N SHANMUGHAM Vs. RATHINAM ALIAS RATHINAVELAYUDHAM DIED

JUDGEMENT

(1.) Defendant is the appellant. The suit for specific performance was decreed and the appeal is against this judgment and decree.

(2.) The parties are described as per their rankings in the trial court.

(3.) The first plaintiff, for his and on behalf of the four plaintiffs, entered into an agreement dated 13.12.1984 for the purchase of an extent of 20.40 acres of land for a consideration of Rs.3,57,500/-. A sum of Rs.50,000/- was paid as advance on that day. As per the terms of the agreement, the defendant had to obtain, at his expense, Government permission to sell the land, income tax clearance certificate and encumbrance certificate, within a period of one year from the date of the agreement. It was further agreed that during that period, the defendant had to get the tenants evicted at his expe nse and hand over possession of the property at the time of the sale. In the event of the defendant's failure to get vacant possession of the property, the agreement holder, namely the first plaintiff, was entitled to retain a sum of Rs.50,000/- out of the balance sale consideration and get the sale deed executed and registered. If the defendant failed to evict the tenants within a period of six months thereafter, the plaintiff was entitled to deduct the expenses from the retained amount of Rs.50,000/- for getting the tenants evicted. The plaintiff would have to forego the advance amount of Rs.50,000/- if he failed to take the sale deed while the defendant was ready to fulfill his part of the contract. In case the defendant failed on his part to give effect to the agreement, the plaintiff was entitled to seek the remedy of specific performance. The defendant, in the meanwhile, should not subject the property to any encumbrance. In case the Government refused to grant permission, the defendant had to return the advance amount of Rs.50,000/- with interest at the bank rates for fixed deposits. While steps were being taken to comply with the conditions of the agreement, the defendant received a further sum of Rs.25,000/- on 16.11.1985 and a supplementary agreement dated 26.12.1985 was entered into, by which it was agreed to read both the agreements together. Under the second agreement, a further sum of Rs.32,500/- was paid to the defendant, taking the total sum paid towards consideration to Rs.1,07,500/-. As per the supplementary agreement, it was agreed that after giving credit to Rs.50,000/-, the remaining sale consideration of Rs.2,00,000/- be retained by the first plaintiff to be paid with interest at the rate of 12% per annum on the date of execution of the sale deed.