BIJAYSHREE RESOURCE LTD Vs. SUBASREE REAL

JUDGEMENT

(1.) The appellant company / defendant entered into an agreement dated 18.06.1984 with the respondent partnership firm / plaintiff in respect of a land owned by the appellant measuring 81 grounds, situated in Tiruvallur, Chengalpattu District, in which 100 plots were to be carved out. The appellant represented that they had entered into an agreement for sale with the original owners and proposed to convert the land as house site plots on obtaining sanction from the Town Planning authorities and intend to sell the plotted area, which the respondent agreed to purchase at a rate of Rs.5,500/- per ground subject to the conditions specified in the agreement. The sale was to be made by the appellant to the respondent or his nominees. The agreement specifically stipulated that the duration for completion of the sale transaction under the agreement for sale would be on or before 31.05.1985 or six (6) months from the date of implementation of the lay out plan to be duly sanctioned by the Town Planning authorities, whichever was later.

(2.) The appellant obtained the layout sanction from the Town Planning authorities on 15.05.1985 and thus, the six (6) months stipulated expired on 15.11.1985. In this period of time and some extended period, only fifteen (15) plots are stated to have been sold with the last such plot being sold on 07.04.1986.

(3.) The respondent, in turn, entered into a private agreement with a third party, M/s.Meenam Builders, on 11.05.1987 in respect of the same residential plots, possibly on a back-to-back arrangement.