Suresh Kumar & Anr vs Rakesh Chawla on 16 July, 2026

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    Delhi High Court – Orders

    Suresh Kumar & Anr vs Rakesh Chawla on 16 July, 2026

                              $~41
                              *         IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +         C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026
                                        SURESH KUMAR & ANR.                                                                    .....Petitioners
                                                                      Through:            Mr. Amit Agrawal, Advocate (Legal
                                                                                          Aid)
    
                                                                      versus
    
                                        RAKESH CHAWLA                                                                      .....Respondent
                                                    Through:                              None.
    
                                        CORAM:
                                        HON'BLE MR. JUSTICE ANISH DAYAL
                                                                      ORDER
    

    % 16.07.2026
    Lawyers are abstaining from appearing in Court today.
    CM APPL. 44067/2026 & CM APPL. 44068/2026 (Exemptions)

    1. Exemptions allowed, subject to all just exceptions.

    SPONSORED

    2. Applications stand disposed of.

    CM APPL. 44066/2026 (permission to file lengthy synopsis and list of
    dates)

    1. This application has been filed seeking permission to file lengthy
    synopsis and list of dates.

    2. Application is allowed. Permission, as prayed, is granted.

    3. Application stands disposed of.

    C.R.P. 197/2026 & CM APPL. 44064/2026 (Stay)

    1. This petition has been filed for setting aside execution proceedings
    pending before ADJ, North West, Rohini Courts, Delhi in Execution Civil

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 1/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20
    No.384/2022, where an execution petition had been filed for execution of
    judgment and decree dated 05th September 2022.

    2. Mr. Amit Agrawal, Advocate, appears through Legal Aid for the
    petitioners/defendants and the matter has been taken up on an urgent basis,
    considering that the Executing Court by way of impugned order dated 25th
    May 2026, has directed to proceed with the auction proceedings on 17th July
    2026 i.e. tomorrow.

    3. The essential plea taken by Mr. Agrawal, is that the decree itself could
    not have been passed on account of it being barred under Section 22 of
    Specific Relief Act, 1963 (hereinafter, ‘SRA’). He states that a particular
    relief ought to have been sought for refund of earnest money for it to be
    granted by the Court decreeing the Suit (hereinafter, ‘Suit Court’).

    4. Mr. Agrawal, points to the suit where no such relief had been sought.
    Quite to the contrary, the relief sought in Suit No. CS 575665/2016, was, in
    fact, for petitioners/defendants to perform their part of Agreement to Sell
    (‘ATS’), which was stated to be constituted through Agreement-cum-
    Receipt-cum-Acknowledgment dated 20th October 2009 for sale of property
    bearing No. 1157, Pocket A-1, Sector 30, Rohini, Delhi (hereinafter, ‘subject
    property’).

    5. Mr. Agrawal, states despite there being no specific relief sought for
    refund, nor an amendment to that effect being preferred by
    respondent/plaintiff, the decree directing refund of earnest money, along
    with interest at Rs.13,00,000/- with 7% interest was passed.

    6. In his support, he places reliance upon the decision of Supreme Court
    in K. R. Suresh v. R. Poornima & Ors. 2025 SCC OnLine SC 1014, where
    the Supreme Court categorically stated that, in the absence of a specific

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 2/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20
    prayer for refund of advance money and there being no amendment
    application, as permitted under the proviso to Section 22(2) of SRA, the
    Court would not be inclined to grant relief of refund of advance money to
    the plaintiff. Relevant paragraphs of this judgment are extracted as under for
    reference:

    “58. It is thus a settled position of law that the plaint
    may be amended at any stage of the proceedings to
    enable the plaintiff to seek an alternative relief,
    including that of refund of earnest money, and the
    courts have been vested with wide judicial discretion to
    permit such amendments. However, under Section 22
    of the 1963 Act, the courts cannot grant such relief suo
    moto, since the inclusion of the prayer clause remains
    a sine qua non for the grant of such a relief. In other
    words, when an “appropriate case” exists for seeking
    the said relief under this provision, it must be
    specifically sought either in the original plaint or by
    way of an amendment. This has been emphatically held
    by this Court in Desh Raj v. Rohtash Singh, (2023) 3
    SCC 714. The relevant observations are reproduced
    hereunder:

