IN THE HIGH COURT OF JUDICATURE AT MADRAS
T. RAJA, D. BHARATHA CHAKRAVARTHY, JJ.
M. Vairamudi - Appellant
Vs.
J. Jayalakshmi & Others - Respondent
A.S. No. 498 of 2015
Decided On : 12-01-2022
Civil Procedure Code, 1908 - Section 96 r/w Order XLI Rule 1 – Transfer of Property Act, 1882 - Section 53-A - Civil Suit - Suit for specific performance of a sale agreement – Possession - Time is essence of contract - Decreed – First Appeal - Whether endorsement was made upon payment of Rs. 10 lakhs as cash or whether it was a fraudulent one - Defendant is owner of suit scheduled property he having purchased same by a sale deed from one Parimala - Defendant intended to sell property and plaintiff agreed to purchase property for a total sale amount - Defendant had mortgaged property with Bank and he promised to settle dues and get back original documents and convey property in favour of plaintiff. Hence four months time was fixed for completion of transaction - Held, Mere clause in agreement prescribing a time by itself would not make time as essence of contract, but, it has to be determined by the attendant circumstances of case and conduct of parties - Plaintiff was always ready and willing to perform his part of contract and it is only defendant, who, on other hand, has exhibited following conduct - Section 53-A of Act, 1882, would be clear that part performance of handing over possession should always be in writing and in absence of any such endorsement in agreement, same should be treated as false. Plaintiff is not able to establish that possession was handed over to him and therefore, having made a false pleading of part performance, said pleading alone is enough to non-suit plaintiff - Court hold that plaintiff had not projected any false case which would disentitle him from specific performance - AS dismissed.
JUDGMENT :
D. Bharatha Chakravarthy, J.
Prayer: First Appeal filed under Section 96 read with Order XLI Rule 1 of C.P.C to allow the above appeal and set aside the judgment and decree dated 18.04.2015 of the learned II Additional Judge, District Court, Salem in O.S.No.177 of 2011 with costs.
A. The Appeal:
1. This appeal is filed by Mr. M. Vairamudi, the defendant in O.S. No. 177 of 2011 on the file of the II Additional District Judge, Salem aggrieved by the Judgment and Decree dated 18/04/2015, thereby decreeing the suit originally filed by one Mr. K.V. Janakiraman, the first plaintiff who died pending the suit and his legal representatives coming on record as plaintiffs 2 to 6 and pursuing the suit for specific performance of a sale agreement dated 17/04/2011 of a house property consisting of an RCC Building of Ground, First and Second Floors, in an extent of 784 sq.ft. of land in No.16, Vela Street, Shevapet, Salem, more fully described in the suit schedule.
2. For the sake of convenience, in this judgement the parties are referred to as per their array in the original suit.
B. The case of the plaintiffs:
3. The defendant is the owner of the suit scheduled property he having purchased the same by a sale deed dated 16/05/2007 from one Parimala Venkatesan. The defendant intended to sell the property and the plaintiff agreed to purchase the property for a total sale consideration of Rs. 43,00,000/- (Rupees Forty Three Lakhs only). The defendant had mortgaged the property with M/s. Syndicate Bank and he promised to settle the dues and get back the original documents and convey the property in favour of the plaintiff. Hence four months time was fixed for completion of the transaction. On 17/04/2011, the plaintiff paid an advance of Rs. 16,00,000/- (Rupees Sixteen Lakhs Only) and in the presence of witnesses, the deceased first plaintiff and the defendant executed the suit agreement for sale. On 21/04/2011, another sum of Rs. 10,00,000/-(Rupees Ten Lakhs only) was paid and due endorsement was made on the reverse of the agreement in the presence of witnesses.
4. Even though the plaintiff was ready with the balance consideration of Rs. 17,00,000/-(Rupees Seventeen Lakhs only) and willing to complete the transaction, the defendant did not clear the bank dues and come forward to complete the transaction. Since the original time limit of four months was coming to close, on 07/06/2011, the plaintiff issued a legal notice to the defendant. The plaintiff also waited at the Sub-Registrar’s office with balance sale consideration on 10/06/2011 as mentioned in the notice. The defendant did not turn up. In the envelope used for sending the legal notice, the name of the defendant was wrongly typed as ‘Veeramani’ instead of ‘Veeramudi’ and hence the notice returned unserved. Therefore once again the plaintiff caused another notice on 19/06/2011 with the correct name. The defendant received the notice and issued a reply on 06/07/2011 admitting the agreement and promised that he would settle the dues of M/s. Syndicate Bank and complete the transaction.
5. At request of the defendant again the plaintiff paid a sum of Rs.10,00,000/- (Rupees Ten Lakhs only) on 05/09/2011 and again an endorsement was made on the reverse of the agreement in the presence of the witnesses. The defendant also handed over the keys of the house to the plaintiff and directed the tenant to pay rent to the defendant. However, suddenly on 05/10/2011, the defendant issued a letter addressed to the plaintiff invoking the default clause, terminating the agreement and forfeiting the advance amount. The plaintiff issued a reply notice. The defendant also broke open the locks and the matter was reported to the police, however, they adviced the plaintiff to approach the civil court. Since the OTS offered by the bank is about expire, it was averred in the plaint that the plaintiff is makin
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