• Specific performance of contract act

I made   an unregistered agreement  on 2/3/2005 for rs .12 lakh with my  uncle to purchase the land .My cousin brother signed agreement in darbhanga,bihar(as land is in darbhanga,bihar) on behalf of my uncle through a registered general power of attorney(registered at Gorakhpur u.p.).I have never signed the agreement. There are two witnesses on agreement 1)prahlad mahto –mutaul friend and negotiator of this deal 2) durga shah-staff in poonam cinema(owned by m father).  I paid him rs one lakh on 2/3/2005  as earnest money through a bank draft made from my saving bank account on 2/3/2005 and got a receipt with revenue stamp.
In agreement it  was written that this deal was done in year 2000. It was also written that land is in use by Poonam Cinema(in agreement it was written that my father got poonam cinema by a family settlement with my uncle) and is in possession of my father.
  Rest amount rs 11 lakh was to be paid and get deed registered by 31/10/2005  .If not paid within timeframe earnest amount(zarbaiana) will be forfeited. If seller makes nusinaces in accepting the amount and registering the deed balance payable amount will be deposited in court  and get the deed registered. 
 I paid him rs four lakh on the last date of agreement i.e. 31/10/2005 through bank draft dated 31/10/2005 and got a receipt on revenue stamp stating  the amount as second installment. This was also paid through a bank draft made from my father’s account -Poonam Cinema(Remitters name is printed on draft).Both the drafts were made at darbhanga ,bihar. The balance amount rs. Seven lakh was unpaid on last day of agreement.
Both the receipts are on plain typed sheet with revenue stamp and without any witness and without typist name and date.
Then i send seller (my uncle)  a legal notice dated 23/12/05(after expiry of agreement.i.e.31/10/05) stating he is not accepting the money and i was and is ready with money all the time. So take the money and register the deed. The seller didn’t reply to that notice. The notice was received by madhu- my uncle’s daughter but denied in written statement stating no notice was ever received.
After that i filed a suit for specific performance in civil court-T.S.6/2006 on 10/1/2006 for following reliefs 
1)on a consideration and adujication of fact stated above a decree for specific performance for contarct fr sale dated 2-3-2005 be with respect to schedule-1 property passed in favour of plantiff against the defendant and atime bee fixed by the court that the defendant be called upon to execute therequire sale deed after receiving the sum of rs. 7,00,000/ mentioning in kewala the consideration of rs. 12,00,000/ failing which the kebala be executed through the process of the court on the depositing of rs. 7,00,000/ by the plaintiff.
2) a decree for declaration of title and confirmation possession or with alternative recovery of possession be also passed with respect to the land mentioned in schedule -1 of the plaint on the kewala being executed either by the defendant or through the process of the court.
3) a decree for cost and any other relief the plaintiff be entitled to the circumstances at the case be passed in favour of plaintiff against the defendant.
I was ordered to file court fees of rs. 22120/- on 12-1-2006 and again on 27/1/2006 &6/2/2006.I deposited that on 1-3-2006.
 Defendant appeared on 16/10/2006 and deposited written statement on 20/11/2006.He claimed i was never ready with money and there was no willingness and readiness with me. As per defendant i called them on 28 october 2005 and said to come to darbhanga and register the deed as i have arranged rs. 11,00,000/. I paid rs. 400000/ to defendant son on 31-1-2005. . I pressurised his son to register the deed but he denied without full payment and offered to return the money on returning of receipt and original copy of agreement which i denied. All this happened on last day at darbhanga.After he went back to Gorakhpur with draft and deposited draft after 3-4 days in his bank account.
We both were ordered to submit issue on 20/11/2006 but it was framed on 22/1/2011 as both parties didn’t deposit suggested issued for 40 dates .
Case was dismissed by court on 4/3/2011as both parties didn’t appear on call and again reinstitued on 24/3/2011.On 28/5/2011 defendant filed a petition under Order 7 rule 11 (A) & (D) and rejoinder filed by me on 17/6/2011.Till 10/4/12 the petition was on order sheet but from 3/5/12 it was mentioned on order sheet and my witness was started and defendant got engaged in witness and so never pressed by them on petition.
As plaintiff i have given all my witnesses.
In para 19(of my written examination) –Plaintiff pressurised defendant to take rest consideration money but he accepted only rs. 400000-/.
 In para 20  i have stated that” i have made payment of rs. 400000/- by bank draft which was accepted by aatish kumar bairoliya(poa holder) and said balance will be paid afterwards.”
I have accepted  in my cross examination total amount to be paid was deposited in my bank account till last date(but not submitted my bank statement). Draft was made by me and the receipt was also typed at darbhanga,  bihar.
Witness Prahlad mahto has said in cross examination that he went with me to give some money on 30/10/2005 to Gorakhpur, u.p.(para18)
Para 19- draft was made in darbhanga. Draft was made by me. I went with manibhushan prasad to give draft (Gorakhpur,u.p.).date of draft 31-10-2005.
Defendant has given 4 witnesses. Defendants are committed on there statements. In cross of dw my lawyer has given suggestions that on last day of agreement it was agreed between us that 4,00,000/ is being paid now the time of 3 months is orally extended.
Sir it seems to me my lawyer has diverted from readiness to extension of agreement. Case is on stage on disposal . Defendant is about to close his witness,Final discussion is to be done.
Please suggest me in this case what is my status and further strategy. and defendants status
Asked 8 years ago in Civil Law

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2 Answers

1)it is necessary to go through the plaint filed by you and reply received from defendant to advise .

2) judgment would depend upon pleadings and evidence led by parties

3) the issue involved is whether time is the essence of contract .

4) in your case payment was to be made by 31st oct 2015 . admitteldy you have not paid balance amount of Rs 11 lakhs by 31/10/2015

5) the seller could forfeit advance payment made by you if you did not honour your commitment

6) it has to be proved by you that time was extended by mutual consent

7) if seller had agreed to extend time then you wopuld be entitled to releifs claimed in suit for specifc perforemance

8) you have to prove that there was sufficent balance in your account and you were ready and willing to make payment

9) you ought to have produced your bank statement to show there was sufficent balance in your account

Ajay Sethi
Advocate, Mumbai
96207 Answers
7741 Consultations

5.0 on 5.0

1) seek phone consultation from kaanoon.com

2) it is necessary to plead that time was extended by mutual consent

3) if time was not extended and you have failed to pay by last date seller can forfeit money received by him

Ajay Sethi
Advocate, Mumbai
96207 Answers
7741 Consultations

5.0 on 5.0

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