LAKSHMI Vs. MUTHUSAMY

JUDGEMENT

(1.) THE defendants in O.S.No.24 of 1996 on the file of the Subordinate Judge, Bhavani are the appellants and the plaintiff in the suit is the respondent herein.

(2.) THE said suit was filed for specific performance based on a registered Sale Agreement dated 31.08.1994 entered into between the defendants and the plaintiff. The suit was dismissed by the trial Court. As against the same, an appeal was preferred by the plaintiff in A.S.No.27 of 1997 on the file of the I Additional District Judge cum Chief Judicial Magistrate, Erode. By decree and judgment dated 13.02.1998, the lower appellate Court allowed the appeal thereby setting aside the decree and judgment of the trial Court and decreed the suit as prayed for. As against the same, the defendants are before this Court with this Second Appeal.

(3.) IN the written statement, the defendants contended that it is true that they are the absolute owners of the suit property. But it is not true that they intended to sell the suit property to the plaintiff and further they did not execute the sale agreement dated 31.08.1994 with an intention to sell the suit property. Further, it is contended that they have never agreed to sell the suit property for Rs.40,000/- and they did not receive a sum of Rs.30,000/- as stated in the plaint. According to their specific case, the plaintiff is doing money lending business along with few other persons including one Mr.Uthirakumar under the name and style of "Sabari Arul Finance" at Oricheri Pudur village. The second defendant borrowed a sum of Rs.4,000/- from the said finance, thereby agreeing to repay the said amount with interest at the rate of 12%. But the second defendant was not able to pay the interest regularly for the said amount to the said concern. While so, his father had fallen seriously ill due to paralysis. In order to meet out the medical expenses for his ailing father, who was hospitalised in a private hospital at Erode, the second defendant borrowed yet another sum of Rs.10,000/- from the said "Sabari Arul Finance". As per the terms of the loan, the second defendant should have paid a sum of Rs.1,250/- per month for a total period of 10 months. Accordingly, he paid the dues for five months. The balance he could not pay since in the meanwhile, his father died. The balance amount to be paid to the said finance corporation was Rs.9,000/- under the above two transactions, besides interest. Since the second defendant could not pay the said amount, the plaintiff and other partners of the finance corporation along with few others, convened a Panchayat and in the Panchayat they wanted the defendants to execute a sale agreement as though the defendants had agreed to sell the property for Rs.40,000/- as a security for the loan amount. Since the defendants could not meet the pressure brought upon them for repayment of the loan amount and since the above alternative suggestion was believed to be true, they executed the said sale agreement dated 31.08.1994. The defendants were assured even before the execution of the sale agreement that as and when the defendants repay the loan amount of Rs.9,000/- with interest, the sale agreement would be cancelled and returned to them. Believing the same, the defendants executed the sale agreement. It is further stated by the defendants that the property would be worth more than 7,00,000/- . Therefore, according to them, they would not have agreed to sell the property for a paltry sum of Rs.40,000/- only. Therefore, though the sale agreement is a registered document, the same cannot be enforced in law for the reasons stated above. Thus, according to the defendants, the suit is liable to be dismissed.