_Judgement_09-Oct-2018.pdf