Nadarajah v. Ghani – sllr 2001 volume 1 page 301

In the case between the appellant (plaintiff) and the respondent (defendant) regarding a property dispute, the court examined the validity and legal effect of a forfeiture clause within a notarial agreement attached to a deed of sale for immovable property. The main legal issue centered on whether the deed (P2), which incorporated forfeiture provisions upon default of balance payment, constituted a valid lex commissoria that operated to automatically revert title to the vendor upon non-payment. The sequence of events involved the execution of a transfer deed (P1) for Rs. 300,000, payment of only a part of the purchase price, and a notarial agreement (P2) establishing that title would revert and sums paid would be forfeited if the balance was not paid by a specified date. Additionally, a mo