Full Order Text
Order 1 · 12 Sept 2018 · CNR MHCC010068922018
Order Details: Notice of Motion Pdf Text: :1: NM-1883.18 Suit.1375.18 CNR NO. MHCC010061482018 IN THE BOMBAY CITY CIVIL COURT AT GREATER MUMBAI NOTICE OF MOTION NO.1883 OF 2018 IN S.C. SUIT NO.1375 OF 2018 1. Mahesh Shankaralal Chhatriwala ] 2. Smt. Varsha Mahesh Chhatriwala,. ] .. Plaintiffs. Versus Smt. Shanta @ Sharda Rajan. ] .. Defendant. CORAM: HER HONOUR JUDGE BHARTI KALE (C.R. No. 7). DATE: 12th September, 2018. Adv. Harsha Shah for plaintiff. Adv. M/s. Harish Joshi and Co. for defendant. ORDER The plaintiffs have taken out this notice of motion for restraining the defendants from selling, disposing and or creating third party rights in the suit garage No.1B. 2. The plaintiffs case in brief is that the plaintiffs and defendant are residing in the same building. The defendant is owner of two garages i.e. 1A and 1B, situated on the ground floor of the society. She agreed to sell garage No.1B to the plaintiffs for consideration of Rs.27,50,000/. The plaintiffs and defendant accordingly made joint -- 1 of 13 -- :2: NM-1883.18 Suit.1375.18 application to the society on 14/02/2013 for no objection. The plaintiffs paid Rs.2,50,000/ in cash and Rs.5,00,000/ by cheque in furtherance of the said transaction. The plaintiffs again paid Rs.8,00,000/ on 10/03/2015. The relations between the plaintiffs and defendant were cordial. The defendant was frequently visiting USA and therefore the necessary formalities for executing agreement for transfer and handing over the possession of the suit garage No.1B could not be completed. The defendant has agreed to put wall between the Garage No.1A and 1B. The plaintiffs were always ready and willing to execute the documents. But, due to the absence of the defendants, the same could not be executed. The defendant was regularly intimating the plaintiff No.1 about her going and coming back from USA. The plaintiff No.1 received a message that the defendant will be refunding the amount paid by the plaintiff on 15/04/2016. Thereafter, she met defendant, but did not get satisfactory answer. The plaintiffs were always ready and willing to perform their part of contract and therefore the instant suit is filed. 3. The defendant filed reply submitting therein that the MOU was entered into between the plaintiffs and defendant on 14/02/2013. It is stated that the plaintiff delayed the execution of documents, which was to be prepared by them. The defendant had always informed the plaintiffs when she was in Mumbai. She has submitted that in pursuance of the MOU, she had made joint application to the society for no objection. She has stated that for long period she was in Mumbai and numerous time asked the plaintiffs to complete the transaction, but they failed to do so and instead of making full payment, in September, 2014 plaintiffs handed over cheque of Rs.8,00,000/. She had always informed the plaintiff when she was returning to Mumbai in advance. Her -- 2 of 13 -- :3: NM-1883.18 Suit.1375.18 son is also residing in India and he could have also completed the transaction. Therefore, delay is not because of the defendant. She has stated that she has performed all the acts, but the plaintiffs avoided paying balance money and preparing the documents. Therefore, she has after discussion with the plaintiffs agreed to return the amount and accordingly messages were sent. It is submitted that the due to delay she has suffered loss. 4. The plaintiffs filed rejoinder submitting therein that recently plaintiffs learnt that no application is made by the defendant for no objection for sell of suit garage. All the visits are denied by the plaintiffs. It is submitted that through oversight it is averred in plaint that joint application was made to the society. 5. The defendant filed rejoinder and denied all the contentions made by the plaintiffs. It is specifically denied that the defendant was to construct the wall. 6. Heard Advocate for the plaintiffs and defendant. Perused the authorities cited by both the parties. 7. Following points arise for my determination and I have recorded my findings thereon for the reasons to follow: POINTS FINDINGS i) Whether the plaintiffs have made out a case for restraining the defendants from disposing of the suit garage ? : No. ii) What order ? : As per final order. -- 3 of 13 -- :4: NM-1883.18 Suit.1375.18 REASONS Point No.1 : 8. At the outset the Advocate for the plaintiffs submitted that admittedly there is memorandum of understanding executed between the plaintiffs and defendant dated 14/02/2013 and there is no dispute about the same. Further, the plaintiffs in furtherance of the said agreement made payment of more than 50% amount, even though the plaintiffs were not required to pay the said amount. The agreement could not be completed as the defendant was