Holding

The Supreme Court sanctioned the parties' compromise, fixed the market value at Rs.5,500 per sq. ft., ordered payment in installments, and directed execution of sale deeds, thereby setting aside the lower courts' decrees.

Summary

The appellants, Rajmohan Agarwal, filed a suit for specific performance of a contract of sale of land against the respondents, Amna Abubakar and others. The trial court dismissed the suit and the High Court affirmed that decree. The Supreme Court, after suggesting an amicable settlement, accepted a compromise wherein the portion of the land already sold to third parties would remain undisturbed, and the appellants would purchase the remaining 24,477.89 sq. ft. at a market rate fixed by the Court at Rs.5,500 per sq. ft., amounting to Rs.13.46 crore. The Court ordered a payment schedule of Rs.4 crore within one month and the balance in five equal monthly installments, with consequences for default and a directive for the respondents to execute registered sale deeds upon full payment. The specific performance suit was thereby decreed on these terms, and the lower courts' judgments were set aside.

Issues considered

What is the appropriate remedy for the dispute over the contract of sale – specific performance or monetary compensation?
How should the market value of the unsold portion of the land be determined for the purpose of a settlement?
Can the parties' compromise be sanctioned by the Supreme Court to replace the specific performance decree?

Subjects

specific performancecontract of saleproperty valuationsettlementcompromiseSupreme Courtcivil appealland purchasepayment schedule

Judgment

(2008) 15 S.C.R. 968
~ ~

A RAJMOHAN AGARWAL ·~ .
v. 1

AMNA ABUBAKAR & ANR.
(Civil Appeal No. 5231 of 2000) ·
'\

NOVEMBER 07, 2008
i3
[DR. ARIJIT PASAYAT, TARUN CHATTERJEE AND
LOKESHWAR SINGH PANTA, JJ.]

Settlement/Compromise:
c
Suit for specific performance of contract of sale of
property- Decreed - Affirmed by High Court - Appeal befo(e
Supreme Court - Suggestion to parties to amicably settle
the dispute - Settlement - One portion of property already
sold to respondents accepted as final - Appel/an( agreed to 'r
D
purchase remaining area of the property at market rate -
Statement of parties that rate suggested by Court would be ·
acceptable to all of them - After making enquiries, Rs.5500
per sq. feet fixed - Compromise between parties approved
on certain terms and conditions.
E
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
5231 of 2000.
. ,,).,
From the final Judgm~nt and Order dated 19.12.1997 of
F the High Court of Madhya Pradesh at Jabalpur in Civil First
Appeal No. 204 of 1995.

WITH

C.A. Nos 5796, 5797 & 5798 of 2000. .,
G
Siddharth Bhatnagar, Pawan Kumar Bansal, Ruby Singh
Ahuja, Sushil Kumar Jain, Puneet Jain, Archana Tiwari, Ashwin 1
V. Kothmath, S.K. Sinha and Pratibha Jain for the appearing
parties. ~

H 968
RAJ MOHAN AGARWAL v. AMNA ABUBAKAR & ANR. 969
. }

The Judgment of the Court was delivered by A

TARUN CHATTERJEE, J. 1. These four appeals are
directed against the ju~gment and decree passed in four First
Appeals, being Appeal No. 173/1995 (Shasi Mohan Agarwal
. Vs. Smt. Fatima Ahmed alias Begum Rashiduddin Siddiqui B
& 2 others), Appeal No. 174/1995 (Rajmohan Agarwal Vs.
~
Smt. Amna), Appeal No. 204/1995 (Rajmohan Agarwal vs.
"'l Smt Amna Abubakar & Another) and Appeal No. 206/1995
( Shashi Mohan Agarwal Vs. Smt. Fatima Ahmed alias
Begum Rashiduddin Siddiqui & 2 others), passed by a
Division Bench of the High Court of Madhya Pradesh at
c
Jabalpur, confirming the judgment and decree of the trial court
in a suit for specific performance of a contract, by which the
suit and the appeals were dismissed.
.... 2. These appeals were heard for a considerable length of D
time, it was suggested by the Court that in the facts and
circumstances of the case, the parties may explore the
possibility of an amicable settlement. Accordingly, the parties
have taken some time to look in.to the question whether an
amicable settlement can be arrived at and finally mentioned E
before us that they have agreed.to an amicable settlement in
the following manner:-
;. [I] The portion of the property already sold by the
-t
I
respondents herein to Smt. Poonam Chokse and Smt.
F
Rasmani Jaiswal by way of different sale deeds will not
be disturbed and will be accepted as final and conclusive.

