Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
2023INSC823
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 5342 of 2023
A. VALLIAMMAI ..... APPELLANT
VERSUS
K.P. MURALI AND OTHERS ..... RESPONDENTS
W I T H
CIVIL APPEAL NO. 5343 of 2023
CIVIL APPEAL NO. 5344 OF 2023
A N D
CIVIL APPEAL NO. 5345 OF 2023
J U D G M E N T
SANJIV KHANNA, J.
I.A. Nos. 1 of 2017 and 27407 of 2023.
1. I.A. Nos. 1 of 2017 and 27407 of 2023, for permission to take on
record additional evidence in the nature of documents, are not
opposed. Accordingly, I.A. Nos. 1 of 2017 and 27407 of 2023 are
allowed. The documents are taken on record. S. Nos. 2 – 12 in I.A.
Signature Not Verified
1
No. 1 of 2017 are marked as Exhibit Nos. S-1 – S-11 , and S. Nos.
Digitally signed by
Narendra Prasad
Date: 2023.09.12
19:14:02 IST
Reason:
1
Exhibit S-1 – a true copy of the judgment dated 23.12.1992 passed by the district munsif court in
O.S. No. 508 of 1991; Exhibit S-2 – a true copy of the lawyer's notice dated 11.07.1994; Exhibit S-3
Civil Appeal No. 5342 of 2023 & Ors. Page 1 of 21
2 – 4 in I.A. No. 27407 of 2023 are marked as Exhibit Nos. S-12 – S-
2
14 .
C.A. Nos. 5342-5345 of 2023.
1. The impugned judgment by the Division Bench of the Madras High
Court at Madurai, dated 20.12.2016, in Appeal Suit (MD) No. 63 of
2007, affirms the judgment and decree of specific performance
passed by the court of the Additional District and Sessions Judge,
Fast Track Court No.1, Tiruchirapalli, dated 28.12.2006, in O.S. No.
21 of 2004.
2. The appellant in Civil Appeal No. 5342 of 2023 is A. Valliammai,
statedly owner of 11 acres of land situated at the west end of survey
numbers 55/2B1 and 55/2B2 in 58, Agaram village, Tiruverambur
3
sub-district, Trichi district , having inherited the same being the
second wife of late Ayyamperumal. Civil Appeal Nos. 5343 of 2023,
5344 of 2023 and 5345 of 2023 are preferred by S. Jayaprakash
– a true copy of the rejoinder notice dated 13.07.1994; Exhibit S-4 – a true copy of the judgment dated
12.06.2002 passed by the district munsif court in O.S. No. 1164 of 1994; Exhibit S-5 – a true copy of
the deposition of PW-1 – plaintiff – Duraisamy, in O.S. No. 21 of 2004 dated 05.07.2004; Exhibit S-6
– a true copy of the deposition of the DW-1 – first defendant – K. Sriram in O.S. No. 21 of 2004 dated
07.09.2006; Exhibit S-7 – a true copy of the deposition of DW-2 – second defendant – Valliammai, in
O.S. No. 21 of 2004 dated 15.09.2006; Exhibit S-8 – a true copy of the deposition of DW-3 – Sivakami
in O.S. No. 21 of 2004 dated 26.10.2006; Exhibit S-9 – a true copy of the deposition of DW-4 –
Singaram in O.S. No. 21 of 2004 dated 10.11.2006; Exhibit S-10 – a true copy of the sale deed dated
08.05.1995 along with the power of attorney deed dated 28.11.1994; Exhibit S-11 – a true copy of the
notice dated 31.08.1991.
2
Exhibit S-12 – a true copy of the judgement/order dated 03.11.1989 passed in O.S. No. 787 of 85
and docket orders in O.S. No. 787 of 85 along with photocopy of the original; Exhibit S-13 – a true
copy of the rejoinder notice sent on behalf of K. Sriram dated 31.08.1991; Exhibit S-14 – a true copy
of the rejoinder reply sent on behalf of A. Valliammai dated 16.09.1991.
3
For short, “Suit Property”.
Civil Appeal No. 5342 of 2023 & Ors. Page 2 of 21
and others, A. Jeyakumar and others, and S. Balasubramanian and
others, who are subsequent purchasers having purchased portions
of the Suit Property.