visiting USA frequently and she was not in India. The defendant was required to make an application to the society and also was required to construct a wall. Due to the said defaults and because of cordial relations the plaintiffs were unable to proceed with the transactions. The plaintiffs have shown their readiness and willingness to pay the amount and that they were always ready to perform their part of the contract, but the defendant failed. If the said garage is sold then definitely plaintiffs will suffer irreparable loss. 9. Per contra, the Advocate for the defendant has vehemently submitted that the defendant is 75 years old lady. The plaintiffs and defendant were required to make joint application to the society for grant of no objection. The said application was admittedly made by the defendant and the plaintiffs have pleaded about the same. There is no mention about the construction of wall in the MOU and at no point of time it was decided that the defendant was to construct the wall. The plaintiffs have slept over the agreement for about 6 years. The suit is also not within limitation. The plaintiffs were required to execute all the documents i.e. sale deed and pay the balance amount, but they have not done so. Hence, they are not entitled for any equitable relief. -- 4 of 13 -- :5: NM-1883.18 Suit.1375.18 10. In the present case, there is MOU entered into between the plaintiffs and defendant. As per the said MOU the defendant was required to make an application to the society for transfer of the suit garage. As per the Clause5 of the said MOU the vendor and purchaser both being the members of the society were required to obtain consent for the transfer of the garage. As per the agreement, only that act was to be performed by the defendant. The plaintiffs have pleaded that the plaintiffs and defendant have made joint application to the society on 14/02/2013 for no objection certificate for transfer of suit garage in the name of the plaintiffs. The plaintiffs have also annexed the copy of said application alongwith the plaint at ExhibitB. The said document is signed by the defendants and also by the plaintiffs, as consenting to the same. The plaintiffs have tried to change their version in rejoinder by submitting that on recent enquiry with the society they came to know that no such application was made by the defendants. Now, such contention of the plaintiffs appears to be an after though. As per the MOU both the parties were required to make an application. The plaintiffs have stated that recently they have come to know that no such application is made. However, the plaintiffs were required to prepare the documents i.e. sale deed and as per them the defendant was not in India for long period, then definitely it was for them to verify with the society. Society office is in the same building where the plaintiffs are residing. Hence, I primafacie find that it were the plaintiffs, who have not taken any steps. This goes to show that they were not acting diligently in furtherance of the MOU. The plaintiffs have denied that no such application was made by the defendant, but they themselves have produced the signed application. Therefore, the said contention of the plaintiffs does not appear to be truthful. -- 5 of 13 -- :6: NM-1883.18 Suit.1375.18 11. The plaintiffs have stated that the defendant was required to construct a wall between two garages i.e. 1A and 1B as they belonged to the defendant and they were joint. The plaintiffs have not produced any primafacie material on record to show that in the first place demarcation was required to be done by constructing the wall. For the reason that in the MOU nowhere it is mentioned that the wall was to be constructed and that too by the defendant. It appears that for the first time, plaintiffs have made a statement about the construction of wall when there is no reference of the same in the MOU or there is no communication to show that the defendant was required to construct the wall and plaintiffs have asked her to do so. The defendant has categorically denied that she was required to construct the wall and she has stated that plaintiffs have agreed to purchase the garage on as is where basis. Further, there is no document to show that for execution of the sale deed, construction of the wall was mandatory 12. The plaintiffs have stated that the relations between the plaintiffs and defendant were cordial, as they are neighours. It is further pleaded that the defendant being the Senior Citizen used to go out of country frequently and at one of the time she had intimated that she intends to take US Citizenship. It is further pleaded that the defendant was not residing in Bombay for longer duration. Now, there are no pleadings of the plaintiff that after execution of the agreement the defendant was never present