Judges : P.SUBRAMONIAN POTI
RAMAKRISHNA PANICKER - Appellant
Versus
KRISHNA PILLAI - Respondent
Case No : S. A. No. 1265 of 1965
Decided On : 08/13/1969
Advocates Appeared :
V. Harihara Iyer; For Appellant C. K. Sivasankara Panicker; P. G. P. Panicker; D. Narayanan Potti; For Respondent
Specific Performance - Agreement for Reconveyance - S.16(c) of the Specific Relief Act, 1963 - The court discussed the validity and enforceability of the agreement for reconveyance and the essential terms of the contract. The court emphasized the requirement for the plaintiff to aver and prove readiness and willingness to perform the essential terms of the contract. The interpretation of the agreement and the calculation of the amount payable under the terms of the agreement were crucial in determining the entitlement to specific performance.
Fact of the Case:
The defendant entered into an agreement with the plaintiffs' mother for reconveying a property sold by the mother to the defendant. The plaintiffs claimed specific performance of the agreement after the property was delivered to the defendant pursuant to a decree. The defendant refused to execute the sale deed, leading to the lawsuit.
Finding of the Court:
The trial court decreed the suit, holding the agreement valid and enforceable, and the plaintiffs entitled to a decree. The lower appellate court held that the suit should fail as the plaintiffs had not proved their readiness and willingness to perform their part of the contract.
Issues: The main issue was whether the suit for specific performance was maintainable, focusing on the plaintiffs' readiness and willingness to perform their part of the agreement.
Ratio Decidendi: The court emphasized the requirement for the plaintiff to aver and prove readiness and willingness to perform the essential terms of the contract, as per S.16(c) of the Specific Relief Act, 1963. The interpretation of the agreement and the calculation of the amount payable under the terms of the agreement were crucial in determining the entitlement to specific performance.
Final Decision: The court dismissed the Second Appeal, finding that the plaintiffs were not entitled to specific performance due to their failure to offer the amount due under the agreement, as required by Ex. P1.
1. By Ex. P1 dated 13-4-1951 the defendant entered into an agreement with the mother of the plaintiffs for reconveying a property sold by the plaintiff's mother to the defendant by a previous deed, Ex. D2. Such sale under Ex. D2 was for Rs.750/-, and at the time when the defendant took the sale he was a mortgagee of the property having obtained such mortgage on 13-7-1122 for Rs. 500/-. There was an earlier mortgage in respect of the property of the year 1092 and the defendant on the strength of the mortgage dated 13 71122 taken by him, had filed a suit for redemption, O.S. No. 507 of 1123 of the Alleppey Munsiff's Court. It was during the pendency of that suit for redemption that he, the mortgagee obtained sale of the equity of redemption also from the mother of the plaintiffs under Ex. D2. In the agreement for re-conveyance executed on 13 41951 the defendant agreed that, within a month of his getting delivery of the property pursuant to the decree in O.S. 507 of 1123, he would convey the property to plaintiff's mother, the consideration for such conveyance being the mortgage amount of Rs. 500/- plus interest thereon from the date of the mortgage (there is a dispute as to the interpretation in regard to this term), the amount advanced in addition to the mortgage amount for taking Ex. D2 sale deed and interest thereon from the date of Ex. P1 and further, the costs incurred by the defendant as seen from his account. There was a further clause in Ex. P1 that in the event of default to act according to the terms of the karar the karar would stand cancelled. This suit has arisen at the instance of plaintiffs, who on the death of their mother, claimed specific performance of the agreement to reconvey, contained in Ex. P1. The property was delivered over to the defendant in execution of the decree in O.S. No. 507 of 1123 on 8 41960 and therefore under the terms of Ex. P1 he was bound to execute a sale deed on demand by the plaintiffs on or before 8 51960. It is the case of the plaintiffs that in spite of demand defendant refused to execute the sale deed. A notice was issued to him. Still he did not agree to execute the sale deed and therefore they had to come to court with a suit for specific performance of the agreement to sell contained in Ex. PL It may be mentioned that on the date of Ex. P1 a counterpart of Ex.PI was executed by the plaintiff's mother in favour of the defendant with terms same as those contained in Ex. P1I. In the plaint the plaintiffs have calculated the amount payable under the terms of Ex. P1 as Rs. 1285. In arriving at this figure they had taken the interest payable on the mortgage amount of Rs. 5000/- as limited to a moiety the interest payable on the amount of Rs. 250 paid for taking Ex. D2 in addition to the mortgage amount also as limited to a moiety and the expenses of litigation as Rs. 160/. The defendant in the written statement set up the contention that Ex. P1 has no legal force, that it was not intented to operate and that it did not come into operation. They also contended that, in the event of specific performance being decreed, the amount payable was Rs. 5855/- and an account for this amount so claimed was also shown in the written statement. On these pleadings the parties went to trial. The trial court decreed the suit in terms of the plaint, holding that Ex. P1 karar was valid, that it was supported by consideration, that it was enforceable, that the sale deed dated 12-4-1951 was not intended by the parties to be treated as an outright deed of sale, that the amount due, to be paid under the terms of Ex. P1, was Rs. 1285/- and that had been offered & therefore plaintiff was entitled to a decree. The lower appellant court in the appeal filed by the defendant, held that Ex. D2 sale had come into effect, that plaintiffs had not proved that they were ready and willing to perform their part of the contract, the proof of which alone will entitle the plaintiffs in a suit for specific perfor
AIR 1928 PC 208; AIR 1967 SC 868; AIR 1957 Bombay 241;196911 SCWR 347
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