3. A. Valliammai had entered into an agreement to sell dated
26.05.1988, Exhibit A-1, with respondent no. 3 – K. Sriram, for the
sale of the Suit Property at the rate of Rs. 2,95,000/- per acre. An
amount of Rs. 1,00,000/- was paid by K. Sriram to A. Valliammai as
an advance. The balance sale consideration of Rs. 31,45,000/- was
required to be paid within one year from 26.05.1988, that is, by
26.05.1989. However, vide endorsement dated 26.05.1989, Exhibit
A-3, the timeline for payment of the balance sale consideration and
execution of the sale deed was extended by 6 months, that is, till
26.11.1989.
4. In order to decide these appeals, before we refer to the facts leading
to the filing of the suit for specific performance, we would like to
reproduce two clauses of the agreement to sell (Exhibit A-1). The
clauses read:
“The under mentioned 4.40 acres in survey number
55/2B 1 which is in my name which is located in the sale
property east to west shift to the east end, north to south
in favour of Ayyarmalai trust and after shifting it pass
through survey numbers 55/2B 1 and 2B 2 and then sell
the properties to you so the 11 acres properties which I
sell to you shift to the west end into the above two
survey numbers and ensure that the lone properties
which I sell to you would come within the limit.
Civil Appeal No. 5342 of 2023 & Ors. Page 3 of 21
xx xx xx
I assure that there is encumbrance or dispute over the
under described property except the original suit
number 737/85 in the sub court. If any encumbrance or
dispute is found later on, I assure that I will settle those
encumbrances and disputes at my responsibility.”
5. On 11.07.1991, K. Sriram had issued a legal notice through his
advocate, Exhibit A-6, requiring A. Valliammai to accept the
balance sale consideration and execute the sale deed within one
month. A. Valliammai had agreed to execute the sale deed within
one year from the date of the agreement by executing single or
multiple deeds in favour of K. Sriram or third persons, as suggested
by him. On 14.04.1991, A. Valliammai had demanded Rs.
3,00,000/- as a part of the sale consideration, but on 07.07.1991,
she had refused to accept the Rs. 3,00,000/- offered by K. Sriram.
Further, A. Valliammai had expressed her willingness to sell only
half of the Suit Property and that too at an enhanced consideration
of Rs. 4,17,000/- per acre. A. Valliammai had assured to convert
4
4.40 acres of land belonging to the Ayyarmalai Trust , to ensure
that the property under sale in terms of the agreement to sell
(Exhibit A-1) lies adjacent to Trichy to Tanjavur road. At his own
expense, K. Sriram had put in great effort to facilitate such
4
For short, “Trust”.
Civil Appeal No. 5342 of 2023 & Ors. Page 4 of 21
conversion. He had prepared the layout plan, submitted it to
Triuverambur Panchayat Union and Madras Town Planning for their
approval and had handed over the common land to Tiruverambur
Panchayat Union. A. Valliammai had also promised to settle the
partition suit in O.S. No. 787 of 1985, pending in Tiruchi sub court,
filed by Rajamani Ammal, first wife of A. Valliammai’s husband, late
Ayyamperumal Konar, that is, the original owner of the Suit
5
Property.
6. A. Valliammai responded vide reply sent by her advocate dated
09.08.1991, Exhibit A-7. She denied having demanded the
payment of Rs. 3,00,000/-. Conversely, she alleged that K. Sriram
had failed to perform and abide by the agreement to sell (Exhibit A-
1) within the stipulated deadline due to his inability to complete the
contract. The allegations made by K. Sriram were invented to
postpone the execution of the sale deed. She had submitted an
application for cancellation of the layout plan due to difficulty in
obtaining approval. She denied that K. Sriram had spent any money
in putting up the layout. Only if the property belonging to the Trust
is allotted on the east, then the property as described could be
conveyed. She denied that the partition suit in O.S. no. 787 of 1985
5
Rajamani Ammal and late Ayyamperumal Konar were childless.
