(1.) PLAINTIFF respondents executed a sale deed of their house in favour of the defendant appellant for a sale consideration of Rs. 500/- on February 20, 1965. Simultaneously an agreement was executed whereby the vendee of the sale deed agreed to reconvey the property to the vendors in lieu of a like amount. There was a controversy between the parties whether the period during which the plaintiff" respondents were entitled to get reconveyance was five years or five months. I will briefly refer to this controversy later in the judgment. The plaintiff respondents instituted a suit giving rise to this second appeal for specific performance in view of the agreement of reconveyance dated 20th February, 1965 executed by the defendant appellants in their favour. The suit was decreed by the primary court and the decree has been affirmed by the first court of appeal, hereinafter referred to as the court of appeal. The defendant feels aggrieved by the decree of the court of appeal and has now approached this Court.
(2.) THE defendant appellants admitted that the house originally belonged to the plaintiff respondents and that they conveyed the same to the defendant appellants by means of sale deed dated February 20, 1965. It was also conceded in the written statement filed before the primary court that on the same date the defendant appellants agreed to transfer the house to the plaintiff respondents for a sum of Rs. 500/-. According to the defendants reconveyance was to be executed within a period of five months from the date of execution of the agreement and not within five years from the said date as alleged by the plaintiff. THE defendant contended that since the plaintiff respondents failed to obtain the conveyance of the house within the stipulated period of five months they have lost their right to claim specific performance.
(3.) WHEN a person obtains conveyance of immovable property he acquires permanent title for the same which is not limited in duration ; but if he is made to execute an agreement to reconvey the property within a specified time in favour of his vendors his title becomes precarious. He can be compelled by the original vendors for a specific performance of the agreement executed in their favour. It will be inequitable to hold that the precarious nature of the title of the vendee continues even after the period prescribed under the agreement to reconvey the property executed by him has expired.