SYSCON CONSULTANTS P. LTD. Vs. M/S PRIMELLA SANITARY PROD. P. LTD. AND OTHERS
SUPREME COURT OF INDIA
Syscon Consultants P. Ltd.
M/S Primella Sanitary Prod. P. Ltd. And Others
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KURIAN, J. -
(1.) These appeals essentially deal with a dispute on the validity and executability of an agreement for sale and once that
issue is tackled, the rest are practically not of much significance.
The parties are described as they are in the suit for specific
performance No. 88/1987 on the file of the Civil Judge Senior
Division at Margao. The Plaintiff is the first respondent herein.
The Plaintiff had sought for specific performance of the
agreement dated 04.09.1985 made with Defendants 1 to 6 for
conveyance of the suit property known as Conco situated at
village Palolem in Canacona Taluka in the State of Goa. The 7 th
Defendant was the Bank where the Defendants had mortgaged
the suit property.
(2.) In the agreement dated 04.09.1985, the Defendants 1 to 6 claimed that they were the absolute owners of the suit property
and that the property was free from all attachments, charges, etc.
The agreed consideration was Rs.6.5 lakhs and, on the date of agreement, Rs.50, 000 was given as advance. The relevant portions of the agreement for sale dated 04.09.1985, are extracted below:
"3.The Vendor hereby declares that the said land agreed to be sold is free from any encumbrance, attachment, charge or other claims, rights and demands, and is not affected by any notice or scheme of acquisition or requisition and that the Vendors have among themselves the full power and absolute authority to sell and deal with the said land. The Vendor shall at his own expense effectually indemnify and keep indemnified the purchasers from and against all claims, demands, losses, damages, cost and expenses, if any and whatsoever, sustained, incurred or suffer by the Purchaser, on account of any defect in the title of the Vendor or any change or encumbrance or any scheme of acquisition or requisition affecting the land hereby contracted to be sold.
4. The Purchaser has this day paid to the Vendor the sum of Rs.50,000/ - (Rupees fifty thousand only) as and by way of earnest money (the payment and receipt whereof the Vendor does hereby admit and acknowledges) and the balance of the purchase money amounting to Rs.6 lacs (Rupees six lacs only) shall be paid at the time of the completion of the sale. Simultaneously with the execution of this agreement the Vendor shall at his own cost furnish to the Purchasers an abstract of all title deeds and other papers and writings including copies or extracts from records of the Talati or Circle Inspector relating to the said land. The sale shall be completed within one month from the date of establishment of a good and marketable title of the Vendor." xxx xxx xxx xxx
"6. The Vendor hereby agrees to answer all reasonable requisitions and satisfy all objections on title to be made by the Purchasers or their Solicitor or Representatives. If a good and marketable title is made out and the said land is found to be free from all encumbrance, attachments and charges and other rights, demands and claims and not effected by any notice or scheme of acquisition or requisition AND permission and no objection from any Authority or Authorities, if any, is obtained by the Vendor, the Vendor will execute a proper conveyance or conveyance in favour of the Purchasers or their nominee or nominees or assigns in which the Vendor shall make the other person or persons, if any, join, if necessary, to pass and convey an absolute title unto the Purchaser or his nominee or nominees or assigns or to redeem any charge or encumbrances. The Vendor shall bear and pay all outgoings, expenses and liabilities in respect of the said land upto and inclusive of the day of the completion of the sale. The Vendor shall hand over vacant and peaceful possession to the Purchaser of the said land at the time of completion of the sale." xxx xxx xxx xxx
"8. If a good and marketable title is not made out or the said land is found to be subject to any encumbrances charges or attachments or other claims, rights or demands the Purchaser shall be at liberty to rescind this Agreement and the Vendor shall in the event forthwith refund the said earnest money with interest at 21% per annum.
9. If the Vendor fails and or neglects to complete the sale after the title being made out as aforesaid or otherwise to carry out any one or more of the obligations on his part as herein contained or enjoyed upon by any law for the time being in force the Purchaser shall be at liberty to enforce specific performance of this Agreement or recover the earnest money with interest at 21 % per annum." (Emphasis supplied)
(3.) It may be relevant to note that the sale was to be completed within one month from the date of establishment of a
good and marketable title of the vendor and, if the title was not
made out or in case the said land was found to be subject to any
encumbrance or charges or attachments or other claims, rights or
demands, the Plaintiff was at liberty to rescind the agreement
and, in that event, the Defendants 1 to 6 would refund the
earnest money with interest @ 21 per cent per annum. It was also
agreed between the parties that in case the Defendants 1 to 6 fail
to complete the sale after a good and marketable title is made
out, the Plaintiff was at liberty to enforce the specific performance
of the agreement or recover the earnest money with interest @
21 per cent per annum. It is also significant to note that the Defendants 1 to 6 had clearly agreed to give a clear title to the
property, if necessary by joining any other person or persons or
even to redeem any charge or encumbrance.;
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