Mohammed vs Pushpalatha
- SCC(2008) 8 SCC 335
- AIRAIR 2009 SC 479
Ratio decidendi
The rule this decision rests on
Where a contract provides for performance of multiple essential obligations by one party as a condition precedent to the other party's obligation to perform (or pay an increased consideration), and one such essential obligation remains unperformed, the other party is not bound to pay the increased consideration until that obligation is fully performed and possession of the benefit is delivered, even if other parts of the contract have been performed. The obligation to pay the increased rent arises only upon construction of the toilet and delivery of its possession, not before.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
agreement entered into by the parties. It is not in dispute 2
that under the agreement, being Exhibit No. P1 before
the trial Court, the respondent agreed to reconstruct the
premises in question with toilet facility. The premises in
question was reconstructed, but, however, the toilet was
not reconstructed according to the terms of the
agreement. In the old structure of the said premises, the
appellant was paying, as a tenant to the respondent, a
sum of Rs. 325/- per month as rent. It would be evident
from the agreement itself that the tenant had agreed to
pay rent at the rate of Rs. 1250/- per month after
reconstruction in terms of the said agreement.
Admittedly, under the said agreement, the respondent
was liable to reconstruct the premises with toilet facility.
The toilet was not constructed and accordingly, the
aforesaid suit was filed by the appellant for a decree that
the respondent shall construct a toilet and to declare that
the tenant was liable to pay the rent at the old rate and
not as per Exhibit P1 and for permanent injunction not to
interfere with the peaceful possession and enjoyment. 3
3. The trial Court decreed the suit and directed the
respondent to construct the toilet as agreed to by the
parties within three months from the date of the delivery
of the judgment. The impugned order of the High Court
discloses that the toilet has not yet been constructed.
According to the appellant, the tenant is only liable to
pay at the rate of Rs.1250/- per month after the toilet is
constructed and given possession to him. The High
Court, in Appeal, held that the appellant was liable to
pay rent at the rate of Rs. 1250/- per month and not at the
rate of Rs. 325/- per month, although, in terms of the
agreement, toilet was not constructed and possession not
given in respect of the same.
4. Feeling aggrieved by the Judgment of the High Court,
the present appeal, after grant of leave, has been filed,
which was heard by us in presence of the learned counsel
for the parties. Having heard the learned counsel for the
parties and after going through the materials on record
including the judgments of the Courts below and the
agreement executed between the parties, we are of the 4
view that the appellant shall be liable to pay rent at the
rate of Rs. 1250/- per month after the toilet is constructed
and possession given thereof.
5. As noted herein earlier, in this case, toilet has not been
constructed at all, although, the other part of the
agreement, namely, reconstruction has been made and
possession has been delivered to the appellant. In view
of Section 51 of the Contract Act, we are of the view that
the appellant is liable to pay rent at the rate of Rs. 1250/-
per month, only after the toilet is constructed and
possession of the toilet given to the appellant.
6. The learned counsel for the respondent also agreed that if
three months' time is granted to the respondent, the toilet
shall be constructed and possession can be given within
a month from the date of construction of the toilet.
7. Such being the stand taken by the learned counsel for the
respondent, we dispose of this appeal in the following
manner :-
a) The decree passed by the trial Court that the toilet shall be constructed is
affirmed and the respondent is directed to construct the toilet and 5
possession of the toilet must be given to the appellant within four months
from the date of supply of a copy of this order.
b) If such toilet is constructed and possession is delivered to the appellant, the appellant shall pay rent at the rate of Rs. 1250/- per month from the
1st day of the Calendar month, in which the possession of the toilet shall
be given to the appellant.
c) If no toilet is constructed and possession of the toilet is not given to the
appellant, the Judgment of the High Court shall stand affirmed and this
appeal shall stand dismissed.
8. With the above directions, the appeal is disposed of.
There will be no order as to costs.
................................J. (TARUN CHATTERJEE)
................................J. (AFTAB ALAM) NEW DELHI,
JULY 21, 2008
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