G. SELVAMANI Vs. N. RAGHUNATHAN

JUDGEMENT

(1.) The plaintiffs who were favoured with a decree for the alternative relief of refund of advance amount upon rejection of their claim for specific performance are the appellants. The suit was filed claiming that the defendant had agreed to sell an extent of 3 acres and 30 cents of land for a total consideration of Rs.12,00,000.00 in favour of the plaintiffs and executed an registered agreement of sale on 01.12.2014. On the date of the agreement a sum of Rs.11,00,000.00 was paid as advance. A period of two years was fixed for performance.

(2.) The plaintiffs had issued a notice demanding performance on 25.12.2006. Though the said notice was received by the defendant, according the plaintiffs, there was no reply and the suit came to be filed on 24.04.2007.

(3.) The defendant resisted the suit contending that the object of the agreement of sale was to secure the loan. The defendant had borrowed a sum of Rs.11,00,000.00 from the plaintiffs. As a security for the same, he had executed Ex.A1 sale agreement. Pointing out the fact that Rs.11,00,000.00 out of total sale consideration Rs.12,00,000.00 was paid as advance and an unusually long period of two years was fixed for payment of balance amount, without any reason being assigned, according to the defendant would show that the suit agreement was not an agreement of sale simpliciter. The defendant would also plead that there were two terraced houses existing in the suit property on the date of the agreement and the very fact that they were not shown in the agreement would demonstrate that the agreement was not intended to be a sale agreement.