STIRLING SHIPPING Vs. SANCOALE SHIPPING LTD

JUDGEMENT

(1.) THIS appeal is directed against judgment and decree passed by learned civil Judge Senior Division, Vasco-da-Gama in Special Civil Suit No. 38/2001/a. The appellant herein is the original defendant no. 1 in the said suit. Respondent herein instituted the said suit for recovery of an amount of Rs. 15,00,000. 00 which was paid by the plaintiff to the defendant by way of earnest money towards a sale consideration as the plaintiff and defendant agreed for transaction of sale of a barge and the plaintiff had agreed to purchase the same for Rs. 1,60,00,000. 00. The defendant was the owner of a barge being M. V. Divya-1, bearing no. MH-H-657. The defendant agreed to sell the said barge to the plaintiff for the aforesaid amount of Rs. 1,60,00,000. 00. It was agreed that the plaintiff shall pay Rs. 15,00,000. 00 towards earnest money to the defendant and balance of Rs. 1,45,00,000. 00 was to be paid within a period of 70 days from the date of the agreement. It was agreed that plaintiff should pay 18% interest to the defendant, upon his failure, to pay the balance amount within the stipulated period of 70 days. The agreement in question was to remain in force up to 21/03/1998. The plaintiff failed to pay the said amount by 21/03/1998.

(2.) ACCORDING to the plaintiff, the defendant executed in writing a letter in favour of plaintiff on 3/09/1998, requesting the plaintiff to give NOC as the defendant wanted to sell the said barge to someone else and agreed to pay the earnest money back, the moment he sells the barge. The plaintiff accordingly gave NOC to the defendant. According to the plaintiff, the defendant sold the said barge on 21/09/1998 ,but failed to pay back the amount of earnest money to the plaintiff. The plaintiff accordingly was obliged to file the aforesaid suit for getting the aforesaid amount back i. e. Rs. 15,00,000. 00 which he had paid at the time of entering into an agreement for the purpose of purchasing the barge.

(3.) THE suit was resisted by the defendant. It is the case of defendant that since the plaintiff had not paid the remaining amount of Rs. 1,45,00,000. 00 which was required to be paid on or before 21/03/1998, that the agreement stood terminated on the said day and the defendant was discharged from all the liability upon termination of the said agreement.