No Room for Dual Property Values in Specific Performance Cases: Delhi High Court

In a significant legal ruling, the Delhi High Court has issued an order emphasizing the clarity and uniformity required in determining property values in specific performance cases. The judgment, delivered by Hon’ble Justice Vibhu Bakhru, pertains to a suit for specific performance of an Agreement to Sell dated 22.12.1970, involving a property measuring 5373 sq. Yds. In Civil Lines, Delhi.

The High Court’s verdict, which serves as a legal precedent, revolves around the central issue of fixing the market value of the said property as of 03.12.2012, as directed by the Supreme Court. The judgment categorically rejects the notion of having two separate property values, one at ₹130 crores and another at ₹75 crores, and underscores the need for a single, well-determined market value.

Justice Bakhru’s observations highlight the Court’s commitment to upholding the integrity of specific performance cases and ensuring that parties involved adhere to the decrees set forth by the Supreme Court. He states, “The approach of putting in place two separate sale considerations for the suit property...is wholly alien to the scope of determination of the market value of the suit property...Clearly, there cannot be two market values of the same property for specific performance of the agreement to sell.”

The judgment further underscores that while property values may have some subjectivity, it is entirely within the Court’s purview to determine a property’s value based on the evidence and material presented during proceedings. “It is well settled that the price agreeable by a willing buyer and a willing seller would, in normal circumstances, be accepted as the value of a property,” notes the Court.

Furthermore, the judgment takes issue with the notion that property prices have declined since 2012, as there was no concrete evidence to support this claim. The Court emphasizes the importance of considering all relevant factors when determining property values.

Delhi High Court’s ruling sets a clear precedent, emphasizing the need for a single, well-established property value in specific performance cases, thus ensuring fairness and transparency in such legal proceedings.

Date of Decision: 05.12.2023

NARENDER JAIN & ANR Versus ANIS AHMED RUSHDIE (DECEASED) THR LRS & ORS