2003 (3) TMI 762 - HC - Indian Laws

Appellate Court Overturns Specific Performance Decree Due to Contract Vagueness

Sambhajirao Versus Vimlesh Kumari Kulshrestha And Ors.

The appellate court set aside the trial court's decree of specific performance due to the agreement's vagueness regarding the property's extent. The court ... - Issues:Interpretation of agreement for sale, Specific performance of contract, Validity of agreement terms, Jurisdiction for specific performance, Barred subsequent suit filing.Interpretation of Agreement for Sale:The case involved an appeal concerning the sale of a house where the appellant entered into an agreement with respondent No. 1 for the sale of the property. The agreement mentioned the sale of the house in which the respondent resided, but lacked specifics regarding the portion of the house to be sold, the storeys involved, or the rooms included. The respondent claimed to be a tenant in the house for sixteen years before the agreement, raising doubts about the extent of the property intended for sale. Witness testimonies conflicted on the availability of a site map during the agreement's preparation, further clouding the clarity of the agreement's terms.Specific Performance of Contract:The trial court had granted specific performance in favor of respondent No. 1, Vimlesh Kumari, based on the agreement terms. However, the appellate court noted that the agreement was vague, lacking clarity on the specific portion of the house to be sold. Citing legal precedents, the court emphasized the necessity for a clear, definite, and complete contract for specific performance. The court highlighted that the terms of the contract must be certain to prevent ambiguity and conjecture, as any uncertainty could render the contract void under the Contract Act.Validity of Agreement Terms:The court scrutinized the agreement's terms, emphasizing the need for precise and definite terms in contracts seeking specific performance. It was observed that the agreement's ambiguity regarding the property's extent and the lack of a clear description raised doubts about the enforceability of the contract. The court referenced legal cases to underscore the importance of clear contractual terms to avoid the need for interpretation or supplementation by the court.Jurisdiction for Specific Performance:The court discussed the discretionary nature of granting specific performance, highlighting that it must be based on sound judicial principles and the existence of a valid and enforceable contract. The court stressed that specific performance cannot be ordered if the contract suffers from defects making it invalid or unenforceable. Additionally, the court noted that the property to be sold must be clearly identified in agreements concerning immovable property to warrant specific performance.Barred Subsequent Suit Filing:The appellant argued that the subsequent suit filed by the respondent was barred under Order 23, Rule 1 of the Civil Procedure Code, as the earlier suit for the same property was withdrawn without liberty to file a fresh suit. The court considered this argument but ultimately focused on the vagueness of the agreement and the lack of clarity regarding the property's extent, leading to the partial allowance of the appeal.In conclusion, the appellate court set aside the trial court's decree of specific performance due to the agreement's vagueness. However, it directed the appellant to pay the advance amount with interest to the respondent in the interest of justice.