RITNAND BALVED EDUCATION FOUNDATION Vs. PAUL NANDA

JUDGEMENT

(1.) We shall hereinafter be referring to Ritnand Balved Education Foundation as 'RBEF' and to Late Admiral S.M.Nanda and his legal heirs as 'Nanda'.

(2.) CS (OS) No.247/2004 was filed by RBEF against Late Admiral S.M.Nanda initially seeking a decree for injunction. The plaint was amended pursuant to an order dated September 27, 2005 when IA No.5257/2004, seeking to amend the plaint and praying for a decree of specific performance, was allowed. As per the amended plaint, RBEF pleaded that Nanda was the owner of property No.B-104, Defence Colony, New Delhi ad-measuring 361 square yards and had constructed a building thereon. As of the year 2002, the property was lying vacant and since Nanda knew Dr.Ashok K.Chauhan, the Founder President of RBEF, at the asking of Nanda, Dr.Ashok K.Chauhan had instructed his guards to take care of the suit property since RBEF's registered office was in a building adjacent to Nanda's property. Towards the end of the year 2002, Nanda desired to sell the property. Dr.Ashok K.Chauhan, Nanda and his son Paul Nanda, held negotiations. The negotiations fructified into an oral agreement at a meeting held on March 23, 2003, when Nanda agreed to sell the subject property to RBEF for a sale consideration of Rs. 2,35,00,000/- (Rupees Two Crores and Thirty Five Lacs only). It was agreed that 10% of the sale consideration i.e. Rs. 23,50,000/- (Rupees Twenty Three Lacs Fifty Thousand only) shall be paid as earnest money with possession of the ground floor of the property being simultaneously handed over. Accordingly, on March 29, 2003, RBEF got prepared a banker's cheque drawn on UTI Bank Ltd. in sum of Rs. 23,50,000/- (Rupees Twenty Three Lacs Fifty Thousand only) and delivered the same to Nanda along with a covering letter dated March 29, 2003, enclosing therewith, apart from the banker's cheque, a draft copy of the agreement to sell. Receiving the same on March 31, 2003, Mr.Paul Nanda thanked Mr.Arun Chauhan (son of Dr.Ashok K.Chauhan) for sending the banker's cheque and promised to hand over the possession of the ground floor on March 31, 2003. He told Mr.Arun Chauhan to give him a list of documents which would be required to execute the sale-deed. On April 01, 2003 Mr.Arun Chauhan gave the list of documents, and as per the list, Mr.Paul Nanda handed over a photocopy of the conveyance deed, documents showing conversion of the property from lease-hold tenure to free-hold tenure and a house tax bill. Possession of the ground floor was handed over. On April 05, 2003 Nanda conveyed that he had stood surety for his son Sanjeev Nanda in some criminal trial and had tendered the suit property as security to the Court. Nanda told Dr.Ashok K.Chauhan that his lawyer had told him that if he would sell the property, he would be in contempt. That he was advised not to encash the banker's cheque. The banker's cheque was returned in an envelope on which Paul Nanda had written something. At that stage parties further discussed the issue and another agreement to sell was prepared and finalized on those lines. That it was agreed that RBEF shall pay Rs. 1,00,000/- (Rupees One Lac only) to Nanda as earnest money, which amount was tendered vide a banker's cheque dated April 14, 2003, which was returned by Nanda for fear of contempt of Court and Nanda expressed his inability to sign even the new agreement to sell. Nanda assured that he would sell the property to RBEF when the same got released from the Court and since possession of the ground floor was with RBEF it was agreed that in order to safeguard the monetary loss to Nanda he would be paid 7% of the sale consideration per annum in 12 equal installments till sale-deed would be executed. However, this amount was subsequently agreed to be reduced to Rs. 50,000/- per month. That thereafter Paul Nanda informed that even accepting Rs. 50,000/- per month may amount to contempt of court, it was agreed that said sum of Rs. 50,000/- per month shall be paid along with the sale consideration when the sale deed would be executed and that till then electricity and water charges shall be paid by RBEF which shall also maintain the building. Nanda did not agree to RBEF paying the dues directly and thus it was agreed that the bills raised for water and electricity shall be paid by Nanda but RBEF would recompense in some other form being bills raised for alleged services by 'Dynatron Services' a company of Sh.Paul Nanda and RBEF paying amount under the bills. That on January 28, 2004 Paul Nanda directed employees of RBEF to vacate the suit property. The said act was Nanda's intention not to abide by the oral agreement to sell. Thereafter Dr.Ashok K.Chauhan and Sh.Arun Chauhan personally met Nanda at his residence on January 29, 2004 as also on January 31, 2004 to persuade him to abide by the oral agreement to sell. Surprisingly Paul Nanda came to the suit property on February 02, 2004 and created a scene asking RBEF's employees to get out of the suit property. On March 06, 2004, as a last resort, Ashok Chauhan and his son tried to prevail upon Nanda to sell the property, but he refused to do so.

(3.) The written statement filed would reveal that Nanda admitted that Ashok Chauhan approached him several times in the year 2003 for sale of the house to him but Nanda told him that he could not sell the house since he had furnished a security in Court in FIR No.17/1999 with respect to the house. Nanda denied any oral or written agreement. He denied receiving any sale consideration or returning the same. Nanda denied each and every averment in the plaint and explained possession of the ground floor being with RBEF as a case of unlawful and illegal grabbing. He pleaded that Ashok Chauhan was residing in House No.E-27, Defence Colony which is across the suit property was friendly with Nanda, and since the suit property was vacant Ashok Chauhan took the responsibility to take care of the house and requested Nanda to permit him to have personal meeting with the visitors in the drawing room at the ground floor, and for said reason, the key of the ground floor premises was given to Ashok K.Chauhan.