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2013 Supreme(Ker) 670

High Court of Kerala
S.S. SATHEESACHANDRAN, J.
Baby @ Varghese
Versus
Gopakumar
RFA. No. 84 of 2004 (C)
Decided On : 20-11-2013

Advocates:
Advocate Appeared:
For the Appellant:K.A. Satheesa Babu, Advocate.
For the Respondent:V. Ramkumar Nambiar, Advocate.

Headnote:

Specific Relief Act 1963 - Sections 16 and 20 - Appeal - Suit for specific performance of Agreement - Breach of Contract - Injunction - Defendant is appellant - Decree of Injunction was applied to restrain the defendant from alienating the property to any person other than the plaintiff - Held, anticipatory breach of contract can treat the contract alive till the time for performance provided is over and then sue for specific performance. An anticipatory breach of contract before the expiry of period for performance would give him only a claim for damages treating the breach as ending the contract. Anticipatory breach of contract could not give him a cause of action to sue for specific performance

Judgment :

1. Defendant is the appellant. Suit was for specific performance of an agreement of sale, and injunction. Decree passed in favour of respondent/plaintiff by the learned Sub Judge, Thrissur, is challenged in the appeal.

2. Ext.A3 agreement of sale over the plaint property having an extent of 1 acre 26 cents belonging to the defendant was sought to be enforced in the suit. A decree of injunction was also applied to restrain the defendant from alienating the property to any person other than the plaintiff. Alternatively reliefs for damages and compensation were applied for. Ext.A3 agreement fixing centage value at Rs.650/-for the property and time limit for six months for completion of sale on payment of Rs.10,000/-as advance on the sale price, was admitted by defendant. Plaintiff laid the suit before completion of the period fixed for sale alleging breach of contract by the defendant. Later, he got the plaint amended alleging that after institution of suit defendant collected a further sum of Rs.60,000/- on the sale price and period for completion of sale was extended on mutual consent by parties. The defendant resisted the suit contending that the contract failed on account of the default of plaintiff in fulfilling his obligations under Ext.A3 agreement. He also repudiated the claim canvassed in the amended plaint over the receipt of additional sum towards sale price, filing an additional written statement. Accepting the case of plaintiff that the contract of sale failed on the fault of defendant and that apart from the advance paid under Ext.A1 agreement the defendant had collected Rs.60,000/- towards the sale price after institution of suit, the court below granted decree in favour of the plaintiff directing defendant to execute the sale deed receiving the balance consideration of Rs.11,900/-.In default of defendant to execute the sale deed plaintiff was granted liberty to move for registration of the sale deed through court depositing the balance sale consideration. A decree of permanent prohibitory injunction was also granted in favour of plaintiff restraining the defendant from alienating the property to any other person. That decree is challenged in the appeal.

3. I heard the counsel on both sides.

4. Learned counsel for the appellant contended that the suit filed before expiry of the term fixed for completion of sale under Ext.A1 agreement was premature. Imputing breach of contract by defendant, before expiry of the period stipulated for completing the sale, suit was laid for enforcing the agreement. When that be so, plaintiff is not entitled to get specific performance of that agreement, but, at best only a claim for damages on strict proof thereof, according to counsel. Appellant did not appear and give evidence in support of the suit claim. His power of attorney, PW1, who had no direct knowledge of the transaction involved, was examined in the case. The evidence of that witness no way assisted the plaintiff to get a decree of specific performance, according to counsel. Ext.A2 was produced by plaintiff to substantiate subsequent payment of Rs.60,000/- towards purchase price after institution of the suit. That document was not proved despite denial of its execution and receipt of money stated thereunder by defendant,is the further submission of counsel. PW3 examined in the case was the father of PW1, power of attorney of plaintiff. Both PW1 and PW3 had no direct knowledge of the transaction covered under Ext.A3 agreement. The evidence let in through PW2 and 4, other two witnesses examined by plaintiff, former a sales officer in a co-operative bank and latter a real estate agent no way assisted the plaintiff in substantiating his case for a decree of specific performance, according to counsel. Without appreciating the facts and circumstances involved and evidence let in the case forming erroneous conclusions the court below has granted a decree in favour of plaintiff, which is totally unjust and unsustainabl








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