SURESH RARAAKRISHNA MAHALE v. SHANTIBAI KOM RAMAKANT
1997-09-22
T.N.VALLINAYAGAM
body1997
DigiLaw.ai
T. N. VALLINAYAGAM, J. ( 1 ) THE plaintiff is the appellant. The suit for specific performance was dismissed by the trial Court and such dismissal was confirmed by the Appellate court on appeal by the plaintiff, the plaintiff is therefore before this Court in this second appeal. ( 2 ) THE case of the plaintiff is that the suit plot belongs to the defendant and she on 19. 5. 1975 executed an agreement in favour of the plaintiff agreeing to sell the same for a sum of Rs. 10,000/- and a sum of Rs. 1500/- was paid as advance and the balance of Rs. 8,500/- was to be paid on or before may 1976. The amount was not paid alleging that he is ready and willing to perform his part of the contract offering to pay the balance of the sale consideration. He also prayed for a decree against the defendant for return of the earnest money with interest. ( 3 ) THE defendant contended admitting the agreement but denying that plaintiffs is ready and willing to perform the contract. She had already filed O. S. 67/78 against the plaintiff when he unlawfully entered into the possession of the defendant. The said suit was pending alleging that the plaintiff never approached her aged father to execute the sale deed or for refund of money. She contended that the advance paid should be forfeited. ( 4 ) THE trial Court found that the plaintiff has not performed his part of the contract and the suit is also barred by the period of limitation. On this ground the suit was dismissed. To the question that limitation was not canvassed before the trial Court, the trial Court held that the suit was in time. Holding that the advance, itself was forfeited, the trial Court dismissed the suit. The Appellate Court confirmed the for feiture folding that the time is the essence of the contract. In view of the recitals in the agreement of sale, the normal presumption that time is not the essence of the contract is disbelieved in the present case. Consequently, the dismissal was confirmed by the Appellate Court. ( 5 ) PRIMA facie it is seen that the agreement was dated 19. 5. 1975 and the agreement is to be completed on or before May 1976. The suit was filed on 3. 8. 1978.
Consequently, the dismissal was confirmed by the Appellate Court. ( 5 ) PRIMA facie it is seen that the agreement was dated 19. 5. 1975 and the agreement is to be completed on or before May 1976. The suit was filed on 3. 8. 1978. Once the time is fixed in the contract for specific performance, and on the expiry of the time, the limitation begin to run. In this case, the limitation started to run from May. 1976. Consequently, the suit filed on 3. 8. 1978 is in time. The plaint was prepared on 26. 7. 1978 and presented on 3. 8. 1. 978. It was alleged in the plaint that the plaintiff approached the defendant with the balance amount of consideration on 15. 4. 1976 and the defendant refused to accept the same. Therefore, the suit filed on 3. 8. 1978 is in time. The decision relied upon in Govind Prasad Chaturvedi v. Hari Dutt Shastri to the following effect makes the position clear:"the fixation of the period within which the contract has to be performed does not make the stipulation as to time the essence of the contract. When a contract relates to sale of immoveable property it will normally be presumed that the time is not the essence of the contract. The intention to treat time as the essence of the contract may be evidenced by circumstances which should be sufficiently strong to displace the normal presumption that in a contract of sale of land stipulation as to time is not the essence of the contract. " ( 6 ) TIME is not always the essence of the contract. But if circumstances mentioned in the recitals indicate the intention of the parties as time being the essence of the contract, then time in that particular contract shall be construed to be the essence of that contract. In the above case it is also seen that there was neither pleading nor evidence. It was contended that time was the essence of the contract and the party did not come to the trial on that basis. No issue was framed in that regard. Neither terms of the agreement nor correspondence indicate that the time is the essence of the contract. Therefore, the view held by the High Court in that case that time is the essence of the contract has been set aside by the Supreme Court.
No issue was framed in that regard. Neither terms of the agreement nor correspondence indicate that the time is the essence of the contract. Therefore, the view held by the High Court in that case that time is the essence of the contract has been set aside by the Supreme Court. Therefore, the question whether time is the essence of the contract or not depends upon the facts of the case, and the same has been specifically pleaded on the basis of the recitals and the evidence must be adduced in that regard, otherwise time can never be construed as the essence of the contract in a case of specific performance. ( 7 ) THEREFORE, in this case, it cannot be construed that time is the essence of the contract. But the important aspect in this case is that the courts below have found that the plaintiff is not ready and willing. On the other hand, it appears that P. W. 1 had filed a declaration before the Land Reform Tribunal. Mundgod on 29. 12. 1976 claiming occupancy rights in respect of the suit land and his claim has been rejected by the land Tribunal under ex. D. 1. Therefore, having chosen to apply to the Land Tribunal for allotment of land on the basis of the alleged occupancy right, the plaintiff should be deemed to have given up his rights, if any, under the contract of sale. Evidently the plaintiff thought he can get over the payment of money under the contract of sale if he could succeed before the Tribunal and such conduct on the part of the plaintiff cannot be construed to make him eligible on equitable remedy under the Specific Relief act. The Courts below have concurrently found that the plaintiff has not performed his part of the contract and this concurrent finding does not call for interference. ( 8 ) IN this view, the second appeal is partly allowed so far as the return of money is concerned and the other claim for specific performance is dismissed. However, the plaintiff is entitled to refund of Rs. 1,500/- paid by him together with interest at 18% per annum and the defendant shall pay the same. The said amount with interest shall be a charge on the property for due payment thereof. ( 9 ) SUBJECT to the above modification, the second appeal is allowed partly.
However, the plaintiff is entitled to refund of Rs. 1,500/- paid by him together with interest at 18% per annum and the defendant shall pay the same. The said amount with interest shall be a charge on the property for due payment thereof. ( 9 ) SUBJECT to the above modification, the second appeal is allowed partly. --- *** --- .