KUMARESAN Vs. SESHADRI

JUDGEMENT

(1.) The defendant in O.S. 36/1996 on the file of the Subordinate Judges Court, Palakkad is the appellant.

(2.) The plaintiff respondent filed the suit for specific performance of Ext. A1 agreement dated 7.4.1995 entered into between the appellant and the respondent whereby the appellant agreed to sell the plaint schedule property of an extent of 55.25 cents comprised in R.S. No. 253/2A of Puthupariyaram amsom, desom for a consideration of Rs. 1,75,000/-. According to the respondent Rs. 1 lakh was paid out of the consideration on the date of execution of Ext. A1 and subsequently Rs. 50,000/- was paid on 24.4.1995 and thus Rs. 1,50,000/- out of the consideration is paid and though the respondent was ready and willing to pay the balance amount and to get the registered assignment deed executed by the appellant, the appellant did not do so inspite of repeated demands and Ext. A2 registered notice sent on behalf of the respondent.

(3.) The appellant though admitted the execution of Ext. A1 agreement and receipt of Rs. 1,50,000/- from the respondent, has contended that Ext. A1 is executed not as an agreement for sale of the property but only being security for the loan transaction between the appellant and the respondent. According to the appellant, he never intended to enter into a contract for sale of the plaint schedule property and the price of the plaint schedule property on the date of Ext. A1 was much more than what is recited in Ext. A1. He has also contended that he has paid the interest stipulated on the loan transaction up to 7.10.1995 and as he defaulted to pay the subsequent interest, the above suit is filed by the respondent.