PATNA HIGH COURT
N.L.Untwalia, J.
Bisun Prasad Mishra
Versus
Kamla Kant Jha
Civil Revision No. 1342 of 1970 ;
Decided On : FEBRUARY 14, 1972
SPECIFIC RELIEF ACT, 1963 - SECTION 28 - EXTENSION OF TIME FOR DEPOSIT OF PURCHASE MONEY - COURT'S JURISDICTION - RESCISSION OF CONTRACT - INTERPRETATION OF SECTION 28 - APPLICABILITY OF SECTION 35 OF THE OLD SPECIFIC RELIEF ACT, 1877 - DISCRETIONARY POWER OF THE COURT - ERROR OF JURISDICTION.
Fact of the Case:
The petitioner obtained a decree for specific performance of a contract for sale of land. The decree directed the petitioner to deposit the balance of the purchase money within fifteen days. The petitioner deposited the money within the time granted by the decree. However, the decree was set aside in appeal and the case was remanded for trial of the issue of legal necessity. The petitioner again obtained a decree for specific performance, but failed to deposit the purchase money within the time granted by the decree. The petitioner then filed an application for extension of time to deposit the purchase money, which was allowed by the court. The judgment-debtors filed an application under Section 28 of the Specific Relief Act, 1963 for rescission of the contract.
Finding of the Court:
The court held that the order extending the time for deposit of the purchase money was valid and that the court had jurisdiction to extend the time. The court also held that the judgment-debtors were not entitled to rescission of the contract as the petitioner had not made any default in payment of the purchase money.
Issues: 1. Whether the court had jurisdiction to extend the time for deposit of the purchase money? 2. Whether the judgment-debtors were entitled to rescission of the contract?
Ratio Decidendi: 1. Section 28 of the Specific Relief Act, 1963 permits the deposit to be made within such further period as the court may allow the time even after its expiry. 2. The court had power under Section 148 of the Code of Civil Procedure to extend the time even after its expiry. 3. The terms of Section 35 of the old Act, 1877, are not applicable to the present case. 4. The power under Section 28 of the Act of 1963, or under Section 35 of the old Act, 1877, is a discretionary one. The court on flimsy grounds could not exercise its power and annul the decree, once passed by it.
Final Decision: The court allowed the revision application, set aside the order of the court below and dismissed the application filed by the judgment-debtors under Section 28 of the Act of 1963.
N.L.Untwalia, J.
1. The necessary facts to be stated for the disposal of this civil revision application are too many and a bit complicated. I shall, however, briefly state them.
2. The petitioner filed Title Suit No. 7 of 1948 on the 10th of January, 1948, against one Mani Misrain for specific performance of contract said to have been executed by her in favour of the petitioner. The consideration money mentioned in the agreement was Rs. 325/-, out of which Rs. 100.00 was paid by way of earnest money, and Rs. 225/- was to be paid later. Mani Misrain did not execute the sale deed, and, hence the suit was filed impleading the subsequent transferees as the defendants second party- The suit was decreed by the trial court on the 1st July, 1950- It directed the plaintiff to deposit the balance of Rs. 225/- within fifteen days of the date of the decree. It is not disputed that the said sum of Rs. 225/- was deposited by challan No. 358 in the name of Mani Misrain on the 7th of July, 1950, that is, well within the time granted by the decree. Finally, however, Second Appeal No. 950 of 1951 succeeded in this court on the 28th August, 1958. The judgments and decrees of the courts below were set aside. The case was remitted back to the trial court to try the issue of legal necessity after giving opportunities to the parties to amend their pleadings. The issue was tried. The suit was again decreed by the trial court on the 21st March, 1959. By this time, Mani Misrain was dead, and her heirs were substituted as defendants first party. Being ignorant of the fact that the sum of Rs. 225/- had already been deposited on the 7th of July, 1950, in pursuance of the earlier decree, the trial court again directed the plaintiff to deposit the sum of Rs. 225/- within one month of the second decree dated the 21st of March, 1959. This sum, however, was not deposited. The matter was being litigated further, and eventually the second appeal filed from the lower appellate courts judgment, which affirmed the trial courts judgment dated the 21st March, 1959, was dismissed by this court on the 16th September, 1964.
3. In the meantime, the petitioner-decree-holder had executed his decree for specific performance in Execution Case No. 88 of 1963. This execution case was levied on the 28th May, 1963. Miscellaneous Case No. 23 of 1965, which was filed by the judgment-debtors in this case on 22-2- 1965, was however; dismissed for default on the 11th September, 1965. On the 3rd January, 1966, the petitioner filed a fresh challan in the court seeking its permission to deposit the sum of Rs. 225/-afresh. At his risk, the money was allowed to be deposited on the 5th January, 1966. One fact may be noticed here that on the 15th January, 1966, the judgment-debtors filed Miscellaneous Case No. 9 of 1966 objecting to the execution of the decree on the ground that the money was not deposited in time, and, hence, the decree could not be executed. This miscellaneous case was dismissed by the executing court on the 13th December, 1966. The judgment-debtors first party who had filed Miscellaneous Case No. 9 of 1966 filed a miscellaneous appeal in the lower appellate court, but they subsequently withdrew it. The order of the execution court, therefore, holding that the decree was executable became final.
4. On the 19th March, 1966, the petitioner filed an application in the court which had passed the decree for extension of time to deposit the sum of Rs. 225/-. The said sum, as stated above, had already been deposited on the 5th January, 1966; but a formal order extending the time was made by the court on the 26th April, 1966. Shortly thereafter, the defendants first party applied in the court for recall of the order dated the 26th April, 1966, on the ground that it was made without hearing them as also on the ground that the court had no jurisdiction to extend the time. This application of theirs was rejected by the court below on the 4th June, 1966. They came up in revi
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.