Holding

An agreement to repurchase immovable property is an ordinary contract of sale, not a privilege or concession, and specific performance is available; the High Court erred in overturning the lower courts' findings.

Summary

The appellant, who had sold his immovable property to the respondent, later entered into a written agreement whereby the respondent would sell the property back to him after five years for a specified sum. After the period elapsed, the appellant demanded reconveyance, but the respondent refused, leading the appellant to sue for specific performance. The trial court and the first appellate court granted specific performance, but the High Court reversed, treating the re‑purchase clause as a privilege or concession and invoking the clean‑hands doctrine and the rise in land price. The Supreme Court held that such an agreement is an ordinary contract of sale, not a privilege, and that the High Court erred in disturbing the concurrent findings of fact and in overturning the decree. Consequently, the appeal was allowed, the High Court judgment set aside, and the decree for specific performance upheld.

Issues considered

Whether the High Court was justified in setting aside the concurrent findings of fact under Section 100 of the CPC in a second appeal.
Whether an agreement to repurchase property constitutes a privilege or concession or is an ordinary agreement of sale for purposes of the Specific Relief Act.
Whether the rise in the price of the land is a relevant factor when a decree for specific performance has already been passed.
Whether the appellant’s alleged lack of clean hands can be a ground to deny specific performance.

Legislation cited

Subjects

specific performancere‑purchase agreementprivilegeconcessionconcurrent findings of factSection 100 CPCrise in land priceclean hands doctrinecontract of saleimmovable property

Judgment

V. PECHIMUTHU A
... v.
GOWRAMMAL

AUGUST I, 2001

[V.N. KHARE AND RUMA PAL, JJ.] B

Specific Relief Act, 1963: Sections 16 and 20.

Specific Performance-Suit for-Sale of immovable property-Agreement
for-Owner sold his immovable property to purchaser-Purchaser agreed to C
sell property back to owner after 5 years for a certai" sum-Owner willing to
perform his part of the contract and asked seller to re-convey the property--
Suit filed for specific performance-Trial court decreed the suit-First appellate
court confirmed the decree-However, High Court, in second appeal, reversed
the concurrent findings offact by holding that the re-purchase agreement was D
a privilege or concession; and that the agreement was not an ordinary
agreement-Correctness of-Held: There is no distinction between an
agreement to re-purchase and an ordinary agreement of purchase-The
agreement still remains an agreement for sale of immovable property and
must be governed by the same law relating to ordinary agreement-Owner is
entitled to specific performance of agreement-Hence, High Court erred in E
reversing the decree of specific performance.

Specific Performance-Decree for-Rise in price of suit property--
Relevancy of-Held, while granting decree of specific performance for the
first time rise in price of suit property may be a relevant factor in denying the
relief-But when the decree is passed by the trial court and affirmed by first F
appellate court such a factor is not relevant in second appeal.

Code of Civil Procedure, 1908:

Section l DO-Second Appeal-Concurrent findings offact-Reversal of-
,,, .;econd appeal-On a point not raised at any stage of the proceedings- G
Co1-rectness of-Held, High Court should not have permitted raising of an
inronsistent argument at the stage of the second appeal-Hence, setting aside
o.; ·concurrent findings offact not justified-Contract Act, 18 72:

Contracts-Agreement with option to re-purchase and ordinary H
199
200 SUPREME COURT REPORTS (2001] SUPP. I S.C.R.

A agreement-Distinction between-Owner sold property to purchaser-
Subsequently, purchaser agreed to sell property back to owner for a certain
sum-Held, subsequent agreement is an ordinary agreement and is governed
by the same law relating to ordinary agreement.
.
Words and Phrases:
B
"Privilege" and "concession "-Meaning of

The appellant was the owner of a certain immovable property, which
was sold to the respondent. By a subsequent agreement the respondent agreed
to sell the property back to the appellant after 5 years for a certain sum. After
C the expiry of five years the appellant made repeated demands on the
respondent asking her to r~convey the property in terms of the agreement.
The appellant also expressed his readiness and willingness to perform his part
of the contract. But there was no response from the respondent.

