IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBRAMANIAN, R. KALAIMATHI, JJ.
R. Rajathi & Ors. - Appellants
Versus
S. Kanagarajan - Respondent
A.S.No. 486 of 2018 & CMP.Nos. 3018 & 14917 of 2023 & 12435 & 15508 of 2023
Decided On : 05-09-2023
Specific Performance - Sale Agreement - Civil Procedure Code - Order 41 Rule 1 - [SPECIFIC PERFORMANCE] - [SALE AGREEMENT] - [Order 7 Rule 3, Order 20 Rule 9, Section 96 r/w Order 41 Rule 1 of Civil Procedure Code] - The court discussed the validity of the sale agreement, the identity of the suit property, and the enforceability of the contract. The judgment highlighted the importance of clear identification of the suit property and the specific boundary details in the agreement. The court's decision was influenced by the inability to identify the suit property, leading to the failure of the suit.
Fact of the Case:
The suit was filed for specific performance of a sale agreement or, in the alternate, for a direction to the defendants to pay a sum of Rs.5,28,127/- with interest. The plaintiff claimed that the defendants failed to execute the sale deed as per the agreement and was ready and willing to perform his part of the contract.
Finding of the Court:
The court found that the suit property was not capable of being identified, leading to the failure of the suit. The plaintiff was entitled to the alternate relief of return of the advance amount with interest.
Issues: The issues included the validity of the sale agreement, the plaintiff's readiness to perform the contract, and the identification of the suit property.
Ratio Decidendi: The court emphasized the importance of clear identification of the suit property and specific boundary details in the agreement. It held that if the property is not capable of being identified, the contract cannot be enforced.
Final Decision: The appeal was allowed, and the judgment and decree passed by the trial Court were set aside. The plaintiff was entitled to the alternate relief of return of the advance amount with interest.
JUDGMENT
(Prayer: Appeal is filed under Section 96 r/w Order 41 Rule 1 of Civil Procedure Code to set aside the judgment and decree dated 26.04.2017 made in O.S.No.79 of 2012 on the file of the learned III Additional District Judge, Coimbatore.)
R. Kalaimathi, J.
Challenge is made by the defendants against the judgment and decree passed in O.S.No.79 of 2012 dated 26.04.2017 on the file of III Additional District Court, Coimbatore.
2. The suit was filed for specific performance relating to the suit sale agreement dated 28.08.2011 or in the alternate, for a direction to the defendants to pay a sum of Rs.5,28,127/- together with interest at the rate of 12% per annum on Rs.5,00,000/- being the advance amount paid to the defendants from the date of suit till the date of realisation, besides a charge decree over the suit property.
3. The Trial Court has decreed the suit, directed the defendants to execute and register a sale deed in favour of the plaintiff, as per the sale agreement dated 28.08.2011 and to deliver possession of the suit property, after receiving the balance sale price, granting two months time for registering the sale deed. Aggrieved of the same, defendants are on appeal.
4. According to the plaintiff, the suit schedule property belonged to one Tr.E.T.Ramasamy, husband of the 1st defendant and father of the defendants No.2 and 3, as per the sale deed dated 17.09.2003. The plaintiff and the defendants entered into an agreement of sale of suit schedule property for a consideration of Rs.26,25,000/- (Rs.3,75,000/- per cent). Time was fixed at 6 months and the plaintiff paid an advance of Rs.1,00,000/-, at the time of execution of sale agreement. On 04.09.2011, he paid advance amount of Rs.4,00,000/- and endorsement to that effect is made on the second page of sale agreement. The plaintiff further claims that since the defendants failed to execute the sale deed, he caused to issue a legal notice on 17.02.2012. Despite the receipt of notice, the defendants did not respond to his notice. The plaintiff claims that he is always ready and willing to perform his part of the contract. The suit is well withing the limitation.
5. Contending contra, the defendants deny the contents of the plaint and claim that only after the receipt of lawyer notice dated 17.02.2012, the defendants came to know about the alleged sale agreement dated 28.11.2011 entered with the plaintiff. According to the 1st defendant, at the time of borrowing a sum of Rs.1,00,000/- from the plaintiff, the plaintiff obtained signatures in the blank papers from her which were utilised to forge the present sale agreement.
6. At trial, the sole plaintiff/Kanagarajan and one Rangasamy S/o. Govindhappa Gowder, who is the attesting witness to suit sale agreement have been examined as PW.1 & PW.2. Ex.A1 to A12 have been marked. Suit sale agreement dated 28.08.2011 – Ex.A2, office copy of the legal notice issued by the plaintiff to the defendants - Ex.A3, payment endorsement made in the Ex.A2 – Ex.A9, copy of the complaint lodged by the 1st defendant with Sirumugai Police Station against the plaintiff and the connected CSR Viz., Ex.A11 & Ex.A12. The 1st defendant Tmt.Rajathi and her supporting witness one Tr.Palanisamy were examined as DW1 & DW2. Ex.B1 to Ex.B4 have been marked.
7. The trial Court has framed the following issues:-
i. Whether the suit sale agreement is an outcome of fraud and forgery as claimed by the defendants?
ii. Whether the suit sale agreement is true, valid and binding on the defendants?
iii. Whether a total sum of Rs.5,00,000/- has been paid by the plaintiff to the defendants as advance amount?
iv. Whether the plaintiff is entitled for the decree of specific performance as claimed?
v. Whether the plaintiffs are entitled for the alternate relief as claimed?
vi. For what other reliefs are entitled for?
8. The execution of the suit sale agreement was in a stri
AI
The main legal point established in the judgment is that the suit property must be clearly identified and have specific boundary details in the agreement for the contract to be enforceable.
The plaintiff's readiness and willingness to perform the contract within the prescribed time is crucial for the enforceability of a sale agreement.
The judgment emphasizes the importance of readiness and willingness to perform a contract in specific performance cases, and highlights the requirement for clear and unambiguous agreements in propert....
The plaintiff must prove the genuineness of the agreement for sale, establish readiness and willingness to perform the contract, and file suit within a reasonable time for specific performance.
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....
The main legal point established in the judgment is the requirement for the plaintiff to demonstrate readiness and willingness to perform an agreement of sale, and the court's discretion to consider ....
Point of law: Absence of any material, that the plaintiff had exercised undue influence in obtaining the sale agreement from the defendant at the time of the alleged loan transaction.
An agreement of sale signed by vendor alone and delivered to purchaser, and accepted by the purchaser, has always been considered to be a valid contract. In the event of breach by the vendor, it can ....
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