Andhra Pradesh High Court
Judges : K.M.AGARWAL
Jaya P.Hemarajani - Appellant
Versus
Rose Elvina DSouza - Respondent
Decided On : 12-30-94
Held : The cases providing for a guide to Courts to exercise discretion one way or the other are only illustrative; they are not intended to be exhaustive. As the Limitation Act prescribes a period of 3 years from the date fixed thereunder for specific performance of a contract, it follows that mere delay without more extending upto the said period cannot possibly be a reason for a Court to exercise its discretion against giving a relief of specific performance. Nor can the scope of the discretion, after excluding the cases mentioned in Section 20 of the Specific Relief Act, 1963, be confined to waiver, abandonment or estoppel. If one of these three circumstances is established, no question of discretion arises, for either there will be no subsisting right or there will be a bar against its assertion. So, there must be sonic discretionary field unoccupied by the three cases, otherwise the substantive section becomes otiose. It is difficult to define that field. Diverse situations may arise which may induce a Court not to exercise the discretion in favour of the plaintiff.
If the contract relates to sale of immovable property, it would normally be presumed that time was not of the essence of the contract. Mere incorporation in the Written agreement of a clause imposing penalty in case of default does not by itself evidence an intention to make time of the essence. "the principle deducible from the said decision of the Supreme Court appears to be that if the contract relates to sale of immovable property, it would normally be presumed that time was not of the essence of the contract; but this presumption may be rebutted by showing that the parties intended the time of the essence of contract and may also be inferred from the conduct of the parties and the surrounding circumstances at or before the contract. As in the present case, the contract was for sale of the immovable property, the presumption would be that time was not of the essence.
( 1 ) THERE were two suits, one for specific performance of contract by The purchaser and the other for ejectment and arrears of rent by the landlady. The purchaser was the tenant and the vendor was the landlady. The suit for specific performance of contract was dismissed, but the suit for ejectment and arrears of rent was decreed Accordingly both the appeals are by one and the same person, but in different capacities of purchaser and the tenant. Similarly the respondent in one appeal is also the respondent in the other appeal, but in different capacities of vendor and the landlady. In this state of affairs and for the sake of convenience, the appellant in both the appeals shall hereafter be also described as the "purchaser-tenant" or as the tenant-purchaser"; and the respondent in the two appeals shall be described as the "vendor-landlady" or as the "landlady-vendor".
( 2 ) THE suit property is a double storeyed house. It was and is owned by the respondent in both the appeals. The first floor of the house was given on rent to the appellant in the two appeals for the purpose of residence on a monthly rent of Rs. 670. 00 with effect from 1-12-1978. The tenancy was from the 1st to the last day of each English Calendar month and the rent was payable on the 1st day of each succeeding tenancy month. Rents till June, 1980 were paid, but rents thereafter were not paid, though the appellant in the two appeals continued and continues to be in possession of the first floor of the house till the date of this judgment. This is the factual position in so far as the tenancy agreement between the parties is concerned.
( 3 ) ON 21-2-1980 the respondent In the two appeals entered into an agreement to sell the entire suit property with the appellant in the appeals for a consideration of Rs. 2,40,000. 00subject to terms and conditions, which were reduced into writing in the form of"agreement of late for a Dwelling House" and also received a sum of Rs. 30,000. 00 by cheque and a further sum of Rs. 5,000. 00 in cash, total Rs. 35,000. 00 on the date of execution of the agreement. The balance of sale consideration was payable in monthly instalments of Rs. 10,000. 00 each commencing from April, 1980 with stipulation to execute and register one sale deed in respect of the first floor of the house soon after receipt of the instalments to the tune of Rs. 1,20,000. 00; and to execute and register another sale deed in respect of the remaining portion of the house after receipt of the total Balance amount towards the sale consideration. It was agreed that the vendor-landlady would obtain nil encumbrance certificate, Income-tax clearance certificate and permission from the Urban Land Ceiling Authority separately for each portion of the house to be sold by two separate sale deeds on two different dates. It was stipulated that the purchaser-tenant would make the "monthly payments promptly and without delay on his part. "it was also Specifically mentioned in the agreement of sale, "that both parties shall agree that time is essence of contract for this agreement". After the date of this agreement, three monthly instalments of Rupees 10,000/-each for the months of April, May and June 1980 were paid by the purchaser-tenant and also received by the vendor-landlady. When the subsequent instalments for the months of July, August, Sept. and Oct. 1980 were not remitted by the purchaser-tenant, she was served with the registered notice dated 10-11-1980 of Sri M. Subbarao, Advocate for and on behalf of the vendor-landlady, repudiating the contract for sale of the house on the ground that the former had committed breach of contract by not remitting monthly instalments from July, 1980, though time was the essence of contract. The amount of Rupees 65,000/- received by the vendor-landlady till the date of notice was simultaneously sent back by cheque No. 007131 dated 10-11-1980 drawn on Andhra Bank, Dwarakanaga r, Visakhapatnam. The purchaser-tenant sen
Shqik Abdul Hakim Sahib Vs P.V.Krishnabhagawan Shetty
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