Thereafter the appellant filed a suit for specific performance under the
D Specific Performance Act, 1963, which was decreed. The first appellate court
affirmed the decree with certain modifications. But the High Court, in second
appeal under Section 100 of the Code of Civil Procedure, 1908 reversed the
concurrent findings of fact on a construction of the plaint that the right of
re-conveyance was a concession or a privilege granted to the original owner
E and that, therefore, not only must the terms of such an agreement be strictly
construed against the appellant, but also unlike "ordinary" agreements for
sale, time would be of the essence of the contract. It was also held that the
appellant claiming re-conveyance had to strictly perform the agreement before
the right would be enforced and that the appellant had not come to the Court
with clean hands. Hence this appeal.
F
The following question arose before this Court:-

Whether the High Court was justified in setting aside a concurrent
finding of fact with the limits prescribed by Section 100 of the Code of Civil
Procedure, 1963?
G
Allowing the appeal, the Court

HELD: I. I. It is not a general principle of law that every agreement of
sale by which the original owner agrees to buy back the property is a privilege
or a concession granted to such owner. A privilege has been defined as a
H particular and peculiar benefit or advantage enjoyed by a person, and a
V. PECHIMUTHU v. GOWRAMMAL 201
concession as a form of privilege. An option to purchase or repurchase is such A
privilege or concession. (208-A]

K. Simarathmull v. Nanja/ingaiah Gowder, AIR (1963) SC 1182, relied
on.

Shanmugham Pillai v. Annalakshmi Ammal, AIR (1950) FC 38; Hasam B
Nurani Malak v. Mohan Singh, AIR (1974) Born. 136 and S. Sankaran v. N. G.
Radhakrishnan, (1994) 2 L.W. 642, referred to.

Black's Law Dictionary, 6th Edn, referred to.

1.2. An option by its very nature is dependent entirely on the volition C-
of the person granted the option. He may or may not exercise cannot be
compelled by the person granting the option. It is because of this one-sidedness
or "unilaterality" as it were that the right is strictly construed and "an option
for the renewal of a lease, or for the purchase or repurchase of property, must
in all cases be exercised strictly within the time limited for the purpose, D
otherwise it will lapse." (208-B-C(

Halsbury's Laws ofEngland, 3rd Edn. Vol. 3 Art. 281, p. 165, referred to.

1.3. The right of the appellant to re-conveyance of the property has none
of the characteristics of an option. (209-F]
E
Shanmugham Pillai v. Annalakshmi, AIR (1950) FC 38 and K.
Simarathmull v. Nanjalingaiah Gowder, AIR (1963) SC 1182, referred to.

2.1. An agreement for sale and purchase simpliciter, on the other hand
is a reciprocal arrangement imposing obligations and benefits on both the
parties and is enforceable at the instance of either. The interpretation of such F
',
a contract would be governed by the laws of contract relating to the
performance of reciprocal promises. (208-D]

2.2. Whether an agreement is an option to purchase or an "ordinary"
agreement would depend on the interpretation of its provisions. Sometimes G
the option is expressly and in terms granted. In others the right may be implicit
Thus when an agreement provides that the right to obtain sale is subject to
the fulfilment of certain conditions by the purchaser, the agreement would in
effect be an option to purchase, as the right to purchase would only accrue
upon the voluntary performance of the conditions specified by the owner. The
vendor cannot compel the performance of the conditions by the purchaser and H
202 SUPREME COURT REPORTS [2001) SUPP. I S.C.R.

A then ask for the contract to be specifically performed. [208-E-FJ

2.3. The mere fact than an agreement for sale is described as a re-
conveyance does not by itself mean that it is an option to repurchase nor does
it in any way alter the substance of the deed, it merely records a historical
fact-that the property which is to be sold was being purchased by the person
B who used to be the owner. No logical distinction can be drawn between an
agreement to re-purchase and an ordinary agreement of purchase just because
the vendor happens to be the original purchaser and the purchaser happens
to be the original vendor. The agreement remains an agreement for sale of
immovable property and must be governed by the same provisions of law.
C [210-D-EJ

