Contract Law Essay

Prakash Kaur v k.g. Ringshia on 20 July, 2007
Facts:
Based on the case Prakash Kaur v K,G. Ringshia, Ms. Prakash Kaur in 1989 filed the suit for declaration in the Delhi High Court, which now stands transferred to District Court against Everest Construction Company, the appellant herein. The appellant is a partnership firm having its office at Bombay. It does not have any office at Delhi. As per the averments made in the plaint, the respondent or Ms. Prakash Kaur had entered into an agreement dated 13th October, 1981 with the appellant. The agreement was executed at Bombay, now known as Mumbai. As per the said agreement, the appellant had agreed to sell to Ms. Prakash Kaur, a flat described as 606 on 6th floor of the building proposed to be constructed by the appellant at Prabha Devi in Mumbai. The building was to be called Resham Tower. It is claimed in the plaint that the total consideration for purchase of the flat is Rs. 2,32,875/- to be paid in 14 instalments. Ms. Prakash Kaur claims that she has paid Rs. 12,875/- on two different dates as per receipts issued. It is further stated that Ms. Prakash Kaur shifted from Mumbai to Delhi and intimation was given to the appellant and her new address was furnished vide letter dated 13th July, 1982. The construction had remained stalled due to some difficulties and in January, 1987 construction re-started and at that time Ms. Prakash Kaur had sent a demand draft of Rs. 50,000/- by registered letter dated 28th January, 1987 to the appellant towards on account payment. The said demand draft was not returned back by the appellant and remained with the appellant. Ms. Prakash Kaur thereafter wrote another letter dated 24th/28th December, 1987 to the appellant to which a reply dated 28th January, 1988 was received from the appellant denying existence of any agreement between the parties and the demand draft of Rs. 50,000/-