BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P. Velmurugan, J.
Chilambuselvi - Appellant
Versus
M/s. G.P.R. Power Solution (P) Ltd., Through Managing Director S. Gnaneswari & Director Regunathan, Chennai – Respondent
A.S. (MD) No. 85 of 2022 & C.M.P. (MD) No. 3079 of 2022
Decided On : 07-07-2022
Specific Performance - Sale Agreement - Civil Procedure Code, 1908 - Section 96, Order 41 Rule 1 & 2 - Specific Relief Act - Section 22(2)
Fact of the Case:
The respondent filed a suit for specific performance against the appellant, claiming that the appellant had entered into a sale agreement but refused to execute the sale deed. The appellant denied entering into any agreement and claimed to have borrowed money from the respondent company.
Finding of the Court:
The trial Court dismissed the suit for specific performance but directed the appellant to repay the loan amount borrowed from the respondent company with interest. The appellant appealed, arguing that the trial Court's judgment was beyond the scope of the Specific Relief Act.
Issues: The issues included whether the appellant received money to sell the property, whether the appellant was ready to execute the sale deed, and whether the plaintiff was entitled to specific performance.
Ratio Decidendi: The trial Court dismissed the suit for specific performance on technical grounds but ordered repayment of the loan amount based on the appellant's admission. The Court held that the relief granted was within the scope of the pleadings and evidence presented.
Final Decision: The appeal was dismissed, and the judgment and decree of the trial Court were confirmed.
JUDGMENT :
(Prayer: Appeal Suit filed under Section 96 r/w Order 41 Rule 1 & 2 of the Civil Procedure Code, 1908 against the judgment and decree of the learned Principal District Judge, Theni, dated 24.10.2017 made in O.S.No. 78 of 2008.)
1. This Appeal Suit has been preferred challenging the judgment and decree of the learned Principal District Judge, Theni, dated 24.10.2017 made in O.S.No.78 of 2008.
2. The respondent is the plaintiff in the suit in O.S.No.78 of 2008, on the file of the Principal District Court, Theni. The appellant is the defendant in the said suit. The respondent has filed a suit against the appellant for the relief of specific performance and the said suit was dismissed. However, the trial Court has directed the appellant to pay a sum of Rs.5,00,000/- to the respondent with interest at the rate of 12% p.a., from the date of receipt of the said amount under Ex.A1 till the filing of the suit and 9% interest p.a., from the date of filing of the suit till the date of decree and 6% interest p.a from the date of decree till the date of realisation. Though aggrieved against the said judgment and decree, the defendant has filed the present appeal, however, the respondent/plaintiff has not filed either an appeal or the cross-objection.
3. Brief facts to the case of the respondent/plaintiff, as per the plaint, is that the appellant/defendant is the owner of the suit properties. She entered into an agreement to sell the properties to the plaintiff by means of a sale agreement, dated 05.01.2008. The sale price was fixed as Rs. 13,05,350/- and the defendant received a sum of Rs.5,00,000/- from the plaintiff as advance. From the date of agreement, the plaintiff was insisting the defendant to execute the sale deed in respect of the suit properties after getting the balance sale consideration. But the defendant has evading to execute the sale deed. Therefore, the plaintiff issued a notice, dated 29.04.2008 to the defendant calling upon her to execute the sale deed as per the agreement, dated 05.01.2008. Thereafter, the defendant issued a notice, dated 02.05.2008 by concealing all the facts with false allegations. The recitals of the notice would reflect that the defendant refused to execute the sale deed and expecting more money from the plaintiff. The defendant has admitted the execution of sale agreement, dated 05.01.2008 in her notice. The notice was suitably replied by the plaintiff. The plaintiff is a company and also an income tax assesse. The cheque for Rs.5,00,000/- paid as advance was only from the company account. The theory stated in the notice of the defendant was imaginary. The plaintiff is ready and willing to purchase the properties from the date of sale agreement, dated 05.01.2008 after paying the balance sale consideration, but the defendant evading to execute the sale deed. Hence, the suit for specific performance has been filed.
4. The defendant resisted the suit by filing a written statement stating that the suit is not maintainable either in law or on facts. The plaintiff is not entitled for any of the relief as prayed for. All the allegations stated in the plaint except those that are specifically admitted in the written statement are all denied by the defendant and they are all false. The plaintiff is liable to prove all the facts stated in the plaint. It is true that the defendant is the owner of the suit property. But it is denied that on 05.01.2008 she executed a sale deed to sell the suit property for Rs. 13,05,350/- and received an advance of Rs.5,00,000/- from the plaintiff. The defendant to discharge her debts, approached Mrs.S.Gnaneswari and Mr.S.Reghunathan, who are her close relatives for a loan of Rs.5,00,000/-. Accordingly, they gave Rs.5,00,000/- as a hand loan. She executed a sale agreement, dated 05.01.2008 for security purpose since Mrs.S.Gnaneswari and Mr.S.Reghunathan are her close relatives. They also received the title deeds of suit properties towards security. On 03.04.2008, the de
AI
The Court upheld the trial Court's decision to grant relief based on the appellant's admission, demonstrating the importance of pleadings and evidence in determining the scope of relief.
The burden of proof lies on the party disputing the validity of a written contract, and the conduct of the parties and the plaintiff's readiness and willingness are essential for specific performance....
The main legal point established in the judgment is that the plaintiff must establish readiness and willingness to perform a contract for specific performance.
Specific performance – Relief of specific performance is equitable remedy – Plaintiff have to necessarily show their readiness and willingness in performing their part of contract from date of agreem....
To obtain a decree for specific performance, the plaintiff must prove continuous readiness and willingness to perform his part of the contract at all stages from the date of the agreement till the da....
The plaintiff must prove their readiness and willingness to perform the contract in order to be entitled to specific performance. A subsequent suit for specific performance is barred if the plaintiff....
The plaintiff's readiness and willingness to perform the contract, the capacity to mobilize funds, and the mental attitude to purchase the property are essential for specific performance.
The plaintiff seeking specific performance must demonstrate readiness and willingness to perform the contract, and the court must consider the hardship on the defendants. Additionally, agreements inv....
The court determined that the agreement was intended as a security for a loan rather than a sale, emphasizing the necessity of proving readiness and willingness for specific performance.
Judicial discretion in specific performance cases requires careful consideration of all circumstances, including fairness and equitable relief.
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