SUPREME COURT OF INDIA
Uday Umesh Lalit, Vineet Saran, JJ.
VENKITALAKSHMI – Appellant
Versus
K. RAJU AND ORS. – Respondents
CIVIL APPEAL NOS.6258-6259 OF 2019 (Arising out of Special Leave Petition (Civil)Nos.23648-23649 of 2015)
Decided On : 13-08-2019
(a) Specific Relief Act, 1963 - Sections 12 and 16 - Only Rs.5,000/- paid as earnest money as against consideration of Rs.1,19,500/- - High court rightly finding that plaintiff failed to prove extension of time to complete the transaction - it follows that the plaintiff was not ready and willing - No interference warranted. (Para 9)
(b) Specific Relief Act, 1963 - Sections 21 and 22 - Rs.5000/- paid by plaintiff as earnest money in July 1980 - Rs. 5 lakhs directed to be paid to the plaintiff as compensation. (Para 10)
Facts of the case:
This case concerns specific performance of agreements.
The High Court held that the Plaintiff was not entitled to the relief of specific performance.
Finding of the Court:
There is no infirmity in the impugned order.
Result: Appeal partly dismissed.
JUDGMENT
Uday Umesh Lalit, J.
1. Leave granted.
2. These appeals arise out of the final judgment and order dated 28.03.2014 passed by the High Court of Judicature at Madras in Appeal Suit Nos. 646 and 647 of 1987.
3. The Appeal Suit Nos.646 and 647 of 1987 arose out of Civil Suits being, O.S. No. 704 of 1981 and O.S. No. 707 of 1981 on the file of the Principal Subordinate Court, Coimbatore, Tamil Nadu seeking specific performance in respect of agreements dated 16.07.1980 (Exhibit-A5) and 16.07.1980 (Exhibit-A6) respectively. As per Exhibit-A5 the original Defendants 1 and 2 in O.S. No.704 of 1981 entered into an agreement of sale with original Plaintiff – Ponnuswamy Nadar, while Exhibit-A6 was entered into between original Defendants 1 to 5 in O.S. No. 707 of 1981 with original Plaintiff – Ponnuswamy Nadar. The rival submissions of the parties including the case of the Plaintiffs in O.S. No.704 of 1981 was set out by the High Court in para nos.2 to 4 of its judgment as under:-
“2. The case of the plaintiffs in O.S.No.704 of 1981 is as follows:-
(a) Late S.N. Ponnuswamy Nadar entered into an agreement of sale with Kuppathal and Nanjammal, defendants 1 and 2, on 16.7.1980 for the purchase of the suit property and in that suit, the defendants 6 to 8, were later impleaded. Sale consideration was agreed at Rs.1,19,500/-and it was agreed that the sale would be completed within a period of 4 months from the date of agreement. The second item of property which is forming part of the first item of property was delivered in part performance of the contract on 7.11.1980 to the first plaintiff S.N. Ponnuswamy Nadar. On the date of agreement, an advance of Rs.5,000/-was paid. On 7.11.1980, the defendants 1 and 2 namely, Kuppathal and Nanjammal requested the first plaintiff to extend time for completing the sale on the ground that there were standing crops on the field and that was agreed on condition of delivering a portion of the suit property and accordingly, the second item of the suit property was delivered to the first plaintiff on 7.11.1980 and time was extended by 10 months and that was also endorsed in the agreement of sale attested by witnesses. Again on 27.8.1981, further extension of time was granted for a period of 3 months and that was also endorsed in the agreement of sale. On 6.11.1981, a registered letter was sent by the first plaintiff to the defendants 1 and 2 expressing his readiness to purchase the suit property and demanded the execution of the sale deed by defendants 1 and 2 and that was followed by lawyer’s notice on 16.11.1981. Meanwhile, the first plaintiff came to know that the defendants 1and 2 fraudulently transferred the suit property in favour of the defendant Nos. 3 and 5, namely, R. Perumal, and R. Vijayalakshmi, in collusion with the first appellant herein. The defendants 2 to 5 attempted to interfere with the possession and enjoyment of the second item of the property. Therefore, the suit was filed for relief of specific performance.
(b) The first plaintiff was ready and willing to pay the balance sale consideration and the first plaintiff was having sufficient means for purchasing of stamp paper and other expenses for the due execution of the sale deed and the first plaintiff was willing to deposit the balance sale consideration into the Court. The defendants 1 and 2 are closely related to the defendants 4 and 5. With the intention of defrauding the first plaintiff and to defeat his legitimate rights, a fraudulent sale deed was executed by the defendants 1 and 2 in favour of the defendants 3 and 5. During the pendency of the suit the defendants 9 to 12 having full knowledge of the pending litigation entered into a joint venture by colluding with the defendants 1 to 8 and the defendants 9 to 12 claimed to have purchased the suit property from the defendants 3 to 8. The sale deed was alleged to have been executed in favour of the defendants 9 to 12 and nominal document was created with an intention of giving
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