in Bombay. It is only stated that she was not there for longer duration. It needs to be seen that the plaintiffs have stated in the plaint that the defendants regularly used to intimate the plaintiff No.1 that when she is going to USA and coming back from USA and that plaintiff No.1 and defendant have been in regular contact. The defendant in her reply has stated that she was in India from -- 6 of 13 -- :7: NM-1883.18 Suit.1375.18 16/10/2013 to 30/03/2014. So, the said fact establishes that the defendant was in India for considerable time. The plaintiffs in their rejoinder have contended that defendant never informed them about her visit to India. However, in the plaint, the plaintiffs themselves have stated that defendant was in regular contact with plaintiff No.1 and further plaintiffs and defendant are neighbours. If the MOU is perused then the only act required to be performed by the defendant was to make application to the society. ExhibitB shows that such signed application was there since 14/02/2013. There is no reference about the construction of wall in the memorandum. But, even if such wall was to be constructed it will would hardly have taken 15 to 20 days. Therefore, whatever acts were to be performed in furtherance of the memorandum, hardly required 15 to 20 days. Thereafter, it was upon the plaintiff to prepare the sale deed and make the payment of balance consideration. Hence, on this factual aspect it cannot be said that there was any avoidance or delay on the part of the defendant. It cannot be said that only for the reason that the defendant used to visit USA, MOU could not be acted upon. It is categorically stated by the defendant that her son was present in India. Therefore, plaintiffs could have very well got the things done in compliance of the MOU. But, on perusal of the pleadings, it does not appear that the plaintiffs have in fact taken any steps in furtherance of MOU. 13. Both the parties have relied upon may authorities about when the specific performance of contract, can be granted and manner of proof about the readiness and willingness. All the authorities cited by the defendant, lays down the principle that apart from making averments about the readiness and willingness, plaintiffs are required to show that they have acted accordingly. But, in case in hand, the -- 7 of 13 -- :8: NM-1883.18 Suit.1375.18 plaintiffs have primafacie failed to shown the acts. 14. MOU was entered in 2013. The defendant therefore submitted that there is enormous delay and suit is also barred by limitation. The Advocate for the plaintiffs has vehemently submitted that delay cannot be a ground for refusing the adinterim relief. She has also placed reliance on the decisions of N.V.Namazi Versus Central Chinmaya Mission Trust [AIR 1988 MADRAS 84] and S.V.Sankarlinga Nadar Versus P.T.S. Nadar and others [AIR 1952 MADRAS 389]. The decisions in the said cases, will not apply to the facts of the present case because in said cases the delay was due to some supervening circumstances. However, in the present case the acts required to be performed, hardly required one month. Agreement was executed in 2013 and the plaintiffs have come out with the case in 2018. So, definitely this delay weighs in favour of the defendant. Advocate for the plaintiffs has further relied upon the decision in case of Pichai Moideen Rowther Veruss Chathubuja Das & Sons [AIR 1933 Madras 736] to submit that imaginary hardship could not be considered. I find that in the present case the defendant has been able to show the hardship, because she has done all the things required. But, unnecessarily she is kept waiting for such a long period. The defendant is admittedly 75 years old lady and if interim relief is granted, then definitely it will cause hardship to the defendant. 15. The Advocate for the plaintiffs has relied upon the decision in case of Gujarat Bottling Co, Ltd and Others Coca Cola Co. and others [(1995) 5 Supreme Court Cases 545], to submit that while granting an injunction, an equitable relief, the court has to see the balance of convenience and the conduct of the party seeking injunction -- 8 of 13 -- :9: NM-1883.18 Suit.1375.18 is to be seen. Further, undertaking can be obtained from the party in whose favour injunction is granted. The Advocate for the plaintiffs have submitted that if the injunction is not granted then definitely irreparable loss would be caused to the plaintiffs. The Advocate for the defendant has submitted that the defendant is ready and willing to refund the amount to the plaintiffs and the conduct of the plaintiffs is not proper. Considering the facts of this case I find that in fact, the conduct of the plaintiffs does not appear to be just and proper, as they have not taken any steps for such a long period. If the injunction is granted then definitely it will be the defendant who will suffer loss, as for such a longer time i.e. for 6 years the transaction has not materialized without any fault on her part. Therefore, the said ratio will not help the case of the plaintiffs. 