3. The fact that the appellant had not come to the Court with clean
hands was not an issue raised by the respondent at my stage nor does any
argument appear to have been advanced in this regard by the respondent
before the Trial Court or the first appellate court at all. Furthermore, the
D first appellate court had not, as wrongly stated by the High Court, held that
the claims of the appellant were false. The District Judge, which was the final
court of fact, expressly refused to go into the question of payment of the
balance consideration by the respondent under the sale deed because he held,
rightly so, that in the suit for specific performance the court was not concerned ·
E with whether any consideration had been paid under the original sale deed
executed by the appellant in favour of the respondent (212-D-FJ

Kommisetti Venkata Subbarayya v. Karamsetti Venkateswarlu, Am (1971)
AP 279 and Buchiraju v. Sri Ranga Satyanarayana, Am (1967) AP 69, referred
to.

F 4. The High Court erred in disturbing the concurrent findings of fact
merely on a construction of the plaint on a point not raised by the respondent
at any stage of the proceedings. The High Court should not, in the
circumstances, have permitted the respondent to raise an inconsistent·
argument at the stage of second appeal. J211-B; 211-EJ
G Syed Dastagir v. T.R. Gopalakrishna Setty, (1999) 6 SCC 337 and Moti/al
· Jain v. Ramdasi Devi, AIR (2000) SC 2048, referred to.

5. Where the Court is considering whether or not to grant a decree for
specific performance for the first time, the rise in the price of the land agreed
H to be conveyed might be a relevant factor in denying the relief of specific
V. PECHIMUTHU v. GOWRAMMAL [RUMA PAL, J.] 203

performance. But in this case, the decree for specific performance has already A
been passed by the trial Court and affirmed by the first appellate Court. The
only question before this Court is whether the High Court was correct in
reversing the decree of specific performance. Therefore, rise in the price of
the land is not a relevant factor. [212-H; 213-A]

K.S. Vidyanadam v. Vairavan. [1997] 3 SCC 1, held inapplicable. B

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 336 of
1997.

From the Judgment and Order dated 29.1.96 of the Madras High Court
in S.A. No. 1997 of 1982. C
K. Ram Kumar and B. Sridhar for the Appellant.

R. Sundaravardan, R.N. Keshwani, Sanjay Kunur and Ramlal Roy for
the Respondent.
D
The Judgment of the Court was delivered by

RUMA PAL, J. This appeal impugns an order passed by the High
Court in second appeal. The High Court set aside a decree for specific
performance granted to the appellant by both the Trial and the First Appellate
Court. The issue is whether the High Court was justified in setting aside a E
concurrent finding of fact within the limits prescribed by Section 100 of the
Civil Procedure Code.

Let us consider the facts.

The appellant was the owner of certain property. The property was F
tenanted and mortgaged. By a deed dated 2nd May 1973, the appellant sold
the property to the respondent for a sum of Rs. 20,000. Out of this amount
a sum of Rs. 15,005 was to be paid by the respondent to the mortgagee of
the property to clear the appellant's mortgage debt. The sale deed recorded
that the balance amount of Rs. 4,995 was received by the appellant from the G
respondent for re-payment of advance rent made by the tenants of the property
to enable the respondent to get vacant possession.

On 4th May 1973, a separate agreement was entered into between the
appellant and the respondent by which the respondent agreed to sell the
property back to the appellant after the 5th year from the date of the execution H
204 SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A of the agreement and before the expiry of the 6th year for the sum of
Rs. 19,990. Rs. 20,000 less an amount of Rs. 10 paid by the appellant to the
respondent by way of an advance.) This is the agreement which is the subject
matter of the litigation before us and is referred to hereafter as 'the agreement'.
Both the sale deed and the agreement were registered on 13th June 1973.

