DHANRAJGIRJI NARSINGGIRJI Vs. TATA SONS LTD

JUDGEMENT

(1.) This appeal arises out of a suit filed by the plaintiffs for recovery of the deposit money, and for damages in respect of a contract entered into between them and the deceased Raja Bahadur Narsinggirji with reference to certain immoveable property in Bombay which has been described as "Watson's Annexe." The contract was entered into on January 12, 1920, There was no formal contract between the parties, but it is evidenced by the two letters written on January 12, 1920, to the parties by their common broker (Exs. A2and l). The price of this property was fixed at Rs. 18,00,000 (eighteen lacs). The plaintiffs paid Rs. 1,00,000 as earnest money on January i3.

(2.) The plaintiffs case is that Raja Bahadur Narsinggirji broke the contract on November 20, 1920, the final date by which performance of the contract was insisted upon on their behalf. It appears that the plaintiffs entered into a contract for the sale of this very property with another person for twenty-three lacs of rupees within a fortnight from the date of the agreement in question. The plaintiffs ultimately claimed the return of the deposit money and damages to the extent of five lacs of rupees by way of lo3S which they suffered on account of their having been unable to carry out their contract with their purchaser.

(3.) The defendant denied having broken, the contract, and in effect contended that he had a good title to the property which he was always ready and willing to convey to the plaintiffs, and that the difficulty which arose in consequence of a suit filed by one Dr. Billimoria, who was in possession of this property as a lessee from him, was one for which he was not in any sense responsible. He made a counter claim for the specific performance of the contract in his favour, and contended that the plaintiffs had forfeited the deposit money.