(1.)This appeal is on behalf of the pltf. and it arises out of a suit for specific performance of a contract to sell a house in the town of Gaya, belonging to the defts. second party who, it is alleged, agreed to sell the house to the pltf. but subsequently resiled from the agreement and sold the same to the defts. first party who purchased it with notice of the contract.
(2.)The pltf's case, in substance, is that in September 1941 the defts. second party, who owned a house at Gaya, entered into negotiations for sale of the same, with one Jadu Ram, and the title deeds of the property were actually handed over to the latter. These negotiations failed and the second party defts. thereupon approached the pltf. firm and a contract was entered into by and between them some time towards the end of October 1945, under which the former agreed to sell to the latter their house at Gaya for a consideration of Rs. 34,000. Out of this consideration, a sum of Rs. 30,000 was paid by the pltf. firm on behalf of the vendors to a creditor of the latter on 28-10-1941. The vendors in their turn put the pltf. in possession of the house agreed to be sold in part performance of the contract and promised to execute a convenience as soon as the title deeds were returned to them by Jadu Ram and the balance of consideration money amounting to Rs. 4,000 was paid by the pltf. The second party defts. however, went back on their promise and did not execute the conveyance in favour of the pltf. even after they get back their title deeds from Jadu Ram and on the other hand, they sold the house to the defts. first party on 13-8-1943. The pltf, was thus obliged to bring this suit, claiming specific performance of the contract of sale.
(3.)The suit was contested by both sets of defts. The second party defts. contended interalia that they never agreed to sell their house at Gaya to the pltf. and the story of a contract of sale as set up by the pltf. was entirely false. They admitted that they were in need of money and hence approached the pltf. for a loan and the pltf. did advance to them a sum of Rs. 30,000 carrying interest at 6% per annum. It was entirely for facilitating payment of interest due on this loan and not in part performance of the contract of sale that the pltf. was put in possession of the same.