1.
Rajat Aggarwal, aged 65, is the owner of two textile mills in Ahmadabad where he lives
with his wife and a son, Kartik Aggarwal. Vijay Kaul is the Supervisor-Cum Manager of
one of the mills whereas Kartik Aggarwal is the Executive Chairman of both of the mills.
On January 13, 2017, Rajat Aggarwal told Kartik that he is planning to purchase some
land to establish a new textile mill on the outskirts of Ahmadabad city which he again
wants him to manage with Vijay Kaul.
2. He told him that the market value of these 5 acres of land is 50 lacs of Rupees. On 25 th of
February, 2017, Rajat Aggarwal asked Vijay whether he is interested to sell his land to
Kartik Aggarwal for Rs. 50 lacs for the establishment of a new factory in which he again
will be the manager which was so refused by Vijay Kaul. From April onwards, there was
a 5 percent hike in the salary of employees; however Vijay got a pay hike of 20 percent
and now being paid as Rs. 80,000 per month.
3. On 12th of July, 2017, Rajat Aggarwal again asked Vijay to sell his land to him at 50 lacs
of Rupees. Vijay said him that he will tell after sometime.
4. On 1st August, 2017, Vijay was given an accommodation by Rajat near the mill he
worked in. Vijay shifted with his family in the house. Rajat did not demand any rents and
Vijay also did not bother to ask anything in this regard.
5. On 20th November, 2017, Rajat came to the house of Vijay and told him that he offers
him to buy his house for 50 lacs of rupees in lieu of him being transferring his land to
Kartik. Vijay agreed to do it and told Rajat that the land is being held by her sister to use
the property’s income till she remains unmarried under a written deed from her father and
he has the remainder interest which he will transfer to Rajat after she gets married.
6. Sister gets married on 30th of November, 2019. On December 10, 2019 when asked to
proceed with the transfer, Vijay refused to execute transfer deed.
7. Rajat pleaded in the Court for the specific performance of the contract as Vijay had
exercised the option under section 35 Of the Transfer of Property Act. Argue for the
parties.