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2010 Supreme(Mad) 5016

High Court of Judicature at Madras
K. MOHANRAM & S. PALANIVELU
G. Kuppusamy
Versus
M.V. Kannabiran
A.S.No.237 of 2007 & M.P.Nos.1 & 2 of 2007
Decided On :Decided On : 23-11-2010

Advocates Appeared:
For the Appellant:Srividya for M/s. N.S. Sivakumar, Advocates.
For the Respondent:Ramalingam for M/s. Ramalingam & Associates, Advocates.

The main legal point established in the judgment is that the genuineness of the sale agreement and the readiness and willingness of the parties to perform the contract are crucial factors in determining the entitlement to specific performance.

Headnote:

Specific Performance - Sale Agreement - [SUIT PROPERTY, SALE AGREEMENT] - [Transfer of Property Act, Section 54; Specific Relief Act, Section 16(c)] - The court analyzed the genuineness of the sale agreement, the readiness and willingness of the parties to perform the contract, and the entitlement to specific performance. The court found the sale agreement to be genuine, the respondent ready and willing to perform, and granted the discretionary relief of specific performance.

Fact of the Case:

The plaintiff alleged that the defendant agreed to sell a property to him, but the defendant denied the existence of the sale agreement, claiming coercion and threat. The trial court decreed the suit in favor of the plaintiff, directing the defendant to execute a sale deed. The defendant appealed.

Finding of the Court:

The court found the sale agreement to be genuine and the respondent ready and willing to perform his part of the contract. The court confirmed the judgment and decree of the trial court, granting the discretionary relief of specific performance to the respondent.

Issues: 1. Genuineness of the sale agreement. 2. Readiness and willingness of the parties to perform the contract. 3. Entitlement to specific performance.

Ratio Decidendi: The court held that the sale agreement was genuine, the respondent was ready and willing to perform, and thus entitled to the discretionary relief of specific performance.

Final Decision: The appeal was dismissed, and the trial court's decree in favor of the respondent was confirmed. The respondent was granted the discretionary relief of specific performance.

Judgment :-

S.PALANIVELU,J.

1. The following are the averments contained in the plaint:

The defendant is absolute owner of the suit property. He entered into an agreement of sale with respect to his property with plaintiff on 22.5.2001 and the same was reduced to writing. The sale consideration was fixed at Rs.15 lakhs and a sum of Rs.11 lakhs was paid to the defendant as advance by the plaintiff, which was received on the same date. Time is not the essence of contract, even though six months time was fixed for the performance of the contract. The defendant had already mortgaged the suit property with the Big Kancheepuram Co-operative Town Bank Limited and he had agreed to discharge the same within six months, but he did not do so. The plaintiff had been ready and willing to perform his part of contract. The defendant was evading to execute the sale deed and has not chosen to discharge the mortgage debt in favour of the Bank. On 25.2.2004, he sent a lawyers notice calling upon the defendant to execute the sale deed on receipt of the balance of Rs.4 lakhs. He sent a reply to notice on 01.03.2004 with false and defamatory allegations. Hence, this suit is filed for specific performance of contract.

2. In the written statement filed by the defendant the following are stated:

2.(a) The suit is not maintainable in law or on facts. It is strongly denied that the defendant entered into an agreement of sale of the suit property in favour of the plaintiff on 22.5.2001, that the sale price was fixed at Rs.15 lakhs, that it was registered on the same date, that the time is not essence of contract and that he received a sum of Rs.11 lakhs as advance from the plaintiff. It is also not correct to state that he agreed to discharge the mortgage loan in Big Kancheepuram Co-operative Town Bank limited within 6 months, that he has been evading to perform his part of contract and that the plaintiff has suppressed real facts.

2.(b) The defendant is doing retail kerosene business and also owner of tanker lorries. For the said business, he used to borrow money from the plaintiff from 1992 onwards for interest. In 2001, a sum of Rs.7,40,000/- was due from the defendant towards principal only. He was paying interest regularly. One fine morning, the plaintiff came with 10 rowdy elements in Ambassador and Sumo cars along with his relatives, took him forcibly and detained him in a room. Under threat and coercion, with the help of rowdy elements, the plaintiff obtained signatures of defendant in some documents, took him to the Registrar office and obtained his signature under compulsion. Since the plaintiff and his relatives are highly influential persons with the Registrar office, the Registrar has not questioned the defendant at the time of getting signature. The defendant has not executed any sale agreement as stated by the plaintiff. Hence, the suit may be dismissed with costs.

3. After analysing the pleadings, oral evidence and documents, the learned Fast Track Court Judge decreed the suit by directing the defendant to execute a sale deed in favour of the plaintiff in respect of the suit property after discharging mortgage in Big Kancheepuram Co-operative Town Bank and handover the possession of the property to the plaintiff within two months, with costs. Hence the defendant is before this Court with this appeal.

4. Points for consideration:

1. Whether the suit sale agreement transaction is genuine?

2. Whether the plaintiff has been ready and willing to perform his part of contract from the inception?

3. To what reliefs are the parties entitled to?

Point No.1

5. The suit property is a house situate in Kancheepuram Town, which belongs to the appellant. It is stated that he agreed to sell the property to the respondent for a sum of Rs.15 lakhs and entered into a registered sale agreement Ex.A.1 on 22.5.2001 on receipt of an advance of Rs.11 lakhs. It was agreed interalia that the appellant has to discharge the mortgage loan which he obtained in respe










































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