R C CHANDIOK Vs. CHUNI LAL SABHARWAL

JUDGEMENT

(1.) This is an appeal by special leave from a decree of the Punjab High Court (Circuit Bench, Delhi) .

(2.) On July 18, 1955, the appellants entered into an agreement with the respondents for the purchase of plot No. 8 measuring 1500 Sq. Yds in Jangpura B. New Delhi for Rs. 22,500/-. The contract was evidenced by receipt Exhibit P 6 which was in the following terms;

(3.) A reply dated June 22, 1956 was sent by counsel for the appellants in which reference was made to the letter dated August 11, 1955 and it was pointed out that no information had been sent by the respondents about the sanction having been obtained from the Rehabilitation Ministry. The respondents were called upon to obtain the requisite sanction and to execute the sale deed against receipt of balance of purchase money. On July 4, 1956 counsel for the respondents sent a reply saying that sanction had not been granted till then and inquiries made by respondents revealed that it might not be forthcoming for an indefinite period and that it was absolutely uncertain as to when it would be granted. It was claimed that the agreement had become void on account of uncertainty and without prejudice to their legal rights the respondents were prepared "ex gratia" to have the sale deed registered on payment of the balance within a week of the receipt of the letter without waiting sanction of the Rehabilitation Ministry. On November 11, 1956 the respondents are stated to have applied for sanction for transfer of the plot and it was granted on November 20, 1956. The appellants had themselves made inquiries from the Housing and Rent Officer on Augst 9, 1956 to ascertain whether sanction had been granted and how much time it would take to accord the sanction. By a letter dated 27/ 29th November 1956 the aforesaid officer informed the appellants that permission to transfer had been given on November 20,1956. The appellants had also taken steps to inform other prospective buyers about the existence of the agreement as they apprehended that the respondents intended transferring the same to some other party. On July 29, 1956 an advertisement was published by them in the 'Times of India' declaring the existence of the agreement entered into between the appellants and the respondents with regard to the sale of the aforesaid plot. On December 4, 1956 the suit out of which the present appeal has arisen was filed by the appellants claiming specific performance of the contract dated July 18, 1955 and in the alternative for refund of Rs. 7500/- being the amount of eamest money and Rs. 15000/- as damages together with interest.