IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBRAMANIAN, R. KALAIMATHI, JJ.
Vijayalakshmi Leather Industries Private Limited, Chennai & Others – Appellants
Versus
Lalitha & Others – Respondents
O.S.A. No. 143 of 2017 & A.S. No. 370 of 2017 & C.M.P. Nos. 2799 & 2928 of 2018
Decided On : 01-08-2023
Fraud - Specific Performance - Limitation - [FRAUD] - [Specific Performance] - [Section 96 of the Civil Procedure] - [Order 6 Rule 17 of the Code] - [Lakshminarayana Reddiar vs. Singaravelu Naicker and others, reported in AIR 1963 Mad 24] - [Abdul Hakeem Khan v. Abdul Mannan Khadri reported in AIR 1972 A.P. 178] - The court dismissed the application for specific performance as it would be barred by limitation. The court also dismissed the suit for specific performance as it was beyond the scope of the main suit and would amount to misjoinder of causes of action.
Fact of the Case:
The appellant filed a suit for recovery of damages from the defendants. The suit arose from an agreement to purchase property, which was subject to pending litigation. The appellant sought to amend the plaint to include the relief of specific performance, but the court found it to be barred by limitation and beyond the scope of the main suit.
Finding of the Court:
The court found that the relief of specific performance would be barred by limitation and dismissed the application for amendment. The court also dismissed the suit for specific performance as it was beyond the scope of the main suit and would amount to misjoinder of causes of action.
Issues: The issues involved the limitation for filing a suit for specific performance and the permissibility of amending the plaint to include the relief of specific performance.
Ratio Decidendi: The court held that the application for specific performance would be barred by limitation and that the relief of specific performance was beyond the scope of the main suit and would amount to misjoinder of causes of action.
Final Decision: The court dismissed the application for specific performance and the suit for specific performance.
JUDGMENT
(Prayer: Original Side Appeal filed under Clause 15 of Letters Patent r/w. Order XXXVI Rule 9 of the Original Side Rules, against the order and decreetal order in Appl.No.6126 of 2016 in C.S.No.364 of 2003 dated 01.03.2017.
A.S.No.370 of 2017:
First Appeal filed under Section 96 of the Civil Procedure, against the judgment and decree dated 22.11.2016 passed in O.S.No.29 of 2011 on the file of the learned III-Additional District Judge, Thiruvallur at Poonamallee.)
Subramanian, J.
1. This appeal is at the instance of the plaintiff in C.S.No.364 of 2003, a suit for recovery of damages from the defendants 1 to 5 and 7 to 10. The damages have been claimed under various heads and the finer details may not be required at this juncture.
2. The facts that led to filing of the suit in C.S.No.364 of 2003 are as follows:-
2.1. One Krishnapillai owned vast extent of properties in and around Chennai. One such property is measuring about 16.48 grounds in Survey No.38/1, No.81, Porur Village, Tiruvallur District. A suit was filed by the 6th respondent herein in C.S.No.78 of 1978 seeking partition and separate possession of his ½ share in the suit properties, contending that the properties are ancestral properties. The said suit was however, withdrawn subsequently with leave to file a fresh suit. Thereafter, the 6th respondent herein filed a suit in C.S.No.73 of 1981 seeking partition and separate possession of his ½ share in the property measuring 16.48 grounds as well as the other properties.
2.2. During the pendency of the suit, the defendants in the said suit, who are the legal representatives of the other son of Krishnapillai namely, Loganathan sold the entirety of the property to one East Land Manufacturing Company, a partnership firm. The suit in C.S.No.73 of 1981 ended in compromise final decree on 02.01.1989. Under the said compromise, an extent of 8.24 grounds out of 16.48 grounds was allotted to the 6th respondent herein. After the said final decree came to be passed on 02.01.1989, the appellant herein purchased the entire extent of 16.48 grounds from the East Land Manufacturing Company on 21.07.1989.
3. The appellant herein as a subsequent purchaser resisted the execution proceedings pursuant to the final decree by filing various execution applications. The fact that those applications were dismissed and the orders there on were confirmed by this Court is not disputed. In E.P.No.78 of 1997, the Executing Court in fact, ordered delivery on 16.08.2002. Thereafter, the appellant entered into a sale agreement with the 6th respondent, agreeing to purchase the 8.24 grounds that was allotted to the 6th respondent under the final decree in C.S. 73 of 1981 for a total consideration of Rs.64,00,000/-. He paid an advance of Rs.4,00,000/-. It was agreed that the sale should be completed by 16.07.2003.
4. After having entered into the agreement, the appellant filed a suit in C.S.No.364 of 2003 as aforesaid seeking damages from the other defendants. Though the 6th respondent was impleaded as 6th defendant in the suit, no relief was sought for against him. The appellant issued a notice to the 6th respondent on 15.07.2003, pointing out that the suit in C.S.No.855 of 1994 filed by the sister of the 6th respondent namely, one Loganayaki for partition of her 1/9th share and for setting aside the preliminary decree and final decree in C.S.No.73 of 1981 is pending and the 6th respondent, who is a party to the suit had supressed the pendency of the said suit. He would therefore, seek the 6th respondent to extend the time for execution of sale deed pursuant to the agreement dated 26.02.2003 till disposal of the suit in C.S.No.855 of 1994.
5. The 6th respondent sent a reply stating that he had informed the appellant of the pendency of the suit even before the agreement. He has also stated that the appellant can withhold the 1/9th of the sale consideration and take a sale deed and 1/9th of the sale consideration could be p
The main legal point established in the judgment is that the relief of specific performance must be within the scope of the main suit and not barred by limitation.
The court's decision was influenced by the lack of good faith, absence of notice, and delay in filing the suit, which disentitled the plaintiff to specific performance.
Timely enforcement of contract rights is critical; undue delay in asserting specific performance can bar claims even if prior agreements exist.
The court affirmed that amendments to pleadings should be liberally granted to serve justice, particularly when the cause of action arises from recent developments, like the dismissal of a related ci....
The court held that the specific performance agreement lapsed due to inaction and efflux of time, establishing that performance must adhere to stipulated timelines, and cancellation agreements do not....
Amendment of plaint - An application for amendment of the pleadings is not to be disallowed on the ground that the same is barred by limitation
The main legal point established in the judgment is that the time for specific performance of a contract starts to run after the expiry of the time fixed in the agreement, as per the provisions of Ar....
An unregistered agreement for the sale of immovable property is enforceable for specific performance provided the plaintiff proves readiness and willingness and pays substantial consideration, especi....
The court found the specific performance suit invalid due to the sale agreement being deemed fabricated, emphasizing that such claims cannot coexist with adverse possession expectations.
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