High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE SRINIVASAN & THE HONOURABLE MR. JUSTICE THANGAMANI
P. Alagesan & Others
Versus
A Mariadas & Others
Appeal Suit No. 248 of 1985
Decided On :Decided On : 20-01-1993
SPECIFIC PERFORMANCE - PARTIAL PERFORMANCE - SECTION 12(3) OF THE SPECIFIC RELIEF ACT, 1963 - APPLICABILITY - COURT'S DISCRETION - RELINQUISHMENT OF CLAIMS - COMPENSATION - DAMAGES.
Fact of the Case:
Plaintiff entered into an agreement with the first defendant to purchase a property for Rs. 2,50,000/-. The first defendant agreed to sell his 1/7th share in the land and the entirety of the saw mill. The plaintiff paid a sum of Rs. 25,000/- as advance and agreed to complete the transaction within three months. However, the defendants took steps to sell the property to others, prompting the plaintiff to file a suit for specific performance.
Finding of the Court:
The trial court granted a decree for specific performance in favor of the plaintiff. On appeal, the court held that the entire property belonged to the first defendant's wife and devolved on all the defendants upon her death. The court also found that the first defendant was not entitled to represent the other members of the family and enter into an agreement with the plaintiff.
Issues: 1. Whether the first defendant had the authority to enter into an agreement to sell the property on behalf of the other defendants? 2. Whether the plaintiff is entitled to a decree for specific performance with respect to the part of the property owned by the first defendant? 3. Whether the plaintiff is entitled to compensation or damages for the delay in the performance of the contract?
Ratio Decidendi: 1. The court held that the first defendant did not have the authority to enter into an agreement to sell the property on behalf of the other defendants as there was no joint family existing between them with reference to the property. 2. The court held that the plaintiff was entitled to a decree for specific performance with respect to the part of the property owned by the first defendant, namely, his undivided 1/7th share in the land and the entirety of the saw mill situated on the land. 3. The court held that the plaintiff was entitled to compensation for the delay in the performance of the contract and directed the first defendant to pay Rs. 2,000/- per month to the plaintiff as damages for use and occupation of the saw mill and the land.
Final Decision: The appeal was allowed to the extent indicated above vacating the decree for specific performance as against the appellants. The decree of the court below was modified, and there was a decree for specific performance as against the first defendant, directing him to execute a sale deed for his undivided 1/7th share in the land and the entirety of the saw mill situated on the land. There was no order as to costs.
1. This appeal arises out of the suit for specific performance of the contract entered into by the plaintiff with the first defend ant on 19.11.1981. Defendants 2 to 7 are the children of the first defendant. The agreement was that the plaintiff should pay a sum of Rs. 2,50,000/- as consideration for the purchase and on the date of the agreement, he paid a sum of Rs. 25,000/- by way of advance. It was agreed that the transaction should be completed within three months from the date of agreement and that the first defendant should discharge all the encumbrances over the proper ties. It was also stated in the agreement that the first defendant would bring all his children and make them parties to the sale deed in favour of the plaintiff. It is not in dispute that a total sum of Rs. 2,00,000/- was paid by the plaintiff to the first defendant on different dates and the time for completion of the contract was being extended periodically. Ultimately, the suit was filed when, according to the plaintiff, he came to know that the defendants were taking steps to sell the property to others and thereby deprive the plaintiff of his interest.
2. The prayer in the plaint is for specific performance of the contract or in the alternative for return of the sum of Rs. 2,00,000/- paid as advance by the plaintiff with interest thereon.
3. The first defendant filed a written statement in which he raised a plea that the land in the property belonged to his wife as it was purchased by her under two documents. It was also his plea that a building was constructed and a saw mill was being run which belongs to him. He contended that a rice mill business was being conducted in another portion of the land and that belongs to his wife. Defendants 3 to 7 filed a separate written statement raising the plea that the first defendant was not entitled to the entirety of the property and it belonged to their mother, who died on 23.6.1977. According to them, the rice mill business belonged to their mother and the saw mill building also belonged to her, though the municipal assessment stood in the name of the first defendant, their father. It was their further case that the first defendant did not have any authority to agree to sell the 6/7th share belonging to them. They admitted that the saw mill business belonged to the first defendant. They prayed for the dismissal of the suit.
3a. The plaintiffs power of attorney agent gave evidence in support of the plaintiffs case and on the side of the defendants, the first defendant alone entered the witness box. He admitted in the cross-examination that he agreed to sell the property and he expressed his willingness to execute a document for the share in the property, in favour of the plaintiff. He deposed that the saw mill was put up by him and the said business belonged to him. He deposed that his children had no share in the saw mill. The other defendants did not let in any evidence.
4. The trial court held that the entire suit property belonged to the first defendants wife and on her death it devolved on all the defendants. It held that though defendants 2 to 7 were not parties to the agreement, the first defendant acted as family Manager and they were bound by the agreement. Consequently, the trial court gave a decree in favour of the plaintiff, for specific performance.
5. The finding of the trial court that the entire property belonged to the wife of the first defendant is erroneous. Even the agreement-Exhibit A1 reads that the land alone was purchased by the wife of the first defendant and it belonged to her absolutely. It is also recited that the saw mill was constructed by the first defendant with his own funds. The evidence on record is also to the same effect. Defendants 2 to 7 have not adduced any evidence to prove that they own any interest in the saw mill. Hence there is no difficulty in holding that the first defendant owns 1/7th share in the land and the entirety of the saw mill.
6. The other fin
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