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2008 Supreme(Mad) 3664

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE G. RAJASURIA
Vasantha Ammal
Versus
Babu Chettiar (died) & Others
A.S.No.932 of 1991
Decided On : 07-10-2008

Advocates Appeared:
For the Appellant :P. Gopalan, Advocate.
For the Respondents:Seshadri, R9 & 10, V. Bhiman, Advocates.

Plaintiff in specific performance suit must prove readiness and willingness to perform contract and financial ability to pay sale consideration.

Headnote:

Suit for specific performance of agreement to sell - Plaintiff claiming to be proposed purchaser - Defendants denying execution of agreement to sell - Trial court dismissing suit - Plaintiff appealing - Appellate court analyzing evidence and finding that plaintiff was not real proposed purchaser and had no financial wherewithal to pay sale consideration - Also finding that defendants were justified in selling property to third party as plaintiff was not ready and willing to perform her part of contract - Dismissing appeal and confirming trial court's judgment.

Fact of the Case:

Plaintiff filed suit for specific performance of agreement to sell, claiming to be proposed purchaser. Defendants denied execution of agreement to sell. Trial court dismissed suit. Plaintiff appealed.

Finding of the Court:

Appellate court found that plaintiff was not real proposed purchaser and had no financial wherewithal to pay sale consideration. Also found that defendants were justified in selling property to third party as plaintiff was not ready and willing to perform her part of contract. Dismissed appeal and confirmed trial court's judgment.

Issues: Whether plaintiff was real proposed purchaser and had financial wherewithal to pay sale consideration.

Ratio Decidendi: Plaintiff failed to prove that she was ready and willing to perform her part of contract. She had no financial wherewithal to pay sale consideration. Defendants were justified in selling property to third party.

Final Decision: Appeal dismissed and trial court's judgment confirmed.

Judgment :-

Anim adverting upon the judgment and decree dated 02.08.1992 in O.S.No.20 of 1982, which is one for specific performance, dismissed by the learned I Additional Subordinate Court, this appeal is focussed. For convenience sake, the parties are referred to here under according to their ligitative status before the trial Court.

2. The whole kit and caboodle of facts and figures placed before the trial court warrants this Court to scan and scrutinize the records and infer and understand the case of both sides for being quintessentially and briefly portrayed the germane facts thus:

Niggard and bereft of details, the case of the plaintiffs would be as under:

a) The suit properties, viz., a house and nanja lands belonged to the defendants 1 and

2. The plaintiff and the defendants entered into an agreement to sell on 09.07.1979 whereby the latter agreed to sell the same in favour of the former for a total sale consideration of Rs.41,000/- and out of it, a sum of Rs.24,500/- was paid by the proposed purchaser in favour of the owners of the properties as advance and the remaining was undertaken by her to be paid to the other side on or before 110. 1979, intending that time should be the essence of contract.

b) Despite the plaintiff having been ready and willing to perform her part of the contract by paying the remaining part of the sale consideration and getting executed in her favour, the sale nonetheless, the defendants had an volte face and procrastinated their performance. However, the said owners all of a sudden sold the agricultural items of the suit properties in favour of D3, even though the fact remains that the plaintiff under the said agreement to sell had been put in possession of the house property and consequently, she and her family members have been residing there, in addition to the landed properties also having been put in possession of the plaintiff and she having raised crops. Nevertheless, the third defendant was attempting to take forcibly and illegally the possession of the suit property.

c) The plaintiffs lawyers notice dated 02.02.1982 to defendants 1 to 3 evoked no positive response from them, but to the shock and surprise of the plaintiff, defendants 1 and 2 sent reply denying in toto the very execution of the agreement to sell itself. D3 also sent a similar reply, in addition to claiming that he was the bona fide purchaser of the landed properties. D3 is not a bona fide purchaser, without having knowledge about the pre-existing suit agreement to sell.

d) Hence, the suit for specific performance.

3. Remonstrating and denying, gainsaying and impugning the allegations/averments in the plaint, D1 filed the written statement, which was adopted by D2, the gist and kernel of them would run thus:

a) The suit agreement to sell was not executed by the defendants 1 and 2. One K.N.Subramanian approached the defendants 1 and 2 during April 1979 and evinced and expressed his desire to purchase the suit properties; after due negotiations the house property and 2 acres and 54 cents of land alone were agreed to be sold; whereupon at the request of the said Subramanian, the agreement to sell emerged on 19.04.1979 in the name of one Muthusamy Iyer and D1 and D2, Muthusamy Iyer did not approach the defendants personally stipulating three months period as the time for performance, apparently indicating that the time was the essence of the contract. Under the said agreement to sell, a sum of Rs.20,000/-was paid as advance by Subramaniam in favour of D1 and D2 and he undertook to pay the balance, at the time of registration of the sale deed.

b) However, when the time stipulated therein was about to expire, the said Subramaniam approached the defendants on 09.07.1979 and requested for extending the time for performance by three more months for which, the defendants 1 and 2 were not willing. Whereupon the said Subramaniam paid a sum of Rs.4,500/- and requested defendants 1 and 2 to execute another agreement to sell and as





















































































































































































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