[II] The appellants shall purchase the remaining area (i.e.
the portion of the land not sold by the respondents) at the
current market value. G

3. Pursuant to the amicable settlement arrived at between
the parties, and the parties having broadly settled their dispute
as to the valuation of the property on the terms and conditions
as indicated hereinabove, these appeals can be disposed of
H
r

970 SUPREME COURT REPORTS [2008] 15 S.C.R.

~
~
A on compromise on the following terms and conditions:-
)'==
a) The total area of the land was 49,259 Sq. Ft.,
out of which 24,477.89 marked 'B' in the sketch
map annexed with the affidavit filed on behalf of the
respondents as Annexure AA2 is still in possession
B
of Begum Fatima Ahmed & Smt. Amna Abubaker
(respondents herein). Since the parties have )... r
I!
agreed that the portion of the property already sold
by the respondents in favour of one Smt. Poonam -::·

c
Chokse and Smt. Rasmani Jaiswal shall not be ~
disturbed and shall be accepted as final and
,__
conclusive, only the possession of the remaining r
area namely, 24,477.89, marked 'B' in the sketch
map -Annexure AA2 shall be handed over to the
appellants by the respondents at a consideration
r
D mentioned hereinafter. The parties before us
..,.
through their learned counsel have suggested that
whatever rate that is ·fixed by this Court shall be
accepted by all of them. That being the stand taken
by the parties before us and after making an
E enquiry we find that if Rs.5500/- per sq. feet is fixed
as the valuation of the aforesaid unsold portion of
the land in question, the estimated price would
come to Rs.13,46,29,000 (Thirteen Crores Forty
Six Lakhs and Twenty Nine Thousand) [Rs. 5500 ~
~
F X 24,478 (round off)]. Therefore, we fix the rate of
the land at Rs.5500/- per sq. ft. which comes to
Rs.13,46,29,000/- (Thirteen crores forty six lakhs
and twenty nine thousand) to be paid by the
appellants to the respondents. ~

G
b) Out of the aforesaid total amount of
Rs.13,46,29,000/- (Thirteen crores forty six lakhs {
and twenty nine thousand), a sum of Rs.4 crores
shall be paid by the appellants to the respondents
within one month and the balance amount of
H
RAJ MOHAN AGARWAL v. AMNA ABUBAKAR & ANR. 971
f
[TARUN CHATIERJEE, J.]
)

Rs.9,46,29,000/- (Nine Crores Forty Six Lacs and A
Twenty Nine Thousand) shall be paid by five equal
monthly installments, starting from the date of the
payment of the 1st Installment.

c) In default of payment of any of the installments,
8
as directed above, the suit for specific performance
shall stand dismissed and the appellants shall not
be entitled to any portion of the land in dispute as
indicated in the sketch map [Annex. AA2 ] annexed
with this order.
c
d) If the appellants duly pay the aforesaid amount
of Rs.13,46,29,000/- (Thirteen crores forty six lakhs
and twenty nine thousand) to the respondents within
the time specified hereinabove, the respondents
shall execute registered deeds of sale in favour of o
the appellants in respect of the land as indicated
in the sketch map (Annexure-AA2) and also shall
hand over vacant peaceful possession to the
appellants within a month from the date of paying
the aforesaid total amount. E
4. The suit for specific performance accordingly filed by
the appellants shall stand decreed on the aforesaid terms and
conditions and the judgments and decree of the courts below
shall stand set aside and the portion marked B of Annexure
AA2 which forms part of the order and decree shall stand F
transferred in favour of the appellants.

5. The appeals are disposed of on compromise on the
terms and conditions as mentioned hereinabove. There will be
no order as to costs. G
; D.G. Appeals disposed of.