2013 Supreme(Mad) 1526
HIGH COURT OF JUDICATURE AT MADRAS
S. PALANIVELU, J.
Mrs. Ramathal
Versus
Mrs. Lakshmi
A.S.No. 952 of 2004
Decided on: 05-04-2013
For the Appellant:Kabilan Senior Counsel for M/s. Shobana Ramasubramanian, Advocate.
For the Respondents:C.R. Prasanan, Advocate.
To seek specific performance, the plaintiff must demonstrate clean hands and blemishless conduct.
Headnote:
Specific Performance - Sale Agreement - 2008 (1) CTC 86, 2005 (5) CTC 17
Fact of the Case:
The plaintiff entered into a sale agreement with the defendant for a property. The plaintiff sought specific performance of the agreement, while the defendant denied the existence of the sale agreement and claimed it to be a document of debt.
Finding of the Court:
The court found that the sale agreement was legally unenforceable due to the plaintiff's suppression of material facts and failure to demonstrate clean hands. The plaintiff was not entitled to specific performance but was entitled to a refund of the advance payment with interest.
Issues: Validity of the sale agreement, entitlement to specific performance, and alternative relief of refund of advance payment.
Ratio Decidendi: The plaintiff must demonstrate clean hands and blemishless conduct to seek specific performance. The plaintiff must succeed on the strength of their own case. Suppression of material facts renders the agreement invalid.
Final Decision: The appeal was allowed in part, setting aside the judgment of the court below with reference to the specific performance of the contract. The original suit was dismissed without cost as far as specific performance was concerned. The plaintiff was entitled to a refund of the advance payment with interest.
1. The following are the averments contained in the plaint filed in O.S.No.229 of 2001:
1.(a) The property measuring 2 cents and 51½ sq.ft of land situate in S.F.No.222/2 at Saravanapatti village, Coimbatore belongs to the defendant, that the defendant entered into a sale agreement on 25.3.1996 with the plaintiff for sale of the above property for a consideration of Rs.3,00,000/-, that an advance of Rs.1,00,000/- has been paid with a stipulation to complete the sale within two years from the date of agreement, that subsequently the defendant received Rs.1,45,000/- to construct a house and Rs.50,000/- to settle earlier debts, that the total amount paid to the defendant is Rs.2,95,000/-, that the balance of Rs.5,000/- has been retained to be paid at the time of execution of the sale deed, that while the plaintiff was ready and willing to take the sale, the defendant postponed the execution of the sale deed under some pretext or the other, that in view of the lethargic attitude of the defendant, the plaintiff approached the defendant through mediators and during the second week of March 1998 she approached the defendant and reminded her that time stipulated in the sale agreement is about to expire within 10 days, that as per the directions of the defendant, the plaintiff purchased stamp-papers, typed out the sale deed and copy-sheets and was waiting at the Sub-Registrar office, Gandhipuram on 16.3.1998 from 11.00 a.m. to 5.30 p.m., but the defendant did not turn-up.
1. (b) The plaintiff therefore sent a Lawyer's Notice dated 16.3.98 calling upon the defendant to execute the sale deed in her favour and complete the sale, that the defendant sent a reply notice dated 21.3.1998 with false and frivolous allegations and hence the plaintiff has filed this suit seeking relief of Specific Performance of the suit agreement dated 25.3.1996, directing the defendant to execute the sale deed in favour of the plaintiff at her cost and to deliver the possession of the suit property to the plaintiff and for costs.
2. In the written statement filed by the 1st defendant and adopted by the 2nd defendant it is averred as follows:
2. (a) The defendant deny the entire averments in the plaint except that are specifically admitted and put to strict proof of each and every one of the averments, that the only jural relationship between the plaintiff and the defendant is that of a creditor and debtor, that during the month of February 1996 the defendant's husband suffered a massive paralytic stroke and was paralysed from head to toe and he has been undergoing medical treatment, that since the medical treatment was very expensive, she was forced to borrow monies from the plaintiff at heavy rates of interest, that on three occasions the defendant had totally borrowed a sum of Rs.55,000/- from the plaintiff, which was due and repayable with interest at 24% p.a., that till the date the defendant has been paying the interest, however, in spite of demands made by the defendant the plaintiff refused to issue cash receipts for the said payments of interest.
2. (b) When the defendant borrowed monies from the plaintiff the plaintiff had obtained the defendant's signature on several Rs.10/- stamp papers and other stamp papers of different value, on several papers on which revenue stamps were affixed and on several blank papers, that the plaintiff also took the original sale deed of the defendant's property, that being an uneducated and also she was in a critical position where the plaintiff was in a position to impose undue influence the defendant had no option but to sign on every papers that plaintiff produced, that the signed papers are only intended to be document of debts for the said loans availed and nothing else, that the defendant was forced to get her signature and has unlawfully and illegally converted the same into an agreement for sale by the plaintiff, that at no point of time did she execute any agreement of sale in favour of the plaintiff much