Civil Appeal No. 5342 of 2023 & Ors. Page 5 of 21
was to be disposed of at her cost. K. Sriram was aware of the
pendency. The sale deed was to be executed after disposal of the
partition suit. A. Valliammai did not want to take the risk of
conveying the property since the said partition suit had not been
disposed of.
7. K. Sriram responded vide rejoinder dated 31.08.1991, Exhibit S-13,
stating that the allegations made by A. Valliammai were incorrect.
A. Valliammai wanted to extricate herself from the agreement. He
was ready and willing to perform his obligations under the
agreement to sell (Exhibit A-1). The demand to execute the sale
deed was not pre-mature. K. Sriram had spent a lot of money to
obtain an approval of the layout plan. K. Sriram had instructed his
advocate to file a suit for specific performance. But before that he
wanted to give one last opportunity to A. Valliammai to execute the
sale deed in 2 weeks, when he would offer the balance sale
consideration. Further, the partition suit in O.S. No. 787 of 1985 was
dismissed for default on 04.07.1991. Wrong survey demarcation
viz. the land belonging to the Trust stood corrected such that the
Trust’s property was situated on the east and the Suit Property on
the west.
8. A. Valliammai responded vide rejoinder reply dated 16.09.1991,
Civil Appeal No. 5342 of 2023 & Ors. Page 6 of 21
Exhibit S-14, in which she denied that a sale deed could be
executed and specifically enforced. While accepting that the
partition suit in O.S. No. 787 of 1985 had been dismissed for
default, it was stated that an application for its restoration was filed.
The suit might be restored. A. Valliammai claimed that she was
illiterate. Although she was taken to the Revenue Office, she was
unaware about the contents of the statement said to have been
made by her. In any event, exchange of property requires a
registered document. A partition deed cannot be corrected in the
survey proceedings.
9. On 15.07.1991, K. Sriram filed a suit for permanent injunction in
O.S. No. 1508 of 1991 to restrain A. Valliammai from dealing with
the Suit Property till she executes the sale deeds. A. Valliammai, it
was alleged, was negotiating with third parties to sell the Suit
Property. K. Sriram would be filing a suit for specific performance
in a short time, and was waiting for a reply to his notice.
10. A. Valliammai contested the suit, and in her written statement, she
had alleged that K. Sriram was never ready and willing to perform
the agreement to sell (Exhibit A-1). He had therefore filed a suit of
injunction instead of a suit of specific performance. She had
claimed that time was essence of the contract. She had consented
Civil Appeal No. 5342 of 2023 & Ors. Page 7 of 21
for extension of time till 26.11.1989, but K. Sriram had not paid the
balance sale consideration till that date. Suit Property had been
leased out to one A. Gopalakrishnan, who was in possession and
was cultivating the land.
11. An order of temporary injunction was passed in favour of K. Sriram
and against A. Valliammai by the trial court. However, on
23.12.1992 the suit was dismissed as not pressed. Liberty to file a
fresh suit was neither prayed nor granted.
12. On 23.12.1992 itself, K. Sriram assigned his rights under the
agreement to sell (Exhibit A-1) in favour of respondent no.1 – K.P.
Murali and respondent no.2 - S.P. Duraisamy, vide assignment
agreement dated 23.12.1992, Exhibit A-2.
13. K.P. Murali and S.P. Duraisamy, filed a suit for permanent
injunction in O.S. No. 1651 of 1994 with a prayer to restrain A.
Valliammai from dealing with the Suit Property. Decree for specific
performance of the agreement to sale (Exhibit A-1) was not prayed.
It appears that an interim injunction was not granted.
14. On 02.05.1995, A. Valliammai sold 5 acres, a portion of the Suit
Property, for a sale consideration of Rs.7,50,000/- to B. Namichand
Jain and three others. The purchasers were put in possession and
Civil Appeal No. 5342 of 2023 & Ors. Page 8 of 21
enjoyment of such portions of the Suit Property.
15. On 27.09.1995, during pendency of the suit for permanent
injunction in O.S. No. 1651 of 1994, K.P. Murali and S.P. Duraisamy
filed a suit for specific performance in O.S. No. 1126 of 1995,
subsequently renumbered as O.S. No. 21 of 2004. The present
appeal arises from the judgment and decree of the trial court in the
said suit, affirmed subsequently by the High Court in the impugned
judgment.
