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K., SIMRATHMULL versus S. NANJALINGIAH GOWDER

Citation: [1962] SUPP. 3 S.C.R. 476 · Decided: 28-02-1962 · Supreme Court of India · Bench: S.K. DAS · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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476 sui>.RE'ME oodk'f .R.E.PdRTsp9a2j·sdi>P. 
K., SIMRATHMULL 
·V. 
S. NANJALI.1\GfAH GOW DER 
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(::i. K. DAS, ·M . .l:ImAYA'T(JLLA.H·a.nd J'. l). SILl'.H,:Jlf.) 
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Contr!'l't-Co~enan!Jor re?onve11~>1c~. ~.prqp~~IK.~.U.?jeYf. to 
fulfilment of oonditoons-lfailure of cond•t•JJ:J>, whe!her specific 
'·performarlce could be deln"nded=Where ri!Jht extinguished-
·O'ou>ts equitable.iurisdiction could be invoked-'I'mnsfer of Pro-
perty Act; (4 of 1882)-Specific 'Reli~' Act (1· of•J877). 
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·By a, deed dated FebruFy, 19, 1948 the -respondeµ,t .1old 
his house to the appellant in cohsideration of 
0
dis~harging 
liability to·repay a.loan of Rs, 1500/- borrowed by 1ihe lres-
.pondent. 
T\VO other documents Telflting.;to the house were 
executed on the same day (J) a -deed by• the appellantragree-
ing,to reconvey the house if the ryspo'!dent paiq, ~s., l/iOQ/,• in 
these two years; (2) p. rent note by the, p;spon?ent .,a\'d. his 
father agreeing tc1 pay Rs. 26-4-0 per menscm as rent for 
occupation of the house. 
Under 1the agreement of 'iec6nvey-
ance the exercise of the right td demarfd reconV'eyanc"'e 'was 
subject to~ t,vo,conditions, firstlY, that the right nius.t. be exer· 
cised within 2 ·years and
1 secondly, that,,~he rent -payal;>lct_,under 
.the rent note should not remain in arrears for more than six 
months at any time. 
When thai iespoildent Cle'manped sP~ci· 
fie perfdtmance of -the agreem~nt of reconve1ance, !the 
first condition was fulfilled but the second was,not. The 
suit for,, specific performance o'f the igreemcnf Of reco~vey~ 
·anc;e was dismissed, for in the view of the· trial.ct:>urt the 
conditions of the agrcement.t hasi: inot been ,st~iA•l~.comJSlied 
with, and the· agreement stood cancelled. 
Tc1e High Court 
in second appeal reversed 
the decree and ordered specific 
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p;:rformabce. 
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Held, that the covenant for reconveyance was in the 
n_ature of a concession granted by the purchaser . 
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Held, further that the conces-sion being subject to cer-
tain conditions were not fulfilled the right to demand recon-
veyancc could not be enforced. 
The court had no equitable 
jurisdictio11 to relieve against the extinction of the right to 
demand reconveyence. 
Shanmugam Pillai v. Annnlakshmi Ammal, A. I. R. 
( 1950) F. C. 38, folbwed. 
John H. Kilm<r v. British Col1'mbi'1. Orchard Lands Ltd. 
J
L· R. (1913) A. C. 319, DeQendrtl. Pr<!Bad Sitk.fl v. Sttrll!ldr\l· 
'"i 
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3 s.ci.R. 
SUPRtllME COUR'r REPOR'rS 
477 
Prasad Sukul, (1935) L. R. 63 I.A. 26 and Davis v. 1'homas, 
( 1930) 39 E. R. 195, referred to. 
CIVIL APPELLA~'E JURISDIW'ION : Civil Appeal 
No. 8 of 1960. 
Ajlpeal by special leave from the judgment and 
decree dated January 30, 1956, of the Madras High 
Court in Special L. Appeal No. 2174 of 1952. 
Bhawani Lal and P. G. Agarwala, for the 
appellant. 
R. Ganapathy Iyer, 
R. Thiagarajan 
and 
G. Gopalakrishnan, for the respondent . 
. 1962. February 28. The Judgment of the Court 
was delivered by 
·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-
hereinafter referred to as the plaintiff-borrowed 
Rs. 
1,500/-
from K. Simrathmull-hereinaHer 
called the defendant. 
On February 19, 1948 
the plaintiff executed a sale deed conveying to 
the defendant certain land at Ootacamund together 
with a house standing thereon and belonging to 
him for Rs. 700/-. Two other documents were exe-
cuted on the same day : ( l) a deed of reconveyance 
(Ext. A-1) (counterpart of the sale deed) in favour 
of the plaintiff which contained the following 
covenant: 
"If you pay the sum of Rs. 1500/- within a 
period of two years I shall at your cost and 
your responsibility execute a sale in respect of 
the under-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, 
a.i per the rental deed executed by you and 
your father~ If there is arrears of rent for six 
1962 
K. Simr'athmull 
v, 
S. Non;O'lingiah 
GowJ,r 
Shah J, 
1962 
}, . SimralAmull 
v. 
S. Nonjalihtioh 
Ot11tdt1 
Shah J, 
478 SUPREME COURT REPORTS [1962) SUPP. 
months, the aforesaid counterpart deed shall 
become cancelle<l.", 
and (2) a lien\ Note by t.he plaintiff and ·his fath•·r 
Rora Gowder in favour of the defendant agreeing to 
pay rent@ 1 's. 

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