2023 CLC 1892
Suit for specific performance of agreement to sell --- Late payment charges --- Entitlement and quantum --- Petitioners / defendants established a housing scheme and respondent / plaintiff purchased a Contention of petitioners / defendants was that respondent / plaintiff committed default in payment of last two installments therefore , he was liable to pay late payment charges --- Validity --- Petitioners / defendants were entitled to reasonable late payment charges for the period of default in the payment of installments in question --- Amount of compensation specified in relevant clause of the agreement was oppressive and penal in the facts and circumstances and the same could not be allowed to petitioners / defendants - Respondent / plaintiff paid well in time the first six installments and delay was in relation to remaining two installments constituting 25 % of the sale consideration for which late payment charges at the rate of Rs.1000 / - per day per annum ) were manifestly extortionate --- No other reasonable amount of compensation was claimed in written statement nor established by petitioners / defendants --- High Court deemed it appropriate to hold petitioners / defendants entitled to compensation in total of Rs.150,000 / - for delay in the payment of last two installments , as there no determination by the Courts below of reasonable compensation --- Figure of compensation determined by High Court was an approximation arrived at by taking into account the State Bank of Pakistan's interest rates at the relevant time --- High Court maintained judgment and decree of specific performance passed by lower Appellate Court in favour of respondent / plaintiff with the modification that the decree was subject to payment of compensation of late payment charges by respondent plaintiff to petitioners / defendants
0 Comments