Bombay High Court
Subhash Mahadev PokaleversusYashwant Constructions Through its Proprietor Dnyaneshwar Murlidhar Liagude
- Decided
- Disposal
- Disposed Off
- Bench
- N JAMADAR
Holding
The decree declaring the development agreements void and ordering possession to the plaintiffs stands, as there is no substantial question of law to be entertained.
Summary
The plaintiffs filed a suit seeking a declaration that a 2005 development agreement and a subsequent 2007 agreement were cancelled due to the defendant's breach and fraudulent transfer of the suit property. The trial court declared both agreements void ab initio and ordered possession to be delivered to the plaintiffs. The defendants appealed, arguing that the identity of the suit property was uncertain and that their application to adduce additional evidence under Order XLI Rule 27 of the CPC was wrongly rejected. The appellate court found that the plaintiffs' claim was unchallenged, the defendants had no title, and the alleged discrepancy in property identification was irrelevant. Consequently, the court held there was no substantial question of law and dismissed the second appeal, also disposing of the interim application.
Issues considered
- Whether the decree could be passed when the identity of the suit property was uncertain.
- Whether the 2007 development agreement executed by Defendant No.1 is void ab initio due to lack of authority and breach of obligations.
- Whether the application to adduce additional evidence under Order XLI Rule 27 of the Code of Civil Procedure, 1908 was rightly rejected.
- Whether Defendant Nos.2 and 3 had any legal right or title to the suit property.
Legislation cited
- Code of Civil Procedure, 1908 — s. Order XLI Rule 27
Subjects
- development agreement
- breach of contract
- cancellation of agreement
- possession
- civil appeal
- Order XLI Rule 27
- identity of suit property
- nullity ab initio
Judgment
2026:BHC-AS:16304
905 SA 536-25.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
SECOND APPEAL NO. 536 OF 2025
IN
INTERIM APPLICATION NO. 2531 OF 2026
Subhash Mahadev Pokale & anr. ..Appellants
Versus
M/s. Yashwant Constructions & ors. …Respondents
Mr. Ashutosh Kulkarni a/w Mr. Yash Naik i/b Vaibhav
Gaikwad, for the Appellants.
CORAM : N. J. JAMADAR, J.
DATE : 2nd APRIL 2026
ORDER :
1. Heard the learned Counsel for the parties.
2. This appeal is directed against a judgment and decree
dated 30th May, 2025 passed by the learned District Judge,
Pune in Regular Civil Appeal No. 28/2023 whereby the appeal
preferred by the appellants/original Defendant Nos. 2 and 3
against the decree passed in Special Civil Suit No. 1520/2014
dated 13th March, 2018, came to be dismissed.
3. The Respondent Nos. 2 and 3 – original plaintiffs
instituted Special Civil Suit No. 1520/2014 seeking a declaration
that, the development agreement dated 17th March, 2005
executed by the plaintiffs in favour of the Defendant No. 1 in
respect of the land bearing Survey No. 11/3 admeasuring 8R
SAINATH, PA 1/5
905 SA 536-25.DOC
situated at village Dhayari, Pune (the suit property) stood
cancelled and terminated and the plaintiffs were entitled to
recover possession of the suit property, on account of the breach
of the obligations thereunder by the Defendant No. 1 and the
fraudulent transfer of the interest in the suit property by the
Defendant No. 1 in favour of Defendant Nos. 2 and 3 –
appellants herein.
4. The Defendant Nos. 2 and 3 contested the plaintiffs claim
and asserted that, the development agreement dated 24 th
October, 2007 was executed by Defendant No. 1 in favour of
Defendant Nos. 2 and 3 with the consent of the plaintiffs.
However, the defendant did not adduce any evidence to bolster
up their defence.
5. By a judgment and decree dated 13 th March, 2018, the
learned Civil Judge decreed the suit and declared that, the
development agreement and irrevocable power of attorney
executed by plaintiffs in favour of the Defendant No. 1 stood
cancelled, in view of the breach of the obligations by the
Defendant No. 1 and, consequently, the subsequent
development agreement dated 24th October, 2007, executed by
Defendant No. 1 in favour of the Defendant Nos. 2 ad 3 was null
and void ab initio and did not bind the rights of the plaintiffs in
SAINATH, PA 2/5
905 SA 536-25.DOC
the suit property. The Defendant Nos. 1 to 3 were also directed
to deliver possession of the suit property to the plaintiffs, and
restrained from creating further third party rights in the suit
property.
6. Being aggrieved, the Defendant Nos. 2 and 3 preferred
appeal before the District Court. By the impugned judgment
and decree, the learned District Judge dismissed the appeal
Cnding no fault with the decree impugned before him.
7. Mr. Ashotush Kulkarni, the learned Counsel for the
appellants would submit that, there was a serious discrepancy
regarding the identiCcation of the property in respect of which,
the plaintiffs had allegedly executed a development agreement in
favour of the Defendant No. 1. The proceedings were initiated
before the Revenue Authorities. Thus, the appellants/Defendant
Nos. 2 and 3 had Cled an application for permission to adduce
additional evidence under the provisions of Order XLI Rule 27 of
the Code of Civil Procedure, 1908. By the impugned judgment,
the said application was also unjustiCably rejected by the
learned District Judge. Thus, a substantial question of law as to
whether the impugned decree could have been passed when the
identity of the suit property itself was shrouded in mystery
arises for consideration, submitted Mr. Kulkarni.
SAINATH, PA 3/5
905 SA 536-25.DOC
8. I am unable to persuade myself to agree with the aforesaid
submission. The nature of jural relationship between the parties
assumes material signiCcance. What was executed by the
plaintiffs in favour of the Defendant No. 1 was only a
development agreement. The title in the suit property did not
pass to the Defendant No. 1.
9. Apart from the issue of breach of obligations on the part of
the Defendant No 1 as the payments were not made within the
stipulated period, the very competence of the Defendant No. 1 to
execute a further development agreement in favour of the
Defendant Nos. 2 and 3 was itself in question. Though the
Defendant Nos. 2 and 3 claimed that, the plaintiffs had given
consent for the execution of the development agreement by the
Defendant No. 1 in favour of the Defendant Nos. 2 and 3, yet, no
evidence was led by the defendants to substantiate the said
defence. In fact, the plaintiffs claim had gone virtually
unimpeached.
10. In the aforesaid backdrop, the submissions premised on
the purported discrepancy in the identity of the suit property do
not advance the cause of the Defendants No. 2 and 3.
11. SufCce to note, the Defendant Nos. 1 to 3 had no
antecedent right, title and interest in the suit property and the
SAINATH, PA 4/5
905 SA 536-25.DOC
Defendant No. 1 came in possession of the suit property under
the development agreement only. Therefore, no mileage can be
drawn from the purported discrepancy in the identiCcation of
the suit property. Thus, no question of law, much less a
substantial question of law, arises for consideration.
12. The Second Appeal thus stands dismissed.
13. In view of the dismissal of the Second Appeal, the
IA/2531/2026 also stands disposed.
[N. J. JAMADAR, J.]
Signed by: S.S.Phadke SAINATH, PA 5/5
Designation: PS To Honourable Judge
Date: 06/04/2026 21:10:54
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