16. The Advocate for the plaintiffs have placed reliance upon the decision in case of Raghuveer Agencies Pvt. Ltd. and others Versus Santosh s/o. Anantrao Jagtap and others [2017(3) Mh.L.J. 636], to submit that for granting injunction, the court has to see three factors i.e. existence of primafacie case, balance of convenience and irreparable. The relief of temporary or interlocutory injunction is discretionary in nature and its main purpose is to protect plaintiff against any injury by violation of his rights, for which, he cannot adequately be compensated in damages recoverable in the action. Nodoubt, the court has to see the three principles governing grant of temporary injunction. However, as discussed earlier, the plaintiffs have failed to prove primafaice case in their favour by showing any acts being performed, in respect of their readiness and willingness. The plaintiffs have submitted that the they are not having any parking space in the building and definitely they will suffer irreparable loss. I am not -- 9 of 13 -- :10: NM-1883.18 Suit.1375.18 ready to accept the said contention. Firstly, for the reason that there is no pleading to that effect and if really the plaintiffs were suffering without such garage then definitely they would have acted very fast as per the MOU. Therefore, it is plaintiffs who failed to establish that they are entitled for the temporary injunction. 17. The plaintiffs have relied upon the decision in case of Baijnath Versus Kshetrahari Sarkar and other [AUR 1955 Calcutta 210] to submit that the defendant has entered into transaction with the plaintiffs knowing fully well the consequences and therefore now the claim of the plaintiffs cannot be rejected on the ground of hardship. Nodoubt, the defendant was aware that she has to sell the suit garage to the plaintiffs. But, said agreement cannot be said to be without time limit and therefore it cannot be said that defendant could have been aware about the time period. Hence, it cannot be said that the hardship is not in favour of the defendant. 18. The plaintiffs have relied upon the decision in case of Kuldip Gandotra Versus Shailendra Nath Endlay and Anr [AIR 2007 Delhi 1] to submit that plaintiffs made payment and they were available and were ready and willing to perform their part and therefore plaintiffs had been able to establish their primafacie case. In the present case, at this stage there is nothing to show that the plaintiffs had sufficient funds to pay to the defendant. Further, there was nothing to show that plaintiffs have acted upon the MOU. In these circumstances, the said decision will not help the case of the plaintiffs. 19. Considering the entire material on record and authorities cited by the plaintiffs and the defendants. I find that the MOU which -- 10 of 13 -- :11: NM-1883.18 Suit.1375.18 was entered into on 14/02/2013 took a very long time to materialize. The plaintiffs ground that the defendant was out of India does not appear to be just and proper. The defendant is 75 years old lady and she has already waited for such a long time. If she is again kept on waiting, then definitely great loss and prejudice would be caused to her. The law will help the persons who are just and vigilant about their rights. But, in this case plaintiffs have unnecessarily delayed the transaction and I find that in such circumstances they are not entitled for the equitable relief. There is no averment in the plaint that the defendant had any intention to avoid MOU. Hence, no malafides can be attributed to the defendant. When the defendant is not at fault and her property is kept at stake for such a long time, then definitely the defendant will suffer irreparable loss. I find that in the present case, the balance of convenience is in favour of the defendant. In the circumstances, I answer Point No.1 in negative and proceed to pass the following order. ORDER i) The Notice of Motion No.1883 of 2018 is dismissed. ii) Accordingly, notice of motion is disposed of. (BHARTI KALE ) Judge City Civil Court, Gr. Bombay. Date : 12/09/2018 Dictated on: 12/09/2018 Transcribed on: 14/09/2018 Signed on: 15/09/2018 -- 11 of 13 -- :12: NM-1883.18 Suit.1375.18 CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL SIGNED JUDGMENT/ORDER 17/09/2018 at 3.25 p.m UPLOADED DATE AND TIME (DASTAGIR B. MULLA) NAME OF STENOGRAPHER Name of the Judge (With Court Room No. H.H.J. BHARTI KALE (Court Room No.7) Date of Pronouncement of Judgment/Order 12/09/2018 Judgment/Order signed by P.O.on 15/09/2018 Judgment/Order uploaded on 17/09/2018 -- 12 of 13 -- :13: NM-1883.18 Suit.1375.18 -- 13 of 13 --
