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2012 Supreme(Mad) 4921

IN THE HIGH COURT OF JUDICATURE AT MADRAS
T. Mathivanan, J.
K. Bama - Appellant
Versus
J. Stephen Selvaraj and others - Respondents
A.S. No. 671 of 2009
Decided On : 06-01-2012

Advocates Appeared:
For the Appellant :T. Aravindakshan, Advocate
For the Respondents:Srinath Sridevan and P.B. Palaninathan, Advocates

Headnote:

SPECIFIC PERFORMANCE - SALE AGREEMENT - SUIT FOR - MAINTAINABILITY - CONTRACT - CONSENSUAL IN NATURE - UNILATERAL CONTRACT - NO MUTUALITY - NO ENFORCEABILITY - ORDER 2 RULE 2 CPC - BAR OF SUBSEQUENT SUIT - APPLICABILITY - READINESS AND WILLINGNESS TO PERFORM CONTRACT - ESSENTIAL CONDITION - NOT PROVED - SPECIFIC PERFORMANCE - NOT GRANTED.

Fact of the Case:

Plaintiff filed a suit for specific performance of a contract of sale of property. The defendants admitted the execution of the sale agreement and the receipt of Rs.1,40,000/- as advance. However, they contended that the plaintiff was not ready and willing to perform her part of the contract and that the suit was barred by Order 2 Rule 2 of the Code of Civil Procedure.

Finding of the Court:

The Court held that the sale agreement was not a valid contract as it was not signed by the plaintiff and there was no mutuality of consent. The Court also held that the suit was barred by Order 2 Rule 2 CPC as the plaintiff had filed a previous suit for injunction restraining the defendants from alienating the property, which was a cause of action arising out of the same transaction. The Court further held that the plaintiff had not proved that she was ready and willing to perform her part of the contract and therefore, she was not entitled to the relief of specific performance.

Issues: 1. Whether the sale agreement was a valid contract? 2. Whether the suit was barred by Order 2 Rule 2 CPC? 3. Whether the plaintiff had proved that she was ready and willing to perform her part of the contract?

Ratio Decidendi: 1. A contract is an agreement enforceable by law. An agreement is not a contract unless it is made by the free consent of parties competent to contract. A unilateral contract is one in which one party makes an express engagement or undertakes a performance, without receiving in return any express engagement or promise of performance from the other. A unilateral contract is not enforceable by law. 2. Order 2 Rule 2 CPC provides that every suit shall include the whole of the claim which the plaintiff is entitled to make in respect of the cause of action. Where a plaintiff omits to sue in respect of, or intentionally relinquishes, any portion of his claim, he shall not afterwards sue in respect of the portion so omitted or relinquished. 3. In order to succeed in a suit for specific performance, the plaintiff must prove that he was ready and willing to perform his part of the contract.

Final Decision: The Court dismissed the appeal and confirmed the judgment and decree of the trial court.

JUDGMENT :

T. Mathivanan, J.

Challenge is made in this appeal to the Judgment and Decree dated 18.12.2008 and made in O.S. No. 266 of 2005, on the file of the learned Additional District Judge (Fast Track Court No. II), Poonamallee.

2. The plaintiff in the suit is the appellant herein, whereas the defendants 1 to 8 are the respondents.

3. For the sake of convenience and also for easy reference, the character of the parties to the suit need not be changed and let it remain as it is in the suit.

4. Originally, the plaintiff has filed the suit against the defendants 1 to 3. During the pendency of the suit, the third defendant Mr. V. Asirvatham had passed away and therefore in view of the Order dated 05.12.2007 and made in I.A. No. 1413 of 2007, the defendants 4 to 8 being the wife and sons of the deceased third defendant have been impleaded in the suit.

5. The facts, which are absolutely necessary for the disposal of this appeal are as under:

5.1. The plaintiff had filed the suit seeking the following reliefs:

i. For specific performance of the contract of sale agreement directing the defendants to execute and register the sale deed in favour of the plaintiff in respect of the suit property after receiving the balance of sale consideration. In default, the Court may execute and register the sale deed on deposit of the balance of sale price into Court, and

ii. Directing the defendants to pay the costs of the suit.

5.2. That on 24.08.2002, the plaintiff had entered into an agreement of sale in respect of the suit property with the defendants 1 to 3 for a sale consideration of Rs.11,50,000/- per Acre. On the date of the agreement of sale, the defendants had received a sum of Rs.1,00,000/- from the plaintiff as advance and another sum of Rs.40,000/- on 07.09.2002 being the part of the sale consideration. Thus, totally the defendants had received a sum of Rs.1,40,000/-. On the date of the agreement itself, the defendants had handed over the title deed relating to the suit property to the plaintiff.

5.3. The plaintiff had / has been ready to pay the balance of sale consideration and to have the sale deed executed in her favour. But, the defendants have been evading to fulfil their part of contract despite of several demands. The plaintiff was put to understand that the defendants had been making attempts to sell the property to third parties. Hence, she had filed a suit O.S. No. 425 of 2005, on the file of the learned District Munsif Court, Poonamallee seeking the relief of permanent injunction.

5.4. The evasion of the defendants in fulfilling their part of contract of sale inspite of plaintiff's readiness, is illegal and high handed. Hence, the suit.

5.5. The written statement filed by the first defendant has been adopted by the remaining defendants. In the written statement, they have contended that the entire transaction was done by M/s. J.P.Real Estates' proprietor Mr. Deenadayalan. He has only arranged for the sale of the suit property. When the agreement of sale was executed the defendants had asked about the plaintiff. Mr. Deenadayalan had replied that she was one of the partners and that he was in-charge of entire transaction.

5.6. Further in the written statement they have contended that the plaintiff is only a name lendor. She was not aware of where the suit property was situated. The defendants have never met the plaintiff as she was not present at the time of execution of the agreement of sale. At the time of execution of agreement of sale, Mr. Deenadayalan had given an assurance that the entire sale consideration would be paid within a period of two months. Even, the payment of Rs.40,000/- was only paid by Mr. Deenadayalan and not by the plaintiff. Hence, the plaintiff has no means to pay the sale consideration and she was never ready and willing to perform her part of contract.

5.7. Further in the written statement they have contended that at the time of execution of sale agreement, the land was under cultivation. It has been specifical



































































































































































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