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2023 Supreme(Mad) 2733

R. SUBRAMANIAN, R. KALAIMATHI
G. Nagaraj – Appellant
Versus
R. J. Anandmul – Respondent


Advocates appeared:
For the Appellant:P. Subba Reddy, Advocate. For the Respondent:R. Subramanian for D. Nagesh Babu, Advocates.

Judgement Key Points

Certainly. Based on the provided legal document, here are similar citations from Madras and Supreme Court decisions, referencing the principles discussed:

  1. The scope of Section 92 of the Evidence Act regarding the admissibility of oral evidence to contradict, vary, or add to the terms of a written agreement has been considered by the courts, emphasizing that oral evidence is generally inadmissible to alter the terms of a formal written contract, except under specific provisos such as proving fraud, coercion, or a subsequent agreement (!) (!) (!) (!) (!) .

  2. The courts have clarified that when a document is intended to be a complete and final expression of the parties’ agreement, oral evidence cannot be used to contradict its terms, but evidence related to the existence of a separate oral agreement, or to prove that the written document was not intended to be acted upon, may be admissible under the exceptions outlined in Section 92 of the Evidence Act (!) (!) (!) .

  3. The principle that conduct of the parties and surrounding circumstances can be considered to determine the true intention behind an agreement, especially when there is a suspicion that a written document was not meant to be acted upon, has been upheld by the courts. This includes examining the timing of payments, demands for performance, and other conduct to assess readiness and willingness (!) (!) (!) (!) (!) .

  4. The importance of framing proper issues relating to the readiness and willingness of a plaintiff in specific performance cases has been underscored, with courts emphasizing that failure to do so can adversely affect the entitlement to equitable relief. The courts have also reiterated that mere payment of consideration does not automatically establish readiness and willingness (!) (!) (!) .

  5. Judicial decisions have reinforced that the delay in demanding performance and the conduct of the parties are relevant factors in assessing whether the plaintiff was always ready and willing to perform the contract, which is a necessary condition for granting specific performance (!) (!) (!) .

  6. Both the Madras High Court and Supreme Court have consistently held that the burden of proving that an agreement was not intended to be acted upon rests on the party asserting that the document was a sham or executed merely as security, and that surrounding circumstances and conduct are critical in such determinations (!) (!) (!) .

  7. The courts have also emphasized that the existence of a formal written agreement, coupled with conduct indicating otherwise, can lead to the conclusion that the agreement was not intended to be acted upon, especially when the consideration paid is significantly below the market value, or when there are unexplained delays in demanding performance (!) (!) (!) .

These principles reflect the consistent judicial approach in both Madras and Supreme Court decisions regarding the interpretation of written agreements, the admissibility of oral evidence, and the assessment of readiness and willingness in specific performance cases.


JUDGMENT

(Prayer: This appeal is filed under Section 96 of the Code of Civil Procedure and Order 41 Rule of C.P.C., to set aside the judgement and decree dated 22.07.2016 in O.S.No.12852 of 2010 passed by the VI Additional Judge, City Civil Court, Chennai.)

R. Subramanina, J.

1. The defendant who suffered a decree for specific performance in OS No.12852 of 2010 is the appellant. The said suit was laid by the plaintiff seeking specific performance of an agreement of sale dated 31.01.2005.

2. According to the plaintiff, the defendant agreed to convey an extent of 23,393 sq.ft of land in the outskirts of Chennai for a consideration of Rs.25,00,000/-. On the date of the agreement an advance of Rs.15,00,000/- was paid and 21 months time was fixed for the payment of balance. The plaintiff would claim that he has paid a sum of Rs.10,00,000/- on 17.03.2005. It is also claimed that the plaintiff was put in possession of the property as a caretaker. Since the defendant did not come forward to execute the Sale Deed, despite repeated demands made by the plaintiff, the plaintiff caused a legal notice to be issued on 10.11.2006. The said notice was returned un-served.

3. Claiming that the defendant i

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