16. The suit was defended by A. Valliammai on several grounds,
including, inter alia , constructive res judicata , bar under Order II
6
Rule 2 of the Code of Civil Procedure, 1908, bar of limitation,
failure to show readiness and willingness to perform the agreement
to sell (Exhibit A-1) and invalidity of the assignment agreement
(Exhibit A-2).
17. The trial court framed one issue, that is, whether the plaintiffs were
entitled to the relief of specific performance. Trial court held that the
execution of the agreement to sell (Exhibit A-1) and its extension
by six months vide the endorsement (Exhibit A-3) were admitted.
A. Valliammai had not led evidence regarding allotment of land to
the Trust on the eastward side or her willingness to refund the
6
For short, “Code”.
Civil Appeal No. 5342 of 2023 & Ors. Page 9 of 21
advance amount. Further, K. Sriram was not aware of the status of
partition suit in O.S. No. 787 of 1985. In terms of Order VIII, Rules
4 and 5 of the Code, A. Valliammai had not denied her intention to
complete the agreement to sell (Exhibit A-1). K.P. Murali and S.P.
Duraisamy had awaited the conclusion of the partition suit in O.S.
No. 787 of 1985. Therefore the limitation period had not
commenced till the disposal of the said partition suit on 30.04.1993.
Correspondingly, the plea of res judicata was rejected since the
decision to not file the suit of specific performance was considered
to be bona-fide. K. Sriram was ready and willing to perform the
agreement to sell (Exhibit A-1) since he had taken steps to divide
the Suit Property into housing plots. The contention that the
assignment agreement (Exhibit A-2) would not confer any rights to
K.P. Murali and S.P. Duraisamy was rejected.
18. The High Court in the impugned judgment rejected the pleas of res
judicata or bar under Order II, Rule 2 of the Code in view of the
pendency of the partition suit in O.S. No. 787 of 1985. However, the
allotment of the Trust property eastwards was held to be non-
essential to the agreement to sell (Exhibit A-1). The High Court
agreed with the trial court, that K. Sriram was ready and willing to
purchase the Suit Property and had taken steps to execute the sale
deeds. K. Sriram had also reserved his right to file a suit for specific
Civil Appeal No. 5342 of 2023 & Ors. Page 10 of 21
performance during the suit for injunction in O.S. No. 1508 of 1991,
which suit was subsequently dismissed as not pressed.
19. We must record at the outset that there is considerable force in the
contention raised by the appellants relying upon the principle of
constructive res judicata or Order II, Rule 2 of the Code. However,
we are not giving an affirmative final opinion on these pleas. The
appellants must succeed in this appeal since the suit for specific
performance in O.S. No. 21 of 2004 is clearly and without doubt
barred by limitation. To avoid prolixity, the arguments raised by the
learned counsels for the parties would be referred to in our
discussion and reasoning.
7
20. Article 54 of Part II of the Schedule to the Limitation Act, 1963
stipulates the limitation period for filing a suit for specific
performance as three years from the date fixed for performance,
and in alternative when no date is fixed, three years from the date
8
when the plaintiff has notice that performance has been refused.
7
For short, “Article 54”.
8
The Schedule
xxx
| Description of suit | Period of<br>limitation | Time from which period<br>begins to run |
|---|---|---|
| 54. For specific performance of a<br>contract. | Three years | The date fixed for the<br>performance, or, if no such<br>date is fixed, when the<br>plaintiff has notice that<br>performance is refused. |
Civil Appeal No. 5342 of 2023 & Ors. Page 11 of 21
Section 9 of the Limitation Act, 1963 stipulates that once the
limitation period has commenced, it continues to run, irrespective
of any subsequent disability or inability to institute a suit or make an
9
application.