    “35. On a plain reading of the above-reproduced
    provision, we have no reason to doubt that the
    plaintiff in his suit for specific performance of a
    contact is not only entitled to seek specific
    performance of the contract for the transfer of
    immovable property but he can also seek
    alternative relief(s) including the refund of any
    earnest money, provided that such a relief has
    been specifically incorporated in the plaint. The
    court, however, has been vested with wide judicial
    discretion to permit the plaintiff to amend the
    plaint even at a later stage of the proceedings and
    seek the alternative relief of refund of the earnest
    money. The litmus test appears to be that unless a

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 3/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20
    plaintiff specifically seeks the refund of the
    earnest money at the time of filing of the suit or by
    way of amendment, no such relief can be granted
    to him. The prayer clause is a sine qua non for
    grant of decree of refund of earnest money.

    36. Applying these principles to the facts of the
    case in hand, we find that the respondent has
    neither prayed for the relief of refund of earnest
    money in the original plaint nor he sought any
    amendment at a subsequent stage. In the absence
    of such a prayer, it is difficult to accept that the
    courts would suo motu grant the refund of earnest
    money irrespective of the fact as to whether
    Section 22(2) of the SRA Act is to be construed
    directory or mandatory in nature.”

    59. The judgment in Desh Raj (supra) has been relied
    upon by the learned counsel appearing for the
    appellant herein. However, it is difficult to understand
    how this judgment furthers their case. On the contrary,
    this judgment clearly contradicts their position, stating
    in unequivocal terms that, in the absence of a prayer
    for the relief of refund of earnest money, such relief
    cannot be granted by this Court…..

    61. Applying these principles to the facts of the case at
    hand, we find ourselves unable to accept the
    submissions of the appellant that, in the absence of a
    specific prayer for the refund of advance money paid
    by them, Prayer (c) of the plaint which specifies the
    grant of “such other relief(s) as the Hon’ble Court
    deems fit in the facts and circumstances of the case in
    the interest of justice”, can be construed to include a
    prayer for such an alternative relief…..

    63. In our considered opinion, the law contained under
    Section 22(2) of the 1963 Act is adequately broad and
    flexible to allow the appellant to seek an amendment of
    the plaint for the said relief, even at the appellate
    stage. However, no such application for an amendment
    of the plaint was moved either before the trial court or

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 4/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20
    during the course of the first appeal before the High
    Court. That is to say, the appellant never prayed for
    the refund of the advance money. Here, it would be
    redundant to state that the law aids the vigilant, not
    those who sleep over their rights.

    64. For all the foregoing reasons, we have reached the
    conclusion that the forfeiture of advance money by the
    respondent nos. 1-4 was justified. In such
    circumstances, we are not inclined to grant the relief of
    refund of advance money to the appellant.”

    (emphasis added)

    7. Mr. Agrawal, therefore, states that execution proceedings pending
    before the Executing Court, seeking to execute and enforce the judgment
    and decree dated 5th September 2022 are ex-facie and patently illegal, non-
    est and void, since an Executing Court can only execute and enforce a
    decree which is valid in law.

    8. He submits that the Court is empowered to intercede at this stage,
    particularly when jurisdictional issues are involved. Reliance has been
    placed on Odisha State Financial Corporation v. Vigyan Chemical
    Industries
    , 2025 INSC 928, where an issue regarding computation of
    interest on decretal amount and consequential execution proceedings arose.
    In that case, proceedings emanated from a suit which went into Second
    Appeal before the High Court and consequentially, execution was filed for
    recovery of decretal amount. Post the filing of execution petition, a Writ
    Petition was filed, which was dismissed by the High Court, as well as, a
    Revision Petition, which was also dismissed.

