BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
N. SATHISH KUMAR, J.
R. Poongodi – Appellant
Versus
N. Kanagammal (Died) & Another – Respondents
A.S.(MD)No. 147 of 2014
Decided On : 09-03-2023
specific performance - contract - Ex.A3 - [CIVIL LAW] - [Indian Contract Act, 1872 - Section 73, Specific Relief Act, 1963 - Section 10] - The court discussed the enforceability of the contract, readiness and willingness of the plaintiff, and the capacity to raise funds. The court found that the written contract Ex.A3 was enforceable and that the plaintiff failed to establish readiness and willingness, leading to the dismissal of the appeal.
Fact of the Case:
The plaintiff filed a suit for specific performance of a contract for the sale of properties. The trial court dismissed the suit for specific performance and decreed the suit for the alternative relief of refund of money. The plaintiff appealed against this decision.
Finding of the Court:
The court found that the written contract Ex.A3 was enforceable and that the plaintiff failed to establish readiness and willingness to perform the contract.
Issues: The issues were whether there was an enforceable contract between the parties, whether the plaintiff was always ready and willing to perform the contract, and the relief the parties were entitled to.
Ratio Decidendi: The court held that the written contract Ex.A3 was enforceable and that the plaintiff failed to establish readiness and willingness to perform the contract.
Final Decision: The appeal suit was dismissed, and the judgment of the trial court was confirmed. The defendants were directed to refund the amount received by them to the plaintiff with interest.
JUDGMENT
(Prayer: This Appeal Suit is filed under Section 96 of C.P.C. against the judgment and decree passed by the Additional District Judge cum Fast Track Court No.2, Madurai, in O.S.No.56/2008, dated 04.08.2010.)
Aggrieved over the decree and judgment of the Additional District Judge cum Fast Track Court No.2, Madurai, in O.S.No.56/2008, dated 04.08.2010, dismissing the suit filed for specific performance and granting only alternative relief of refund of money, the present appeal has been filed by the unsuccessful plaintiff.
2. For the sake of convenience, the parties are referred to herein, as per their rank before the Trial Court.
3. The brief facts, leading to the filing of this Civil Miscellaneous Appeal, are as follows:-
The defendants 1 and 2 are the mother and daughter. The first item of the property belonged to the defendant No.1. Second item of the property belonged to the second defendant. Both the defendants decided to sell the properties. As a result, on 26.09.2007, both of them orally agreed to sell the suit properties to the plaintiff for a total sale consideration of Rs.15,25,000/- and received a sum of Rs.50,001/- as token advance, followed by an written sale agreement dated 11.10.2007 and received a sum of Rs.2 lakhs towards sale consideration. It is agreed between the parties that sale shall be completed within a period of three months. Second defendant agreed to discharge the loan amount of Rs.2,52,000/- borrowed from the Tamil Nadu Electricity Board. However, the second defendant has not discharged the loan amount. The plaintiff has approached the defendants on several occasions and requested them to execute a sale deed in favour of her after receiving balance sale consideration, within a time. The second defendant has not performed their part of obligations. As the defendants neither discharged the loan nor executed the sale deed, the plaintiff has also gave a complaint before the Sellur Police Station dated 05.03.2008. The second defendant, however, in order to escape from the criminal complaint, issued a cheque for a sum of Rs.1,25,000/- in favour of the plaintiff on 15.03.2008. The plaintiff received the cheque under the compulsion of the defendants and presented the same through her advocate on 18.03.2008. However, the payment was stopped by the drawer. Thereafter, the second defendant also informed that they are ready to pay the balance sale consideration as per the agreement. However, the defendants have not come forward to receive the balance sale consideration and execute the sale deed. Therefore, the plaintiff has sent a legal notice dated 01.04.2008, which was replied by the defendant on 04.04.2008. Hence, the suit.
4. Admitting the sale agreement, it is the contention of the defendants in the written statement that the plaintiff has given a police complaint on 05.03.2008. Thereafter, the second defendant issued a cheque for a sum of Rs.1,25,000/- to the plaintiff on 15.03.2008. It is the contention of the defendants that the plaintiff could not mobilize the fund to pay the balance sale consideration and to get the execution of sale within the time fixed in the sale agreement, since time is the essence of contract. The plaintiff also addressed two complaints to the Inspector of Police levelling allegations against the defendants. The above complaints itself clearly show that the plaintiff was not in a position to perform her part of the contract. The plaintiff demanded refund of advance amount from the defendants and accordingly, they issued a cheque for the part amount on condition that balance should be paid within three months from 15.03.2008. Since the plaintiff has not issued any receipt, the second defendant instructed the bank on 14.03.2008 to stop the payment. It is the further contention of the defendants that the plaintiff never requested the second defendant and she never tendered the balance amount of sale consideration and the plaintiff was never ready and willing to perform her part o
The main legal point established in the judgment is that the plaintiff must establish readiness and willingness to perform a contract for specific performance.
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'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 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....
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....
Continuous proof of readiness and willingness is essential for specific performance; failure to prove financial capacity and timely action disallows enforcement.
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....
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