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2017 Supreme(Mad) 1128

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBBIAH and M.S. RAMESH, JJ.
Mct. M. Chidambaram Trust represented by its Truste Mct. P. Chidambaram - Appellant
Versus
V. Ravichandran - Respondent
Appeal Suit No. 174 of 2016
Decided On : 02-06-2017

Advocates Appeared:
For the Appellant : Mr. V. Raghavachari
For the Respondent: Mrs. Chitra Sampath for Mr. T.S. Baskaran

Headnote:

Limitation Act – Article 54 – For the sake of convenience – Defendant in O.S. on the file of the learned Additional District Judge, Chengalpattu is the appellant in this appeal – Said suit was filed by the respondent herein for specific performance directing the defendant/appellant herein to execute and register the sale deeds in the name of the plaintiff/respondent herein or his nominee either in single or various sale deed/s and to handover the vacant possession of the suit property as per the terms of the agreement, in default, the Court shall execute a sale deed and handover possession of the suit property in his favour – Trial court decreed the suit by the Judgment and Decree against which the defendant/appellant has come forward with this Appeal Suit –Held, Intention to make time stipulated for payment of balance consideration will be considered to be essence of the contract where such intention is evident from the express terms or the circumstances necessitating the sale, set out in the agreement – If, for example, the vendor discloses in the agreement of sale, the reason for the sale and the reason for stipulating that time prescribed for payment to be the essence of the contract, that is, say, need to pay a particular loan before a particular date, or to meet an urgent time bound need (say medical or educational expenses of a family member), time stipulated for payment will be considered to be the essence – Even if the urgent need for the money within the specified time is not set out, if the words used clearly show an intention of the parties to make time the essence of the contract, with reference to payment, time will be held to be the essence of the contract – Appeal Suit is dismissed.

JUDGMENT :

R. SUBBIAH, J.

The defendant in O.S. No. 387 of 2007 on the file of the learned Additional District Judge, Chengalpattu is the appellant in this appeal. The said suit was filed by the respondent herein for specific performance directing the defendant/appellant herein to execute and register the sale deeds in the name of the plaintiff/respondent herein or his nominee either in single or various sale deed/s and to handover the vacant possession of the suit property as per the terms of the agreement dated 01.04.1998, in default, the Court shall execute a sale deed and handover possession of the suit property in his favour. The trial court decreed the suit by the Judgment and Decree dated 30.11.2015 against which the defendant/appellant has come forward with this Appeal Suit.

2. For the sake of convenience, the parties shall be referred as they were arrayed in the suit before the trial court, as Plaintiff and Defendant.

3. As per the plaint averments, the defendant is a Trust duly registered under the Indian Trust Act and it was known as Chidambaram Foundation. According to the plaintiff, the defendant was the absolute owner of the land measuring an extent of 5 acres and 6 cents comprised in Survey No. 52 and 53/2 at Seevaram Village, Tambaram Taluk, Kancheepuram District. According to the plaintiff, the defendant Trust approached him during the year 1995 for selling the lands morefully described in 'A' Schedule of the plaint and furnished the copies of the documents of title evidencing ownership of the said land. The defendant-Trust also requested the Plaintiff to take various measures that are necessary to release the property from the purview of Urban Land Ceiling Act. Accordingly, the plaintiff had taken steps to bring the property out of the purview of Land Ceiling Act, for which purpose, he incurred huge expenses and also to make the land a saleable and marketable one. According to the plaintiff, it has taken two years for him from 1995 to 1997 to bring the lands out of the purview of Urban Land Ceiling Act by approaching various authorities and for obtaining layout approval to divide the lands into housing plots. After completing all the formalities, the defendant approached the plaintiff and sought his assistance to sell the lands on their behalf, for which purpose, an agreement for sale was also executed on 01.04.1998. As per the agreement, the sale consideration for the lands was fixed at Rs.45,000/- per cent and the defendant-Trust also agreed to execute the sale deed in favour of the purchaser (plaintiff) or nominee or nominees identified by the plaintiff. It was further agreed by the defendant that even though the sale consideration was fixed at Rs.45,000/- per cent, if any amount is realised by the plaintiff over and above the Rs.45,000/- per cent, such amount shall be appropriated by the plaintiff towards consideration for developing and selling the plots. As per the agreement, the plaintiff paid a sum of Rs.5,00,000/- as advance by way of demand draft during the month of March 1998 even prior to signing the agreement dated 01.04.1998.

4. According to the plaintiff, on the strength of the agreement executed in his favour, he had identified prospective purchasers and sold the housing plots in favour of various purchasers. The defendant also executed sale deeds in favour of such prospective purchasers identified by the plaintiff. The Plaintiff also, upon realising the sale amount, has deposited the amount into the bank account of the defendant corresponding to the extent of land sold at the rate of Rs.45,000/- per cent, as agreed. According to the plaintiff, the defendant has no concern as to the rate at which the land was sold by the plaintiff and the defendant only want the plaintiff to ensure that Rs.45,000/- per cent is periodically deposited into their bank account corresponding to the extent of land sold. In this fashion, the plaintiff has sold various plots in favour of third party purchasers between 01.0














































































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