SHANMUGA GRAMANI Vs. BABU GRAMANI

JUDGEMENT

(1.) Aggrieved over the reversal of the decree granted in favour of the appellant, by the First Appellate Court, the appellant preferred the above Second Appeal.

(2.) For the sake of convenience, the parties are called as per their litigative ranking before the Trial Court.

(3.) The case of the plaintiff is that he wanted to purchase 3.75 acres of lands from one Ramachandra Naidu and Tmt. Vijayammal. Since he was in shortage of funds, he approached the defendant for loan and borrowed a sum of Rs.2,00,000.00 from him for interest @ Rs.2.50 per Rs.100.00 per month. At the time of registration of the Sale Deed for the above said lands, the defendant insisted that the property must be registered in his name as security for his loan and undertook to convey the same to the plaintiff when he repays the same with interest. Accordingly, a Sale Deed for an extent of one acre of land was registered in the name of the plaintiff and remaining 2.75 acres of land, which is the subject matter of the Suit was registered in the name of the defendant. During July 2002, the plaintiff paid a sum of Rs.50,000.00 towards principal and Rs.5,000.00 as interest and got a new consent letter from the defendant on that day and requested the defendant to reduce the interest rate from Rs.2.50 to Rs.2.00 per Rs.100.00 per month. Accordingly, a fresh consent letter dtd. 27/4/2002 was issued by the defendant in favour of the plaintiff, in the presence of the witnesses. Thereafter, the plaintiff approached the defendant to repay the loan amount with interest and sought for execution of the Sale Deed, in his name. But however, the defendant refused to do the same. Thereafter, in the presence of the Mediators, namely Venkataraja, Gajendra Naidu and Kader Basha and other village elders, a Settlement was arrived at between the parties on 10/10/2007. Further, a Deed of Sale Agreement was executed on 10/10/2007 wherein the defendant agreed to sell the property for a total sale consideration of Rs.7,25,000.00 and received Rs.1,25,000.00 as advance. It was agreed by the parties that the balance sale consideration of Rs.6,00,000.00 shall be paid within a period of one month and any breach of this term of the vendor, the defendant will be liable to pay twice the sale consideration. If any breach is committed by the purchaser, the advance amount of Rs.1,25,000.00 shall stand forfeited. According to the plaintiff, the defendant evaded from performance of the contract in spite of his efforts. Therefore, he issued a legal notice on 7/12/2007, to which the defendant issued a reply notice. The plaintiff sent a rejoinder notice on 2/1/2008 and filed the Suit for specific performance.