INTERNATIONAL CONTRACTORS LIMITED Vs. PRASANTA KUMAR SUR

JUDGEMENT

(1.) This is an appeal against the judgment and decree of the High Court of Judicature at Calcutta. The appellant was the defendant in the suit out of which this appeal has arisen and respondent No. 1 was the plaintiff, and the second respondent was a proforma defendant. The facts of this case are these:

(2.) On February 4, 1941, the respondent sold the property in dispute to the appellant for a sum of Rs.10,000. On February 10, 1941, there was an agreement for reconveyance within a period upto February 10, 1943, for a sum of Rs. 10,001. The relevant clause of this agreement was the third clause which was as follows:-

(3.) On November 26, 1942, the solicitor for respondent No. 1 wrote a letter to the appellant stating that that respondent was ready and willing to have the purchase completed as early as possible on payment of Rs. 10,001 along with that letter a draft conveyance was sent for approval but all this was subject to the result of a search as to the encumbrances if any created by the appellant. On November 30,1942, the solicitors for the appellant company wrote back saying that immediate arrangements should be made for giving inspection of the agreement of sale on which the respondents were relying as the appellant was unable to trace the copy of the said agreement from its record. Again on December 11, 1942, the respondent's solicitor sent a letter stating: