MANJIT SINGH MEHTA Vs. PRABHJOT SINGH

JUDGEMENT

(1.) THIS is a suit for recovery of Rs.50,24,000/-. The case of the plaintiff is that he had entered into an agreement with the defendant to purchase the entire Ground Floor of property No.700, Dr. Mukherjee Nagar, Delhi, built on a land measuring 160 sq.yds., along with proportionate share of freehold rights underneath the aforesaid building. The sale consideration is stated to have been fixed at Rs.19 lacs.

(2.) THE plaintiff claims to have paid a sum of Rs.10 lacs to the defendant in cash vide receipt dated 20 th February, 2008. A further payment of Rs.6 lacs is alleged to have been made4 to the defendant on 7 th April, 2008. It is further alleged that the defendant cancelled the Agreement on 25th April, 2008 and agreed to pay double the amount of earnest money and part payment i.e., Rs.32 lacs to him. THE defendant issued a cheque dated 25th April, 2008 for Rs.32 lacs drawn on Indian Overseas Bank, Pitam PUra. THE cheque when presented to the Bank on 14th July, 2008 for encashment, was dishonoured with the remarks "Funds Insufficient". A complaint filed by the plaintiff against the defendant under Section 138 of the Negotiable Instruments Act is stated to be pending before the learned Metropolitan Magistrate, Delhi. THE plaintiff has also claimed interest at the rate of 24% per annum with effect from 25th April, 2008 amount to Rs.18,24,000/-, thereby making a total claim of Rs.50,24,000/- against the defendant.

(3.) A perusal of the Agreement to Sell executed between the parties on 20th February, 2008 would show that the defendant Shri Prabhjot Singh, who claimed to be the owner of the entire ground floor of property No.700, Dr. Mukherjee Nagar, Delhi, had agreed to sell the same to the plaintiff for a consideration of Rs.19 lacs and had received a sum of Rs.10 lacs from the plaintiff as earnest money.