IN THE HIGH COURT OF JUDICATURE AT MADRAS
T. RAJA, D. BHARATHA CHAKRAVARTHY, JJ.
U. Monisha & Another - Appellants
Versus
M/s. South India Scheduled Tribes Welfare Association, (Reg.No.205/1972), Rep.by its Secretary, Chitra Kannan - Respondents
A.S. No. 784 & 785 of 2019
Decided on : 03-02-2022
Specific Relief Act, 1963 - Sections 10, 11, 14, 16 , 15(a)(b) and 23 - Indian Contract Act - Sections 37 to 40 - Contract Act, - Sections 202,213,238 and 204 - Tamil Nadu Societies Registration Act, - Suit For - Specific performance - Appellants/plaintiffs have filed A.S.No.784 of 2019 as against dismissal of their suit in O.S.No.122 of 2017 and A.S.No.785 of 2019 as against decree passed in counter claim in O.S.- Whether or not time is essence of contract between parties and whether plaintiffs’ father and plaintiffs are entitled to claim rights under Ex.A6 agreement? - Whether execution of three powers of attorney documents under Ex’s.A7, A8 & A17 would have on over riding effect of Ex.A6 sale agreement ?- Whether action of plaintiffs’ father in executing Ex’s.A18 to 21 sale deeds and obtaining sale consideration in his own name amounts to fraud?- To what reliefs parties are entitled to? - Held, Court hold that Ex-A6 agreement is valid as it is executed by defendant reversing findings that it is lapsed and overridden by power documents - Court hold that entire sale consideration is paid by plaintiffs’ father hence - Court reverse findings of trial court as if amounts are paid in capacity of a power agent - As regards - Court hold that plaintiffs have performed their part of contract and reversing findings of trial court to contrary – Court also reverse findings of trial court and hold that defendants will not be entitled to counter claim and dismiss counter-claim Court reverse findings of Trial court and hold that plaintiffs will be entitled to specific performance on payment of additional sum as mentioned above and defendant is not entitled to counter-claim -A.S. No.784 of 2019 allowed.
JUDGMENT :
D. Bharatha Chakravarthy, J.
(Common Prayer: First Appeals against the impugned Judgment (Common Judgment) and decree dated 03.06.2019 made in O.S.No.122 of 2017, on the file of the IV-Additional District Judge, Ponneri.)
A. The Appeals:
By a Judgment dated 30.08.2019 the Learned IV-Additional District Judge, Ponneri, dismissed the suit in O.S.No.22 of 2017 filed by the appellants herein, praying for specific performance of the suit agreement dated 20.06.2011 directing the respondent/defendant to execute and register the sale deed in respect of B schedule properties and decreed the counter claim filed by the defendant, directing the plaintiff to pay a sum of Rs.31,80,000/- (Rupees Thirty One Lakhs Eighty Thousand only) along with interest at the rate of 6% per annum, from the decree and till the date of realisation.
2. Aggrieved by the same, the appellants/plaintiffs have filed A.S.No.784 of 2019 as against the dismissal of their suit in O.S.No.122 of 2017 and A.S.No.785 of 2019 as against the decree passed in the counter claim in O.S.No.122 of 2017.
3. For the sake of convenience the parties U.Monisha and C.U.Prashanth, who are the appellants in this case and M/s. South India Scheduled Tribes Welfare Association, which is the respondent, in this case, are referred to as plaintiffs and defendant as per the array in the Original Suit itself.
B. The case of the plaintiffs:
4. The first plaintiff being the daughter and the second plaintiff being son, are the legal heirs of one C.S.Udhayashankar, who died on 24.08.2016. The defendant is a Society registered under the Tamil Nadu Societies Registration Act, bearing registration No.205/1972. The Schedule-A property totally admeasuring Acre.15.00 cents, belonged to the defendant association, they, having purchased the same by three sale deeds dated 05.11.1986 registered as document Nos.3236/1986, 3242/1986, 603/1987 on the file of the Sub-Registrar, Ponneri. The plaintiffs’ father was a regular donor to the Educational Institution run by the defendant and he actively participated in the development of the said Institution. While so, on 11.12.2009 an agreement of sale (Ex.A4) was entered into between the plaintiffs’ father and the defendant, however, the transaction was not completed. While so, on 19.06.2011, the defendant/association convened an extraordinary General Body Meeting and passed a resolution to sell the said 10 Acres of land, which was subject matter of the earlier agreement dated 11.12.2009 along with 5 more Acres, totally amounting to 15 Acres on the agreed sale consideration at the rate of Rs.8,50,000/- (Rupees Eight Lakhs Fifty Thousand only) per acre, totally amounting to Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) to the plaintiffs’ father. Pursuant to the resolution a fresh agreement of sale dated 20.06.2011 (Ex.A6) was executed by the defendant in favour of the plaintiffs’ father. Pursuant to the agreement three Power of Attorney documents dated 30.06.2011, registered as document Nos.920/2011, 921/2011, 922/2011 on the file of the Sub-Registrar, Redhills were also executed by the defendant constituting plaintiffs’ father Mr.C.S.Udhayashankar, as power of attorney with due powers to identify and sell the suit schedule property to an extent of 15 Acres and to execute a sale deed and present such sale deeds for registration. Even though Ex.A-6 agreement mentioned that the transactions should be completed within 90 days, the same could not be completed, however, between the period from 2012 upto 15.05.2016 i.e., the total sale consideration of Rs.1,27,50,000/- (Rupees One Crore Twenty Seven Lakh Fifty Thousand only) was periodically paid by the plaintiffs’ father and accepted by the defendant.
5. To be more specific, while executing Ex.A6, agreement of sale, a sum of Rs.3,00,000/- (Rupees Three Lakhs only) was paid and a sum of Rs.21,15,000/- (Rupees Twenty One Lakhs Fifteen Thousand only) was periodically received from the plaintiffs’ father, for which, Ex.
(1) Agreement to sell – Specific performance will not be ordered if contract itself suffers from some defect which makes contract invalid or unenforceable – Discretion of court will not be there even....
Specific performance of a contract is a discretionary remedy, requiring proof of readiness and willingness by the plaintiff, which was established in this case.
The court affirmed that specific performance is a discretionary remedy, requiring the plaintiff to prove the validity of the contract and readiness to perform.
Specific performance of an agreement is discretionary and unenforceable if not all necessary parties consent, and plaintiffs must demonstrate readiness to perform their obligations.
Mere escalation of price does not constitute hardship to the vendor, and the conduct of the parties and the terms of the agreement are crucial in determining entitlement to specific performance.
The Court found that the agreement of sale dated 11.10.2005 is true, valid and binding on the appellant and the respondent is entitled for the relief of specific performance. The Court also found tha....
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