B After the sale, the respondent took possession of the property and has
been in possession of the property since then. It is the appellant's case that
after 5 years, the appellant made repeated demands in person and through
mediators calling upon the respondent to execute the sale deed at the
appellant's expense after receiving the entire amount of Rs. 19,990. The
C respondent refused to do so. Ultimately, the appellant sent a notice through
his lawyer on the 6th February 1979 asking the respondent to send a reply
within three days from the date of the receipt of the notice specifying the
date on which the respondent would execute the sale deed at the Sub Registrars
Office after receiving the consideration of Rs. 19,990 and to deliver possession
of the property in the same condition in which it was sold. The notice was
D received by the respondent on 7th February 1979. On 16th February 1979,
the respondent replied refuting the demand of the appellant and claiming an
amount higher than Rs. 20,000 as she had paid a further sum of Rs. 1448 to
the mortgagee over and above the sum that she was liable to pay under the
sale deed and had also incurred expenses of Rs. 700 in connection with the
E litigation with the mortgagee. According to the respondent, she had also paid
a further sum of Rs. 3,000 to the respondent and that, therefore, the appellant
was bound to give up his right to a re-conveyance of the property.

In March, 1979 the appellant filed a suit claiming specific performance
of the agreement. While narrating the facts in the plaint, the appellant also
F stated that the respondent did not in fact pay the appellant the sum of Rs.
4,995 as stated in the sale deed. A sum of Rs. 2,500 had been paid by the
respondent directly to the tenant of the property but the balance amount of
Rs. 2495 was never paid to the appellant. The appellant also claimed that he
had to pay a sum of Rs. 2,000 to the mortgagee because the respondent had
G defaulted in clearing the mortgagee's dues in time. The appellant further
stated that he was always ready and willing to perform his part of the
agreement ever since the date stipulated for re-conveyance of the property,
namely, 3.5.1978 and had been making repeated demands on the respondent
in person and through mediators to execute the sale deed at the expense of
the appellant after receiving the entire amount of Rs. 19,990. The claim set
H up by the respondent in the respondent's letter dated 15th February 1979 was
V. PECHIMUTHU v. GOWRAMMAL [RUMA PAL, J.) 205

denied and it was reiterated that the appellant was always ready and willing A
to perform his part of the agreement dated 4th May 1973 and that he was
ready to pay the balance amount of sale consideration of Rs. 19,990 and the
expenses for effecting the sale to the appellant even on the date of the filing
of the suit. The appellant claimed mesne profits in respect of the respondent's
continued possession of the suit property after 3rd May 1978 as also credit B
for the amount of Rs. 2,000 alleged to have been paid by the appellant to the
mortgagee and a sum of Rs. 3,000 towards the expenses which would be
incurred by the appellant for repairing the suit properties. The readiness and
willingness of the appellant to perform the agreement dated 4th May 1973
was again reiterated in paragraph 11 of the plaint. The appellant has ultimately
prayed for a decree:- C
'directing the defendant to execute a sale deed in respect of the
suit properties in favour of the plaintiff at the plaintiffs expense for
a consideration of Rs. 20,000 after receiving the balance of sale
consideration (as determined by this Hon'ble Court) from the plaintiff
within a specified date and if the defendant fails to execute the sale D
/
deed as aforesaid directing the sale deed as aforesaid to be executed
by the Court on behalf of the defendant'.

In her written statement, the respondent did not deny the execution of
the agreement but did deny that the appellant was entitled to any credit for
any sum at all. On the other hand according to the respondent a sum of E
Rs. 3,000 was payable by the appellant, a claim for which a suit has been
filed and decree obtained. The respondent also claimed that she had to pay
a further amount of Rs. 1448.75 to the mortgagee and had to spend Rs.
3,000 to put the suit property into a good condition, as well as make payment
for incidental and legal expenses totaling Rs. 700. It was stated that the
F
appellant had orally agreed to give up his right of re-conveyance for Rs.
30,000 and as the respondent had paid Rs. 30,648 to or on account of the
appellant, the appellant was not entitled to enforce his right ofre-conveyance.
The respondent disputed .that the appellant was ready and willing to pay or
deposit the sum of Rs. 20,000 and called upon the appellant to do so to prove
his bonafides. According to the written statement, there was no question of G
the respondent paying any mesne profits.

"On the other hand the plaintiff is bound to deposit and pay Rs.
27,648 (exclusive ofpronote debt) for the re-conveyance which claim
in act (fact) he must give up as per the oral agreement between the
plaintiff and this defendant as already stated this written statement." H
206 SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A (sic).

