Summary
The Court upheld specific performance of a genuine house-sale agreement after finding that a purported earlier agreement with the tenant-purchaser was fabricated to defeat it. It directed the subsequent purchaser to join the conveyance and the vendors to refund the consideration actually received from him. A limited execution inquiry could resolve the refund amount, and compliance was required within three months.
Issues
- Whether the competing agreement relied on by the subsequent purchaser was genuine.
- Whether the plaintiff proved readiness, willingness and the vendors’ breach.
- How the decree should address the subsequent conveyance, refund and later transactions.
Held
- The admitted agreement with the plaintiff, receipt of his advance and the defendants’ conduct supported the finding that the allegedly earlier tenant agreement was bogus. Selling to that tenant before expiry of the plaintiff’s contractual period established the vendors’ breach. The evidence supported the plaintiff’s readiness and willingness and the decree for specific performance. (¶ 15–26)
- The subsequent purchaser must join the vendors in executing the conveyance to pass the title residing in him to the successful plaintiff, consistently with Durga Prasad. The vendors could not retain consideration paid for the failed subsequent transaction. (¶ 28–30)
- To avoid another prolonged suit, the Court exercised Article 142 power to direct refund of Rs.45,000 or whatever consideration the vendors actually received from the subsequent purchaser. If disputed, the executing court must determine that amount through a limited inquiry after hearing the parties. (¶ 31–32)
- Transactions during the litigation were subject to lis pendens under Section 52 of the Transfer of Property Act and could not defeat the plaintiff’s rights. Those parties retained liberty to work out their rights inter se in accordance with law. (¶ 33)
Result
Appeal disposed of upholding specific performance with directions for the subsequent purchaser to join the conveyance and the vendors to refund his actual consideration; limited inquiry if necessary. Compliance, including execution, directed within three months of receipt.