Property Lawyer: After disposal of the appeal, the trial court decree merges into the appellate court decree; SC.

Supreme Court of India

Justice D Y Chandrachud and Justice Indira Banerjee

The SC {Surinder Pal Soni versus Sohan Lal} held that after passing of the decree by the first appellate court the decree of the trial court merges into the decree of first appellate court, and what remains after that is only; the decree of the first appellate court.

In the said case, the suit for specific performance was decreed by the trial court, and it was directed by the trial court that the sale deed be executed within two months after payment of balance consideration. The balance consideration was not paid within two months, and meanwhile, the appeal was filed which kept pending before the appellate court, and finally it was decided. Thereafter, after one month from passing of an appellate court decree the balance amount was deposited by the plaintiff / appellant.

The High Court has reversed the decree of specific performance and directed refund of money to the plantiff / appellant - in revision against the order of the executing court rejecting the objections of the defendant / respondent - on the ground that the plaintiff has not deposited the balance consideration within the time fixed by the trial court, therefore, the plaintiff is not entitled for discretionary relief of specific performance. The SC while setting aside the said order held that the High Court committed serious error of law, as after passing of the decree by the first appellate court, the trial court decree merges into that. And the plaintiff / appellant has deposited the balance consideration within one month of passing of appellate court decree, therefore, the appellant has acted in bonafide manner and the equities is in his favour. It was also held that the High Court could not have reversed the judgement of specific performance in revision against the dismissal of objections of the JD by the executing court. The order of the executing court dismissing the objections of the respondent / JD and decree of specific performance were reinstated by the SC.