The suit was decreed in favour of the appellant on 28th July 1981. It
appears that the respondent had jettisoned the case of an oral agreement at
the trial. The Learned Subordinate Judge also rejected the appellant's case in
the plaint in so far as he had claimed credit for the various sums which he
B alleged that the respondent had failed to pay under the sale deed. However,
it was held by the learned Subordinate Judge that the appellant was entitled
to specific performance of the second agreement upon payment of a sum of
Rs. 23,448.75 to the respondent. The Subordinate Judge to that extent accepted
the respondent's claim that the respondent had, apart from the original amount
C of Rs. 20,000, paid a further sum of Rs. 3,448.75 to the appellant or on the
appellant's account which could be added to the cost of re-conveyance. By
the decree the appellant was required to deposit the amount of Rs. 23,448.75
on or before 7th May 1981 in order to avail of the benefit of the decree. The
appellant deposited the amount of Rs. 23,448.75 in the court of the Subordinate
Judge within the time stipulated.
D Both the appellant and the respondent preferred appeals against the
.
decision of the Subordinate Judge. The appeals were heard analogously. Before
the District Judge, it was contended by the appellant that he was liable to pay
only Rs. 12,495 after taking credit for the amounts not paid by the respondent
under the sale deed or expenses incurred by him. The respondent on the other
E hand wntended that the appellant was not entitled to a decree for specific
performance and that the Subordinate Judge should have held that the appellant
was liable to pay a further sum of Rs. 3,000 allegedly spent by the respondent
in making various improvements to the suit property. The District Judge
formulated the points for consideration as follows:

F (i) Whether the plaintiff is entitled to the relief of specific
performance?
(ii) What is the sale consideration payable by the plaintiff for the
execution of the re-conveyance deed?

G The District Judge held that the parties were bound by the terms of the
agreement which was a registered document and which had not been varied
or altered in any manner. He noted that in terms of the agreement, the appellant
had served notice upon the respondent to specify the date and time on which
the respondent would come and execute the sale at the concerned Sub
Registrar's office, after receiving the consideration of Rs. 19,990 and deliver
H possession of the properties to the appellant. It was noted that in the notice
V. PECHIMUTHU v. GOWRAMMAL [RUMA PAL, J.] 207

the appellant had not claimed that he was liable to pay anything less than A
what he had contracted for under the agreement. The District Judge also held
that the respondent was not entitled to anything more than the amount of
consideration fixed under the agreement and that as the respondent had
undertaken to discharge the mortgage debt she was not entitled to claim any
excess payment that may have been made to the mortgagee. In any case, the B
respondent had neither made any counter claim or set off in the suit nor paid
any Court fees in respect of such claim. The District Judge also rejected the
case of the respondent that she had paid a sum of Rs. 4495 to the tenants of
the property. In the circumstances, the District Judge directed the appellant
to deposit a sum of Rs. 19,990 for specific performance of the agreement and
held that the respondent was not entitled to claim any other a~ount from the C
appellant. The decree of the Subordinate Judge was accordingly affirmed
with these modifications.

The respondent impugned the decision of the District Judge by way of
second appeal before the High Court. The learned Single Judge formulated
the following question as being a substantial question of law: D
"Whether on the facts and in the circumstances of the case, the
decree for specific performance is sustainable?"

The learned Judge reversed the concurrent finding of the Trial Court
and the first appellate Court and held on a construction of the plaint that the E
right of re-conveyance was a concession or a privilege granted to the original
owner and that therefore not only must the terms of such agreement be
strictly construed against him, but also unlike "ordinary" agreements for sale,
time would be of the essence of the contract. It was held that such an owner
claiming re-conveyance had to strictly perform the argument before the right
could be enforced. Since, according to the High Court, the appellant had F
wanted a settlement of accounts before the performance of the agreement,
the intention of the appellant was not to implement the agreement in terms
thereof and as such he was not entitled to specific performance. The Learned
Single Judge referred to the following decisions in support of his conclusions,
(I) Shanmugam Pillai v. Annalakshmi Ammal, AIR (1950) FC 38, (2) K. G
Simrathmull v. Nanjalingaiah Gowder AIR (1963) SC 1182, (3) Hasam Nurani
Malak v. Mohan Singh and Anr., AIR (1974) Born. 136 (4) S. Sankaran
(dead) and 4 Ors. v. NG. Radhakrishnan, (1994) 2 L.W. 642 .