21. It is an accepted position that Rs. 1,00,000/- was paid at the time of
execution of the agreement to sell (Exhibit A-1), and the balance
consideration of Rs. 31,45,000 was required to be paid by
26.05.1989. Time for payment of Rs.31,45,000/- and execution of
the sale deed was extended till 26.11.1989 vide the endorsement
(Exhibit A-3). If we take the date 26.11.1989 as the date for
performance, the suit for specific performance filed on 27.09.1995,
is barred by limitation. However, we agree with the submission
raised on behalf of K.P. Murali and S.P. Duraisamy, that the
aforesaid time, as fixed vide the agreement to sell and the
endorsement (Exhibit A-1 and A-3), was not the essence of the
contract and therefore, the first part of Article 54 will not be
10 11
applicable. Instead, the second part of Article 54 will apply. On
the interpretation of Article 54, this Court in Pachanan Dhara and
9
9. Continuous running of time: Where once time has begun to run, no subsequent disability or
inability to institute a suit or make an application stops it. Provided that where letters of administration
to the estate of a creditor have been granted to his debtor, the running of the period of limitation for a
suit to recover the debt shall be suspended while the administration continues .
10
Supra Note 8.
11
Supra Note 8.
Civil Appeal No. 5342 of 2023 & Ors. Page 12 of 21
12
Others v. Monmatha Nath Maity , has held that for determining
applicability of the first or the second part, the court will have to see
whether any time was fixed for performance of the agreement to
sell and if so fixed, whether the suit was filed beyond the prescribed
period, unless a case for extension of time or performance was
pleaded or established. However, when no time is fixed for
performance, the court will have to determine the date on which the
plaintiff had notice of refusal on part of the defendant to perform the
contract. Therefore, we have to examine whether K. Sriram or his
assignees, K.P. Murali or S.P. Duraisamy, had notice that
performance had been refused by A. Valliammai and, if so, from
which date.
22. We have elaborately referred to the correspondence exchanged
between the parties, namely, notice dated 11.07.1991 (Exhibit A-
6), reply dated 09.08.1991 (Exhibit A-7), rejoinder dated 31.08.1991
(Exhibit S-13) and reply to the rejoinder dated 16.09.1991 (Exhibit
S-14). We have also referred to the written statement filed by A.
Valliammai. These are admitted documentary evidence and the
contents thereof are not in debate. In our opinion, K. Sriram, in the
notice dated 11.07.1991 (Exhibit A-6) and rejoinder notice dated
12
(2006) 5 SCC 340.
Civil Appeal No. 5342 of 2023 & Ors. Page 13 of 21
31.08.1991 (Exhibit S-13), had acknowledged having notice that A.
Valliammai had refused to perform her part of the contract. K.
Sriram filed a suit for permanent injunction on 15.07.1991 to
restrain A. Valliammai from selling the Suit Property to third parties.
In the plaint, there is a specific averment and statement that A.
Valliammai was making excuses and going back on the terms
previously agreed. A. Valliammai was negotiating with third parties
for sale of the Suit Property. She was not abiding by the statement
made before the Tiruverumbur Panchayat Union. K. Sriram had
averred that he was going to file a suit for specific performance in a
short time, and he was awaiting reply from A. Valliammai. The reply
dated 09.08.1991 (Exhibit A-7) and rejoinder dated 16.09.1991
(Exhibit S-14) by A. Valliammai did not change the situation. These
are written notices of refusal and not of acceptance of any
obligation and affirmation. K. Sriram did not withdraw the suit for
permanent injunction on the ground that he was satisfied with the
reply and stand of A. Valliammai and hence the cause of action did
not survive. K. Sriram continued with the suit and had enjoyed
benefit of temporary injunction granted in his favour. The suit was
un-conditionally dismissed as withdrawn on 23.12.1992, the day K.
Sriram had transferred/assigned his rights under the agreement to
sell (Exhibit A-1) in favour of K.P. Murali and S.P. Duraisamy
Civil Appeal No. 5342 of 2023 & Ors. Page 14 of 21
(Exhibit A-2). K. Sriram, K.P. Murali and S.P. Duraisamy were
aware of the refusal and thus the cause of action had arisen forcing
them to approach the court with a prayer for injunction against A.
Valliammai.
