Specific Relief Act, 1963 — Section 28
Civil Procedure Code, 1908 — Section 115; Order XXI Rule 34
Specific performance — Decree directing payment of balance consideration within stipulated time — Failure to deposit amount within time — Issuance of challan for deposit without notice to judgment-debtors — No application under Section 28 of Specific Relief Act — No reasons recorded — Held, trial Court committed serious error — Issuance of challan cannot be treated as extension of time — Order set aside.
(Paras 13–15)
Specific performance decree — Nature of decree — Court retains control over decree — Exercise of discretion under Section 28 — Mandatory requirement of opportunity to opposite party — Discretion cannot be exercised mechanically or without notice.
(Paras 11–14)
Execution proceedings — Partial compliance by some judgment-debtors — Execution of sale deed for half share — Remaining judgment-debtors refusing execution — Deposit of consideration after long delay — Court must examine sufficiency of reasons before permitting deposit.
(Paras 3–5, 13)
Procedural law — Lodgment schedule — Issuance of challan — Cannot substitute a reasoned judicial order — Absence of application under Section 28 — Order vitiated.
(Paras 14–15)
ANALYSIS OF FACTS
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The plaintiffs obtained an ex parte decree for specific performance on 05.06.2017, directing payment of Rs.65,50,000/- within two months, and directing defendants to execute a registered sale deed thereafter (Paras 1–2).
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The decree-holders initiated execution under Order XXI Rule 34 CPC. Two judgment-debtors (Nos.10 & 11) voluntarily received their half share of balance consideration and executed a registered sale deed on 05.09.2019 for 1.42 cents (Para 3).
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With respect to the remaining judgment-debtors, the decree-holders asserted that they refused to receive consideration and sought execution through Court for the remaining half share (Para 3).
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The judgment-debtors opposed execution, contending that:
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Balance consideration was not deposited within the time fixed in the decree;
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No application was filed seeking extension of time under Section 28 of the Specific Relief Act;
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The agreement stood rescinded by operation of law (Para 3(b)).
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On 10.05.2023, a lodgment schedule was filed seeking issuance of challan for Rs.32,75,000/-, and by docket order dated 21.06.2023, the executing Court issued challan without notice to judgment-debtors (Para 4).
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Only thereafter, a memo dated 26.06.2023 was filed explaining alleged refusal by judgment-debtors to receive the amount (Para 5).
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Defendants 5, 8 & 9 filed the present revision under Section 115 CPC, assailing the docket order permitting deposit without notice or reasons (Paras 6–8).
ANALYSIS OF LAW
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The High Court examined Section 28 of the Specific Relief Act, which empowers the Court to:
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Extend time for payment,
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Or rescind the contract,
but only upon judicial application of mind and in appropriate proceedings (Paras 11–12).
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The Court noted that all precedents cited by both sides lay down a common principle:
discretion under Section 28 is fact-dependent, equitable, and cannot be exercised as a matter of course (Para 11). -
Reliance by judgment-debtors on V.S. Palanichamy Chettiar v. C. Alagappan and P. Shyamala v. Gundlur Masthan highlighted that:
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Absence of explanation for long delay,
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Failure to seek extension within reasonable time,
disentitles the decree-holder to discretionary relief (Para 9).
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Even though Section 28 enables the Court to retain control over a specific performance decree, such power:
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Does not dispense with notice,
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Does not dispense with reasons, and
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Cannot be exercised through a mere docket order (Paras 13–14).
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The High Court emphasised that issuance of challan is not equivalent to extension of time, unless preceded by:
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An application invoking Section 28,
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Opportunity to the judgment-debtors,
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A reasoned judicial order (Para 14).
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OPINION OF THE COURT (RATIO DECIDENDI)
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The Court held that the executing Court committed a serious procedural and jurisdictional error by issuing challan for deposit of balance sale consideration:
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Without notice to judgment-debtors,
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Without an application under Section 28,
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Without recording reasons,
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And even before the memo explaining delay was filed (Paras 13–14).
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The Court categorically ruled that:
“Issuance of challan for deposit of amount cannot be treated as extension of the time in the decree for payment of the balance amount of consideration.”
(Para 14) -
Since discretion under Section 28 was never properly invoked or exercised, the impugned docket order was held unsustainable in law (Paras 14–15).
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Consequently, the Civil Revision Petition was allowed, setting aside the docket order dated 21.06.2023, with no order as to costs (Para 15).
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