B B SABHARWAL Vs. SONIA ASSOCIATES

JUDGEMENT

(1.) This is a suit for specific performance of Agreement to Sell dated 20th June, 1997 or in the alternative for recovery of Rs.40,00,000/- as damages.

(2.) The case of the plaintiffs is that on 20th June, 1997, the defendant agreed to sell the entire first floor of property No.D-144, New Rajinder Nagar, New Delhi to them for a consideration of Rs.40,00,000/-. A sum of Rs.5,00,000/- was paid to the defendant towards earnest money and the balance amount of Rs.35,00,000/- was agreed to be paid within 15 days from the date of the agreement. The defendant was required to obtain NOC as also Income Tax Clearance certificate required for execution and registration of the sale deed in favour of the plaintiff. According to the plaintiffs, the balance sale consideration was to be paid after the defendant had obtained necessary sale permission, Income Tax Clearance etc., had presented the sale deed for registration and delivered possession of the property to the plaintiff. A further sum of Rs.15,00,000/- is alleged to have been paid by the plaintiffs to the defendant on 25th June, 1997. The case of the plaintiffs is that despite receiving the aforesaid sums from them, the defendant did not apply for Income Tax Clearance Certificate and necessary permission from Land and Development Office for execution and registration of the sale deed in their favour.

(3.) It is also alleged that the amount of Rs 15 lacs, which the defendant took from the plaintiffs on 25th June, 1997, was invested by her in purchasing a shop where she is running business under the name and style of M/s Tilak Exclusif. The plaintiff has accordingly sought specific performance of the agreement dated 20th June, 1997. It is further prayed that if on account of any unavoidable circumstance the sale of the aforesaid property is not admissible and performance of the agreement dated 20th June, 1997 is not permissible, a decree for damages to the tune of Rs 40 lacs be passed.