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2022 Supreme(Mad) 3212

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.M. VELUMANI, S. SOUNTHAR, JJ.
K. Sampathkumar & Another - Appellant
Versus
K. Sekar - Respondent
A.S. No. 745 of 2010 & C.M.P. No. 17276 of 2016
Decided On : 23-09-2022

Advocates appeared:
For the Appellants:G.B. Jeyakumar for M/s. S.A. Anandakumar, Advocates. For the Respondent:N.L. Raja, Senior Counsel, M/s. N. Murali, Advocate.

Headnote:

Specific Performance - Agreement of Sale - Time is not the essence of contract - Agreement of Sale, Ex.A1, did not specify time as essence of contract - Appellants failed to perform their part of contract - Respondent was ready and willing to perform his part of contract - Relief of specific performance granted - [TIME IS NOT THE ESSENCE OF CONTRACT] - [Specific Performance] - [Section 16(c) of Specific Relief Act, 1963] - [Agreement of Sale, Ex.A1]

Fact of the Case:

The respondent filed a suit for specific performance of an agreement of sale for certain properties. The appellants failed to perform their part of the contract, while the respondent was ready and willing to perform his part. The court decreed the suit in favor of the respondent.

Finding of the Court:

The court found that time was not the essence of the contract, as the agreement of sale did not specify it as such. The appellants failed to perform their part of the contract, while the respondent was ready and willing to perform his part. The court granted the relief of specific performance to the respondent.

Issues: Whether time is the essence of the contract, whether the respondent was ready and willing to perform his part of the contract, and whether the appellants performed their part of the contract as contemplated under the agreement of sale, Ex.A1.

Ratio Decidendi: The court held that time was not the essence of the contract, as the agreement of sale did not specify it as such. The appellants failed to perform their part of the contract, while the respondent was ready and willing to perform his part. The court granted the relief of specific performance to the respondent.

Final Decision: The Appeal Suit was dismissed, and the relief of specific performance was granted to the respondent. No costs were awarded, and the connected Miscellaneous Petition was closed.

JUDGMENT

(Prayer: This First Appeal is filed under Section 96 of Code of Civil Procedure against the judgment and decree dated 21/06/2010 made in O.S.No.30 of 2007 on the file of the III Additional District Court, Pondicherry.)

V.M. Velumani, J.

1. This Appeal Suit is filed against the judgment and decree dated 21/06/2010 made in O.S.No.30 of 2007 on the file of the III Additional District Court, Pondicherry.

2. The appellants are the defendants and the respondent is the plaintiff in O.S.No.30 of 2007 on the file of III Additional District Court, Pondicherry. The respondent filed the said suit for specific performance of agreement of sale dated 25.09.2006 and consequently directing the appellants to execute the sale deed in favour of the respondent in respect of the suit properties, after receiving the balance sale consideration of Rs.35,95,000/- and in case the appellants fail to execute the sale deed, praying the Court to execute the sale deed in favour of the respondent in respect of the suit properties on deposit of balance sale consideration into court by the respondent and to direct the appellants to deliver possession of the suit properties to the respondent. The said suit was decreed as prayed for by the judgment and decree dated 21.06.2010.

3. Challenging the said judgment and decree dated 21.06.2010 made in O.S.No.30 of 2007, the appellants have come out with the present First Appeal.

Case of the respondent/plaintiff :

4. The appellants are owners of the suit properties. They became the owners of the suit properties by virtue of three settlement deeds dated 24.02.1987, 26.02.1987 & 27.02.1987, two sale deeds dated 21.10.1992 & 22.10.1992 and three rectification deeds, all dated 19.10.1992. The appellants offered to sell the suit properties. The respondent agreed to purchase the same. After negotiation, the sale price was fixed at Rs.39,95,000/- including cost of Rs.1,10,000/- for motor pumpset. The terms and conditions was reduced in writing by agreement of sale dated 25.09.2006. As per the said terms, the total sale consideration was fixed at Rs.38,85,000/- and Rs.1,10,000/- for motor pumpset. The respondent paid a sum of Rs.1,00,000/- as advance and balance sale consideration has to be paid within three months from the date of agreement of sale and get the sale deed executed in his favour. The appellants has to produce the original title deeds with regard to suit properties, no due land tax payment certificates, patta and encumbrance certificate, measure the suit properties with the help of Government surveyor, receive the balance sale consideration and execute the sale deed in favour of the respondent.

4.1. When the respondent approached the appellants to produce the original documents of title and survey the properties, the appellants requested some time to produce the documents and survey the suit properties. They also requested further advance and the respondent paid a sum of Rs.3,00,000/- on 04.10.2006 as further advance and obtained an endorsement on the backside of the agreement of sale dated 25.09.2006. After some time, when the respondent approached the appellants for completing the sale transaction, the appellants sought further time and informed the respondent that they will definitely comply with the terms of agreement of sale and there is no need for the agreement extending the time. While so, the appellants sent a notice dated 14.05.2007 revoking the agreement of sale dated 25.09.2006 alleging that the respondent failed to perform his part of contract within three months as per the agreement of sale dated 25.09.2006. The respondent met the appellants in person who informed him that the said notice dt.14.05.2007 is a formal notice and asked the respondent to send a formal reply. The respondent sent a reply dated 16.05.2007. The respondent also effected a paper publication on 18.05.2007 in Dinamalar Daily Newspaper requesting the public not to deal with the suit properties as the respondent came

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