SUPREME COURT OF INDIA
A.P. SEN AND L.M. SHARMA, JJ.
Smt. Sova Ray and another, Appellants
Versus
Gostha Gopal Dey and others, Respondents.
Civil Appeal No. 2463 of 1982,
D/-18-3-1988.
-in the case of Sova Ray v. Gostha Gopal Dey, AIR 1988 SC 981, the defendant was subjected to the condition that if he had to take advantage of the bargain he was under a duty to pay the stipulated amount by the time mentioned in the agreement. On failure to do so within time, he was to be deprived of the special benefit. Such a clause cannot be considered to be a penalty clause. In this case there was prayer to make belated payment. It was held that even where such a power exists it is not to be exercised liberally.
Judgment
SHARMA, J. :- The appellants filed a suit for partition of the properties detailed in the plaint claiming 1/3rd share. A preliminary decree was passed by the trial Court, which was challenged by the defendant No. 9 (original respondent No. 1 in the present appeal) before the Orissa High Court in First Appeal No. 184 of 1972. The appeal was disposed of on compromise whereby the plaintiffs claim to 1/3rd share was accepted as correct. The terms of the compromise are set out in paragraph 2 of the order dated 27-3-79. It was, however, further agreed that half of the share of the plaintiffs, i.e. 1/6th share, would go to the defendant No. 9 provided he paid a sum of Rs. 40,000/- to the plaintiffs by a particular date, failing payment within time, the decree passed by the trial Court would stand confirmed as per terms of the compromise. The compromise was recorded on 27-3-1979. According to the compromise the sum of Rs. 40,000/- was to be paid in two instalments: the first instalment of Rs. 10,000/- by 31-7-1979 and the remaining amount of Rs. 30,000/- by 28-2-1980. The first instalment was paid within time but the remaining amount was not paid. In the meantime, the decree by the High Court was formally drawn up on 6-9-1979. In view of the default in payment of the second instalment the plaintiffs-appellants deposited the sum of Rs. 10,000/- received by them as the first instalment to the credit of the defendant No. 9 with the permission of the Court. The defendant No. 9, thereafter, made an application before the High Court on 28-8-1981 for extension of the period for payment of the second instalment of Rs. 30,000/-. The application was allowed by the, order dated 31-8-1981 which is under challenge in the present appeal.
2. Before proceeding to the points involved in the present appeal it will be useful to briefly state the facts. The parties are close relations, the defendant No. 9 (original respondent No. 1) being the uncle of the plaintiffs-appellants. He died during the pendency of the appeal here and his heirs and legal representatives have been substituted as respondents. The father (if the plaintiffs Nityagopal, defendant No. 9(original respondent No. 1) Ghosta Gopal and Brajgopal were brothers. Nityagopal died in 1953 leaving behind the plaintiffs and their mother who also died in 1962. According to their case, they thus became entitled to 1/3rd share in the properties belonging to the family. The appellants were very young girls and lived with Gostha Gopal for some time after the death of their parents. But, according to their case, they had to leave for their maternal grandmothers place in 1964 due to the illtreatment by their uncle. In 1965, a collusive suit for partition was commenced by both the uncles Gostha Gopal and Brajgopal, in which although the plaintiffs were impleaded as parties, their address was wrongly mentioned in the plaint. Consequently no summons could be served on them nor did they have any information about the suit and the decree passed therein. No share was allotted, to the appellants, at all. After they learnt about the collusive suit and the decree, they filed the present suit being T.S. 32 of 1967, for setting aside the earlier decree and for partition. The trial Court accepted the plaintiffs case that the earlier decree was obtained by fraud. The plaintiffs were awarded 1/3rd share as claimed by them. Brajgopal became reconciled to the situation but Gostha Gopal challenged the decision in the aforementioned First Appeal No. 184 of 1972.
3. The parties reached an amicable settlement and the appeal was disposed of on 27-3-1970. Accordingly the heirs of Brajgopal (who was dead by then) got their 1/3rd share in accordance with the trial courts decision and the suit so far as the other two branches, that is, the plaintiffs and Gostha Gopal were concerned, was disposed of on the terms as mentioned in parapraph 1 above. According to the case of the plaintiffs-appellants they had no information of
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