Judges : P.K.BALASUBRAMANYAN
Purushothaman - Appellant
Versus
Thulasi - Respondent
Case No : S.A.No.343 of 1994
Decided On : 11/28/1994
Advocates Appeared :
S. Venkitasubramanya Iyer (Sr.Advocale) & V. Giri For Appellant V.N. Swaminathan & S. Dileep For Respondents
Specific Performance - Sale of Land - S.21 of the Specific Relief Act - S.54 of the Transfer of Property Act - The court discussed the entitlement to mesne profits and the obligation of the defendant to convey the property. It held that the plaintiff was entitled to compensation from the date of deposit of the purchase price, in addition to the decree for specific performance.
Fact of the Case:
The plaintiff sued for specific performance of an agreement to sell land. The defendant failed to execute the sale deed, leading to the plaintiff filing the suit. After several appeals and remands, the court found that the plaintiff was entitled to compensation from the date of deposit of the purchase price.
Finding of the Court:
The court found that the plaintiff was entitled to compensation from the date of deposit of the purchase price, in addition to the decree for specific performance. It held that the defendant had failed to fulfil his obligation and that the plaintiff was entitled to profits as compensation.
Issues: The main issue was whether the plaintiff was entitled to mesne profits from the date of deposit of the balance sale consideration, and if so, at what rate.
Ratio Decidendi: The court held that the plaintiff was entitled to compensation from the date of deposit of the purchase price, as the defendant had failed to fulfil his obligation. It relied on S.21 of the Specific Relief Act and the obligation of the defendant to convey the property.
Final Decision: The court allowed the Second Appeal, modified the judgment and decree of the lower appellate court, and awarded the plaintiff a decree for compensation at Rs. 500/- per annum from 17-1-1986 till the date of recovery. The parties were directed to suffer their respective costs throughout.
The appellant is the plaintiff. He sued for specific performance of an agreement to sell land. The agreement was on 8-10-1985. The price was Rs. 19,000/-. An advance of Rs. 5,000/- was paid. The defendant was to execute the sale deed on or before 7-1-1986 after receiving the balance consideration. The plaintiff was ready and willing to perform his part of the contract and to pay the balance consideration of Rs. 14,000/-. The defendant did not perform the contract. So, the plaintiff filed the suit on 8-1-1986. The plaintiff deposited the balance consideration in court on 17-1-1986. He claimed Rs. 2,000/- as damages for the delay in performance. During the trial he claimed that he was entitled to mesne profits from the property from the date of deposit of the balance consideration in addition to specific performance.
2. The defendant admitted the agreement. 'He admired the receipt of Rs. 5,000/-. He denied it was advance. He pleaded that it was earnest money. He was all along ready and willing to execute the sale deed within the stipulated time but the plaintiff was not ready and willing. The plaintiff had no funds. So the plaintiff could not tender the balance. The plaintiff was not entitled to specific performance. The plaintiff was not entitled to realise any amount from the defendant by way of damages. The plaintiff was not entitled to claim any mesne profits. The defendant continues to be the owner of the property. The suit was to be dismissed.
3. By judgment and decree dt.8-12-1986 the trial court decreed the suit. It directed the defendant to execute the sale deed. It negatived the plaintiffs claim for damages and mesne profits. The defendant appealed. He filed A.S.40 of 1987. In that appeal the plaintiff got the plaint amended by adding a prayer claiming recovery of the advance in case specific performance was disallowed. He claimed mesne profits at Rs. 1500/- per annum from the dale of deposit of Rs. 14,000/-. At the hearing of the appeal the defendant sought an opportunity to file an additional written statement. Granting this opportunity the lower appellate court set aside the judgment and decree of the trial court and remanded the suit to the trial court by its judgment dt.13-6-1990. After remand, the trial court found that the plaintiff was always ready and willing to perform his part of the contract, It held that the defendant was bound to specifically perform the agreement. That court held that since the plaintiff was not able to get possession of the property inspite of the deposit of the balance sale consideration because of the default of the defendant in performing the contract, he was entitled to mesne at the rate of Rs. 1500/- per annum. The claim for damages of Rs. 2,000/- was disallowed. The suit was thus decreed. The defendant appealed. The appellate court held that it was the defendant who was not ready and willing to perform his part of the contract. It held that the plaintiff had done all that he could pursuant to the contract. It therefore confirmed the decree for specific performance in plaintiffs favour. Regarding mesne profits, mat court held that since the contract for sale docs not itself create any interest in the property, the plaintiff was not entitled to mesne profits. The court referred to the definition of mesne profits. The decree for profits granted by the trial court was vacated. The plaintiff has appealed. The defendant has not appealed. The decree for specific performance has become final. The defendant died. His legal representatives arc the respondents in the Second Appeal.
4. The Second Appeal was admitted on the question whether the decree for payment of Rs. 1,500/- per year to the plaintiff from 17-1-1986, the date of deposit of the balance sale consideration by turn could be sustained with reference to S.21 of the Specific Relief Act. The respondents entered appearance. The records were called. The Second Appeal was heard.
5. The trial court had awarded mesne profits from
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