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1990 Supreme(Ker) 447

Judges : SHAMSUDDIN
Varadaraja Reddiar - Appellant
Versus
Francis Xavier - Respondent
Case No : A.S. No. 131 of 1985
Decided On : 12/20/1990
Advocates Appeared :
T.R.G. Warriyar, P.V. Rama Warriyar & P. Bhavadasan For Appellant K. Sankaranarayanan Poti & B. Krishnamoni For Respondent

The main legal point established in the judgment is that a contract for the sale of immovable property was found to be enforceable despite the defendant's deliberate inaction and ulterior motive to avoid the contract.

Headnote:

specific performance - contract for sale of immovable property - S.29 of the Contract Act - S.23 of Contract Act - S.14(b) and (d) of the Specific Relief Act

Fact of the Case:

Plaintiff filed suit for specific performance of contract for sale of immovable property. Plaintiff and defendant entered into an agreement for the sale of the property. Defendant obtained a preliminary decree for partition and recovery of possession. Plaintiff alleged that defendant was taking steps to alienate the property to a stranger. Plaintiff approached defendant to pay the commission batta and meet other expenses for conducting the final decree application, but defendant refused. Defendant did not send a reply to plaintiff's notice. Plaintiff sought an injunction, restraining defendant from executing the sale deed or agreement to any person other than plaintiff. The court below found the contract to be contingent and dismissed the suit.

Finding of the Court:

The court found that the contract was not contingent and was enforceable. Plaintiff was ready and willing to obtain the sale deed on payment of the balance of consideration. Defendant's deliberate inaction with ulterior motive cannot be permitted to be projected as a shield to defeat the contract. The judgment and decree of the court below were set aside, and a decree was passed directing the defendant to execute a document conveying the right of plaintiff under the decree in O.S.111 of 1972 on receipt of the balance of consideration.

Issues: The main issues were whether the contract was contingent and unenforceable, and whether the agreement was uncertain and void under S.23 of the Contract Act.

Ratio Decidendi: The court held that the contract was not contingent and was enforceable. The agreement was not uncertain as both parties were well aware of the property to be conveyed. Defendant's deliberate inaction with ulterior motive cannot be permitted to be projected as a shield to defeat the contract. The contract did not fall under S.14(b) and (d) of the Specific Relief Act.

Final Decision: The judgment and decree of the court below were set aside, and a decree was passed directing the defendant to execute a document conveying the right of plaintiff under the decree in O.S.111 of 1972 on receipt of the balance of consideration. Plaintiff was entitled to his cost in the appeal.

Judgment :-

Plaintiff in O.S. No. 142 of 1981 on the file of the Principal Sub Court, Quilon is the appellant. Suit is for specific performance of contract for sale of immovable property.

2. Plaintiff and defendant entered into an agreement Ext. Al dated 29th September, 1976 whereby plaintiff agreed to purchase and defendant agreed to sell the plaint schedule property for a consideration of Rs.40,000/-. Defendant had obtained a preliminary decree in O.S, 11.1 of 1972 on the file of Sub Court, Quilon, for partition and recovery of possession, which declared that plaintiff got 171/210 shares in the plaint schedule property, which had an extent of 15 cents. Defendant made the plaintiff to believe that defendant was taking steps before the execution court for recovery of possession. It is this property that was agreed to be sold and the defendant received Rs.1,001/- towards advance from the plaintiff. The agreement also provided that the defendant on recovery of possession of the property through court would issue notice to plaintiff and that plaintiff should be ready to pay the balance of consideration and to obtain the sale deed within one month from the date of receipt of notice. Defendant informed plaintiff that he applied for passing of final decree in O.S. No .111 of 1972. However, plaintiff came to know that defendant was taking steps to alienate the property to a stranger. Thereupon, plaintiff filed O.S.No.591 of 1977 before Munsiff s Court, Quilon seeking an injunction, restraining defendant from executing the sale deed or agreement to any person, other than plaintiff in respect of plaint schedule property or any portion thereof. Defendant filed a written statement in the said suit admitting the agreement executed by him in favour of plaintiff and stating that he had no idea to sell the property to strangers, that he was willing to execute the sale deed in favour of plaintiff and that he would give notice to plaintiff on getting delivery of his share through court. On the basis of the averments made by defendant, plaintiff did not press the suit and it was dismissed. The application filed by defendant for passing the final decree was posted on several occasions for depositing the commission batta, but defendant wilfully did not deposit the commission batta. Plaintiff approached defendant and told him that he would pay the commission batta and meet other expenses for conducting the final decree application, but defendant refused to accept that offer. The attempt of defendant was to protract the matter. The application filed by defendant was dismissed for nonpayment of batta. Plaintiff issued notice to defendant stating that he was prepared to pay the balance of sale consideration and to continue the final decree proceedings and enquiring whether he was prepared to execute the sale deed in favour of plaintiff. Defendant did not send a reply to the said notice. It was the duty of defendant to issue notice in terms of the agreement after obtaining recovery of possession of the property by virtue of the decree in O.S.No.111 of 1972. Plaintiff averred that he had every right to waive the liability of defendant to prosecute the final decree proceedings and get delivery of the property and of issue notice of such delivery to plaintiff. Plaintiff was ready and willing to obtain the sale deed on payment of Rs.38,999/- towards the balance of consideration, but defendant was not prepared to accede to the request of plain tiff and hence the suit.

3.. Defendant in his written statement admitted that he was the 1st plaintiff and his two brothers and mother were plaintiffs 2 to 4 in O.S.No.lll of 19.72 on the file of Sub Court, Quilon and a preliminary decree was passed in O.S.No.lll of 1972on 20-12-1975 declaring their rights to 171/210 shares over the plaint schedule property and allowing them to get it separated by metes and bounds and to recover possession through court. He averred that defendants 5 and 7 to 11 prepared an appeal, A.S.

























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