Permanent Injunction Cannot Be Sought On The Basis Of An Unregistered Agreement To Sell : Supreme Court

The Supreme Court observed that a relief of permanent injunction cannot be sought on the basis of such an unregistered document/agreement to sell.

A plaintiff cannot get the relief indirectly which otherwise he/she cannot get in a suit for for specific performance, the bench of Justices MR Shah and Krishna Murari observed.

In this case, the plaintiff filed a suit praying for a decree of permanent injunction restraining the defendant from disturbing her possession in the suit property, which was claimed on the basis of the agreement to sell, which was an unregistered document/agreement to sell on ten rupees stamp paper.  The Trial Court dismissed the suit filed by the original plaintiff and refused to grant permanent injunction and allowed the counter-claim of the defendant. The First Appellate Court reversed the Trial Court judgment and decreed the suit. The High Court dismissed the second appeal filed by the defendant.

In appeal, the appellant-defendant contended that an unregistered agreement to sell is not admissible in evidence and that the suit filed by the original plaintiff was only for permanent injunction and she by adopting a clever drafting did not seek the relief for specific performance of agreement to sell as she was well aware that she would not succeed in the suit for specific performance on the basis of an unregistered agreement to sell. On the other hand, the respondent-plaintiff contended that an unregistered document can be used for collateral purpose and therefore both, the first appellate Court as well as the High Court have rightly passed a decree for permanent injunction considering the agreement to sell for collateral purpose of grant of permanent injunction.

Allowing the appeal, the Apex Court bench observed:

"Having conscious of the fact that the plaintiff might not succeed in getting the relief of specific performance of such agreement to sell as the same was unregistered, the plaintiff filed a suit simplicitor for permanent injunction only. It may be true that in a given case, an unregistered document can be used and/or considered for collateral purpose. However, at the same time, the plaintiff cannot get the relief indirectly which otherwise he/she cannot get in a suit for substantive relief, namely, in the present case the relief for specific performance. Therefore, the plaintiff cannot get the relief even for permanent injunction on the basis of such an unregistered document/agreement to sell, more particularly when the defendant specifically filed the counter-claim for getting back the possession which was allowed by the learned trial Court. The plaintiff cleverly prayed for a relief of permanent injunction only and did not seek for the substantive relief of specific performance of the agreement to sell as the agreement to sell was an unregistered document and therefore on such unregistered document/agreement to sell, no decree for specific performance could have been passed. The plaintiff cannot get the relief by clever drafting"

The court therefore restored the Trial Court judgment dismissing the suit and allowing the counter-claim.

Case details

Balram Singh vs Kelo Devi | 2022 LiveLaw (SC) 800 | CA 6733 OF 2022 | 23 September 2022 | Justices MR Shah and Krishna Murari

Headnotes

Specific Relief Act, 1963 - Suit for injunction simplicitor on the basis of unregistered agreement to sell - The plaintiff cleverly prayed for a relief of permanent injunction only and did not seek for the substantive relief of specific performance of the agreement to sell as the agreement to sell was an unregistered document and therefore on such unregistered document/agreement to sell, no decree for specific performance could have been passed. The plaintiff cannot get the relief by clever drafting - The plaintiff cannot get the relief even for permanent injunction on the basis of such an unregistered document/agreement to sell, more particularly when the defendant specifically filed the counter-claim for getting back the possession. (Para 6)

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