JUDGMENT

R.C. Lahoti, J.-Leave granted in both the SLPs.

2. A suit for specific performance of an agreement to sell entered into between the parties on 03.11.1988 and later on novated by an agreement dated 15.7.1991, was filed by the respondent herein. According to the latter agreement, the consideration for sale was appointed at Rs. 2,90,000/- out of which an amount of Rs. 2,40,000/- was acknowledged by the vendor to have been received, leaving a balance of Rs. 50,000/- to be received at the time of execution and registration of the sale deed. The appellants had also filed their own suit seeking cancellation of the agreement dated 30.11.1988 on the ground that the nature of transaction between the parties was one of loan; that the amount of loan taken by the appellants was only Rs. 60,000/- but the respondent had added advance interest and capitalized the same; and that the amount of loan with interest was returned and yet the respondent had failed to deliver back as fully discharged the agreements dated 30.11.1988 and 15.7.1991. The two suits were consolidated and tried together by the learned Civil Judge. Vide the judgment and decree dated 20.5.1994, disposing of both the suits, t