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2023 Supreme(Mad) 2765

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
KRISHNAN RAMASAMY, J.
Vijayalakshmi – Appellant
Versus
A. Ganesan (died) & Others – Respondents
S.A.(MD) No. 469 of 2009 & M.P.(MD) Nos. 2 & 3 of 2009
Decided On : 04-09-2023

Advocates appeared:
For the Appellant:R. Subramanian, Advocate. For the Respondents:R2 to R8, Anand Chandrasekar, Advocate. R1 – Died.

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.

Headnote:

Specific Performance - Sale Agreement - Specific Relief Act - [Specific Performance] - [Sale Agreement] - [Section 16(c) of the Specific Relief Act, 1963, Section 114 of the Indian Evidence Act, 1872] - The court discussed the validity of the Sale Agreement, the deceased plaintiff's readiness and willingness to perform the contract, and the intention of the parties at the time of entering into the Agreement. The court emphasized the importance of proving readiness and willingness and highlighted the lack of evidence to support the plaintiff's claim, ultimately setting aside the lower courts' decisions.

Fact of the Case:

The deceased plaintiff filed a suit seeking specific performance and permanent injunction, claiming that the defendant agreed to sell properties to him. The defendant contended that the Sale Agreement was executed as security for a loan and she had no intention to sell the property.

Finding of the Court:

The court found that the deceased plaintiff failed to prove his readiness and willingness to perform the contract, and the Sale Agreement was executed as security for a loan. The court emphasized the lack of evidence to support the plaintiff's claim and set aside the lower courts' decisions.

Issues: Validity of Sale Agreement, Plaintiff's readiness and willingness to perform the contract, Intention of the parties at the time of entering into the Agreement

Ratio Decidendi: The deceased plaintiff failed to prove his readiness and willingness to perform the contract, and the Sale Agreement was executed as security for a loan. Lack of evidence to support the plaintiff's claim led to the setting aside of the lower courts' decisions.

Final Decision: The Second Appeal was allowed, and the Judgment and Decree of the lower courts were set aside. The defendant was directed to return the sum of Rs. 1,75,000/- along with interest to the respondents 2 to 8 within six months.

JUDGMENT

(Prayer: Second Appeal filed under Section 100 of the Code of Civil Procedure against the Judgment and Decree dated 21.02.2008 in A.S.No. 5 of 2007 on the file of the Additional District Court (Fast Track Court No.4), Periyakulam confirming the Judgment and Decree dated 28.02.2006 in O.S.No.412 of 2002 on the file of the Subordinate Court, Periyakulam.)

1. The appellant is the defendant in the suit in O.S.No.412 of 2002 on the file of the Subordinate Court, Periyakulam. The deceased first respondent is the plaintiff in the above suit.

2. The first respondent, who is the plaintiff in the suit has passed away and his legal representatives are brought on record as respondents 2 to 8.

3. The suit was filed by the deceased first respondent / plaintiff seeking for equitable relief of specific performance and permanent injunction restraining the appellant / defendant from alienating or encumbering the suit properties.

4. The case of the plaintiff is that the suit properties belong to the defendant. The defendant agreed to sell the properties to the plaintiff for a sale consideration of Rs.2,00,000/- and both parties registered a Sale Agreement dated 21.05.1998. On that day itself, the defendant received a sum of Rs.1,75,000/- as advance. As per the Sale Agreement, the defendant should receive the balance amount of Rs.25,000/- within a period of two and half years i.e., on or before 21.11.2000 from the plaintiff and execute a Sale Deed in favour of the plaintiff or the persons mentioned by the plaintiff at the cost of the plaintiff. The plaintiff sent a telegraphic notice dated 11.11.2000 to the defendant stating that he would wait in the Sub Registrar Office on 21.11.2000 and the defendant should come and execute the Sale Deed as per the Agreement. However, the defendant has not responded to the same. Though the plaintiff waited at the Sub Registrar Office throughout the day on 21.11.2000, the defendant has not come forward to execute the Sale Deed. Thereafter, the defendant had come to the plaintiff and promised orally that she will execute the Sale Deed and therefore, the plaintiff waited even after the expiry of the Agreement. However, since the plaintiff came to know that the defendant is about to execute a Sale Deed in favour of a third party, he has filed this suit for specific performance on 18.11.2000. It is his case that, in the meantime, the defendant and her husband filed a suit in O.S.No.68 of 2002 on the file of the District Munsif Court, Periyakulam against the plaintiff and his son seeking permanent injunction restraining them from interfering with the peaceful possession and enjoyment of the defendant and her family.

5. The case of the defendant is that for the past 14 years, for the purpose of Pickle Business, the defendant and her husband have received money from the plaintiff''s family and they also used to execute Sale Agreement as security. In a similar way, in the year 1995, Sale Agreements were executed along with Power of Attorney and upon Settlement of money, the Sale Agreements were not acted upon and the Power of Attorney was also cancelled. Subsequently, a sum of Rs. 2,00,000/- was borrowed from the plaintiff, for which the Sale Agreement dated 21.05.1998 came to be executed nominally at the Sub Registrar Office, Bodi in favour of the plaintiff. There are two schedules in the suit properties. The first schedule belong to the defendant and she had no intention to sell the same. The second schedule is a poromboke land measuring an extent of 30 cents. The defendant has settled the total sum of Rs.2,00,000/- in the month of August 2001. Since the plaintiff forced the defendant to execute the Sale Deed, the defendant and her husband have filed a suit in O.S.No.68 of 2002 on the file of the District Munsif Court, Periyakulam against the plaintiff and his son seeking for permanent injunction. The readiness and willingness alleged by the plaintiff is false, if so, the plaintiff would have filed the suit once he

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