IN THE HIGH COURT OF JUDICATURE AT MADRAS
P. VELMURUGAN, J.
K. Shanthi - Appellant
Versus
K. Selvam & Others - Respondent
A.S(MD) No. 175 of 2010 & C.R.P(NPD)(MD) No. 273 of 2013 & C.M.P(MD) No. 1691 of 2019
Decided On : 25-08-2022
Specific Performance - Sale Agreement - Civil Procedure Code, 1908 - Section 96, Order XL Rule 1 - [SPECIFIC PERFORMANCE] - [SALE AGREEMENT] - [Section 96, Order XL Rule 1]
Fact of the Case:
The plaintiff filed a suit for specific performance against the first defendant, seeking the execution of a sale deed for a property. The plaintiff had paid an advance amount and was ready to perform his part of the contract, but the first defendant failed to execute the sale deed within the stipulated time. The first defendant disputed the plaintiff's readiness and willingness to perform the contract and raised issues regarding the encumbrance on the property and the eviction of a tenant.
Finding of the Court:
The court found that the plaintiff had established his readiness and willingness to perform the contract, while the first defendant failed to prove the necessity for the stipulated time as the essence of the contract. The court also noted that the first defendant did not vacate the tenant or clear the encumbrance within the stipulated time. The court dismissed the appeal suit and the Civil Revision Petition, stating that the first defendant's conduct did not establish her readiness and willingness to perform her part of the contract.
Issues: 1. Whether the plaintiff is entitled to specific performance. 2. Whether the first defendant's conduct demonstrated readiness and willingness to perform the contract. 3. Compliance with the mandatory provisions of Order 21 Rule 34 of the Civil Procedure Code in the execution proceedings.
Ratio Decidendi: The time stipulated in the sale agreement was not the essence of the contract, and the plaintiff had demonstrated readiness and willingness to perform his part of the contract. The first defendant's failure to vacate the tenant and clear the encumbrance within the stipulated time indicated her lack of readiness and willingness to perform her part of the contract.
Final Decision: The appeal suit and the Civil Revision Petition were dismissed, and the executing Court's order was upheld.
JUDGMENT
(Prayer in A.S(MD)No.175 of 2010: Appeal Suit filed under Section 96 and Order XL Rule 1 of the Civil Procedure Code, 1908 against the judgment and decree made in O.S.No.118 of 2008, dated 13.4.2010, on the file of the Additional District Judge(Fast Track Court No.I), Thanjavur.
Civil Revision Petition filed under Article 227 of the Constitution of India praying this Court to set aside the Docket Order passed in E.P.No.27 of 2012 in O.S.No.118 of 2008, dated 22.1.2013, on the file of the Additional District Judge cum Fast Track Court, Thanjavur.)
Common Judgment
1. The Appeal Suit is directed against the judgment and decree made in O.S.No.118 of 2008, dated 13.4.2010, on the file of the Additional District Judge(Fast Track Court No.I), Thanjavur.
2. C.R.P(NPD)(MD)No.273 of 2013 is filed seeking to set aside the Docket Order passed in E.P.No.27 of 2012 in O.S.No.118 of 2008, dated 22.1.2013, on the file of the Additional District Judge-cum-Fast Track Court, Thanjavur.
3. The first respondent is the plaintiff and the appellant herein and the second and third respondents are the defendants in the suit in O.S.No.118 of 2008, on the file of Additional District Judge, Fast Track Court No.I, Thanjavur for the relief of Specific performance. The trial Court, after trial, decreed the suit with costs granting one month time to deposit the balance sale consideration into Court and two months time to the first respondent to execute the sale deed as per the sale agreement. Challenging the said judgment and decree passed by the trial Court, the first defendant has filed the present appeal suit.
4. During the pendency of the appeal suit, the the first defendant has filed E.P.27 of 2012 to get the sale deed executed and to register the same in the Sub-Registrar Office concerned. The trial Court after deposit of the balance sale consideration, registered the sale deed through Court and E.P was closed. Challenging the said order, the first defendant has filed the above Civil Revision Petition.
5. The brief facts of the plaint reads as follows:
The suit property belongs to the first defendant. In respect of the suit property, there is an agreement between the plaintiff and first defendant on 3.1.2008. It was agreed that the sale consideration of the suit property is Rs.13,25,000/- and the plaintiff has paid a sum of Rs.3,25,000/- as advance amount to the first defendant on the date of sale agreement itself. Further it was agreed to hand over the plaintiff the suit property with nil encumbrance after receiving the balance sale consideration within a period of six months from the date of sale agreement. The first defendant has also agreed to execute the sale deed and hand over the possession of the suit property within the time stipulated above. The plaintiff is also ready and willing to perform his part of contract as per the sale agreement. When the parent deed of the suit property was claimed, it was stated that the suit property was mortgaged with the second defendant in Loan Nos.644 and 645. The first defendant told the plaintiff to remit a sum of Rs.20,000/- towards loan amount to the second defendant and accordingly, he remitted the same on 30.1.2008 and also obtained nil encumbrance certificate in respect of the suit property from the Sub-Registrar's Office concerned. The third defendant resided in the ground floor of the suit property as a tenant. The first defendant has assured the plaintiff that the third defendant should be vacated from the residence and hand over the vacant possession within the time stipulated in the sale agreement. Inspite of repeated requests, the first defendant has evaded the execution of the sale deed by saying some reason or other and for that reason, the first defendant and her husband absconded from the said area. Hence the plaintiff has sent a legal notice to the first defendant on 2.7.2008 and as the residence of the first defendant was found locked, it was affixed on the door on 8.7.2008. In the me
AI
The time stipulated in a sale agreement is not necessarily the essence of the contract for immovable properties, and readiness and willingness to perform the contract must be demonstrated by the part....
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....
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....
Time is of the essence of a contract if the parties have agreed that it is or if the circumstances of the case show that it is.
Time is an essence of the contract in specific performance cases, and plaintiffs must prove continuous readiness and willingness to perform their obligations.
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.
Time is not automatically the essence of a contract unless expressly stated; the plaintiff's readiness and willingness to perform must be established.
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