High Court of Judicature at Madras
S. TAMILVANAN, J.
Kannan
Versus
S. Damodaran
S.A. No. 2 of 2008 & M.P. No. 1 of 2008
Decided on: 21-11-2014
specific performance - conditional sale deed - Transfer of Property Act, 1882, Section 58(c) - Indian Evidence Act, Section 92 - unregistered agreement - re-conveyance - equity - balance of convenience - ready and willing
Fact of the Case:
The respondent filed a suit seeking specific performance of a contract for a conditional sale deed. The trial court decreed the suit, directing the appellant to execute a re-conveyance deed. The appellate court confirmed the judgment and decree. The appellant filed a second appeal, raising substantial questions of law regarding the conditions pre-requisite for re-conveyance and the consideration of equity, balance of convenience, and hardship.
Finding of the Court:
The court found that the respondent was ready and willing to perform his part of the contract as per the conditional sale deed. The unregistered agreement presented by the appellant did not prevail over the registered conditional sale deed. The court held that there was no error or illegality in the lower courts' concurrent finding in favor of the respondent. Consequently, the second appeal was dismissed.
Issues: The issues revolved around the conditions pre-requisite for re-conveyance, consideration of equity, balance of convenience, and hardship, and the validity of the unregistered agreement in relation to the registered conditional sale deed.
Ratio Decidendi: The court relied on the provisions of the Transfer of Property Act, 1882, Section 58(c) and the Indian Evidence Act, Section 92. It held that the unregistered agreement could not prevail over the registered conditional sale deed and that the respondent was ready and willing to perform his part of the contract.
Final Decision: The second appeal was dismissed, confirming the judgment and decree of the lower courts.
1. The second appeal has been preferred against the judgment and decree, dated 22.03.2007 passed in A.S.No.11 of 2006 on the file of the Principal Subordinate Judge, Tiruvannamalai, confirming the judgment and decree, dated 30.11.2005 made in O.S.No.1014 of 2004 on the file of the II Additional District Munsif (District Judge Training), Tiruvannamalai.
2. The appellant herein was the defendant before the Trial court and the suit was filed by the respondent herein seeking specific performance of a contract. The respondent/plaintiff has averred that after receiving the sale consideration of Rs.28,000/-, as per the terms of the registered conditional sale deed, dated 17.05.2003, delivery of possession of the suit property should be given to the respondent/plaintiff by the appellant/defendant. However, the appellant/defendant was not ready and willing to receive the consideration back and execute sale deed in terms of the conditional sale deed, hence, the suit was filed by respondent/plaintiff, seeking specific performance of contract. The suit was decreed by the trial court, by its judgment, dated 30.11.2005, directing the appellant/defendant to execute re-conveyance deed, as per the terms of the conditional sale deed, dated 17.05.2003 and the Appellate Court, has confirmed the judgment and decree passed by the trial Court and dismissed the appeal, by its Judgment, dated 22.03.2007, aggrieved by which, the second appeal has been preferred by the defendant in the suit. The second appeal has been admitted on the following substantial questions of law :
"a) Whether the Appellate Court is correct in holding that Ex.A.1 contains the entire conditions pre-requisite for re-conveyance when, Ex.B.13 in writing given by the plaintiff embodies some of the other pre-requisite conditions concerning the transaction ?
b) Whether the learned Judge is correct in decreeing the suit for specific performance without considering equity, balance of convenience and hardship that would be caused to the appellant/defendant ?"
3. It is seen that Ex.A.1 is a certified copy of the original conditional sale deed, dated 12.05.2003, Ex.B.11, executed by the respondent/plaintiff in favour of the appellant/defendant herein, whereby the suit property was sold for a sale consideration of Rs.28,000/-. Ex.B.13 is said to be an unregistered agreement entered into between the appellant and the respondent on the same day. The case of the appellant/defendant is that on the aforesaid date, the respondent/plaintiff had received a sum of Rs.1,00,000/-, for which executed the conditional sale deed, stating the sale consideration only as Rs.28,000/-and executed an unregistered agreement, whereby he agreed that after returning the amount of Rs.1,00,000/-, he would get re-conveyance deed before 11.11.2004 in favour of the respondent/plaintiff. As per the terms and conditions stipulated in Ex.B.11, conditional sale deed, if the sale consideration is repaid on or before 11.11.2004, the respondent/plaintiff would be entitled for re-conveyance and in case of noncompliance, the appellant/defendant would be the absolute owner of the property.
4. It is not in dispute that the respondent/plaintiff has sought judgment and decree, as per the terms and conditions of the conditional sale deed, Ex.B.11, dated 12.05.2003, whereby the appellant/defendant, after receiving the sale consideration, Rs.28,000/- should re-convey the property in favour of the respondent/plaintiff and deliver the possession of the property, failing which, the Court below has to execute sale deed through an officer of the Court, in terms of the registered conditional sale deed, dated 12.05.2003.
5. The short point to be decided towards the substantial questions of law is whether the respondent/plaintiff was ready and willing to perform his part of the contract in terms of the conditional sale deed, Ex.B.11, referred to above or whether the appellant/defendant could raise a plea, based on the unregistered agreement,
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