SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2015 Supreme(SC) 381

SUPREME COURT OF INDIA
V. GOPALA GOWDA, C. NAGAPPAN, JJ.
PADMAKUMARI & ORS. - APPELLANTS
VERSUS
DASAYYAN & ORS. - RESPONDENTS
CIVIL APPEAL NO(s). 3570 OF 2015 (Arising out of S.L.P.(C) No. 1169 of 2008)
Decided on: 7-04-2015

MAIN POINT
When the agreement specifies a time limit, time become essence of contract.
Compliance with Order VI, Rule 3, CPC is mandatory for relief under section 16(c) of Specific Relief Act.
A bona fide purchaser is protected by section 19(b) of the Specific Relief Act.

Headnote:(a) Limitation Act, 1963 – Article 54 – Plaintiff agreeing to perform his part of contract, i.e. paying the balance consideration amount, within 9 months – Falls under Article 54 – Time was the essence of contract – Plaintiff having not adhered to the time scheduled, not entitled to relief of specific performance. (Para 15, 17)

       AIR 1967 SC 868; (1935) King's Bench Division 198; AIR 2011 SC 3234; (1993) 1 SCC 519 – Relied upon

       (b) Specific Relief Act – Section 16(c) and Order VI, Rule 3, CPC – Plaint for specific performance must comply with requirements of Order VI, Rule 3 – Instantly plaint not complying with Order VI, Rule 3 – Not showing readiness and willingness of the plaintiff – Plaintiff not entitled to relief. (Para 19)

       (1995) 2 SCC 31; (2000) 2 SCC 428; (1969) 2 SCC 539; (1989) 4 SCC 313; (2002) 9 SCC 582; (2003) 10 SCC 390 – Relied upon

       (c) Specific Relief Act – Section 19(b) – Defendant 12 to 15 bona fide purchasers – Plaintiff cannot enforce specific performance of their agreement against transferee defendants 12 to 15. (Para 21)

       Facts of the case:

       Defendant Nos. 1 to 11 entered into an agreement of sale on 19.04.1992 in favour of the plaintiff and executed an unregistered agreement agreeing to sell the suit schedule property measuring 2.08 acres of land belonging to them. The total sale consideration amount is Rs. 65,000/-. Advance amount of Rs. 2,000/-was agreed to be paid for execution of sale and the remaining balance consideration is agreed to be paid within nine months from the date of agreement of sale. Undisputedly, the remaining balance sale consideration is not paid on or before 18.04.1993. On 3.02.1993, defendant Nos. 12 to 15 entered into an unregistered agreement with defendant Nos. 1 to 11 to purchase the suit schedule property.

       Out of the sale consideration of Rs. 80,000/-a sum of Rs. 10,000/- is paid as advance amount, a further sum of Rs. 30,000/-is paid at the time of execution of the sale deed, remaining Rs. 40,000/-is retained to be paid in favour of defendant Nos. 1 to 11, free of interest, within one month from the date of disposal of I.A. No. 208 of 1990 in A.S. No. 95 of 1990 pending on the file of District Court Nagarcoil. The appeal was filed challenging the decree for partition in O.S. No. 11 of 1978.

       The plaintiff instituted original suit on 14.06.1993.

       The trial court framed four issues and has appreciated and answered the Issue Nos. 1 and 2 in favour of the plaintiff. Issue No. 3 was answered against defendant Nos. 12 to 15 and, accordingly, answered Issue No. 4 and passed the decree of specific performance in favour of the plaintiff in respect of the suit schedule property with certain directions to him.

       Defendant Nos. 12 to 15 preferred an appeal before the High Court which was dismissed.

       Finding of the Court:

       Impugned judgment cannot be sustained.

       Result: Appeal allowed.

       

Judgment

V. Gopala Gowda, J.

Leave granted.

2. The concurrent finding of fact recorded by the High Court of Madras, Bench at Madurai, in Appeal Suit No. 646 of 1994 affirming the judgment and decree dated 15.06.1994 passed in O.S. No. 63 of 1993 on the file of Sub-Court, Kuzhithurai District is under challenge in this appeal by defendant Nos. 12 to 15 urging various legal grounds.

3. For the sake of convenience, the ranks of the parties assigned in the plaint filed before the trial court is adverted to in this judgment.

4. Defendant Nos. 1 to 11 entered into an agreement of sale on 19.04.1992 in favour of the plaintiff and executed an unregistered agreement agreeing to sell the suit schedule property measuring 2.08 acres of land belonging to them. The total sale consideration amount is Rs. 65,000/-. Advance amount of Rs. 2,000/-was agreed to be paid for execution of sale and the remaining balance consideration is agreed to be paid within nine months from the date of agreement of sale. Undisputedly, the remaining balance sale consideration is not paid on or before 18.04.1993. On 3.02.1993, defendant Nos. 12 to 15 entered into an unregistered agreement (marked as Exhibit B-1) with defendant Nos. 1 to 11 to purchase the suit schedule property. As per the said unregistered agreement, the property is agreed to be sold for Rs. 80,000/-. Advance amount of Rs. 10,000/-was also paid to defendant Nos. 1 to 11. On 19.04.1993, the suit schedule property Sale Deed No. 75 of 1993 (marked as Exhibit B-3) was executed by defendant Nos. 1 to 11 in favour of defendant Nos. 12 to 15. Out of the sale consideration of Rs. 80,000/-a sum of Rs. 10,000/- is paid as advance amount, a further sum of Rs. 30,000/-is paid at the time of execution of the sale deed, remaining Rs. 40,000/-is retained to be paid in favour of defendant Nos. 1 to 11, free of interest, within one month from the date of disposal of I.A. No. 208 of 1990 in A.S. No. 95 of 1990 pending on the file of District Court Nagarcoil. The appeal was filed challenging the decree for partition in O.S. No. 11 of 1978.

5. The plaintiff got issued the legal notice (Exhibit A-3) on 29.04.1993 to defendant Nos. 1 to 15 demanding execution of the sale deed as per the agreement (Exhibit A-1). Defendant Nos. 12 to 15 replied vide Exhibit B-7. The other defendants did not reply to the demand made by the plaintiff, therefore, he was constrained to institute original suit on 14.06.1993 before the Sub Court Kuzhithurai. The written statements were filed by all the defendants denying the claim of the plaintiff inter alia contending that the time is the essence of the contract as per unregistered agreement of sale (Exhibit A-1). As the plaintiff had agreed to pay remaining sale consideration of Rs. 63,000/-within nine months from the date of agreement, the same has not been paid. Since there is breach of contract on the part of the plaintiff and, therefore, he is not entitled for decree of specific performance in respect of the suit schedule property. Further, it is pleaded that the plaintiff has not shown his readiness and willingness to perform his part of the contract, as required under Section 16(c) of the Specific Relief Act, therefore, defendant Nos. 1 to 11 contended that the plaintiff is not entitled for a decree of specific performance of the suit schedule property. Defendant Nos. 12 to 15 denied the plaint averments, however, specifically pleaded that they are the bona fide purchasers of the part of the suit schedule property and they are protected under Section 19(b) of the Specific Relief Act. On the basis of the said pleadings the case went for trial. Before the trial court the plaintiff and defendants were examined in support of their respective claim and counter claim. The trial court on the basis of the pleadings and evidence adduced on record has formulated the following four issues:

(i) Whether specific performance of the contract as sought by plaintiff is allowable?

(ii) Is sale deed dated 19.04.






























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top