MILKHA SINGH Vs. NIRMAL SINGH

JUDGEMENT

(1.) THIS is a defendants' Regular Second Appeal against the judgments and decrees passed by the learned Courts below in a suit for specific performance of contract of sale of land measuring 5 kanals 4 marlas equal to half share of 10 kanals and 8 marlas of land bearing Rect. No. 19, Killa No. 21 Min (1-8), 22(4-9), Rect. No. 24, Killa No. 1/3(0-15), 2/1(3-16), situated in village Valour, Tehsil and District Ferozepur, on payment of Rs. 13,000 (Rs. thirteen thousands) less Rs. 6,000 (Rs. six thousands) already paid as earnest money and Rs. 3,000/- as mortgage amount already paid to defendant No. 1 by the plaintiffs.

(2.) THE minor-plaintiffs filed a suit through their father Labh Singh on the plea that the land measuring 10 kanals and 8 marlas was originally owned by Shri Harwant Singh, defendant No. 1. It was mortgaged with possession by Harwant Singh with Labh Singh, father of the plaintiffs for a sum of Rs. 2,700/- on 9th of June 1960. Thereafter Harwant Singh mortgaged half share of this land with the plaintiffs for a consideration of Rs. 3,000/- vide regd. mortgage deed dated 23.5.1967. The sum of Rs. 1,350/- was paid to Labh Singh, the previous mortgagee and plaintiffs came in possession as mortgagees of half share of the land fully described in the heading of the plaint. The defendant No. 1 thereafter agreed to sell half share of the land mentioned in the heading of the plaint which was mortgaged with the plaintiffs to the plaintiffs @ Rs. 20,000/- (Rs. twenty thousands) per killa. Thus, the price of the land agreed to be sold by defendant No. 1 to the plaintiffs was fixed at Rs. 13,000/- (Rs. thirteen thousands) and an earnest money of Rs. 6,000/- (Rs. six thousands) was paid on 18.1.1979 and agreement was executed by defendant No. 1 in favour of the plaintiff. It was agreed between the parties that defendant No. 1 would execute the sale-deed and get it registered by 30th June, 1979 on the payment of balance sale amount and in case of his failure to do so, then the plaintiffs would be entitled to another sum of Rs. 6,000/- as damages besides the earnest money already paid by them.

(3.) THE appellant-defendant Nos. 2 to 4 contested the suit on the ground that defendant No. 1 never executed any agreement to sell with the plaintiff- respondents regarding the land in dispute. It was claimed that defendant No. 1 had not received Rs. 6,000/- (Rs. six thousands) as earnest money. Execution of mortgage deed was also disputed. It was also the case of the defendants that no mortgage amount was received by defendant No. 1. It was also the case set up by the defendants that they had purchased the land for valuable consideration without having any knowledge regarding the agreement in favour of the plaintiffs that they were bona fide purchasers for consideration. It was also claimed that the plaintiffs were not entitled to recover earnest money and damages as claimed.