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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. Kannammal, J.
K.M. Aruchamy Thevar (died) & Another - Appellant
Versus
N. Srinivas – Respondent
A.S. Nos. 392 & 393 of 2012
Decided On : 07-07-2022
Specific Performance - Sale Agreement - [Code of Civil Procedure, Section 96] - The trial Court dismissed the relief of specific performance and decreed the alternative relief of refund of advance amount of Rs.7,05,000/- with interest @ 12% p.a. from 03.01.2007 till the date of decree and thereafter @ 6% p.a. till the date of realization. The suit in O.S.No.417 of 2011 was decreed without costs and ordered return of original documents (Exs.A2 to A5) to the defendant/N.Srinivas within a period of three months.
Fact of the Case:
The plaintiff filed a suit for specific performance of a sale agreement, while the defendant filed a suit for return of original documents. The plaintiff alleged that the defendant evaded performance of the contract, while the defendant claimed that the plaintiff did not pay the balance sale consideration within the stipulated time.
Finding of the Court:
The trial Court found that the plaintiff did not show continuous readiness and willingness to perform his part of the contract, dismissed the relief of specific performance, and decreed the alternative relief of refund of advance amount with interest. The Court also ordered the return of original documents to the defendant.
Issues: The issues included whether the plaintiff is entitled to specific performance, whether the defendant is liable to return the original documents, and what other reliefs the parties are entitled to.
Ratio Decidendi: The Court held that the plaintiff failed to prove his continuous readiness and willingness to perform the contract, a mandatory requirement for specific performance. The Court also confirmed the decree for refund of advance amount and return of original documents to the defendant.
Final Decision: The appeals were dismissed, and the trial Court's decree for refund of advance amount and return of original documents to the defendant was confirmed.
JUDGMENT :
(Common Prayer: Appeal Suits in A.S.Nos.392 and 393 of 2012 filed under Section 96 of the Code of Civil Procedure against the common judgment and decree, dated 29.11.2011, passed in O.S.Nos.163 of 2009 and 417 of 2011 respectively, on the file of the Additional District and Sessions Judge, Fast Track Court No. III, Coimbatore.)
1. These appeals have been filed against the common judgment and decree, dated 29.11.2011, passed in O.S.Nos.163 of 2009 and 417 of 2011 (erstwhile O.S.No.123 of 2007) respectively, on the file of the Additional District and Sessions Judge, Fast Track Court No.III, Coimbatore.
2. O.S.No.163 of 2009 is the suit for specific performance filed by K.M.Aruchamy Thevar against N.Srinivas. O.S.No.417 of 2011 is the suit filed by N.Srinivas for return of original documents handed over by him to K.M.Aruchamy Thevar. The trial Court had dismissed the suit for specific performance and allowed the suit for return of documents, aggrieved by which, K.M.Aruchamy Thevar has filed the above appeals.
3. Pending the appeals, the sole appellant/K.M.Aruchamy Thevar died and his legal heir has been brought on record.
4. For the sake of convenience, the original appellant/K.M.Aruchamy Thevar shall hereinafter be referred to as “plaintiff” and the respondent herein/N.Srinivas shall hereinafter be referred to as “defendant”.
5. The case of the plaintiff in both the suits is as follows :
*The defendant offered to sell the suit property to the plaintiff and a sale agreement was executed between the plaintiff and the defendant on 09.03.2006 for a sale consideration of Rs.13,83,750/-. An advance amount of Rs.3,75,000/- was paid on the same day towards the sale consideration.
*The period of performance was fixed as three months. It was also agreed that the defendant shall measure the suit property demarcate the land within the period of performance.
*The plaintiff has always been ready and willing to pay the balance sale consideration and get the sale deed registered in his favour, however, the defendant kept on evading his performance.
*Thereafter, the plaintiff came to know of the fact that the defendant had already entered into a sale agreement with one S.C.Kanakarathinam in respect of the suit property vide registered sale agreement dated 06.12.2004 and when enquired, the defendant agreed to cancel the same and by a registered cancellation deed, dated 16.06.2006, the sale agreement with S.C.Kanakarathinam was cancelled by the defendant.
*On 08.06.2006, the defendant received a further sum of Rs.3,30,000/- from the plaintiff to repay the amount received from one S.C.Kanakarathinam, with whom he had entered into a sale agreement earlier in respect of the suit property, and time period for performance of the suit agreement was extended by one month. An endorsement was made to that effect on the suit sale agreement itself. In order to support the time extension, the defendant handed over the original title documents in respect of the suit property to the plaintiff, on the said day itself.
*The defendant did not inform the plaintiff about the earlier sale agreement with the said S.C.Kanakarathinam.
*Totally, the defendant has received a sum of Rs.7,05,000/- as advance towards sale consideration.
*However, in spite of repeated requests made by the plaintiff by showing his readiness and willingness to perform his part of the contract, the defendant did not come forward to receive the balance sale consideration and execute the sale deed in favour of the plaintiff.
*Therefore, the plaintiff sent a legal notice on 02.01.2007. The defendant received the same on 09.01.2007, but did not send any reply.
*Contrarily, the defendant sent a legal notice on 03.01.2007 for return of original documents, for which, the plaintiff sent his reply on 06.01.2007.
*Thereafter, the defendant instituted a suit in O.S.No.123 of
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