23. It was submitted before us, that in A. Valliammai’s deposition as
PW-2, in front of the trial court, she had accepted that no notice was
served on K. Sriram to pay the balance sale consideration on the
date prescribed under the agreement to sell (Exhibit A-1) and that
she had remained quiet with the hope that K. Sriram would show
and therefore the limitation period under the second part of Article
54 had not commenced. We do not agree. The question to be
examined and answered is whether K. Sriram had notice of A.
Valliammai’s refusal or unwillingness to perform her part of the
agreement. The relevant portion of deposition of A. Valliammai as
PW-2 does not refer to her refusal or acceptance, but merely refers
to the factual position that she had not issued any notice or at one
point of time she had hope. This deposition cannot be read as
acceptance and willingness of A. Valliammai. At the risk of
repetition, we state that in the reply dated 09.08.1991(Exhibit A-7)
and the rejoinder dated 16.09.1991 (Exhibit S-14), A. Valliammai
had contested the assertions or allegations made against her by K.
Civil Appeal No. 5342 of 2023 & Ors. Page 15 of 21
Sriram, and her denial and refusal to abide and comply by the
agreement to sell (Exhibit A-1) was affirmed.
24. Once we accept A. Valliammai’s refusal and K. Sriram’s notice of
her refusal, the submission on behalf K.P. Murali and S.P.
Duraisamy relying on Section 63 of the Indian Contract Act, 1872,
that a promise may extend time for performance of a contract and
the submission relying on S. Brahmanand and Ors. v. K.R.
13
Mutugopal , that extension of time need not be in writing and can
be proved by oral evidence, including conduct and forbearance on
the part of the other party, have to be rejected. Refusal and
forbearance are opposites.
25. The High Court in the impugned judgment had rejected the
contention that the allotment of the Trust property eastwards had
any bearing on filing of the suit for specific performance. We agree
with the said finding. In fact, vide rejoinder dated 31.08.1991
(Exhibit S-13), K. Sriram stated that the survey demarcation was
already corrected in the survey map such that the Trust property
was situated on the east and the A. Valliammai’s property on the
west.
13
(2005) 12 SCC 764.
Civil Appeal No. 5342 of 2023 & Ors. Page 16 of 21
26. The submission stating that the agreement to sell (Exhibit A-1) was
to be specifically performed only after disposal of the partition suit
in O.S. No. 787 of 1985 is misconceived and wrong. We have
quoted the relevant clause of the agreement to sell (Exhibit A-1). It
do not state that the sale deed was to be executed only after
disposal of the partition suit. A. Valliammai had only faithfully stated
that there was no encumbrance or dispute over the Suit Property
except the partition suit. The disputed Suit Property could still be
sold and transferred. K. Sriram was clearly aware of the pending
suit while executing the agreement to sell (Exhibit A-1), which was
agreed despite the pending litigation. It was submitted on behalf of
K.P. Murali and Duraisamy that, A. Valliammai, in her reply dated
09.08.1991 (Exhibit A-7) claimed that it was not possible for her to
execute the contract till the disposal of the said partition suit. The
argument is without merit, as this assertion by A. Valliammai shows
her refusal to perform the agreement to sell (Exhibit A-1). A decision
in the said suit was not a condition precedent to the execution of
sale deed under the agreement to sell (Exhibit A-1). Neither had K.
Sriram read the said reply as concurrence or acceptance by A.
Valliammai to execute the sale deed post the decision in the said
partition suit. On the other hand, as recorded previously, K. Sriram
had continued to press the suit for permanent injunction in O.S. No.
Civil Appeal No. 5342 of 2023 & Ors. Page 17 of 21
1508 of 1991. Another fallacy in the argument raised on behalf of
K.P. Murali and K.P. Duraisamy is that A. Valliammai’s reply dated
09.08.1991 (Exhibit A-7) is not being read in its entirety. This is not
a proper manner to construe a notice or reply and the contents and
purport thereof. K. Sriram, and subsequently, K.P. Murali and K.P.
Duraisamy had filed suits for permanent injunction.
27. For the aforesaid reasons, the 3-year limitation period to file a suit
for specific performance commenced as early as when the K.
Sriram had filed suit for injunction on 15.07.1991. A. Valliammai’s
reply dated 09.08.1991 (Exhibit A-7) or reply to rejoinder dated
16.09.1991 (Exhibit S-14) were again sufficient written notice to K.
