IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
P. Ranjithkumar - Appellant
Versus
Baskar & Others - Respondent
S.A. No. 526 of 2015 & M.P. No. 1 of 2015
Decided On : 25-04-2022
Specific Performance - Sale Agreement - Code of Civil Procedure - [Specific Performance] - [Section 100 of the Code of Civil Procedure] - [Order 1 Rule 10 sub-rule (2) CPC, Section 19 of the Specific Relief Act] - The court discussed the enforceability of a sale agreement, the necessity of parties in a suit for specific performance, and the interpretation of the legal provisions under the Code of Civil Procedure and the Specific Relief Act. The court found that the sale agreement satisfied all the elements of an enforceable contract and that the defendants were bound to execute the sale deed in favor of the plaintiff. The court also emphasized that a third party or a stranger to a contract cannot be added as a proper party for deciding their claim over the property since it will change the very character of the suit.
Fact of the Case:
The plaintiff filed a suit seeking specific performance and permanent injunction restraining the defendants from encumbering the suit property. The plaintiff alleged that the defendants evaded executing the sale deed despite receiving the entire sale consideration. The defendants claimed that the sale agreement was unenforceable and that necessary parties were not joined.
Finding of the Court:
The court found that the sale agreement satisfied all elements of an enforceable contract and that the defendants were bound to execute the sale deed in favor of the plaintiff. The court also held that defendants 12 to 14 were neither necessary nor proper parties to the suit. The court emphasized that a third party or a stranger to a contract cannot be added as a proper party for deciding their claim over the property since it will change the very character of the suit.
Issues: The issues included the enforceability of the sale agreement, the necessity of parties in a suit for specific performance, and the interpretation of legal provisions under the Code of Civil Procedure and the Specific Relief Act.
Ratio Decidendi: The court emphasized that a suit for specific performance can be filed only against the persons who have entered into a sale agreement. The court also highlighted the necessity of parties in a suit for specific performance and the guiding principles for determining proper parties in such suits.
Final Decision: The Judgment and Decree of both the Courts below were set aside, and the suit in O.S. No. 71 of 2007 was decreed as prayed for with costs. The Second Appeal was allowed.
JUDGMENT
(Prayer: Second Appeal filed Under Section 100 of the Code of Civil Procedure against the Judgment and Decree dated 30.10.2014 passed in A.S.No.4 of 2013 on the file of the Principal District Judge of Kancheepuram District at Chengalpattu, by confirming the Judgment and decree dated 01.02.20211 passed in O.S.No.171 of 2007, on the file of Sub Court, Madurantakam.)
1. The plaintiff is the appellant in this Second Appeal.
2. The plaintiff filed the suit seeking for the relief of specific performance and permanent injunction restraining the defendants from in any manner encumbering or alienating the suit property.
3. The case of the plaintiff is that on 18.7.2005, defendants 7 to 10 and the deceased Thirunavukarasu jointly entered into an agreement of sale with the plaintiff. This document was marked as Ex.A2. A total sale consideration of Rs.1,50,000/- was fixed under this sale agreement and the entire sale consideration was paid even on the date of the agreement. The further case of the plaintiff is that one of the co-owners, Thirunavukarasu died intestate and his legal representatives are defendants 1 to 6 in the suit.
4. The grievance of the plaintiff was that he was always ready and willing to perform his part of the contract and was requesting the defendants to execute the sale deed in his favour. They were evading the execution of the sale deed under some pretext. Left with no other option, the plaintiff issued a legal notice dated 7.6.2007 calling upon the defendants to execute and register the sale deed in favour of the plaintiff. The legal notice was marked as Ex.A3. According to the plaintiff, the defendants neither acted upon the notice nor gave a reply for the same. The plaintiff was therefore constrained to file the suit seeking for the relief of specific performance.
5. During the pendency of the suit, defendants 12 to 14 impleaded themselves in the suit on the ground that they are the legal heirs of one Elumalai Naicker and that they also have a share in the suit property and hence they are necessary parties in the suit. These defendants were given up by the plaintiff in the suit and the same was recorded in the Judgment of the Trial Court.
6. The defendants 1 to 10 filed a written statement. They took a stand that they are not the absolute owners of the suit property and that defendants 12 to 14 are also the co-owners of the property and they have a share in the suit property. They also took a defence that they have not executed the sale agreement and have not received the sale consideration for the suit property. They also took a stand that they were not aware about the legal notice issued by the plaintiff and that the plaintiff has approached the Court with delay.
7. The defendants 12 to 14 filed a written statement and they took a stand that they were not parties to the sale agreement and that defendants 1 to 10 do not have the exclusive right over the suit property. In view of the same, they pleaded that the sale agreement is not binding on them and it is unenforceable. Accordingly, they also sought for the dismissal of the suit.
8. Both the Courts below on considering the facts and circumstances of the case and on appreciation of oral and documentary evidence, concurrently held against the plaintiff and dismissed the suit. Aggrieved by the same, the plaintiff has filed this Second Appeal.
9. When the Second Appeal was admitted, this Court framed the following substantial questions of law for consideration:
a) Whether the Courts below are correct in dismissing the suit on the ground of non-joinder of necessary parties, when parties to the agreement alone have to be added as parties?
b) Whether the non-consideration of DW1's oral evidence has resulted in miscarriage of justice, who had categorically admitted that the suit properties had been allotted to one Shanmuga Naicker which itself proves that the suit property is not a joint family property?
c) Whether the reasoning of the Courts below that Ex.A2
The main legal point established in the judgment is that a suit for specific performance can be filed only against the persons who have entered into a sale agreement, and the necessity of parties in ....
The court ruled that a plaintiff must prove readiness and willingness to execute a sale agreement, and failure to do so, along with undue hardship to defendants, can preclude specific performance.
Court cannot allow adjudication of collateral matters so as to convert a suit for specific performance of contract for sale into a complicated suit for title between the plaintiff/appellant.
The prior purchasers of the property are necessary and proper parties to a suit for specific performance.
(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....
The deceased plaintiff's failure to prove readiness and willingness to perform the contract and the lack of evidence to support the claim led to the setting aside of the lower courts' decisions.
The main legal point established in the judgment is the requirement for the plaintiff to prove the execution of the agreement of sale, payment of consideration, and continuous readiness and willingne....
The court held that a plaintiff must prove readiness and willingness in specific performance claims, and doubts regarding the authenticity of an agreement can lead to dismissal.
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