IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. KANNAMMAL, J.
Ratchagar (Died) & Others - Appellant
Versus
Anthoni Ammal - Respondent
Appeal Suit No. 1084 of 2009 & M.P. No. 1 of 2009
Decided On : 06-06-2022
Specific Performance - Registration Act, Transfer of Property Act - Section 17(1-A) of Registration Act, 1908, Section 53-A of Transfer of Property Act - [SPECIFIC PERFORMANCE] - [PROPERTY DISPUTE] - [Registration Act, 1908, Transfer of Property Act] - The court discussed the legal provisions of Section 17(1-A) of the Registration Act, 1908 and Section 53-A of the Transfer of Property Act. The court emphasized that an unregistered document can be admitted as evidence in a suit for specific performance to show a contract between the parties, and the plaintiff's continuous readiness and willingness to perform the contract are crucial. The court also highlighted the discretion of the court to grant alternative relief in the absence of specific performance.
Fact of the Case:
The plaintiff filed a suit for specific performance based on an unregistered agreement for the sale of a property. The defendant did not contest the suit, and the trial court dismissed the suit, granting an alternative relief of refund of money.
Finding of the Court:
The court held that the plaintiff failed to prove the trueness, validity, and genuineness of the unregistered document, and thus, was not entitled to the relief of specific performance. However, the court upheld the alternative relief of refund of money granted by the trial court.
Issues: The issues were whether the trial court was right in dismissing the suit for specific performance based on the non-registration of the sale agreement, whether the plaintiff was entitled to the relief of specific performance, and to what other relief the plaintiff was entitled to.
Ratio Decidendi: The court emphasized that an unregistered document can be admitted as evidence in a suit for specific performance to show a contract between the parties, and the plaintiff's continuous readiness and willingness to perform the contract are crucial. The court also highlighted the discretion of the court to grant alternative relief in the absence of specific performance.
Final Decision: The appeal was dismissed, and the court confirmed the entire decree of the trial court, except for the reasoning given for rejecting the relief of specific performance.
JUDGMENT
(Prayer: Appeal Suit is filed under Section 96 of the Civil Procedure Code against the Judgment and Decree dated 15.06.2009 in O.S.No.108 of 2008 on the file of the Principal District Court, Cuddalore.)
1. This appeal suit arises out of the judgment and decree, dated 15.06.2009, passed by the learned Principal District Judge, Cuddalore, in Original Suit No.108 of 2008.
2. The sole plaintiff before the Court below is the appellant herein. Pending this appeal, the sole plaintiff died on 01.07.2015 and therefore, his legal heirs were brought on record as appellants 2 to 4.
3. The sole plaintiff filed the suit in O.S. No. 108 of 2008 for specific performance. The case of the plaintiff is that the defendant borrowed a sum of Rs.25,000/- from him and executed a simple mortgage deed dated 15.06.1993 in his favour in respect of the suit property. In order to discharge the loans availed from the plaintiff and several other persons, the defendant offered to sell the suit property to the plaintiff and sale price was fixed at Rs.7,00,000/-. On 10.05.2008, an agreement of sale was entered into between the plaintiff and the defendant, in which, the sale consideration was indicated as Rs.7,00,000/-. The plaintiff agreed to discharge the loans availed by the defendant to the tune of Rs.4,00,000/- and the same was adjusted towards the sale consideration. On the date of agreement, the plaintiff paid a sum of Rs.2,00,000/- in cash towards sale advance and agreed to pay the balance within a period of three months on which event, the sale has to be completed. Therefore, the plaintiff has totally paid a sum of Rs.6,00,000/- to the defendant as sale advance. Since only a small portion of amount, i.e., Rs.1,00,000/- was remaining to be paid, the defendant also handed over the possession of the suit property to the plaintiff. According to the plaintiff, right from the date of agreement of sale, the plaintiff has been ready and willing to perform his part of contract. However, since the defendant has been evading to perform her part of contract, the plaintiff was constrained to file the suit.
4. Despite paper publication, the defendant had not chosen to appear before the trial Court and contest the suit, she remained absent and hence, was called absent and set ex parte before the trial Court.
5. The trial Court framed the following issues :
i. Whether the plaintiff is entitled to a decree as prayed for ?
ii. To what relief the plaintiff is entitled ?
6. Before the trial court, Mr. Ratchagar, sole plaintiff, examined himself as P.W.1 and Exs.A1 and A2 were marked.
7. Though there was no contest by the defendant, the trial Court observed that the agreement of sale Ex.A2 is an unregistered document as contemplated under Section 17 (1-A) of Registration Act, 1908, as such, the sale agreement shall have no effect for the purpose of Section 53-A of the Transfer of Property Act, 1882. Accordingly, the trial Court held that the claim of the plaintiff as to part performance of contract under Ex.A2 cannot be valid. Since Ex.A2 is an unregistered document, the plaintiff is not entitled to the relief of specific performance but entitled only for alternative relief. As such, the Court below decreed the alternative relief, directing the defendant to pay a sum of Rs.6,00,000/- with interest at 12% per annum from the date of sale agreement i.e., 10.05.2008 till the date of realization.
8. Challenging the findings of the Court below, the plaintiff has come forward with the present appeal.
9. The learned counsel appearing for the appellants would contend that the findings of the Court below holding that Ex.A2 is an unregistered sale agreement and therefore, the plaintiff is not entitled to the relief of specific performance, are not tenable and are liable to be set aside. The learned counsel would further contend that, even though the defendant remained ex parte, the Court below has stepped into the shoes of the defendant and decided the matter in favour of the def
An unregistered document can be admitted as evidence in a suit for specific performance to show a contract between the parties, and the plaintiff's continuous readiness and willingness to perform the....
An unregistered sale agreement can be considered for proving possession and specific performance, and an agreement to sell does not confer any right, title, or interest over the property, thus not re....
An unregistered sale deed is invalid for specific performance claims, and the burden of proof lies with the plaintiff to establish the validity of the transaction.
The court's decision highlighted the importance of registration of documents and the impact of attachment orders on specific performance claims.
An unregistered agreement to sell does not confer rights for specific performance; plaintiffs failed to show readiness and willingness to perform contractual obligations.
The admissibility of an unregistered agreement as evidence of a contract in a suit for specific performance and the importance of proving readiness and willingness to perform the contract.
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