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2014 Supreme(Mad) 3062

High Court of Judicature at Madras
PUSHPA SATHYANARAYANA, J.

V. Mani & Others
Versus
M.M. Ramasamy
A.S. No. 653 of 2009
Decided on: 09-09-2014

Advocates Appeared:
For the Appellants:R. Bharathkumar, Advocate.
For the Respondent:B. Nedunchezhiyan, Advocate.

Continuous readiness and willingness of the plaintiff is a condition precedent to the grant of relief of specific performance.

Headnote:

specific performance - sale agreement - Ex. A.1 - [READY AND WILLING, TIME ESSENCE, EQUITABLE REMEDY] - The court discussed the sale agreement Ex. A.1, the plaintiff's readiness and willingness to perform the contract, and the essence of time in the agreement. The court highlighted the continuous readiness and willingness of the plaintiff as a condition precedent to the grant of relief and emphasized the significance of the time stipulated in the agreement. The court also considered the conduct of the parties and concluded that the plaintiff was entitled to the relief of specific performance.

Fact of the Case:

The plaintiff sought specific performance of a sale agreement for landed properties. The defendants resisted the suit, claiming that the plaintiff did not come forward to pay the balance amount and that the suit was filed to gain time due to the escalation of property prices.

Finding of the Court:

The court found that the plaintiff was ready and willing to perform the contract, the time stipulated in the agreement had significance, and the defendants were not willing to perform their part of the agreement.

Issues: (i) Whether the plaintiff was ready and willing to perform his part of the contract as per Ex. A.1 dated 12.11.2005?; (ii) Whether the time is essence of contract?; and (iii) Whether the judgment of the trial Court granting decree in favour of the plaintiff is sustainable?

Ratio Decidendi: Continuous readiness and willingness of the plaintiff is a condition precedent to the grant of relief. The time stipulated in the agreement has significance, and the conduct of the parties must be considered in determining entitlement to specific performance.

Final Decision: The appeal was dismissed, and the decree granting specific performance to the plaintiff was affirmed.

Judgment :

1. Defendants, who suffered a decree in a suit for specific performance, have projected this instant appeal against the judgment and decree dated 24.12.2008 passed by the Additional District Judge, Fast Tract Court No. IV, Coimbatore at Tiruppur in O.S. No. 405 of 2006.

2. The necessary summation of the case of respondent / plaintiff are as follows:

2.1 The suit properties are landed properties in Masagoundan Chettipalayam Village, Avinashi Taluk, Coimbatore District. Defendants 1 and 2 are husband and wife and defendants 3 and 4 are their daughter and son respectively. The suit properties originally belonged to the defendants. According to the plaintiff, the defendants 1 and 2 entered into an agreement of sale on 12.11.2005 with him agreeing to convey an extent of 4.74= Acres. As per the sale agreement, the properties were agreed to be purchased at a price of Rs. 1,90,000/-per Acre which means the total consideration comes to Rs. 9,01,550/-and an advance of Rs. 2 Lakhs was paid. The period agreed for the performance of sale was three months. According to the plaintiff, he has been ready and willing to perform his part of contract keeping the balance of the sale price ready throughout. But, however, the defendants have been postponing the execution of sale. Hence, the plaintiff issued a legal notice on 04.02.2006 calling upon the defendants 1 and 2 to execute the sale deed with regard to the suit properties within the period stipulated in the agreement on receipt of notice. Nevertheless, the defendants evaded the service of notice and the same was returned as 'unclaimed'. In view of the conduct of the defendants, the plaintiff had to file the suit for specific performance.

2.2. It is further contended by the plaintiff that on coming to know that the plaintiff had issued the legal notice, the defendants 1 and 2, on 07.02.2006, had executed a settlement deed in favour of the defendants 3 and 4, who are their children. The said fact was known to the plaintiff on applying copy of the encumbrance certificate. As the settlement deed executed by the defendants 1 and 2 is to circumvent the interest of the plaintiff under the sale agreement, according to him, the said settlement is not binding on him. As the defendants further attempted to encumber and alienate the plaintiff's properties, he plaintiff sought for permanent injunction restraining the defendants from alienating or encumbering the suit properties.

3. Resisting the suit, the first defendant filed a written statement which was adopted by the other defendants, wherein the execution of the agreement dated 12.11.2005 is admitted. The contents of the agreement are also not disputed. According to the defendants, the plaintiff did not come forward to pay the balance of amount and get the sale executed. The defendants contended that the time was the essence of the contract and the delay in filing the suit was only to gain time to mobilize funds for paying the the sale consideration to the defendants. The defendants further contended that the plaintiff has come forward with a suit in view of the escalation of the price of the suit properties. The plaintiff having failed to deposit the balance of the sale consideration at the time of filing of the suit for specific performance of the contract, the defendants alleged that there is no bona fide in his claim. Hence, prayed for dismissal of the suit.

4. Before the trial Court, the plaintiff examined himself as P.W.1 besides examining one Marudhachalam as P.W. 2 and marked Exs. A.1 to A.6. To nullify the evidence of the plaintiff, the first defendant examined himself as D.W.1 besides examining one Ponnusamy as D.W.2 but no document was marked.

5. The trial Court, after analysing the oral and documentary evidence available on record, decreed the suit directing the defendants 1 to 4 to receive the balance of sale consideration and execute the sale deed in favour of the plaintiff and directed delivery of vacant possession of the p





















































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