IN THE HIGH COURT OF JUDICATURE AT MADRAS
K. Veeraswami, C J. and S. Natarajan, J.
K. Appa Rao and another .. .....Appellant(s)
Versus
P. Balasubramania Gramani and others .. .....Respondent(s)
L.P.A. Nos. 22, 23 and 24 of 1968.
Decided On : 07 April 1975
2. Two questions, which arise for our decision, are:
1. Whether the agreements aforesaid were for grossly inadequate consideration, so that specific performance of the agreements should not be ordered in view of section 28 of the Specific Relief Act, 1877; and,
2. If that question were answered in favour of the appellants, whether they could still succeed in the light of the compromise decree and section 27 (b) of that Act. In order to appreciate the first question, he related facts are briefly these. The agreements were to convey a total of 3/5 share in what was called Samadhi Tho-ttam and Panantope. The first was of an extent of 7 acres 26 cents. Pending the partition suit, there was a Receiver appointed. The plaintiff had offered Rs.7,250 for the first property to the Receiver, and at a subsequent stage, the very same plaintiff enhanced his offer to Rs. 8,500 Pananthope, we find, was of an extent of about 5 acres. But this item of property had been sold away by the Receiver, and it does not form the subject-matter of the suit. The first appellate Court, with whom Srinivasan, J., agreed, held that in view of the offer made by the plaintiff himself for one of the properties covered by the agreements, each of which was executed for a consideration of only Rs. 800 for Samadhi Thottam the consideration was not only inadequate, but gros-soly inadequate which attracted the provisions of section 28 of the old Specific Relief Act.
3. Specific performance of an agreement to sell immoveable property is not invariably ordered as a matter of right. The relief is discretionary ; but the discretion being a judicial one, it has to be exercised neither arbitrarily nor unreasonably, but according to law and reason. The Specific Relief Act itself has provided certain guidelines as to when specific performance could be ordered and when not. Section 28 is one of them, which provides what parties cannot be compelled to perform. Specific performance of an agreement cannot be enforced against a party thereto if the
Venkataramayya v. Raghavalu [1925] 21 L.W. 62; A.I.R. 1925 Mad. 492
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