ISSUE:
Whether the purchasers under agreements in respect of Jhandevalan property have a statutory charge in view of Section 55 (6) (b) of the Transfer of Property Act?
Whether the purchasers are entitled to interest under the same section?
Whether the period of limitation for enforcing claims by the purchasers would be 12 years under the Limitation Act?
Whether in view of the words “subject to contract to the contrary” used in Section 55 (6) (b) of the Transfer of Property Act and in view of the term in agreement of sale that Skipper will not be liable for interest, the purchasers cannot claim interest?
Whether the purchasers can rely on finding of fraud given by the Supreme Court to claim for interest that was sustainable?
RULE:
The buyer will have a charge on the seller’s interest in the property which is the subject-matter of the sale agreement insofar as the purchase money and interest on such amount are concerned, unless the buyer has improperly declined to accept delivery.
When the property upon which the charge is created gets converted into another form, the buyer will be entitled to proceed against the substituted security.
The limitation period remains the same even after the enforcement of the charge on the substituted security.
Accepting bookings from excess number of buyers without adequate notice to them about the contingent nature of their contracts cannot be said to be fair dealing and the amounts paid by the buyers will not carry interest is wholly unconscionable.