JEET RAM Vs. UMED

JUDGEMENT

(1.) This is plaintiff's second appeal challenging the judgments and decrees of the Courts below whereby in a suit for specific performance of the agreement to sell, the Courts below while decreeing his case for refund of earnest money of Rs.5,50,000/- has denied him the relief of specific performance of the agreement to sell in question.

(2.) According to the appellant, he entered into an agreement to purchase the land in dispute, measuring 16 kanals as detailed in the plaint, from the respondent for a total consideration of Rs.12,00,000/-and paid Rs.5,50,000/- as earnest money and further agreed to pay the balance amount on 30.7.2006. As per the aforesaid agreement, it was further agreed that in case the respondent, repays this amount along with interest @ 1% per month, the agreement shall stand cancelled. Since the respondent had failed to repay the amount and thereafter, to execute the sale deed in his favour, he was entitled to the decree for specific performance of the agreement to sell in question. It is the further case of the appellant that he was present before the Sub Registrar on 31.7.2006 to get the sale deed executed in his favour but the respondent has failed to execute the same and thus, necessity arose to file the instant suit.

(3.) Upon notice, the defendant-respondent filed written statement claiming that he has returned the money which was borrowed. The agreement was executed as a security to repay loan. It was further submitted that the appellant got an agreement executed in favour of Inder Singh, his brother in law. The amount of Rs.5,00,000/- along with interest was adjusted in the said agreement and therefore, he was not bound to execute any sale deed in favour of the appellant. It was merely a paper transaction. Dismissal of the suit was prayed for.