IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 981 OF 2010 [Arising out of SLP(C) No.35120/2009]

M.G. RAVALA MANKIYAM & ORS. .......APPELLANT(S)  

Versus

M. MADA NAIK .....RESPONDENT(S)

O R D E R

Leave granted.  Heard the parties.

2. The legal heirs of the plaintiff in a suit  

for specific performance are the appellants in this appeal  

by special leave.   The respondent had entered into an  

agreement of sale dated 25.12.1986 in favour of one M.R.  

Gopal of whom the appellants are the legal heirs.  As the  

respondent refused to execute the sale deed in pursuance of  

the said agreement, a suit for specific performance was  

filed on 19.4.1988.  The suit was decreed by the trial  

Court on 31.7.2001 directing the defendant in the suit to  

execute the sale deed.  The appeal filed by the defendant  

was  allowed  in  part  by  the  High  Court  by  the  impugned  

judgment  dated  14.8.2009.  The  decree  for  specific  

performance was set aside.  The High Court directed the  

defendant to refund the earnest money of  Rs.60,000/- and  

also  pay  damages  of  Rs.5,00,000/-.  The  said  order  is  

challenged by the legal heirs of the plaintiffs.   

....2.

- 2 -

3. When  the  matter  came  up  today,  learned  

counsel for the appellants and respondent submitted that  

the matter has been settled and it has been agreed that the  

judgment and decree of the High Court be affirmed subject  

only to the modification that the damages payable should be  

Rs.9,40,000/-(rupees  nine lakhs forty thousands) instead  

of Rs.5,00,000/-. Thus, the total amount payable would be  

Rs.10  lakhs.  It  is  also  agreed  that  the  defendant-

respondent  shall  pay  Rs.7,75,000/-  within  15  days  from  

today  and  pay  the  remaining  Rs.2,25,000/-  within  three  

months.  If the amount is not so paid, the respondent shall  

be liable to pay interest at 18% per annum from this day to  

the date of payment on the defaulted amount.

4. Appeal is disposed of accordingly.

  .........................J.        ( R.V. RAVEENDRAN )

New Delhi;         .........................J. January 25, 2010.          ( K.S. RADHAKRISHNAN )