The conclusion of the High Court is unsustainable in law and contrary
to the facts. The learned Judge erred in holding that it is a general principle H
•

208 SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A of law that every agreement of sale by which the original owner agrees to
buy back the property is a privilege or concession granted to such owner. A
privilege has been defined as a particular and peculiar benefit or advantage
enjoyed by a person, and a concession as a form of privilege. An option to
purchase or repurchase has been held' to be such a privilege or concession.
B [See: Shanmugham Pillai v. Anna/akshmi, AIR (1950) FC 38; K. Simarathmul/
v. Nanjalingaiah Gowder, AIR (1963) SC 1182. This is because an option
by its very nature is dependent entirely on the volition of the person granted
the option. He may or may not exercise it. Its exercise cannot be compelled
by the person granting the option. It is because of this one sidedness or
"unilaterality", as it were, that the right is strictly construed and"[a]n option
C for the renewal of a lease, or for the purchase or repurchase of pr11perty, must
in all cases be exercised strictly within the time limited for the purpose,
otherwise it will lapse" (Halsbury's Laws of England, 3rd Edn. Vol.3 Art.
281, p. 165).

An agreement for sale and purchase simpliciter , on the other hand, is
D a reciprocal arrangement imposing obligations and benefits on both parties
and is enforceable at the instance of either. The interpretation of such a
contract would be governed by the laws of contract relating to the perfonnance
of reciprocal promises.

Whether an agreeinent is an option to purchase or an "ordinary"
E agreement would depend on the interpretation of its provisions. Sometimes
the option is expressly and in terms granted. In others the right may be
implicit. Thus when an agreement provides that the right to obtain a sale is
subject to the fulfillment of certain conditions by the purchaser, the agreement
would in effect be an option to purchase, as the right to purchase would only
F accrue upon the voluntary perfonnance of the conditions specified by the
owner. The vendor cannot compel the perfonnance of the conditions· by the
purchaser and then ask for the contract to be specifically perfonned.

Thus in Shanmugam Pillai v. Annalakshmi, AIR (1950) FC 38, the
tenns of the agreement provided that the mortgagee/vendor would re-sell the
G land to the owners subject to the conditions (i) that the owner would pay Rs.
31,500 as the sale price as well as all expenses in connection with the re-sale
(ii) that the agreement could be enforced upto 30th April 1943 and that time
was of the essence of the agreement and (iii) that the owner should pay the
in~talments under the lease punctually failing which the agreement for re-

H I. Blacks Law Dictionary. 6th Edn.
Y. PECHIMUTHU v. GOWRAMMAL [RUMA PAL, J.] 209

conveyance would stand cancelled. These provisions were construed and the A
Court came to the conclusion that the original vendor had in fact been granted
an option of re-purchase and it was not an ordinary contract for transfer of
land. The Court came to this conclusion on two grounds (i) the right to
purchase was subject to payment of. instalments under a lease, and was a
conditional right and (ii) the fixation of an outer time limit for exercise of the B
right gave the original owner the option to re-purchase upon payment of the
sale consideration within the specified time. It was not in dispute not only
that the purchaser had failed to pay the instalments, under the lease but had
also allowed the time limit to lapse. It was in this context that the Court said:

"It is well settled that, when a person stipulates for a right in the C
nature of a concession or privilege on fulfilment of certain conditions,
with a proviso that in case of default the stipulation should be void,
the right cannot be enforced if the conditions are not fulfilled according
to the terms of the contract".

