High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE SRINIVASAN & THE HONOURABLE MR. JUSTICE THANGAMANI
Viswanathan and others
Versus
R. Lakshmi Ammal (deed.) and others
App.Nos. 85 of 1983 and 89 of 1983
Decided On : 11-03-1993
Srinivasan, J.
A.S.No.89 of 1983 arises out of a suit for specific performance of an agreement dated 112. 1977 marked as Ex.A-1 between plaintiffs 1 to 4 and defendants 1 and 2. The plaintiffs are aggrieved by the dismissal of the suit. A.S.No.85 of 1983 arises out of a suit for recovery of a sum of Rs.39,150 representing the arrears of rent from 12. 1978 to 8. 1979 at the rate of Rs.4,350 per mensem and interest thereon. The suit had been decreed and the aggrieved defendant is the appellants. The fifth plaintiff in the suit for specific performance is the defendant in the suit for recovery of money. Defendants 1 and 3 in the suit for specific performance are plaintiffs 1 and 2 in the suit for recovery of money. The parties are referred in this judgment according to their ranking in the suit for specific performance. First plaintiff is the father of plaintiffs 2 to 5 and defendants 1 and 3 are the wives of the second defendant. Fourth defendant is a lessee of a portion of the suit property.
2. The second defendant had been running a spinning mill by name ‘Sri Ramachandra Textiles’ in partnership with somebody else. The plant and the machinery in the mill belonged to him. He gave the said machinery on lease on 9. 1975 under Ex.A-23 to the fifth plaintiff for a period of five years. On the same day, the defendants gave a lease of land and buildings to the 5th plaintiff. Defendants 1 and 2 entered into agreement for selling the machinery to the fifth plaintiff and one Mr.Mani under Ex.B-8 on 210. 1977 for a total sum of Rs.2,75,000.A sum of Rs.50,000 was paid by way of advance. Another agreement on the same day between defendants 1 and 2 on the one hand and plaintiffs 1 to 4 on the other was entered into for the sale of the land and building in S.No.6/4 of an extent of 10.80 acres which is described fully in the plaint schedule. The total consideration was fixed at Rs.4,25,000 and sum of Rs.50,000 was paid in advance. Subsequent thereto, a cheque was issued on 30.11.1977 by the fifth plaintiff for a sum of Rs.50,000 in favour of the first defendant as further advance towards the sale consideration. That cheque was admittedly dishonoured and on 12. 1977, the second defendant wrote to the first plaintiff and Mani under Ex.B-10 informing them of the dishonouring of the cheque and also calling upon them to complete the transaction by paying the entire balance.
3. The said Mani found it impossible to join the transaction of purchase and dropped out of the same. Then a fresh agreement was brought into existence between plaintiffs 1 to 4 on the one hand and defendants 1 and 2 on the other hand with referenceto land and building on 112. 1979. The total consideration is the same as Rs.4,25,000. A Sum of Rs.50,000 paid under earlier agreement was treated as advance. The receipt of a sum of Rs.50,000 by way of further advance was acknowledged. The party agreed that a sum of Rs.50,000 shall be paid by means of a cheque or draft before registration of the sale deed and that the sale deed shall be executed within two months from the date of the agreement. It was agreed that the remaining part of the consideration shall be paid in three instalments as follows: Rs.75,000 by 30.11.1978, Rupees One lakh by 30.11.1979 and Rupees one lakh by 30.11.1980. It was provided in the agreement that the purchasers shall, pay interest at the rate of 12% per annum on the balance of the amount remaining unpaid for the time being and in case of default of payment by the dates mentioned above, the vendors shall have the right to claim interest at 18% per annum from the date of default till the date of realisation. Clause 7 of the agreement provided that if the vendor fails to execute the sale deed as agreed, the vendees are at liberty to claim all damages that may be attributed to and arising out of breach of the contract by the vendors. Clause 8 provided for a similar remedy to the vendees if there was any failure on the part of the vendees to perfo
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