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K.Sagunthala vs P.Poongothai
2023 Latest Caselaw 10700 Mad

Citation : 2023 Latest Caselaw 10700 Mad
Judgement Date : 18 August, 2023

Madras High Court
K.Sagunthala vs P.Poongothai on 18 August, 2023
                                                                               CRP. (NPD)No.2392 of 2019


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 18.08.2023

                                                       CORAM:

                        THE HONOURABLE MR.JUSTICE V.LAKSHMINARAYANAN

                                              C.R.P. (NPD)No.2392 of 2019
                                              and C.M.P.No.15607 of 2019

           K.Sagunthala                                                      ... Petitioner


                                                         Vs.


           P.Poongothai                                                     ... Respondent


           Prayer: Civil Revision Petition is filed under Section 115 of the Civil Procedure

           Code, against the fair and decretal order dated 30.04.2019 in I.A.No.1306 of 2017 in

           O.S.No.47 of 2003 on the file of the III Additional District and Sessions Court,

           Coimbatore.

                                      For Petitioner   : Mr. C.R.Prasanan

                                      For Respondent   : No appearance


                                                       ORDER

The matter was posted on 02.08.2023, 04.08.2023 and 17.08.2023. On all those

dates, there has been no representation for the respondent. https://www.mhc.tn.gov.in/judis

CRP. (NPD)No.2392 of 2019

2. This revision arises against an order passed in I.A.No.1306 of 2017 in

O.S.No.47 of 2003, dated 30.04.2019 by the III Additional District and Sessions

Court, Coimbatore.

3. The civil revision petitioner is the plaintiff and the respondent is the

defendant. A suit for specific performance of an agreement of sale was filed on

07.10.1999. The said suit was taken up in O.S.No.1399 of 1999 on the file of the

learned Subordinate Judge at Coimbatore and it was decreed on 05.11.2003. Against

the said judgment and decree, an appeal was preferred in A.S.No.706 of 2005. The

said appeal came to be allowed by this Court on 11.07.2011. The appeal in

A.S.No.706 of 2005 was preferred only as against Clause 2 and 3 of the decree.

Thereafter, an execution petition was filed in E.P.No.17 of 2012 in O.S.No.47 of 2003

seeking for a direction to the respondent to execute the sale deed or in default

requesting the Court to execute the sale deed.

4. In the meantime, it came to the knowledge of the plaintiff that the suit

schedule mentioned property had been a subject matter of the proceedings under

SARFAESI. A sale had taken place in the year 2015 and sale certificate was registered

on 25.03.2015. The Court auction purchaser in the SARFAESI sale also took

possession of the property through an order dated 01.11.2018 under Section 14 of the

SARFAESI Act.

https://www.mhc.tn.gov.in/judis

CRP. (NPD)No.2392 of 2019

5. An application was filed by the defendant in I.A.No.1306 of 2017 seeking for

the relief of rescinding the contract dated 22.05.1996 for the grounds stated in the

affidavit. The trial Court took up the application and came to a conclusion that the

contract ought to be rescinded and allowed the application in part. However, it did not

refund Rs.4,50,000/-, which was the amount paid by the civil revision petitioner to the

respondent towards purchase of the property.

6. Heard Mr.C.R.Prasanan, the learned counsel for the petitioner. Mr.Raghavan,

the learned counsel who has entered appearance for the respondent, did not appear

before me. I have carefully gone through the records.

7. A perusal of the order of the trial Court shows that the learned trial Judge had

directed the parties to recover a sum of Rs.4,50,000/- by way of a separate suit. The

contract having been rescinded under Section 28 of the Specific Relief Act, the

question of filing a separate suit does not arise. This is by virtue of the provisions

under Section 28(4) of the Specific Relief Act. The trial Court had the power to direct

the refund of the amount under Section 28(2)(b) of the Specific Relief Act. Instead of

doing so, the trial Court had directed the parties to file a separate suit without taking

note of the fact of Section 28(4) of the Specific Relief Act.

https://www.mhc.tn.gov.in/judis

CRP. (NPD)No.2392 of 2019

8. Under the Specific Relief Act, 1877, there was a provision for rescission. If

the circumstances mentioned in that provision were satisfied, a party could bring out a

separate suit for rescission. When Specific Relief Act, 1963 was enacted, it substituted

Section 35(c) of 1877 Act and empowered the Court to grant the relief in the original

suit itself. The idea being prevention of multiplicity of proceedings. This is clear from

Section 28(4) of the Specific Relief Act. Section 28(2)(b) of the Act specifically states

that the Court has power, if the justice of the case so requires, to refund the earnest

money or any deposit made in connection with the agreement. The Court having come

to the conclusion that the contract should be rescinded, ought to have invoked Section

28(2)(b) of the Act. Having failed to do so, I am constrained to interfere with the

order.

9. Therefore, in the light of the statutory provision, I am constrained to interfere

with the order of the trial Court in so far as it denies the refund of a sum of

Rs.4,50,000/- paid by the petitioner to the respondent and pass the following order:

(i) The Civil Revision Petition stands allowed. No costs. Consequently,

connected Miscellaneous Petition is closed.

(ii) The order of the trial Court in so far as it directed the party to file a separate

suit for refund of the advance amount is set aside. https://www.mhc.tn.gov.in/judis

CRP. (NPD)No.2392 of 2019

(iii) There shall be a direction to the respondent to refund the sum of

Rs.4,50,000/- together with the interest @ 6% per annum to the petitioner, within a

period of eight weeks from the date of receipt of a copy of this order.

18.08.2023 Index:Yes/No Speaking Order :Yes/No Neutral Citation:Yes/No

kj

To

III Additional District and Sessions Judge Coimbatore.

https://www.mhc.tn.gov.in/judis

CRP. (NPD)No.2392 of 2019

V.LAKSHMINARAYANAN,J.

Kj

C.R.P. (NPD)No.2392 of 2019 and C.M.P.No.15607 of 2019

18.08.2023

https://www.mhc.tn.gov.in/judis

CRP. (NPD)No.2392 of 2019

CRP(NPD)No.2392 of 2019 & CMP.No.15607 of 2019

V.LAKSHMINARAYANAN,J.

Today, this matter came up before me under

the caption 'For Being Mentioned'.

2.Since as per Clause 9(iii) the date from

which the interest payable has not been mentioned,

Clause 9(iii) shall be read as follows:

‘9(iii).There shall be a direction to the respondent to refund the sum of Rs.4,50,000/- together with interest @ 6% from 05.11.2003 till the date of realisation.’

3.Barring the aforesaid modification order

dated 18.08.2023 remains unaltered in all other

respects.

22.09.2023 vs Note:Office is directed to issue amended order copy on or before 29.09.2023.

https://www.mhc.tn.gov.in/judis

 
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