Similarly, this Court in K. Simrathmull v. Nanjalingiah Gowder, AIR D
(I 963) SC 1182 construed and followed Shanmugam Pillai, and the majority
view that:

" .... where under an agreement an option to a vendor is reserved for
repurchasing the property sold by him the option is in the nature of
a concession or privilege and may be exercised on strict fulfilment of E
the conditions on the fulfilment of which it is made exercisable."
(Emphasis supplied)

In the case before us, the right of the appellant to re-conveyance of the
property has none of the characteristics of an option. The relevant extract of
the agreement reads: (where the respondent is referred to in the first and the F
appellant in the second person).

"On 2.5.1973 I have purchased the property described hereunder by
virtue of the sale deed dated 2.5.1973 from you for a consideration
of Rs. 20,000 (Rupees twenty thousand only) and I have been in
possession and enjoyment of the same and whereas you must get the G
sale registered in your favour at your costs after the fifth year from
this date onwards, i.e., 3.5.1978 and before the expiry of the sixth
year, i.e. 3.5.1979 and you will have to pay the sale consideration
of Rs. 20,000 (Rupees twenty thousand only) less the advance amount
of Rs. I 0 (Rupees ten only) received by me on this day. I will not H
210 SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A receive any sale consideration further before 3.5. 1979. Whereas I
desire and agree to sell the under mentioned property to you at the
cost of Rs. 20,000 to you and I hereby received a sum of Rs. 10 as
an advance of sale consideration from you."

It is to be noted firstly that the appellant could not, even if he were
B ready and able to, buy back the property before 3.5.79 because it was made
clear that the respondent would not accept any sale consideration before that
date. The time limit in this case was really for the benefit of the respondent
allowing five years un-interupted user of the land without threat of re-purchase
by the appellant. Secondly, the clause does not provide that if the sale
C consideration were not paid before 3rd May 1979 the appellant would lose
his right to buy the property. Time was not stated to be of the essence of the
contract. Thirdly, either of the parties could enforce the contract as it stood
after five years. The agreement in question therefore was an "ordinary"·
agreement for sale.

D To sum up: the mere fact that an agreement for sale is described as a
re-conveyance does not by itself mean that it is an option to repurchase nor
does it in any way alter the substance of the deed. It merely records a
historical fact - that the property which is to be sold was being purchased by
the person who used to be the owner. No logical distinction can be drawn
between an agreement to re-purchase and an ordinary agreement of purchase
E just because the vendor happens to be the original purchaser and the purchaser
happens to be the original vendor. The agreement remains an agreement for
sale of immovable property and must be governed by the same provisions of
law.

Coming to the facts of the case, there is no dispute that the appellant
F sent a legal notice to the respondent offering to pay the entire amount of
Rs. 19 ,990 to the respondent well within the period specified in the agreement.
The suit was also filed before 3rd May 1979. Nothing further remained to be
done by the appellant under the agreement. As far as the deposit of the
balance consideration was concerned under Explanation (I) to Section 16
G (c )2 of the Specific Relief Act, 1963 the appellant could wait for an order of
the Court to do so. That is what he did. Both the Trial Court and the first
appellate Court on a consideration of all the evidence therefore rightly came
2. Explanation-For the purposes of clause 16(c}-

(i) where a contract involves the payment or money, it is not essential for the plaintiff
lo actually tender 10 the defendent or to deposit in court any money except when
H so directed by the court;
V. PECHIMUTHU v. GOWRAMMAL [RUMA PAL, J.) 211

to the conclusion that the appellant was ready and willing to perform his A
obligations under the agreement and was entitled to specific performance of
it.

The second error committed by High Court was in disturbing the
concurrent finding of fact merely on a construction of the plaint on a point
not raised by the respondent at any stage of the proceedings. It was not the B
respondent's case either in the written statement nor before the Trial Court
or the first appellate Court that the appellant was not entitled to specific
performance only because he had allegedly claimed a variation in the
consideration price. On the other hand it was the respondent who had all
along claimed such a variation . When the appellant called upon the respondent C
prior to the institution of the suit to re-convey the property on payment of
Rs. 19,990, it was the respondent's case that the appellant was liable to pay
a larger sum to the respondent than the amount mentioned in the agreement.
This stand was repeated by the respondent in her written statement and also
on first appeal. The respondent had herself put in issue the amount of sale
consideration payable under the agreement. Having done that, she could not D
tum around and contend that it was the appellant who was asking for a
variation of the agreement. In fact the first appellate Court found that the
claim for various credits had been raised by the appellant for the first time
only after the respondent had claimed monies over and above the sale
consideration of the agreement for re-conveying the property. The High Court E
should not in the circumstances have permitted the respondent to raise an
inconsistent argument at the stage of the second appeal.

