(1.) A Factual Background............................................
(2.) The appellants are owners of a property located at Patta Nos. 147, 240, 217, Madukkarai Village, Coimbatore Taluk, Coimbatore measuring about 12.60 acres ("suit property"). The first appellant and her spouse entered into an agreement on 7 February 1990 with the respondent by which they agreed to sell the suit property for a consideration of Rs. 1,25,000. The respondent paid a sum of Rs. 25,000 as an advance and agreed to pay the balance within six months, with the stamp duty. On the payment of the balance, the appellants were required to execute a sale deed conveying the property, free from all encumbrances. The terms of the agreement also stipulated that the advance amount would be forfeited in case the appellants failed to complete the sale. Further, in the event the respondent was ready and willing to complete the sale but the appellants delayed or refused, the respondent could proceed before the court to get the sale completed and seek possession of the suit property under the Specific Relief Act 1963 ("Specific Relief Act"). The suit property was also subject to a mortgage of Rs. 6,000 in favour of one Janaki Amma. The respondent-plaintiff alleged that the appellants had received the advance sum to discharge the mortgage over the suit property. On the contrary, the appellants alleged that the respondent was aware of the mortgage over the suit property and had agreed to discharge the mortgage from the sale consideration. On 8 March 1990, the appellants received a further sum of Rs. 10,000 from the respondent as an advance under the sale agreement.
(3.) On 19 December 1990, the appellants sent a legal notice to the respondent calling upon him to pay the balance consideration and perform his obligations under the agreement to sell. The appellants rescinded the contract on the ground that the respondent was not ready and willing to perform his obligations. In response, the respondent sent a reply dated 26 December 1990 calling upon the appellants to execute the sale free from encumbrance.