In the case of Col. Vikram Singh (Deceased) through LRs vs. Shrikant Krishan &Ors. (2026), the High Court of Himachal Pradesh upheld a decree for the specific performance of an agreement to sell land, ruling that a subsequent sale to a third party was a sham transaction.
Case Background
In May 2007, the plaintiff (Shrikant Krishan) entered into an agreement to purchase approximately 12 Kanals of land from defendants Nos. 1 to 3 at a rate of Rs. 4,00,000 per Kanal (totaling Rs. 48,00,000). The plaintiff paid Rs. 3,00,000 as earnest money via cheques. Shortly after, the defendants attempted to cancel the agreement, claiming the funds were not credited to their accounts, and subsequently sold the same land to defendant No. 4 (Col. Vikram Singh) for only Rs. 20,00,000.
Key Legal Issues and Findings
- Readiness and Willingness (Section 16(c)): The Court found that the plaintiff successfully proved his continuous readiness and willingness to complete the transaction. He demonstrated his financial capacity through bank statements and showed active interest by issuing legal notices and preparing demand drafts for further payments.
- Validity of the Initial Agreement: Although defendants Nos. 1 to 3 disputed the transaction, the Court noted they had executed a joint affidavit acknowledging the agreement and that their bank records showed the earnest money cheques were indeed encashed.
- Sham Transactions: The Court concluded that the sale deeds executed in favor of defendant No. 4 were sham transactions intended to defeat the plaintiff’s rights. This conclusion was based on several factors:
- The sale price to defendant No. 4 was significantly lower than the price agreed upon with the plaintiff.
- There was no proof of the mode of payment or evidence that any money actually changed hands between the defendants.
- Bona Fide Purchaser Defense: Defendant No. 4 failed to establish himself as a bona fide purchaser. He could not prove that he purchased the land in good faith, for value, and without knowledge of the prior existing agreement with the plaintiff.
Conclusion and Final Order
The High Court dismissed the appeal and affirmed the trial court’s judgment. It ruled that the plaintiff was entitled to the specific performance of the contract, directing the defendants to execute the sale deed in his favor upon payment of the remaining balance. The Court emphasized that defendants cannot “wriggle out” of a valid agreement by entering into fraudulent subsequent sales.
STPL (Web) 2026 HP 213
Col. Vikram Singh (Deceased) Through Lrs. V. Shrikant Krishan &Ors. (D.O.J. 06.05.2026)
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