Jayant Nath, J.

1. The present appeal is filed challenging the judgment and decree dated 21.12.2012 whereby the suit of the respondents seeking specific performance of the Agreement to Sell dated February 09, 2005 was decreed in favour of the respondents with a direction to the respondent to pay to the appellant the balance sale consideration of Rs.6.25 crores (Rupees six crore and twenty five lacs only) with interest @ 6% per annum from the date of filing of the suit till date of payment. Cross objections being CM No.4402/2013 is filed by the respondents challenging the direction in the impugned order directing the respondents to pay interest @ 6% per annum on the balance sale consideration.

2. Respondents filed the present suit stating in the Plaint that the appellant and respondent No.1 entered into an agreement to sell on 9.2.2005 for land owned by the appellant company measuring 1.8252 hectares (18252.50 Sq.Mtrs.) bearing Khasra Nos.85/4/3 Min., 7 East, 7 West, 7,8,13,14 West, 17 Min. and 85/18, Min.situated at Village Bijwasan, New Delhi for a total consideration of Rs.7,35,00,000/-(Rupees seven crore and thirty five lakh only). Respondent No.1 paid an advance of Rs.1,10,000,00/-(Rupees one crore and ten lacs only) and the balance Rs.6,25,000,00/- (Rupees six crore and twenty five lacs only) was payable at the time of completion of the sale formalities by April 30, 2005. The appellant was to provide the No Objection Certificate/permission from the competent authority (NOC) for transfer of the suit property. In case there was any problem in obtaining the NOC before April 30, 2005 the parties were to find a mutually acceptable way to complete the transaction. The appellant/defendant company applied for NOC on March 24, 2005. It is urged that despite several reminders, the appellant did not find any acceptable way to transfer the suit property despite the stipulated date April 30, 2005 approaching. Thereafter, respondent No.1 was surprised to receive a letter dated April 30, 2005 on May 05, 2005 by which the appellant company sought to cancel the agreement on the pretext that its Board did not approve the Agreement. A draft of Rs.1,10,000,00/- (Rupees one crore and ten lacs only) was also sent with the said communication. A copy of a Caveat petition was also received by respondent No.1 dated May 03, 2005 filed in the Delhi High Court by the appellant. Respondent No.1 did not accept the cancellation of the agreement by the appellant company and vide his letter dated May 19, 2005 reiterated the same to the appellant. It was also stressed in the said communication that respondent No.1 was not accepting the said bank draft for Rs.1,10,00,000/-(Rupees one crore and ten lacs only). It was also pointed out that the appellant had received the NOC issued by the Tehsildar and a copy of the same be provided. The appellant had received the NOC on May 02, 2005.

3. It is further stated that in the second week of June 2005 Mr. Ramjee Dwivedee Attorney holder of the appellant informed respondent No.1 that the Board of Directors of the appellant had approved the Agreement to Sell dated February 09, 2005 and the General Body of the shareholders of the appellant company had also accorded its approval on June 08, 2005. The appellant is also stated to have applied for a fresh NOC on June 13, 2005 as the earlier NOC had expired on June 01, 2005. On July 08, 2005 a communication was received from the appellant stating that sale formalities would be completed within 15 days of receipt of NOC. It is further urged that on July 09, 2005 respondent No.1 returned the bank draft of Rs.1.1 crore to the appellant and also delivered to the appellant company the proposed sale-deed duly initialed by respondent No.1. In the meantime it is stated that a circular was issued on June 01, 2005 by the Government of NCT of Delhi that NOCs would not be issued in respect of Agricultural lands less than 8 acres. It is further stated that in last week of Novemb