BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
B. PUGALENDHI, J.
P. Rajasekaran & Another - Appellant
Versus
C. Kumar - Respondent
CRP(MD)No. 198 of 2019 & CMP(MD)No. 883 of 2019
Decided On : 02-09-2022
Specific Performance - Contract Rescission - Specific Relief Act, 1963 - Section 28 - [Specific Performance] - [Specific Relief Act, 1963, Section 28] - The court discussed the application of Section 28 of the Specific Relief Act, 1963 in the context of a suit for specific performance based on a sale agreement. The court highlighted the requirement for the purchaser to pay the balance sale consideration within the specified time and the consequences of failure to do so, leading to the right to apply for rescission of the contract. The court also referenced relevant case law to support its interpretation of the legal provisions.
Fact of the Case:
The respondent filed a suit for specific performance based on a sale agreement, which was decreed by the trial court. The petitioners, as defendants, filed an application to rescind the contract under Section 28 of the Specific Relief Act, 1963, claiming that the respondent had not paid the decree amount or deposited the amount before the court. The application was dismissed, leading to the filing of the civil revision petition.
Finding of the Court:
The court found that the respondent had not paid the balance sale consideration within the specified time, as directed by the decree, and had not taken steps to execute the orders passed by the trial court. The court also noted that the petitioners had filed an appeal before the notice from the respondent was sent, and the respondent had not taken any steps to seek an extension of time or deposit the amount before the court.
Issues: The key issues revolved around the failure of the respondent to pay the balance sale consideration within the specified time, the application of Section 28 of the Specific Relief Act, 1963, and the interpretation of the legal provisions in the context of the suit for specific performance.
Ratio Decidendi: The court held that the respondent's failure to pay the balance sale consideration within the specified time and the lack of action to execute the orders of the trial court justified the application of Section 28 of the Specific Relief Act, 1963. The court also emphasized the requirement for the purchaser to fulfill the conditions precedent for execution of the sale deed.
Final Decision: The civil revision petition was allowed, and the impugned order was set aside.
JUDGMENT
(Prayer: Civil Revision Petition is filed under Article 227 of the Constitution of India, to set aside the judgment and decree passed in I.A.No.789 of 2015 in O.S.No.490 of 2009 dated 09.01.2018 on the file of the Principal Sub Court, Madurai by allowing this civil revision petition.)
1. This Civil Revision Petition is filed as against the fair and decreetal order passed in I.A.No.789 of 2015 in O.S.No.490 of 2009 dated 09.01.2018 by the learned Principal Sub Judge, Madurai.
2. The petitioners are the defendants in the suit in O.S.No.490 of 2009, which was filed by the respondent for specific performance based on a contract entered into between the petitioners and the respondent. The suit was decreed on 29.11.2010 and the appeal filed by the petitioners before the I Additional District Court, Madurai in A.S.No.3 of 2011 was also dismissed on 23.08.2011.
3. By claiming that the respondent/ decree holder neither paid the decree amount nor deposited the amount before the Court, the petitioners/ judgment debtors filed an application in I.A.No.789 of 2015 to rescind the contract as per Section 28 of the Specific Relief Act, 1963, before the learned Principal Sub Judge, Madurai and it was dismissed by order dated 09.01.2022. Aggrieved over the same the civil revision petition is filed.
4. The learned Counsel for the petitioners submits that the respondent / plaintiff has entered into a sale agreement dated 20.04.2006 with the petitioners to purchase the suit property for sale consideration of Rs.2,86,646/- within a period of four months. The plaintiff filed the suit and it was decreed by the trial Court on 29.11.2010 with a direction to the defendants to receive the balance sale consideration of Rs.46,146/- as per the sale agreement dated 20.04.2006 within a period of two months and thereafter execute a sale deed in favour of the plaintiff/ respondent, failing which the plaintiff could get the sale executed through Court. Against the same, the defendant has filed appeal in A.S.No.3 of 2011 before I Additional District Court, Madurai.
5. The learned Counsel further submits that since the respondent/plaintiff did not pay the balance sale consideration as directed in the decree, the petitioners/ defendants filed the above petition to rescind the contract as per Section 28 of the Specific Relief Act, 1963.
6. Though the respondent claim that the notice dated 28.01.2011 sent to the petitioners/defendants was returned as left no instruction on 30.11.2011, the petitioners have filed an appeal on 20.01.2011, wherein the address of the petitioners/defendants showing their address at Dindigul. Therefore even before the respondent sending the notice, the petitioners/ defendants filed an appeal. The plaintiff should have paid the amount within the time. The direction to the defendants to receive the balance sale consideration and to execute sale deed against the defendant is a condition precedent for execution of the sale deed. Even if the decree does not fix any time limit for depositing of the balance sale consideration, the provisions of Section 28 of the Specific Relief Act, 1963 would apply.
7. The learned Counsel further submits that sending notice is not at all necessary and the plaintiff should have deposited the balance sale consideration within the time. Further the petitioners / defendants left from the address shown in the plaint. Even this is evidence from the appeal filed by the petitioners showing their present residential address at Dindigul and the defendants cannot be be found fault. Therefore, when the plaintiff has failed to deposit the amount, sending notice to the petitioners is of no use. The learned Counsel for the petitioners relied on the following decisions in support of his arguments:
1. Chanda (Dead) through Lrs Vs Rattni and Another, reported in 2007(14) SCC 26;
2. Raju Naidu Vs M.Kolandaisamy and another reported in 1998 (2) CTC 585
3. Narasimhan Vs Balammal reported in 1988(2) MLJ 211
8. The learned counsel for the
AI
The central legal point established in the judgment is the application of Section 28 of the Specific Relief Act, 1963 in the context of specific performance and the consequences of the purchaser's fa....
An application under Section 28 of the Specific Relief Act can only be filed within three years from the date when the right to apply for rescission accrues. The concept of 'reasonable time' is cruci....
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.
Point of Law : Provisions of section 28(1) of the Specific Relief Act, 1963 in light of the provisions of Order XX Rule, 12A of the CPC, and it was held that the provisions of Order XX, Rule 12A mand....
Agreement to sell – Provisions to grant specific performance of agreement are quite stringent – Equitable considerations come into play.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.