Thirdly, it is well settled

" ...... In construing a plea in any pleading, courts must keep in p
mind that a plea is not an expression of art and science but an
expression through words to place fact and law of one's case for a
relief. Such an expression may be pointed, precise, sometimes vague
but still it could be gathered what he wants to convey through only
by reading the whole pleading, depending on the person drafting a
plea. In India most of the pleas are drafted by counsel hence the G
aforesaid difference of pleas which inevitably differ from one to the
other. Thus, to gather true spirit behind a plea it should be read as a
whole. This does not distract one from performing his obligations as
required under a statute. But to test whether he has performed his
obligations, one has to see the pith and substance of a plea. (Syed H
212 SUPREME COURT REPORTS [2001) SUPP. I S.C.R.

A Dastagir v. T.R. Gopalakrishna Setty, (1999] 6 sec 337 at 341) (See
also Moti/al Jain v. Ramdasi Devi, AIR 2000 SC 2408.]

In the case before us, the appellant has proved the agreement made and
the parties were not at issue as to its existence. The appellant had ex pressed
his readiness and willingness to perform the agreement by paying the
B consideration fixed not once but repeatedly in several paragraphs of the
plaint. The High Court erred in overlooking the fact that the appellant had
never said that the consideration for re-conveyance under the agreement was
less than what was stated. Conceding that, the appellant had merely claimed
credit for certain amounts. This could not mean that he was seeking a variation
C in the agreement itself.

The second reason given by the High Court for denying the appellant
the relief of specific performance was under Section 20 of the Specific Relief
Act, 1963. Relying upon Kommisetti Venkata Subbarayya v. Karamsetti
Venkateswar/u and Ors., AIR (1971) A.P. 279 and Buchiraju v. Sri Ranga
D Satyanarayana, AIR (1967) AP 69 the High Court held that the appellant had
not come to the Court with clean hands since he had falsely claimed that he
had not received any amount under the first deed of sale from the respondent.
The appellant's suit was accordingly dismissed. This again was not an issue
raised by the respondent at any stage nor does any argument appear to have
been advanced in this regard by the respondent before the Trial Court or the
E first appellate Court at all. Furthermore, the first appellate Court had not, as
wrongly stated by the High Court, held that the claims of the appellant were
false. The District Judge, which was the final Court of fact, expressly refused
to go into the question of payment of the balance consideration by the
respondent under the sale deed because he held, and in our view rightly so,
F that in the suit for specific performance the Court was not concerned with
whether any consideration had been paid under the original sale deed executed
by the appellant in favour of the respondent. The decisions noticed by the
High Court in this connection were accordingly wholly inapposite.

Counsel for the respondent finally urged that specific performance should
G not be granted to the appellant now because the price of land had risen
astronomically in the last few years and it would do injustice to the respondent
to compel her to re-convey property at prices fixed in 1978.

The argument is specious. Where the Court is considering whether or
not to grant a decree for specific performance for the first time, the rise in
H the price of the land agreed to be conveyed may be a relevant factor in
V. PECHIMUTHU v. GOWRAMMAL [RUMA PAL, J.] 213
denying the relief of specific performance. [See K.S. Vidyanadam and Ors. A
v. Vairavan, [1997] 3 SCC I]. But in this case, the decree for specific
performance has already been passed by the trial Court and affirmed by the
first appellate Court. The only question before us is whether the High Court
in second appeal was correct in reversing the decree. Consequently the
principle enunciated in K.S. Vidyanadam (supra) will not apply.
B
For the foregoing reasons, the a,ppeal is allowed. We set aside the
judgment of the High Court and uphold the decision of the first appellate
·Court but there will be no order as to costs.

v.s.s. Appeal allowed. C