CIA II

CASE STUDY
Business Law AKSHAY
BHUWALKA
08D1303
 CASE

Subbaiah owed Rs 2 Lakhs to Ramayaa. Before this payment became

due, Subbaiah sold a piece of his landed property to Palani for Rs 3
Lakhs and the sale deed interalia, contained a clause:

Wheras you have consented to pay on my behalf to Ramayaa the amount

of Rs 2 Lakhs due to him by me and obtained a receipt therefore,
etc…..

Ramayaa did not have any document to prove that Subbayaa owed Rs 2
Lakhs to him. Subsequently, Palani and Subbaiah on the basis of the
above clause in the sale deed.
 Answer

In this case, Pallani can be sued by both Ramayaa and Subbaiah, as there
was a written agreement between Subbaiah and Pallani, where in,
Pallani would pay Rs 2 Lakhs to Ramayaa for the purchase of
Subbaiah’s land.

Ramayaa cannot sue Subbaiah, as he had already arranged to pay him by

getting into an agreement with Pallani and had documentary
evidence to prove this.