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2018 Supreme(Mad) 2462

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.M. VELUMANI, J.
Kaliamurthy – Appellant
Versus
Venkateswaran – Respondent
S.A. No. 834 of 2015 and M.P. No. 1 of 2015
Decided On : 23-07-2018

Advocates Appeared:
For the Appellant : Mr. R. Rajarajan for Mr. T. Gandhi.
For the Respondent: Mr. T. Murugamanickam for Mr. D. Balachandran.

Headnote:

specific performance - contract of sale agreement - Order XX Rule 12 C.P.C - Motilal Jain vs. Smt. Ramdasi Devi and Others, (2000) 6 SCC 420; Ramakrishna Pillai and Another vs. Muhammed Kunju and Others, (2008) 4 SCC 212; M. Ramalingam, deceased by legal heirs vs. V. Subramanyam deceased by legal heirs, 2003 AIR (Madras) 305; P. Thulasimani vs. K.G. Chandran, 2010 (8) MLJ 1050

Fact of the Case:

The appellant filed a suit for specific performance of a sale agreement and alternative relief of refund of advance amount. The respondent denied the agreement of sale and contended that the suit was barred by limitation and that the appellant was not ready and willing to fulfill his obligation.

Finding of the Court:

The trial court decreed the suit for specific performance, but the First Appellate Court reversed the decree and granted refund of the advance amount with interest, holding that the appellant was not ready and willing to perform his part of the contract.

Issues: Dispute over the agreement of sale, readiness and willingness of the appellant to fulfill his obligation, and the bar of limitation.

Ratio Decidendi: The First Appellate Court's finding that the appellant was not ready and willing to perform his part of the contract was based on the appellant's admission of not having the balance sale consideration and the timing of his actions, which was upheld by the Second Appeal Court.

Final Decision: The Second Appeal was dismissed, affirming the First Appellate Court's decision to grant refund of the advance amount with interest.

JUDGMENT :

V.M. VELUMANI, J.

1. The Second Appeal is filed against the judgment and decree dated 14.08.2014 made in A.S. No. 5 of 2013 on the file of III Additional District and Sessions Court, Cuddalore at Vridhachalam, reversing the judgment and decree dated 30.08.2011 made in O.S. No. 67 of 2004 on the file of the Principal Sub Court, Vridhachalam.

2. The appellant, who succeeded in the trial Court, but lost in the First Appellate Court, has come forward with this Second Appeal. The appellant is plaintiff and respondent is defendant in O.S. No. 67 of 2004 on the file of the Principal Sub Court, Vridhachalam. The appellant filed said suit for specific performance of contract of sale agreement dated 06.03.2002 to sell the suit property and to decide the mesne profit under Order XX Rule 12 C.P.C. and alternative relief of refund of Rs. 1,50,000/- paid by the appellant as advance. The case of the appellant is that the respondent is owner of the suit property. The respondent offered to sell the suit property for a total sale consideration of Rs. 2,10,000/-. The appellant and respondent entered into an agreement of sale dated 06.03.2002 and on that date, the appellant has paid Rs. 1,50,000/- as advance and respondent received the same. It was agreed that the appellant would pay the balance sale consideration of Rs. 70,000/- on or before 06.03.2004 and get the sale-deed executed in his favour. As per the said agreement, the appellant demanded the respondent personally and also through other persons to execute the sale-deed, but the respondent did not come forward to execute the sale-deed and he denied the agreement of sale. The respondent committed breach of contract. The appellant issued notice dated 20.02.2004 through his advocate calling upon the respondent to come to Sub-Registrar Office on 01.03.2004 to receive balance sale consideration of Rs. 60,000/- and execute the sale-deed. The appellant was waiting at the Sub-Registrar Office, Thittakudi, to pay balance sale consideration of Rs. 60,000/- and respondent did not come to the Sub-Registrar Office. The respondent has sent reply dated 11.03.2004 making false averments stating that the respondent borrowed Rs. 1,50,000/-, appellant asked the respondent to execute the mortgage deed, took the respondent to Sub-Registrar Office, compelled him to execute the sale agreement and respondent executed sale agreement. The value of the property is more than Rs. 5,00,000/- on the date of sale agreement. Hence, the appellant filed the suit for the reliefs stated above.

3. The respondent filed written statement and denied all the averments made in the plaint and contended that the respondent did not agree to sell the suit property. According to the respondent, agreement of sale is forged one. The question of breach of contract does not arise. There is no necessity for the respondent to sell the suit property for Rs. 2,10,000/-.

3. (i) The respondent filed additional written statement on 31.07.2007. After reiterating the averments made in the earlier written statement, the respondent further contended that the appellant is professional money lender and he lends money at the rate of interest of Rs. 2.50 for Rs. 100/- and in default, huge interest is received by the appellant. The appellant compelled the respondent to execute the deed in favour of one Mani Udaiyar for Rs. 4,50,000/- and another deed in favour of the appellant for Rs. 3,40,000/- on condition that the said amounts are to be paid within two years and cancelled the sale agreement. The appellant is having original agreement and respondent is having xerox copy of the same.

(ii) The respondent filed additional written statement on 16.02.2010 and contended that the appellant was not ready and willing to fulfil his obligation in the agreement of sale. He is not entitled to specific performance both legally and factually. No cause of action has arisen for filing of the suit and appellant has not come to the Court with clean hands.

(iii) The re








































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