Monday, December 8, 2025

Specific Relief Act — S. 22 — Possession / sale deed cannot be granted unless prayed for — Supreme Court’s principle on “moulding relief” distinguished

1. CPC, 1908 — S. 100 — Scope of Second Appeal — Limited interference

High Court in second appeal interferes only where findings of the first appellate court are contrary to law, based on inadmissible evidence, or unsupported by evidence; it cannot re-appreciate facts otherwise. (Bhagwan Sharma v. Bani Ghosh; Kondira Dagadu Kadam v. Savitribai Gujar — followed.)

2. Appeal + Cross-Objection — Composite Judgment — No res judicata

Where an appeal and cross-objection are disposed of by one judgment and a single composite decree, one second appeal challenging that decree suffices — principles of res judicata do not arise between components of the same decree. (Narhari v. Shanker — applied.)

3. Contract — “Agreement to enter into agreement” — Not enforceable

Document (Ex.A-1) dated 14-02-2001 stipulating execution of future agreement on 14-06-2001 held not a concluded contract but only an agreement to enter into an agreement.
Suit for specific performance filed before 14-06-2001 held premature and unenforceable.

4. Stamp Law — Insufficient stamping — Document may operate only as receipt

Ex.A-1 recording payment of Rs.20,000 towards contemplated sale of Rs.2,15,000, being written on Re.1 stamp, is inadmissible as agreement.
Trial court rightly treated it only as acknowledgment/receipt and granted refund.

5. Specific Relief Act — S. 22 — Possession / sale deed cannot be granted unless prayed for — Supreme Court’s principle on “moulding relief” distinguished

Prayer in suit was only for execution of registered agreement — no prayer for sale deed or possession.
But first appellate court decreed:

(a) execution of sale deed; and
(b) delivery of possession.

Held:

  • Under Section 22 SRA, relief of possession or conveyance cannot be granted unless specifically pleaded
    even under the court’s power to mould relief,
    nor at execution stage unless decree itself contains such relief.

  • Respondents’ reliance on Supreme Court decisions allowing consequential relief without prayer was distinguished as inapplicable in specific performance matters governed by S. 22.

Appellate decree held perverse and unsustainable.


6. Result

Second appeal allowed.
Trial court decree dismissing specific performance and granting refund of Rs.20,000 with 9% interest restored.
No costs.

ANALYSIS OF FACTS AND LAW

I. Facts and Procedural History

  • Plaintiff contended defendant agreed to sell land for Rs.2,15,000 on 14-02-2001, accepted Rs.20,000 as advance, and would execute agreement of sale on 14-06-2001.

  • Before that date, plaintiff filed suit (27-03-2001) seeking direction to execute registered agreement of sale.

  • Meanwhile, defendant executed registered sale deed in favour of D2.

  • Trial court:

    • Found Ex.A-1 insufficiently stamped and not a concluded contract

    • Granted refund with interest, refused specific performance

  • First appellate court reversed and:

    • directed execution of sale deed, and

    • ordered delivery of possession

D2 filed second appeal.

II. Legal Issues

  1. Whether Ex.A-1 is enforceable as agreement of sale.

  2. Whether suit for specific performance lies on such document.

  3. Whether first appellate court could decree sale deed/possession absent such prayer.

  4. Whether second appeal was barred due to absence of separate appeal against cross-objections.

III. Findings

A. Ex.A-1 — Not a concluded contract

  • It reflects intent to enter into future agreement — cannot be enforced.

  • Suit was premature.

B. Insufficient stamping reinforces non-enforceability

  • Trial court correctly used Ex.A-1 as receipt, not agreement.

C. Relief beyond pleadings — Impermissible in specific performance

  • Plaintiff never sought relief of:

    • execution of sale deed

    • delivery of possession

  • First appellate court’s decree granting these was beyond pleadings.

D. Apex court jurisprudence relied on by respondents was expressly considered and rejected

  • Respondents cited SC rulings on “moulding relief” and consequential relief even at execution.

  • High Court held:

    • those dicta do not override the statutory mandate of S. 22 Specific Relief Act,

    • in specific performance suits, court cannot grant possession unless pleaded,

    • nor can possession be supplied at execution unless decree contains it.

This distinction is central and decisive.

E. On res judicata / appealability

  • Composite decree → one second appeal maintainable → res judicata does not arise.

IV. Outcome

  • Second appeal allowed.

  • Trial decree restored.

  • No costs.

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