B S RAJU Vs. M GOVINDA

JUDGEMENT

(1.) The unsuccessful plaintiffs are the appellants. The suit is filed for specific performance with an alternative prayer for return of advance amount with interest.

(2.) The case of the appellants is that under Ex.P1, an agreement for sale was entered into between the parties on 30.11.1994. As per Clause 6 of the agreement, the respondent shall discharge the loan to the Bank of Baroda, Sowcarpet Branch. As per Clause 7, on the failure of the appellants to pay the balance sale consideration of Rs.13,15,000/- within 31.03.1995, which is the date fixed for conclusion of the sale, the interest at 24% per annum from 01.04.1995 will have to be paid. In the meanwhile, the respondent after discharging the loan for a sum of Rs.2 lakhs, which was in fact the part of the sale consideration as per Ex.P1, mortgaged it in favour of M/s.Purasawalkam Santhatha Sanga Nidhi Limited on 22.04.1996.

(3.) Under Ex.P2, the appellants sent a letter to the respondent asking him to be ready for execution of the sale deed. It was followed by a legal notice under Ex.P4 dated 09.06.1997. A reply was given under Ex.P5 dated 17.06.1997 stating that it is the appellants who are not ready to make the payment within the time schedule. Therefore, the respondent was constrained to discharge the loan by a deed of mortgage with M/s.Purasawalkam Santhatha Sanga Nidhi Limited. Thus, the appellants are not entitled for the relief sought for. Therefore, a specific plea has been taken that the agreement has already been abandoned by the appellants on their own volition.