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K. SIMRATHMULLS. Versus NANJALINGIAH GOWDER

1962 (2) TMI 108 - SUPREME COURT

Civil Appeal No. 8 of 1960. - Dated:- 28-2-1962 - SHAH, J.C., DAS, S.K. AND HIDAYATULLAH, M., JJ. Bhawani Lal and P. C. Agarwala, for the appellant R. Ganapathy lyer, R. 'Thiagarajan and G. Gopalakrishnan, for the respondent. JUDGMENT SHAH, J.- This is an appeal with special leave against the judgment of the High Court of Madras. On February 18,, 1948, S. Nanjalingiah Gowder herein after referred to at; the plaintiff-borrowed ₹ 1,500/- from K. Simrathmull-hereinafter called the defenda .....

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a sale in respect of Your-mentioned land and house. You shall pay the assessment for the house and the municipal tax, you shall if there is any arrears of rent pay the same, prior to the sale, as per the rental deed executed by you and your father. If there is arrears of rent for six months, the aforesaid counterpart deed shall become cancelled.", and (2) a Rent, Note by the plaintiff and his father Bora Gowder in favour of the defendant agreeing to pay rent @ Ps. 26/4/- per mensem for occ .....

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The suit was dismissed, for, in the view of the trial Court, the conditions incorporated in Ext. A-1 had not been strictly complied with, and the agreement stood cancelled. The decree of the trial Court was affirmed in appeal But in second appeal the High Court of Madras reversed the decree and ordered specific performance. The sale deed. the deed of reconveyance Ext. A-1 and the Rent Note Ext. B-1 were undoubtedly parts of the same transaction. The plea of the plaintiff that the sale deed Ext. .....

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efendant submitted that the covenant for reconveyance was in the nature of a concession granted by the defendant subject to certain conditions and if the conditions were not fulfilled the right could not be enforced. On this question the trial Judge with whom the First Appellate Court agreed held that the court had no jurisdiction to relieve against the extinction of the right to demand reconveyance, because the plaintiff had failed to comply strictly with the conditions of the deed. The High Co .....

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house, but the exercise of the right of demanding reconveyance by the plaintiff was subject to two conditions (1) that the right must be exercised within two years, and (2) that the rent payable under Ext. B-1 should not be in arrears for more than six months at any time. When the plaintiff demanded specific performance .of the agreement of reconveyance, the first condition was fulfilled but the second was not. It is true that equity relieves against penalties when the inten- tion of the penalt .....

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page 620 Art. 1147). The cases in John H. Kilmer v. British Columbia Orchard Lands Ltd. (1) and Devendra Prasad Sukul and others v. Surendra Prasad Sukul and Another(2) are illustrations of that principle. But there is a well recognised exception to this rule which is enunciated in Halsbury's Laws of England Vol. 14 TIT Edition page 622 paragraph 1151, as follows: "Where under a contract, conveyance, or will a beneficial right is to arise upon the performance by the beneficiary of some .....

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