Andhra Pradesh High Court
Judges : PARTHASARATHI
Gangabai - Appellant
Versus
Srinivasa Rao - Respondent
Decided On : 08-31-70
SPECIFIC PERFORMANCE - CONTRACT FOR SALE OF LAND - TIME NOT ESSENCE OF CONTRACT - WAIVER OF TIME LIMIT - NOTICE TO VENDEE TO PERFORM CONTRACT - DELAY ON PART OF VENDEE - DISCRETION OF COURT TO GRANT SPECIFIC PERFORMANCE - PRINCIPLES.
Fact of the Case:
The plaintiff and defendant entered into an agreement for the sale of land, with the balance of the purchase price payable in five installments. The first installment was not paid on time, but the vendor accepted two subsequent payments. The vendor later issued a notice to the vendee, claiming that the agreement was canceled due to non-payment. The vendee filed suit for specific performance.
Finding of the Court:
The court held that time was not the essence of the contract and that the vendor had waived the time limit for the first installment by accepting subsequent payments. The court also held that the vendor was not justified in treating the contract as canceled without giving the vendee a reasonable time to perform the contract.
Issues: 1. Whether time was the essence of the contract. 2. Whether the vendor had waived the time limit for the first installment. 3. Whether the vendor was justified in treating the contract as canceled without giving the vendee a reasonable time to perform the contract.
Ratio Decidendi: 1. The court held that time was not the essence of the contract based on the fact that the agreement provided for a period of about 4 years for the complete performance of the obligations. 2. The court held that the vendor had waived the time limit for the first installment by accepting subsequent payments. 3. The court held that the vendor was not justified in treating the contract as canceled without giving the vendee a reasonable time to perform the contract, as the vendor had not issued a notice to the vendee fixing a time for the performance of the contract.
Final Decision: The court allowed the appeal and decreed the suit for specific performance, subject to the plaintiff depositing the balance of the purchase money into court within one month.
( 1 ) BY an agreement dated 11-9-1963 the defendant agreed to convey to the plaintiff Ac. 10-30 guntas of land situated in the village of Madnoor, for a consideration of Rs. 10,500. 00 On the date of the agreement the vendor received a sum of Rs. 5,500. 00. It provided that the balance of the purchase-money was payable in five instalments. A sum of Rs, 3,000/- was payable on or before the 31/01/1964 and the balance of Rs. 2,000. 00 was to be paid in four equal instalment by the Telugu New Years day in each of the years from 1965 to 1968, both inclusive. The agreement recites that the vendee has agreed that in case of the default he shall have no rights to the land. It further provided that after the payment of the 1st instalment the Vendor was to execute a deed of sale if called upon to do so.
( 2 ) THE amount of Rs. 3,000. 00 payable before the expiry of January, 1964 was not paid within the time specified. But it is common ground that on the 19th March and 30/09/1964 the Vendor received Rs. 950. 00 and Rs. 550. 00 respectively. The acceptance of these two payments is clear indication that the vendor waived the time-limit prescribed by the agreement in respect of the first instalment.
( 3 ) THERE was an exchange of notice between the parties in 1965. On 6-10-1965 the vendor issued a notice complaining about the non-performance of the obligation by the vendee and calling upon him to surrender possession of the property. It may be mentioned that the vendee was cultivating the lands even before the date of the agreement. By the above mentioned notice. Ex. B-1 the vendor notified to the other party that the agreement stood cancelled and therefore he was entitled to the restorations of the possession. To this, a reply was sent on 8-11-1965 as per Ex. B-2. The vendee said that he was allowed an extension of time for the payment of the instalments and therefore the vendor could not complain about the delay. The vendee took the stand that an application under Section 47 of the Andhra Pradesh Tenancy and Agricultural Lands Act. 1950 was bound to be made by the seller. The reply notice accordingly called upon the vendor to fulfill the obligations of securing the permission prescribed by the statute. The vendee expressed his read lines and willingness to pay the amounts that accrued due as per the installment, provided the vendor started proceedings under Section 47. It was asserted in Ex. B-2 that the vendor who was no other than the cousin of the who was no other than the cousin of the vendee had agreed to accommodate the purchaser by granting extension of time. Ex B-2 evoked a rejoinder under Ex. B-3 dated 19-11-1965. The vendor reiterated his case about the default by the purchaser and maintained that the construct elapsed and was no longer subsisting.
( 4 ) THE suit was thereupon instituted by the appellant for the enforcement of the contract. The respondent pleaded that time was the essence of the contract and that the non-payment of the amount that accrued due under two installment justifies the cancellation of the agreement.
( 5 ) THE lower Court dismissed the suit on two grounds. In the first place for specific performance was maintainable by reason of the provisions of the Andhra Pradesh Tenancy and Agricultural Lands Act. The trial Judge was of opinion that the agreement did not make it obligatory on the vendor to obtain the requisite sanction under the aforementioned Act. The second ground on which the plaintiff was non suited was that there was undue delay on the part of the plaintiff in the performance of his notwithstanding the courts opinion that time was not the essence of the agreement and that the vendor had in fact granted an extension of time for making payments under the first instalment.
( 6 ) IN this appeal by the plaintiff, it is submitted at the outset that, the view taken by the lower court that a suit for specific performance is unenforceable is no longer valid in view of the pronouncement of
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.