CHINNA MUNUSWAMI NAYUDU Vs. SAGALAGUNA NAYUDU

JUDGEMENT

(1.) On 28 January, 1891, Venkatasubrahmanya Aiyar,on behalf of himself and his minor son Krishnaswami Aiyar, sold the village of Siyatti to Venkata-pathi Nayudu for a consideration of Rs. 10,000. On the same day the parties executed what is termed a counterpart document,by which the purchaser Venkatapathi Nayudu agreed to reconvey the village for the same consideration of Rs. 10,000 if the vendor made an application for that purpose in the month of Ani 30 years later. Venkatasubrahmanya Aiyar died in 1899, leaving Krishnaswami Aiyar, his only son, surviving him. Krishnaswami Aiyar assigned his interest under the counterpart agreement, Ex. B (1), to the plaintiff in this suit for a consideration of Rs. 19,200 out of which Rs. 10,000 were to be paid to get a reconveyance according to the terms of that document.

(2.) The plaintiff's suit was dismissed in the Court of the Subordinate Judge of Chingleput on the ground that there was no completed agreement, but only a standing offer, the benefit of which could not be assigned to a stranger. I am unable to agree with the learned Subordinate Judge upon this point. In my view Ex. B (1) was a contract containing an undertaking on the part of the purchaser to accept an offer of repurchase if made by the vendor for a certain amount at a certain future time. In other words what Krishnaswami Aiyar assigned to the plaintiff was the right under an executory contract to exercise an option at a certain future date to obtain a conveyance of immoveablc property at a certain price. An offer or proposal cannot of course be enforced till it is accepted; but here the parties had gone beyond the stage of proposal and had entered into a contract which was supported by consideration, as was found in the trial Court. As the learned Subordinate Judge observed: Siyatti village was sold by Venkatasubrahinanya Aiyar for Rs. 10,000 plus the benefit of getting back the village under the conditions mentioned in Ex. B (1).

(3.) The fact that Venkatasubrahmanya Aiyar had sold the village to Venkatapathi Nayudu was the consideration for executing this agreement for a reconveyance. The terms of the agreement between the parties were as follows: As I have this day purchased absolutely; for Rs. 10,000 the entire village of Siyatti which belongs to you in the Conjeevaram Taluk, Chingleput District, and in which you hold ekabhoga mirasi right and the right to cultivate, I shall again convey to you the said village after a period of 30 years from this date, i. e, in the Ani cultivation season of the 30 year in case you wish to have the village again, and on your paying the said sum of Rs. 10,000 to me.