Judges : KRISHNAMOORTHY
Anandavally - Appellant
Versus
Natesan - Respondent
Case No : C.R.P.No.934 of 1992
Decided On : 10/13/1992
Advocates Appeared :
S.V. Balakrishna Iyer, K. Jayakumar & A.M. Pratap Singh For Petitioner S. Venkitasubramonia Ayyar & V. Giri For Respondents
Specific Performance - Contract for Sale - S.28 of the Specific Relief Act - Order 20 Rule 12A of the Code of Civil Procedure - Court retains control over the decree for specific performance - Plaintiff's obligation to be ready and willing to perform - Wilful default in not paying the balance sale consideration within the time allowed by the decree - Rescission of contract justified - Defendant directed to refund advance amount with interest.
Fact of the Case:
The decree-holder sought specific performance of a contract for sale. The defendant was directed to execute a sale deed within a specified time after receiving the balance sale consideration. The plaintiff failed to pay the balance sale consideration within the stipulated time.
Finding of the Court:
The court found that the plaintiff was in wilful default in not paying the balance sale consideration within the time allowed by the decree. The court rescinded the contract and directed the defendant to refund the advance amount with interest.
Issues: The issues included the plaintiff's obligation to be ready and willing to perform, the application of S.28 of the Specific Relief Act, and the wilful default in not paying the balance sale consideration within the time allowed by the decree.
Ratio Decidendi: The court held that the plaintiff's obligation to be ready and willing to perform continued even after the passing of the decree for specific performance. The court also applied S.28 of the Specific Relief Act and found wilful default on the part of the plaintiff in not paying the balance sale consideration within the time allowed by the decree.
Final Decision: The court confirmed the lower court's orders rescinding the contract and directed the defendant to refund the advance amount with interest. The plaintiff was entitled to execute the order if the defendant failed to comply.
Both these revisions are by the decree-holder in O.S. No. 104 of 1988 in which a decree for specific performance of a contract for sale was passed. The decree was on 31-1-1990 and the defendant was directed to execute sale deed in respect of the suit property in favour of the plaintiff within one month from that date and that loo after receiving the balance sale consideration. It was further provided that if the defendant failed to execute the sale deed as ordered, the plaintiff will be at liberty to deposit the balance sale consideration in court and get the sale deed executed through court in execution of the decree. The cost was also awarded to the plaintiff. Plaintiff did not pay the balance sale consideration of Rs. 23,000/- as ordered in the decree. Thereafter, on 11-7-1990, the defendant, through his lawyer, sent Ext. A1 notice, intimating the plaintiff that he is ready to execute the sale deed on 1-8-1990 or on any other day convenient to her before 15-8-90 and further requested the plaintiff to be ready with the money for executing the sale deed. Though the plaintiff received this notice, she did not send any reply. On 4-10-1990, the defendant filed E.A 506 of 1990 for a declaration that the plaintiff is not entitled to execute the decree due to the non-compliance by her to pay the balance sale consideration within the time stipulated in the decree as also in pursuance to Ext. A1 notice issued by him. Thereafter, on 20-11-1990, the plaintiff filed LA. No. 1387 of 1990 for amendment of the decree alleging that the costs shown in the decree is not correct and for incorporating the correct amount of costs due to her. That application was allowed on 24-1-1991. Thereafter on 5-8-1991 the plaintiff filed an execution petition for executing the decree and deposited the balance amount of Rs. 23,000/- on 9-8-1991.
2. To the Execution Petition the judgment-debtor filed an objection con tending that he was ready and willing t execute the sale deed after receiving the sale consideration as provided in the decree, but the decree-holder was not ready. He further alleged that he had even issued a lawyer's notice to the decree-holder demanding her to inform a convenient date to execute the sale deed either on 1st August, 1990 or on any other date before 15-8-1990 and that he will be present before the Sub Registrar for executing the document. In that view of the matter he contended that the plaintiff is not entitled to execute the decree. As mentioned earlier, the defendant had already filed E.A. No. 506 of 1990 for a declaration that the decree is not executable in the circumstances mentioned above.
3. The execution court considered the E.P and came to the conclusion that the decree-holder was not ready and willing to get the sale deed executed by paying the balance sale consideration and further held that the judgement-debtor is entitled to get the contract rescinded as provided for in S.28 of the Specific Relief Act. Accordingly the E.P was dismissed holding that the decree is not executable. Consequently the court allowed E.A. No. 506 of 1990 and held that the decree is not executable. Against these two orders the decree-holder has come up in revision.
4. The objection to the execution petition as also E. A. 506 of 1990 in effect was treated as an application by the defendant under S.28 of the Specific Relief Act. Counsel for the revision petitioner con tended that an application under S.28 ought to have been filed on the trial side and not before the execution court; he also contended that no circumstances are brought out satisfying the requirements of S.28 for rescinding the contract as was done by the execution court and that there was no wilful default on her part in not paying the balance sale consideration as ordered in the decree. It was also contended by counsel that the decree did not provide any lime-limit for payment of the balance sale consideration and as such S.28 is not applicable at all.
5.I shall first co
Distinguished: AIR 1928 P.C. 208;1967 SC 868 & 1971 SC 1238
AI
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.