HIGH COURT OF JUDICATURE AT MADRAS
S. SOUNTHAR, J.
S. Chellamuthu (Died) & Anr. - Appellants
Versus
P. Subramani & Ors. - Respondents
S.A. No. 498 of 2017 & CMP. No. 12063 of 2017
Decided On : 13-10-2023
Specific Performance - Sale Agreement - Limitation Act, 1963, Specific Relief Act, 1963 - Article 54 of Limitation Act, 1963, Sections 16 (c ) and 20 of Specific Relief Act, 1963
Fact of the Case:
The suit for specific performance was filed by the first respondent against the sixth defendant, who was a subsequent purchaser of the property covered by the sale agreement. The trial Court granted the decree for specific performance, which was confirmed by the first Appellate Court. The sixth defendant filed a Second Appeal challenging the judgment.
Finding of the Court:
The Court found that the first respondent failed to prove continuous readiness and willingness from the date of the sale agreement to the date of filing the suit, as required by Sections 16 (c ) and 20 of the Specific Relief Act, 1963. The Court also held that the defense of readiness and willingness is available to subsequent purchasers, as established by relevant case law.
Issues: The issues revolved around the bar of limitation under Article 54 of the Limitation Act, 1963, and the continuous readiness and willingness required for specific performance under Sections 16 (c ) and 20 of the Specific Relief Act, 1963. The Court also addressed the applicability of the defense of readiness and willingness to subsequent purchasers.
Ratio Decidendi: The Court's decision was based on the failure of the first respondent to prove continuous readiness and willingness, as mandated by the Specific Relief Act, 1963. The Court also relied on relevant case law to establish the availability of the defense of readiness and willingness to subsequent purchasers.
Final Decision: The Second Appeal was allowed, setting aside the judgment and decree for specific performance. However, the first respondent was granted the alternative relief for the return of the advance amount with interest. No costs were awarded.
JUDGMENT
(Prayer: Second Appeal filed under Section 100 of the Code of Civil Procedure, against the judgment and decree of the Principal District Judge's Court at Namakkal, dated 03.04.2017 in A.S.No.31 of 2015 confirming the Judgment and Decree of the Subordinate Judge's Court at Tiruchengode, dated 24.07.2015 in O.S.No.140 of 2010.)
1. The sixth defendant in the suit is the appellant. The suit for specific performance filed by the first respondent was decreed by the trial Court. The appeal filed by the defendants 1 & 6 was dismissed. Aggrieved by the same, the sixth defendant filed this Second Appeal.
2. According to the first respondent/plaintiff, the respondents 2 to 5 are the owners of the property covered by the sale agreement. They executed a general power of attorney in favour of the deceased first defendant Chellamuthu and he entered into a sale agreement with the first respondent on 27.01.2006 agreed to sell the property covered under the agreement for a sale consideration of Rs.1,25,000/-.
3. The first respondent paid an advance amount of Rs.1,00,000/- on the date of agreement itself and the balance of Rs.25,000/- was agreed to pay within 1 ½ years (on or before 26.07.2007). The first respondent/plaintiff issued a pre-suit notice on 16.06.2010 calling upon the deceased first defendant to execute the sale deed as per the sale agreement. The first defendant issued a reply claiming that the suit sale agreement is a sham and nominal document and the first respondent had got no right under said agreement. Therefore, the first respondent was constrained to file a suit for specific performance on 26.07.2010. Subsequent to filing of the suit, the plaintiff acquired knowledge that the suit property was sold by deceased first defendant in favour of the appellant on 30.06.2010 and therefore, he was arrayed as sixth defendant in the suit.
4. The deceased first defendant filed a written statement claiming that the suit agreement was only a sham and nominal document and therefore, the first respondent was not entitled to specific performance. The deceased first defendant also raised a plea that the first respondent failed to prove his readiness and willingness and consequently, he was not entitled to specific performance. The sixth defendant also filed written statement after his impleadment in the case claiming that he was a bonafide purchaser. The appellant also raised a plea that the suit sale agreement was only a sham and nominal document and therefore, the suit was filed by the first respondent with huge delay.
5. Before the trial Court, the first respondent/plaintiff was examined as PW1. The attestor of Ex.A1 and scribe were examined as PW2 & PW3. The deceased first defendant was examined as DW1. The appellant was examined as DW2. Yet another witness namely, A.S.Venkatachalam was examined as DW3. On behalf of the first respondent, five documents were marked as Ex.A1 to A5. On behalf of the appellant and deceased first defendant 9 documents were marked as Ex.B1 to Ex.B9.
6. The trial Court on appreciation of oral and documentary evidence available on record came to the conclusion that the first respondent was entitled for specific performance of the suit sale agreement and granted decree. Aggrieved by the same, the deceased first defendant Chellamuthu and the appellant filed an appeal in A.S.No.31 of 2015 before the Principal District Court, Namakkal. The first Appellate Court confirmed the judgment of the trial Court and aggrieved by the same, the sixth defendant has filed this Second Appeal.
7. At the time of admission, this Court formulated the following substantial questions of law:
“1. When Ex.A1 alleged sale agreement dated 27.01.2006 and the time fixed for execution of the sale deed expired on 26.07.2006, is the suit filed on 26.07.2010, barred by limitation as prescribed under Article 54 of the Limitation Act, 1963?
2. When the first respondent had failed to prove his continuous readiness an
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