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2018 DIGILAW 2243 (MAD)

Genereal Fabricators Pvt. Ltd, Rep. by its Managing Director v. S. S. Syed Ibrahim Sha

2018-07-25

M.M.SUNDRESH, N.ANAND VENKATESH

body2018
JUDGMENT : N. ANAND VENKATESH, J. 1. The plaintiff in the suit is the appellant in this appeal. The suit was filed for a declaration to declare the sale agreement dated 18.08.2016, executed between the plaintiff and the defendant, has been validly terminated. 2. During the pendency of the suit, the plaintiff filed A.No.7094 of 2017 to permit them to sell the suit property to any third party, pending disposal of the suit. In the said application, an affidavit was filed by the defendant undertaking to pay a sum of Rs.6 crores within four months, on or before 22.04.2018. This Court took the affidavit on file and passed an order dated 22.12.2017, to the effect that if the defendant does not pay the entire amount of Rs.6 crores as per the undertaking, the plaintiff was permitted to sell the property to any third party and the plaintiff was also directed to return the advance amount of Rs.1.25 crores to the defendant. 3. The defendant did not comply with the undertaking given by him before this Court. Therefore, the plaintiff proceeded to write a letter dated 25.04.2018, to the defendant informing about the orders passed by this Court and along with a letter, three cheques totalling a sum of Rs.1.25 crores was also sent to the defendant. Thereafter, the applicant again came up for hearing before the learned Single Judge and the leaned Single Judge was apprised of the development. The learned Single Judge permitted the plaintiff to sell the property to any third party and also directed the plaintiff to deposit the sum of Rs.1.25 crores with interest at the rate of 7.5% from the date of payment of advance, before this Court. 4. This appeal has been filed by the plaintiff aggrieved by the direction given by the learned Single Judge to deposit 1.25 crores along with interest. 5. Mr.R.Krishnamoorthy, learned senior counsel for Mr.S.Raghavan, appearing for the appellant would submit that the order of the learned Single Judge virtually amounts to reviewing the earlier order since the earlier order merely directed the plaintiff to deposit Rs.1.25 crores and the later order added payment of interest towards the said amount. 5. Mr.R.Krishnamoorthy, learned senior counsel for Mr.S.Raghavan, appearing for the appellant would submit that the order of the learned Single Judge virtually amounts to reviewing the earlier order since the earlier order merely directed the plaintiff to deposit Rs.1.25 crores and the later order added payment of interest towards the said amount. The leaned senior counsel further contended that the defendant has neither filed a suit for Specific Performance nor filed a suit or counter claim seeking for the payment of the advance amount and the order passed by the leaned Single virtually amounts to the defendant getting a relief in the suit filed by the plaintiff. The learned senior counsel finally contended that the subsequent order of the learned Single is merely consequential to the order dated 22.12.2017, and it cannot modify the earlier order and thereby cause prejudice to the plaintiff. 6. Mr.R.Ravichandran, learned counsel for the respondent would submit that it is an admitted case that the plaintiff received an advance amount of Rs.1.25 crores on the date of sale agreement on 18.08.2016, and the said amount has not been repaid to the defendant, and therefore, the learned Single Judge was right in directing the plaintiff to pay a nominal interest on the advance amount. Therefore, the learned counsel would submit that there is no need to interfere with the order of the learned Single Judge. 7. It is true that an order was passed on 22.12.2017, based on the undertaking affidavit filed by the defendant, to the effect that if the defendant does not deposit a sum of Rs.6 crores on or before 22.04.2018, the plaintiff was directed to return the advance amount to the defendant and also was permitted to sell the suit property. Admittedly, the defendant did not comply with the undertaking. The plaintiff claims that cheques for an amount of Rs.1.25 crores was sent along with the covering letter dated 25.04.2018, to the defendant. However, the defendant claims that he received only the letter and no cheques were sent along with the letter. At this stage it is not necessary for this Court to enter into this controversy. 8. The subsequent order passed by the learned Single Judge, dated 26.06.2018, in a sense modifies the earlier order. However, the defendant claims that he received only the letter and no cheques were sent along with the letter. At this stage it is not necessary for this Court to enter into this controversy. 8. The subsequent order passed by the learned Single Judge, dated 26.06.2018, in a sense modifies the earlier order. However, the learned Single Judge only took into consideration about the fact that the plaintiff was retaining an amount of Rs.1.25 crores from August 2016 onwards and therefore, some reasonable interest must be paid by the plaintiff towards that amount. Therefore, the learned Single Judge thought it fit to impose a nominal interest. 8. On a careful consideration of the facts placed before us and with a view to balance the rights of both the parties, this Court passes the following order in this appeal: (a)The appellant/plaintiff is directed to pay a sum of Rs.1.30 crores to the respondent/defendant within a period of two weeks from the date of receipt of copy of this order. (b)On such payment being made, the appellant/plaintiff is entitled to deal with the property and sell the property to any third party. (c)Neither the learned Single Judge, nor this Court in appeal has gone into the merits of the case and it is left open to the parties to raise all their pleas on merits in the suit and the present order is more in the nature of an interim arrangement, pending the suit. 9. This Original Side Appeal is disposed of accordingly by modifying the order of the learned Single Judge made in A.No.7094/2017 in C.S.No.648/2017, dated 26.06.2018, to the extent indicated above. In the facts and circumstances of the case, there will be no order as to costs. Consequently, the connected civil miscellaneous petition is closed.