IN THE HIGH COURT OF KERALA AT ERNAKULAM
KAUSER EDAPPAGATH, J.
Krishnan Ezhuthassan (Died), S/o. Vadakkoot Nelliparambil Raman Ezhuthassan and Ors. – Petitioners
Versus
Joseph, (Died, Lrs Impleaded) S/o. Mambra Kurian and Ors. – Respondents
CRP No. 1293 Of 2003, CRP No. 1270 Of 2003, CRP No. 1292 Of 2003, CRP No. 1621 Of 2003, CRP No. 1799 Of 2003
Decided On : 02-09-2024
Specific Performance - Specific Relief Act - Section 28 - The court interpreted Section 28 of the Specific Relief Act, emphasizing its equitable nature, allowing extensions for compliance with decrees, and clarifying the conditions under which rescission of contracts can occur.
Fact of the Case:
The plaintiff sought specific performance of a contract for the sale of property. The defendants failed to execute the sale deed, leading to multiple applications for extensions and rescission of the contract. The case involved the legal heirs of the parties after their deaths.
Finding of the Court:
The court found that the plaintiff's failure to deposit the balance sale consideration constituted wilful default, justifying the rescission of the contract against him while allowing the 10th defendant's application for extension.
Issues: Whether the trial court had the authority to extend the time for payment of the balance sale consideration and whether the contract could be rescinded due to non-compliance.
Ratio Decidendi: The court held that Section 28 of the Specific Relief Act allows for extensions and rescission based on the conduct of the parties, emphasizing that non-payment does not automatically equate to abandonment of the contract.
Result: The court dismissed the plaintiff's application, allowed the defendants' application for rescission in part, and directed the partition of the property.
ORDER :
(Kauser Edappagath, J.) :
These revision petitions have been filed challenging the common order passed by the IInd Additional Sub Court, Thrissur (for short, “the trial court”) in IA Nos. 4636/1999, 3842/1999, and 4374/1999 in OS No. 1221/1993.
2. The suit was one for specific performance of a contract. The property involved in the suit, having an extent of 34 Acres, admittedly belonged to the defendants 1 to 8. As per Ext.B1 sale agreement, defendants 1 to 8 agreed to sell the property to the plaintiff and the 10th defendant jointly for a consideration calculated @ Rs.822.50 per cent. Since the defendants failed to perform their part of the contract, the plaintiff instituted the suit. The suit was decreed as per the judgment dated 19/6/1999. There was no appeal, and the decree has become final. The decree is as follows:
b) If the defendants 1 to 8 fail to execute sale deed after receiving balance sale consideration within a period of one month from this date, plaintiff and 10th defendant are allowed to deposit balance sale consideration before this Court within one month from the date of default and get the sale deed executed through court.
c) If the 10th defendant is not remitting the balance sale consideration within the period, plaintiff is allowed to remit the entire balance sale consideration before the Court within three months and get the sale deed executed in his name by defendants 1 to 8.”
3. The plaintiff or the 10th defendant did not deposit the balance sale consideration within the stipulated period. Defendant Nos. 1 to 8 filed IA No.4374/1999 on 3/9/1999 to rescind the contract. The 10th defendant filed IA No.3842/1999 on 2/8/1999 seeking permission to deposit the entire balance sale consideration. The plaintiff filed IA No.4636/1999 on 17/9/1999 seeking two months' time for making payment of his share of balance consideration. The 10th defendant deposited the balance sale consideration of Rs.23,51,196.20 before the trial court on 13/3/2000. However, later, he withdrew half of the amount as per the direction of this court in CRP No.1064/2005 dated 20/12/2005. The trial court, after hearing both sides, initially allowed IA No.4374/1999 and dismissed IA No.3842/1999 and IA No.4636/1999. Against the order passed in IA No. 4374/1999, the plaintiff preferred CRP No.2144/2000 and the 10th defendant preferred CRP No.1454/2000 before this Court. Challenging the order passed in IA No.4636/1999, the plaintiff preferred CRP No.506/2002 and challenging the order passed in IA No. 3842/1999, the 10th defendant preferred CRP No.1419/2000 before this Court. Those revision petitions were disposed of by this court by a common order dated 10/1/2002 remitting the matter to the trial court to consider the applications afresh. After remand, this Court allowed IA Nos.4636/1999 and 3842/1999 and dismissed IA No.4374/1999. Those orders were again challenged before this court. This court set aside the orders of the trial court and again remanded the matter to the trial court for fresh disposal. The trial court considered all the three applications together and dismissed IA No.4374/1999 and allowed IA Nos.4636/1999 and 3842/1999 vide common order dated 06/02/2003. The petitioner/plaintiff in IA No.4636/1999 was given 15 days’ time to deposit the balance sale consideration. Challenging the common order, the defendant Nos. 1 to 8 preferred CRP Nos.1270, 1292 and 1293/2003 and challenging the order in IA Nos. 4636/1999 and 3842/1999, the plaintiff preferred CRP Nos.1621 and 1799/2003.
4. The plaintiff, 1st defendant and 10th defendant in the suit died pending revision petitions and their legal heirs were impleaded in the revision petitions.
5. During the pendency of the revision petitions, one Mr.K.O.Rappai filed IA No.1/2024 in CRP No.1270/
Sardar Mohar Singh v. Mangilal alias Mangtya
Bhupinder Kumar v. Angrej Singh
The court established that under Section 28 of the Specific Relief Act, the trial court retains jurisdiction to extend time for compliance and to rescind contracts based on equitable considerations.
A party seeking specific performance must have clean hands; failure to disclose subsequent agreements does not negate execution of prior decrees, provided timelines for compliance are met.
The executing court retains jurisdiction to extend time for compliance with a decree for specific performance, even amidst an application for rescission, particularly when the judgment debtor's inact....
The obligation under a decree for specific performance primarily lies with the judgment-debtor to execute the deed, while the decree-holder's readiness must be established, affirming the non-applicab....
Agreement to sell – Provisions to grant specific performance of agreement are quite stringent – Equitable considerations come into play.
The Court's decision emphasizes the importance of the Court's power to extend the time for payment of purchase money and the discretion to rescind the contract under Section 28(1) of the Specific Rel....
The court retains jurisdiction to extend time for performance of a decree, but such extensions must be justified and considered alongside applications for rescission to ensure fairness.
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