Case Note & Summary
The dispute arose from a civil suit filed by the appellant for specific performance of a contract to sell property. The High Court directed the appellant to discharge a mortgage and deposit a sum of Rs.3.5 lakhs in court. The appellant initially paid the mortgagee directly, which the High Court did not accept as compliance. Following appeals, the Supreme Court ordered the appellant to deposit Rs.3.15 lakhs within six months. The appellant deposited Rs.2,42,822.19 in April 1980 and later paid Rs.6.02 lakhs by cheque on May 29, 1980, claiming compliance with the court's order. The High Court dismissed her application, stating that the cheque payment did not meet the procedural requirements for depositing money into court. The Supreme Court analyzed whether the cheque payment constituted due compliance with its previous order. It concluded that payment by cheque is a common practice and valid unless specified otherwise. The court determined that the cheque payment related back to the date of delivery and found no evidence that the cheque would not have been honored. Ultimately, the Supreme Court allowed the appeal, set aside the High Court's order, and directed the respondent to execute the sale deed in favor of the appellant, with no order as to costs.
Headnote
A) Civil Procedure - Compliance with Court Orders - Payment by Cheque - Validity of Payment - Code of Civil Procedure, 1908, Order XXXI Rules 1-6 - The court held that payment by cheque is valid unless specifically required to be in cash, and the appellant's cheque payment was deemed compliant with the court's order as there was no stipulation against cheque payment. The court emphasized that the intent of the order governs compliance (Paras 823D-F). B) Civil Procedure - Date of Payment - Relation Back of Payment - Code of Civil Procedure, 1908, Order XXXI Rules 1-6 - The court ruled that payment by cheque relates back to the date of delivery of the cheque, and since the cheque was honored, the payment was considered made on the date of delivery. The court found no evidence that the cheque would not have been honored if presented on the delivery date (Paras 823F-G).
Issue of Consideration
Whether payment made by the appellant by cheque was in due compliance with the court's order.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order, and directed the respondent to execute the sale deed in favor of the appellant, with no order as to costs.
Law Points
- Payment by cheque
- compliance with court orders
- deposit of money into court
- Original Side Rules
- specific performance of contract
