KISHORSINH RATANSINH JADEJA Vs. MARUTI CORP

JUDGEMENT

(1.) Leave granted.

(2.) The appellant and the Respondent Nos. 2 to 7 are owners of agricultural land in Survey No. 36 measuring 32 acres and 38 gunthas situated in Village Nanamauva, Taluka & District Rajkot (hereinafter referred to as the suit land ). On 19th March, 1980, the appellant and the other joint owners of the suit land entered into an Agreement with Tirupati Cooperative Housing Society - a proposed Cooperative Housing society - for development of the said land upon obtaining necessary permission under Section 20 of the Urban Land (Ceiling & Regulation) Act, 1976 (hereinafter referred to as the Land Ceiling Act, 1976 ) for exemption and for construction of houses for the weaker sections. The application made by the proposed Society on 29th April, 1988, under Section 20 of the Land Ceiling Act, 1976, was rejected and according to the appellant and other joint owners, on the failure of the proposed Society to get such permission, the Agreement could not be performed and, therefore, by Public Notice dated 24th April, 1988, the Agreement was declared to have been cancelled.

(3.) A legal notice was received from one Sharad N. Acharya, Advocate, denying that the Agreement had been cancelled, as indicated in the Public Notice. Despite cancellation of the Agreement, the Respondent No. 1 called upon the appellant to give effect to the Agreement dated 19th March, 1980, executed with the said respondent for development of the said land. The Respondent No. 1 thereupon filed Special Civil Suit No. 299 of 1999 on 29th November, 1999, before the Civil Court at Rajkot against the appellant, inter alia, praying for a declaration that the Respondent No. 1 was in possession of the suit land and for a decree for specific performance of the said Agreement. In the alternative, for a decree for refund of the earnest money of Rs. 1,81,000/- and for damages amounting to Rs. 16,30,670/- with interest @12% per annum. The Respondent No. 1 also filed an application for interim injunction to restrain the appellant from entering into the said land and disturbing the possession of the Respondent No. 1 and to further restrain the appellant from alienating the land to any third party. The Civil Court at Rajkot dismissed the said application by its order dated 29th April, 2002, against which the Respondent No. 1 filed appeal from Order No. 372/2000 before the Gujarat High Court, which was ultimately withdrawn with a direction for expeditious disposal of the suit within a period of 10 months. The suit was thereafter taken up for trial by the Civil Court at Rajkot, and by judgment and order dated 23rd November, 2007, while rejecting the prayer for specific performance, the Trial Court directed refund of the earnest money.