JAGABANDHU DUTTA Vs. TARAK NATH DAS

JUDGEMENT

(1.) THIS appeal is directed against an appellate decree reversing the decree passed by a learned Munsif. Two points arise for my decision m this appeal. One is whether in the matter of a contract of sale, the plaintiff, who was to be the purchaser, was a defaulter and was liable to have his earnest money forfeited by the defendants; the other is whether the earnest money was liable to be forfeited in its entirety or whether the defendants vendors were entitled to receive only a reasonable compensation out of the earnest money.

(2.) THE facts leading to the dispute are hereinafter stated. On September 27, 1946, the plaintiff entered into an agreement with the father and predecessor of the defendants, one Nagendra Nath Das, under which he agreed to purchase premises no. 15[1, Elgin Road for a sum of Rs. 29,000/- and paid to the said Nagendra Nath Das a sum of Rs. 1001/- as earnest money.

(3.) THE principal terms of the aforesaid agreement were: (1) That the vendor shall be liable to make over to the purchaser only a copy of the partition decree and some municipal rate bills and it will be for the intending purchaser to have inspection of other deeds of title either from the Collectorate or from the Court. (2) The intending purchaser will have to approve, if at all, the title of the vendor within 15 days of the re-opening of the High Court after the long holidays and within 15 days of the date of the approval of the title to have the conveyance executed on payment of the balance of the consideration money. (3) If the title was not approved by the Solicitor of the intending purchaser within the time as aforesaid, the vendor shall be liable to refund the earnest money with costs not exceeding Rs. 32/ -. If, however, the Solicitor for the purchaser neglected to approve of the vendor's title within the fixed time, the title of the vendor shall be deemed to have been approved, in that event, by the intending purchaser. (4) If the intending purchaser failed to have the conveyance executed and registered within December 31, 1946, the vendor shall be at liberty to forfeit the earnest money and to cancel the agreement for sale without notice and also to transfer the property to any body else. (5) The date December 81, 1946, was to be treated as the essence of the contract of sale.