NDLI: Pawan Kumar Arya and Others Vs. Ravi Kumar Arya and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Relief against the transfer of property Suit Execution of consent decree
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Suit – Relief against the transfer of property – Execution of consent decree – The dispute was with respect to a property – The dispute was between the appellants- original plaintiffs (PA Group) and respondent nos. 1 to 6-original defendant nos. 1 to 6 (RA Group) and also between original defendant no. 10-Developer/Builder – The disputed property was of K.F. Pvt. Ltd. – In the said Company, 25% of the shareholding was with M.P. Recycling Company (Jointly held by plaintiffs and defendants nos. 1 to 6) and the remaining 75% of the shareholding with defendants nos. 1 to 6 in their individual capacities – According to the plaintiffs, defendants nos. 1 to 6 entered into a purported Development Agreement with defendant no. 10, to develop the disputed property behind the back of plaintiffs – As per plaintiffs, the defendants nos. 1 to 6 received Rs. 45 crores from the developer and 15 flats & 72 car parking spaces under the development agreement – According to the plaintiffs, the defendant nos. 1 to 6 did not give any rights/ benefits in the said property to them – This led to the filing of the suit – During the pendency of the suit, the suit came to be settled and it was disposed of in accordance of the consent terms – As per plaintiffs, the developer had in accordance with the consent terms executed the letter of allotment in ‘Annexure E’ in respect of the 8 apartments, which were to fall in the share of the plaintiffs, but defendant nos. 1 to 6 refused to abide by the consent terms and counter-sign the letter of allotment as per ‘Annexure E’ – The plaintiff initiated proceedings for the execution of the consent decree viz. for execution of the document at ‘Annexure E’ – The execution application was rejected by the Single Judge of the High court and it was observed that unless and until the supplementary consent terms are entered into between the parties, there is no obligation on the part of defendant nos. 1 to 6 to execute the letter of allotment in the form of ‘Annexure E’ – The Division Bench of the High Court confirmed the judgment and order passed by the Single Judge of the High Court – On appeal, held: From the consent terms, it appears that both the parties – PA Group and RA Group decided to resolve and settle the other disputes also i.e. the other larger companies and its constituents – The entire consent terms/ consent decree is required to be acted upon and/ or implemented by both the parties otherwise, the object and purpose to resolve all the disputes will be frustrated – Thus, there cannot be any execution of partial consent terms/ consent decree – Also, the further execution of supplemental consent terms/ family arrangement is required to be executed between the parties, considering the relevant terms of settlement – The both Single Judge as well the Division Bench were justified in holding that the execution of the further supplemental consent terms/ family arrangement is must – Therefore, both the parties directed to fully comply with the consent terms/ consent decree and enter into the further supplemental consent terms/ family arrangement after following the modalities with respect to valuation, bidding etc. – Also, RA Group to counter-sign ‘Annexure E’ letter with respect to 8 flats as per list at ‘Annexure A’ to the consent terms for which the developer had issued letter – However, it is further directed that till the consent terms/consent decree is fully implemented by both the parties and the supplemental consent terms/family arrangement is entered into/executed, the PA Group shall not alienate in any manner the said 8 flats.
Judge	Hon'ble Mr. Justice M.R. Shah
Neutral Citation	2020 INSC 252
Petitioner	Pawan Kumar Arya And Others
Respondent	Ravi Kumar Arya And Others
SCR	[2020] 4 S.C.R. 770
Judgement Date	2020-03-02
Case Number	945-946

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
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