MADRAS HIGH COURT
Honourable Mr Justice D.BHARATHA CHAKRAVARTHY
ENVEE ENTERPRISES – Appellant
Versus
SHANKAR KARIKAR – Respondent
OSA/264/2018
SALE OF LAND - AGREEMENT FOR SALE - REFUND OF ADVANCE AMOUNT - INTEREST - SECTION 34 OF THE CODE OF CIVIL PROCEDURE, 1908 - ORDER XII, RULE 6 OF THE CODE OF CIVIL PROCEDURE, 1908 - SECTION 58 OF THE INDIAN EVIDENCE ACT, 1872 - Where the defendants admitted in their written statement that they had received an advance amount for the sale of the suit property, the court, without waiting for the determination of any other questions between the parties, may make such order or give such judgment as it may think fit, having regard to such admissions. The defendants are entitled to pay the money at the rate of 9% per annum as per Section 34 of the C.P.C.
Fact of the Case:
The plaintiff entered into an agreement of sale with the defendants to purchase a property for Rs. 1,25,00,000/- and paid Rs. 35,00,000/- as advance. The defendants failed to execute the sale deed and the plaintiff filed a suit for refund of the advance amount with interest. The defendants claimed that they had paid Rs. 21,16,252/- as additional stamp duty and registration fees and were entitled to deduct this amount from the advance paid by the plaintiff.
Finding of the Court:
The court found that the defendants had admitted in their written statement that they had received the advance amount and that they had not paid any additional stamp duty or registration fees. The court also found that the defendants had not provided any evidence to support their claim that they were entitled to deduct the amount of Rs. 21,16,252/- from the advance paid by the plaintiff.
Issues: Whether the plaintiff is entitled to a refund of the entire advance amount of Rs. 35,00,000/- paid under the suit agreement for sale with interest?
Ratio Decidendi: The court held that the plaintiff was entitled to a refund of the entire advance amount of Rs. 35,00,000/- paid under the suit agreement for sale with interest at the rate of 9% per annum from the date of the suit to the date of the decree.
Final Decision: The appeal was dismissed and the defendants were directed to refund the amount of Rs. 35,00,000/- with interest at the rate of 9% per annum within a period of six weeks from the date of receipt of a copy of the order.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.01.2022
CORAM
THE HONOURABLE MR.JUSTICE T.RAJA
and
THE HONOURABLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
O.S.A.No.264 of 2018
and
C.M.P. No.19809 of 2021
1.Envee Enterprises,
by its Partner
Mrs.Sasikala Vamanan
2.Sasikala Vamanan
3.Mani Prakash
...Appellants/Defendants
.Vs.
Shankar Karikar
...Respondent/Plaintiff
Prayer: Original Side Appeal filed under Clause 15 of the
Amended Letters Patent of 1865 r/w. Order XXXVI Rule 1 of the
Code of Civil Procedure, 1908 against the Judgment and Decree
dated 15.12.2016 in C.S. No.601 of 2009.
For Appellants
:
Mr.Srinath Sridevan
For Respondent
:
Mr.M.V.Swaroop
JUDGMENT
[Judgment of this Court was delivered by T.RAJA, J.]
This appeal has been directed against the impugned decree
and judgment dated 15.12.2016 passed in C.S. No.601 of 2009, in
and by which, the learned Single Judge decreed the suit as
prayed for with costs.
2.The appellants are defendants before this Court in C.S.
No.601 of 2009. The first defendant is a partnership firm and
defendants 2 and 3 are its partners. It is the case of the
plaintiff/respondent that the first defendant had entered into
an agreement of sale with the plaintiff on 09.08.2006 agreeing
to sell an extent of 2,800 sq.ft. of land in Old Door No.19/1,
New Door No.23, Cenotaph Road, Chennai 600 018 in R.S.No.3856/B,
https://hcservices.ecourts.gov.in/hcservices/
Block No.76, Mylapore Village for a total consideration of
Rs.1,25,00,000/- and the sale shall be completed within one
month from the date of release of the Sale Deed dated
21.10.2003. It is the further case of the plaintiff/respondent
that he had paid a sum of Rs.35,00,000/- towards part of the
sale consideration as per the agreement dated 09.08.2006. Though
the plaintiff/respondent was ready and willing to perform his
part of the contract, the defendants have been evading the
execution of the sale deed on one premise or the other. While
so, during December 2006, the plaintiff/respondent learnt to
know that the defendants were not in possession of the property
and that there was a dispute with regard to the possession
between the defendants and the National Bank for Agriculture and
Rural Development (hereinafter referred to as ‘the NABARD’),
which also resulted in a police complaint lodged by NABARD on
30.12.2006 against one J.Subramaniam and others alleging that
they had trespassed into the property on behalf of the first
defendant. However, the plaintiff also came to know that NABARD
had filed W.P. No.549 of 2007 against the first defendant and
others seeking a declaration that the land, which has been
agreed to be sold by the defendants, has been earmarked as open
space under the planning permit granted to them and no
construction shall be raised therein and this Court, by order
dated 08.01.2007 had granted an order of interim injunction
restraining the respondents from in any manner modifying the use
of the land in violation of the planning permission dated
21.02.1986. While so, when the plaintiff/respondent approached
defendants 2 and 3 with a view to get clarifications regarding
the property, there was no response from defendants 2 and 3.
Therefore, the suit in C.S. No.601 of 2009 was filed by the
plaintiff/respondent before this Court to pass a judgment and
decree against the appellants/defendants directing them jointly
and severally to pay a sum of Rs.52,34,750/- with subsequent
interest at 18% per annum on the principal amount of Rs.35 lakhs
and to pay the costs of the suit to the plaintiff.
3.Written statement has been filed by the defendants stating
that they have received a sum of Rs.35,00,000/- as advance
amount for the sale of the suit property on various dates under
the terms of an agreement for sale dated 09.08.2006. It is
averred by the defendants
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