R. C. CHANDIOK & ANR. versus CHUNI LAL SABHARWAL & ORS.

R. C. CHANDIOK & ANR. versus CHUNI LAL SABHARWAL & ORS.

Appellants were entitled to specific performance as vendors failed to perfect title and obtain Government sanction within reasonable time, appellants' conduct showed readiness and willingness, and accepting refund deposit without withdrawing it did not preclude relief; proper decree is for specific performance with subsequent transferee to join in conveyance.

Parties
Appellant: R. C. Chandiok and Kailash Chandra Chandiok; Respondent: Chuni Lal Sabharwal; Respondent: Respondent No. 2; Respondent: Respondent No. 3
Jurisdiction
India
Judgment Date
12 October 1970
Procedural Posture
Civil Appeal / Appeal by Special Leave From Judgment and Decree Dated December 22, 1964 of the Punjab High Court, Circuit Bench at Delhi
Outcome
Appeal allowed; decree of courts below set aside.
Legal Topics
Specific Performance, Readiness and Willingness in Contract, Vendors' Title and Government Sanction, Effect of Refund and Satisfaction of Decree, Subsequent Transferee and Title Conveyance
Contract Law Specific Relief Specific Performance Readiness and Willingness in Contract Vendors' Title and Government Sanction Effect of Refund and Satisfaction of Decree Subsequent Transferee and Title Conveyance

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Parties

R. C. Chandiok and Kailash Chandra Chandiok

Appellant

Chuni Lal Sabharwal

Respondent

Respondent No. 2

Respondent

Respondent No. 3

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Judgment and Decree Dated December 22, 1964 of the Punjab High Court, Circuit Bench at Delhi

Legal Issues

  1. 1 Whether specific performance can be refused where vendor's title was not perfect and sanction not obtained at the time of contract
  2. 2 Whether vendor can claim vendee did not perform his part without perfecting own title and obtaining sanction
  3. 3 Whether decree for refund of part purchase money precludes appeal by vendee for specific performance

Ratio Decidendi

Appellants were entitled to specific performance as vendors failed to perfect title and obtain Government sanction within reasonable time, appellants' conduct showed readiness and willingness, and accepting refund deposit without withdrawing it did not preclude relief; proper decree is for specific performance with subsequent transferee to join in conveyance.

Court Disposition

Appeal allowed; decree of courts below set aside.

Orders

  • Specific performance of contract between vendor and appellants directed; subsequent transferee to join in conveyance to pass title to appellants.
  • Costs in this Court and High Court awarded to appellants.