Harmohinder Kaur Sandhu, J.

1. The brief, facts of the case giving rise to this appeal are that Mukhtiar Singh respondent was the owner of a house bearing No. 171 situated in Sector-20A, Chandigarh. He agreed to sell his house to Shri M.L. Goel for a sum of Rs. 78,000/- vide agreement Exhibit PA. Sale deed was to be executed upto May 21, 1977 and Mukhtiar Singh received a sum of Rs. 20,000/- as advance money. The balance amount was to be paid at the time of registration of the sale deed. When the agreement to sell was executed it was mentioned therein that the house which was to be sold was free from all encumbrances. The sale deed could not be executed by the fixed time. So, in continuation of the original agreement another agreement was executed on September 20, 1977 whereby the time for the execution of the sale deed was extended upto April 21, 1979, and Mukhtiar Singh received a further sum of Rs. 9000/-. Shri M.L. Goel alleged that although it was represented that the house to be sold was free from all encumbrances yet later on it was found that the house was under mortgage with one Swaran Kaur who had already obtained a decree for a sum of Rs. 47000/-. This fact was a