Sriram of her refusal and unwillingness to perform the agreement
to sell (Exhibit A-1). The limitation period of three years under the
second part of Article 54, which is from the date when the party had
notice of the refusal by the other side, had expired when the suit for
specific performance was filed on 27.09.1995. Suit in O.S. No. 21
of 2004 is barred by limitation.
28. Accordingly, the impugned judgment and decree for specific
performance, as affirmed by the Division Bench, is set aside.
29. K. Sriram had paid an advance of Rs. 1,00,000/- to A. Valliammai.
This position is accepted. In view of our findings, the suit filed by
Civil Appeal No. 5342 of 2023 & Ors. Page 18 of 21
K.P. Murali and S.P. Duraisamy, being barred by limitation, K.P.
Murali and S.P. Duraisamy are not entitled to a decree for refund of
Rs.1,00,000/- with interest. During the course of hearing, the parties
had tried to negotiate a settlement but it had not actualised. A.
Valliammai had agreed to pay Rs. 50,00,000/- (Rupees Fifty Lakhs
Only) to K.P. Murali and S.P. Duraisamy. The reason was that K.
Sriram had spent money in obtaining approval of layout plans. A.
Valliammai has sold most of the Suit Property except for about 1
acre of the land. K.P. Murali and S.P. Duraisamy have deposited
Rs. 31,45,000/- in terms of the decree passed in their favour, which
amount has been converted into interest bearing fixed deposit
receipt(s). Keeping in mind the aforesaid facts and circumstances,
we exercise our power under Article 142 of the Constitution of India,
to do substantial justice with the direction to A. Valliammai to pay
Rs.50,00,000/- (Rupees Fifty Lakhs Only) to K.P. Murali and S.P.
Duraisamy. The figure keeps in mind the advance of Rs.1,00,000/-
paid on 26.05.1988 and the expenses incurred by K. Sriram, and
interest etc. A decree of Rs.50,00,000/- is passed in favour of K.P.
Murai and S.P. Duraisamy against A. Valliammai in the above
terms. It is also directed that in case Rs.50,00,000/- is not paid by
A. Valliammai within 6 (six) months, she shall be liable to pay
Civil Appeal No. 5342 of 2023 & Ors. Page 19 of 21
interest @ 8% per annum on Rs. 50,00,000/- from the date of this
judgment till the date on which the payment is actually made.
30. In view of the aforesaid discussion, Civil Appeal Nos. 5343, 5344
and 5345 of 2023, preferred by S. Jayaprakash and others, A.
Jeyakumar and others, and S. Balasubramanian and others, are
allowed and the decree of specific performance passed in favour of
K.P. Murali and S.P. Duraisamy is set aside. O.S. No. 21 of 2004,
preferred by K.P. Murali and S.P. Duraisamy, decided by Additional
District and Sessions Judge, Fast Track Court No. 1, Tiruchirapalli
will be treated as dismissed. Civil Appeal No. 5342 of 2023
preferred by A. Valliammai is allowed to the extent that the decree
of specific performance in respect of the suit land is set aside, and
is substituted by a decree of Rs. 50,00,000/- payable with effect
from the date of this judgment along with an interest @ 8% per
annum which A. Valliammai will be liable to pay if she fails to pay
Rs. 50,00,000/- within six months from the date of this judgment.
O.S. No. 21 of 2004, filed by K.P. Murali and S.P. Duraisamy and
decided by the Additional District and Sessions Judge, Fast Track
Court No.1, Tiruchirapalli is decreed in the above terms against A.
Valliammai.
31. K.P. Murali and S.P. Duraisamy are entitled to withdraw the
Civil Appeal No. 5342 of 2023 & Ors. Page 20 of 21
amounts previously deposited by them, in terms of the decree of
the trial court along with the interest accrued thereon.
32. In view of the facts and circumstances of this case, we hold that
there will be no order as to costs.
......................................J.
(SANJIV KHANNA)
......................................J.
(BELA M. TRIVEDI)
NEW DELHI;
SEPTEMBER 12, 2023.
Civil Appeal No. 5342 of 2023 & Ors. Page 21 of 21