The Supreme Court in the case Balram Singh vs Kelo Devi observed and stated that a relief of permanent injunction cannot be sought on the basis of such an unregistered document/agreement to sell.
The bench comprising of Justice MR Shah and Justice Krishna Murari observed that a plaintiff cannot get the relief indirectly which otherwise he/she cannot get in a suit for specific performance.
In the present case, a suit has been filled by the plaintiff praying for a decree of permanent injunction restraining the defendant from disturbing her possession in the suit property, which was claimed on the basis of the agreement to sell of which was an unregistered agreement/document to sell on ten rupees stamp paper. The suit was dismissed by the Trial Court by the original plaintiff and refused to grant permanent injunction and allowed the counter-claim of the defendant. However, the First Appellate Court reversed the Trial Court judgment and decreed the suit. The second appeal filled by the defendant was dismissed by the High Court.
In appeal, the defendant-appellant contended that an unregistered agreement to sell is not admissible in evidence and that the suit filed by the original plaintiff was only for permanent injunction and she did not seek the relief for specific performance of agreement to sell by adopting a clever drafting as she was well aware that she would not succeed in the suit filled for specific performance on the basis of an unregistered agreement to sell. On the other hand, it was contended by the respondent-plaintiff that an unregistered document can be used for collateral purpose and therefore both, the first appellate Court as well as the High Court have rightly passed a decree for permanent injunction while considering the agreement for selling of collateral purpose for grant of permanent injunction.
The Apex Court observed, while allowing the appeal:
However, having conscious of the fact that the plaintiff might not succeed in getting the relief of specific performance of such agreement to sell as the same was unregistered, a suit was filed by the plaintiff simplicitor for permanent injunction only. In a given case, it may be true that an unregistered document can be used and/or considered for collateral purpose and at the same time, the plaintiff cannot get the relief indirectly which otherwise he/she cannot get in a suit for substantive relief, namely, in the present case filled for the relief of specific performance. Thus, the plaintiff cannot get the relief even for permanent injunction on the basis of such an unregistered document/agreement to sell, more particularly when the defendant specifically filed the counter-claim for getting back the possession which was being allowed by the learned trial Court. It has been cleverly prayed by the plaintiff for a relief of permanent injunction only and did not seek for the substantive relief of specific performance of the agreement to sell as the agreement to sell was an unregistered document and therefore on such unregistered agreement/document to sell, no decree for specific performance could have been passed. By clever drafting, the plaintiff cannot get relief.
Therefore, the court restored the Trial Court judgment dismissing the suit and allowing the counter-claim.