    9. In an elaborate discussion, the Supreme Court discussed the scope of
    Section 47 of Code of Civil Procedure, 1908 (‘CPC‘), and stated as under:

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 5/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20
    “19. From the above pronouncements of this Court, it
    is amply clear that at the stage of execution
    proceedings, objections regarding the maintainability
    of the suit as well as the jurisdiction of the trial Court
    can be raised for consideration, and the executing
    court is well within its powers to deal with such
    objections in accordance with law, if such objections,
    from the face of the records, do not require
    adjudication by trial. However, in the case on hand,
    the objections raised by the appellant regarding the
    maintainability and the execution proceedings have
    been rejected by the Executing Court at the threshold,
    without going into the contentions. This court in a
    recent judgment in Celir LLP v. Mr. Sumati Prasad
    Bafna and others, while dealing with a contempt
    petition and underscoring the importance of bringing
    finality to concluded litigations, applying the
    Henderson’s rule, refused to accept the contentions
    against the original order, holding that a defence,
    which ought to have been raised, if not raised, is
    deemed to have been raised and overruled. The said
    judgment arises in a contempt matter, where the law
    that a court hearing the contempt case can neither
    expand the scope of original order nor modify it is well
    settled [See: Midnapore Peoples Co-operative Bank
    Ltd and others v. Chunilal Nanda and others
    ].

    However, the case on hand is completely different, and
    the scope of interference by the execution court is to be
    understood in the light of the power conferred upon it
    by Section 47 and the settled position that the
    executing court can refuse to execute the decree if it is
    a nullity. In addition to the settled position that a
    decree obtained by fraud or against the wrong person
    is a nullity, there are other circumstances which can
    render a decree to be a nullity.”

    (emphasis added)

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 6/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20

    10. Moreover, the Supreme Court categorically stated that it was just to
    allow the appellant (therein) to raise the ground of jurisdiction since it
    strikes at the very heart of the matter. Relevant observation of the Court is
    extracted as under:

    “24. Based on this settled legal position, we find it just
    to allow the appellant to raise the ground of
    jurisdiction before us. Consideration of the question
    would not require any additional evidence, since it
    involves a pure question of law and strikes at the heart
    of the matter. We shall now turn to the merits of this
    argument.”

    (emphasis added)

    11. Aside from the legal issues, certain disturbing aspects have been
    brought to the notice of the Court by Mr. Agrawal. Petitioners/defendants
    had been allotted this plot of land by Delhi Development Authority
    (‘DDA’). Post allotment and pre-possession, one, Rajender Verma, alleged
    that he had paid some amount of money to petitioners/defendants and in that
    respect, he filed a suit being Suit No. 304/2008 seeking specific
    performance. The suit was dismissed on the ground that it was not being
    pressed in view of a settlement reached between the parties.

    12. Thereafter, the present respondent/plaintiff filed a suit seeking
    specific performance, based on alleged documents which resulted in the
    decree passed on 05th September 2022 directing refund of Rs.13,00,000/-
    along with 7% interest.

    13. Mr. Agrawal, points out that the counsel, Mr. Gaurav Garg, who had
    previously appeared for petitioners/defendants had also been the lawyer for
    respondent/plaintiff in the previous suit. He had also appeared as
    complainant’s witness in a complaint case, where the complainant was

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 7/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20
    respondent/plaintiff and had made a statement that, “I am the counsel for the
    complainant in his almost all the cases”.

    14. Further documents have been brought to the Court’s attention by Mr.
    Agrawal, where Mr. Gaurav Garg had also signed as a witness on the
    documents which were purported to be executed between the parties.

    15. Basis the above, it has been argued that auction proceedings of the
    subject property, as directed by the Executing Court, may be beyond
    jurisdiction of Executing Court, considering that the relief granted in the suit
    would be barred under Section 22 of SRA.

    16. Another issue raised is regarding the settlement arrived at before the
    Executing Court, as per which Rs.5,00,000/- were paid to
    respondent/plaintiff, which have been forfeited under the orders of
    Executing Court. However, Mr. Agrawal, states that the settlement was
    executed under the fear of auction of subject property, directed by the
    Executing Court, which has a market value of Rs.60,00,000/- approximately.

    17. In these circumstances, issue notice to the respondent/plaintiff, on
    steps being taken by petitioner/defendant to be served through the counsel
    appearing in the Trial Court, returnable on 3rd August 2026.

    18. Till then, operation of the impugned order shall remain stayed.

    19. Order be given dasti under the signature of the Court Master.

    20. Order be uploaded on the website of this Court.

    ANISH DAYAL, J
    JULY 16, 2026/ak/sp

    C.R.P. 197/2026 & CM APPL. 44064/2026, CM APPL. 44065/2026 8/8

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 17/07/2026 at 23:15:20



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