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Issues Involved:
1. Whether the High Court was justified in passing a decree for specific performance under Order 8 Rule 10 CPC due to the non-filing of the Written Statement by the defendants. 2. Whether the High Court's judgment met the requirements of a "judgment" as defined in Section 2(9) of the CPC and Order 20 Rule 4(2). Issue 1: Justification of Decree under Order 8 Rule 10 CPC Respondent No. 1 filed a suit for specific performance of an agreement for sale. The defendants failed to file the Written Statement within the stipulated time, leading the High Court to decree the suit under Order 8 Rule 10 CPC. The appellants argued that the High Court's decree was punitive and resulted in a miscarriage of justice, as it was based solely on the non-filing of the Written Statement without considering the facts of the case. Order 8 Rule 10 CPC allows the court to pronounce judgment against a defendant who fails to file a Written Statement, but it also gives the court discretion to pass such order as it thinks fit. The Supreme Court emphasized that the court should exercise caution and ensure that the facts set out in the plaint are sufficient to pass a judgment without requiring further proof. In this case, the Supreme Court found that the High Court did not consider the disputed facts regarding the Income Tax Department's permission, which was crucial for determining the plaintiff's readiness and willingness to perform the contract. The Supreme Court held that the High Court should not have decreed the suit without resolving the factual dispute about the Income Tax Department's permission. The Court emphasized that even if the Written Statement is not filed, the court must scrutinize the facts to ensure that a judgment can be passed without further proof. Issue 2: Requirements of a "Judgment"The Supreme Court noted that the High Court's judgment did not meet the requirements of a "judgment" as defined in Section 2(9) of the CPC and Order 20 Rule 4(2). A judgment must contain a concise statement of the case, the points for determination, the decision thereon, and the reasons for such decision. The High Court's judgment lacked these elements and did not reflect the process of reasoning by which the court arrived at its decision. The Supreme Court emphasized that a judgment should be a self-contained document that sets out the facts of the case, the controversy, and the reasoning behind the court's decision. The High Court's judgment in this case was found to be deficient as it did not provide the necessary details and reasoning. Conclusion:The Supreme Court allowed the appeal, set aside the judgments of the Single Judge and the Division Bench of the Delhi High Court, and remanded the case back to the High Court for a fresh decision. The appellants and Respondent No. 2 were allowed to file their Written Statement by a specified date, failing which the decree passed by the High Court would stand.
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