No Sufficient Grounds for Recession: High Court Upholds Dismissal of Petition Seeking Rescission of Property Sale Agreement

In a significant ruling, the High Court of Punjab and Haryana at Chandigarh dismissed a civil revision petition filed by Mohan Singh, challenging the decision of the Civil Judge (Junior Division), Ludhiana. The petitioner sought to rescind an agreement to sell a property dated January 17, 2008, but the court found “no sufficient grounds for recession of the agreement,” in the words of Hon’ble Mr. Justice Karamjit Singh.

The dispute centered around an agreement to sell, involving Mohan Singh as the petitioner and Surjit Singh among other respondents. Originally, Surjit Singh filed a suit for specific performance of the agreement, leading to an ex-parte decree in his favor when Mohan Singh failed to appear in court. The decree required the respondent to deposit the balance sale consideration within three months, a condition later contested by Mohan Singh.

Justice Karamjit Singh noted in his decision, “There was no inordinate delay in depositing the balance sale consideration on the part of the respondent.” The court observed that the petitioner accepted the ex-parte decree by not challenging it and only filed an application under Section 28 of the Act much later, which was not sufficient for rescinding the agreement.

This judgment underscores the court’s stance on adhering to contractual obligations and the specific circumstances under which agreements can be rescinded under the Specific Relief Act 1963. The court’s decision to dismiss the revision petition highlights the importance of timely legal action and adherence to court decrees in civil matters.

Date of Decision: 30.10.2023

Mohan Singh VS Surjit Singh and Others