IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.M. VELUMANI, J.
A.G. Venkatachalam – Appellants
Vs.
P. Ganesan & Ors. – Respondents
S.A. No.584 of 2017, C.M.P. Nos.14447 of 2017
Decided On : 28-06-2018
Second Appeal- Suit for specific performance of agreement - Alternative for return of advance amount with interest – Suit for partition of the suit property and other properties claiming that those properties are ancestral properties and they have share in the said properties, alleged sale deed dated 22.04.1996 executed by the second appellant in favour of the respondents 1 & 6 is sham and nominal and for consequential permanent injunction – Held, pleadings, oral and documentary evidence, it cannot be said that the appellants are not ready and willing from the date of agreement of sale to perform their part of contract. It is well settled that an agreement holder who purchases the property need not carry cash on hand throughout the period or money in the Bank Account to complete the sale transaction. It is sufficient if the purchaser proves his capacity to pay the balance sale consideration, after pleading about his readiness and willingness to pay the balance sale consideration. In the present case, the appellants have pleaded that they were always ready and willing to perform their part of contract and proved their capacity to pay the balance sale consideration by depositing the same into court at the time of filing of the suit itself -Second Appeal is allowed
This Second Appeal has been filed against the judgment and decree dated 22.06.2017 made in A.S.No.20 of 2015 on the file of the Fourth Additional District Court, Erode District at Bhavani confirming the judgment and decree dated 21.09.2015 made in O.S.No.42 of 2008 on the file of the Sub Court, Bhavani.
2. The appellants are the plaintiffs and the respondents 1 to 10 are the defendants 1 to 6 and 8 to 11 in O.S.No.42 of 2008 on the file of the Sub Court, Bhavani. The appellants filed the said suit for specific performance of agreement of sale dated 29.06.2006 or in alternative for return of advance amount of Rs.2,25,000/- paid by them together with interest. Originally, the suit was filed against the respondents 1 to 7 and one Latha w/o N. Kumar. Subsequently, the respondents 8 to 10 were impleaded as defendants 10 & 11. Pending appeal, the 7th defendant Latha died. The present Second Appeal is against the defendants 1 to 6 and defendants 8 to 11.
2(a) According to the appellants, originally the second appellant was the owner of the suit property. He purchased the properties by deed of sale dated 16.05.1990. He sold the property to the respondents 1 & 6 on 22.04.1996. The sons of the second appellant filed O.S.No.50 of 2005 for partition of the suit property and other properties claiming that those properties are ancestral properties and they have share in the said properties, alleged sale deed dated 22.04.1996 executed by the second appellant in favour of the respondents 1 & 6 is sham and nominal and for consequential permanent injunction. Pending suit, a compromise was arrived at between the parties whereby the respondents 1 & 6 agreed to sell the property to the appellants and the suit was dismissed as settled out of court on 21.03.2006. Earlier, when O.S.No.50 of 2005 filed by the sons of the second appellant was pending and when the respondents 1 & 6 agreed to sell the suit property to the appellants, the appellants, on 27.02.2006 purchased the stamp paper and engrossed the sale deed and the stamp papers as well in the bond paper on 29.06.2006. The appellants and respondents 1 to 7 and 7th defendant could not register the sale deed on that date, due to paucity of time.
2(b) The respondents 1 to 7 and 7th defendant requested time for execution of sale deed. In view of such request, an agreement of sale was prepared on the same day and a sum of Rs.2,25,000/- was paid as advance by the appellants and terms were reduced into writing. The respondents 1 to 7 along with 7th defendant who is the wife of 6th respondent, executed the agreement of sale on 29.06.2006 to the appellants for a total sale consideration of Rs.5,00,000/- agreeing to sell the suit property to the appellants. The appellants paid a sum of Rs.2,25,000/- as advance. It was agreed that appellants must pay the balance sale consideration in one year time and get the sale deed executed in their favour. The appellants were always ready and willing to pay the balance sale consideration and get the sale deed executed in their favour. The respondents 1 to 7 and 7th defendant Latha were seeking time to execute the sale deed. They orally extended the time for completion of terms of agreement till 30.06.2008. On 26.06.2006, when the appellants approached the respondents 1 to 7 and 7th defendant with balance sale consideration, they dodged execution of sale deed by saying one reason or the other. The appellants issued telegram dated 27.06.2008 calling upon the respondents 1 to 7 & 7th defendant to be present in the Sub Registrar's Office, Ammapet on 29.06.2008 to receive the balance sale consideration and execute the sale deed. The respondents 1 to 7 and 7th defendant received the telegram but did not come to Sub Registrar's Office to receive the balance sale consideration and execute the sale deed. They also did not send any reply. Hence, the appellants filed the suit for the reliefs stated above.
3. The first respondent filed written statement and the same was adop
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