(1.) This is an appeal from a judgment and decree of the High Court of Judicature at Bombay dated 26-1-1948 reversing the decree passed by Chagla J. on 7-7-1947.
(2.) The suit was brought by one Laxmibai, wife of Inderlal Nandlal of Malad on 26-5-1943 for specific performance of an agreement dated 29-4-1929, said to have been arrived at between her and Messrs. Gorakhram, Sadhuram, a firm carrying on business at bankers and commission agents at Kalbadevi Road, Bombay. By the agreement the defendants were to transfer the bungalow in suit at Malad to the name of the respondent whenever demanded on payment of costs of such transfer and were to debit the sum of Rs. 40,000 the value of the bungalow, to the current account of the firm of Messrs Thackersidas Nandlal, of which the plaintiff's husband and father-in-law were the owners and which firm was indebted in a large amount to Messrs. Gorakhram Sadhuram.
(3.) Chagla J. dismissed the plaintiff's suit and held that the plaintiff not being a party to the agreement, could not claim specific performance of it. He further held that the suit was barred by S. 66, C. P. C. This decision was reversed in appeal by Bhagwati and Tendolkar. JJ. on the finding that the plaintiff was a party to the agreement and was ready and willing to perform her part of the contract. It was further held that the suit was not barred by S. 66 Civil P. C. Chagla J. has also held that the plaintiff was not ready and willing to perform her part of the contract inasmuch as her husband was not in a position to pay the sum of Rs. 40,000, the price fixed for the conveyance of the house.