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2024 Supreme(Mad) 346

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. ARUL MURUGAN, J.
Nachimuthu (Died) – Appellant
Versus
Marimuthu – Respondent
S.A. No. 444 of 2012, M.P. No. 1 of 2012
Decided On : 01-03-2024

Advocates:
Advocate Appeared:
For the Appellant : A. Sundara Vadhanan.
For the Respondents: V. Sekar, D. Shivakumaran.

IMPORTANT POINT
The plaintiff must prove the passing of consideration and the genuineness of the sale agreement for the discretionary relief of specific performance.

Headnote:

Specific Performance - Sale Agreement - Civil Procedure Code - Section 100 - Ex.A.1 - 16.11.2005 - 25 of 2006, 49 of 2008 - Summary of Acts and Sections: The court discussed the validity of the sale agreement in Ex.A.1 dated 16.11.2005 and the passing of consideration. The key legal provisions discussed include the requirement to prove passing of consideration and the genuineness of the sale agreement for the discretionary relief of specific performance.

Fact of the Case:

The plaintiff filed a suit for specific performance based on a sale agreement dated 16.11.2005 (Ex.A.1) for a property with a total sale consideration of Rs. 2,70,000, of which an advance of Rs. 2,50,000 was paid on the same day. The defendant disputed the agreement, claiming he was not available in Tamil Nadu during the execution and that the agreement was not genuine.

Finding of the Court:

The Trial Court decreed the suit, finding the sale agreement in Ex.A.1 to be true and genuine. The Lower Appellate Court, however, set aside the decree, stating that the plaintiff failed to establish the passing of consideration and the genuineness of the agreement.

Issues: The issues revolved around the validity of the sale agreement, passing of consideration, and the defendant's availability during the execution of the agreement.

Ratio Decidendi: The plaintiff failed to prove the passing of consideration and the genuineness of the sale agreement in Ex.A.1. The Lower Appellate Court's findings were based on the available material and did not exhibit perversity or illegality.

Final Decision: The Second Appeal was dismissed, confirming the judgment and decree of the Lower Appellate Court.

JUDGMENT :

G. ARUL MURUGAN, J.

Prayer: Second Appeal filed under Section 100 of the Civil Procedure Code against the judgment and decree dated 28.03.2011 passed in A.S. No. 49 of 2008 on the file of Additional District Court, (FTC No. I), Salem reversing the judgment and decree dated 29.01.2008 passed in O.S. No. 25 of 2006 on the file of Sub Court, Mettur.

1. The plaintiff in the suit for specific performance is the appellant herein. The Second Appeal is filed challenging the judgment and decree dated 28.03.2011 passed in A.S. No. 49 of 2008 on the file of Additional District Court, Fast Track Court No. I, Salem, reversing the judgment and decree dated 29.01.2008 passed in O.S. No. 25 of 2006 on the file of Sub Court, Mettur.

2. For the sake of convenience, the parties are referred to as per their rankings before the Trial Court.

3. The brief facts, which give rise to the second appeal, are as follows:

    According to the plaintiff, the defendant offered to sell the suit property and he agreed to purchase the same for a sum of Rs. 2,70,000/- pursuant to the agreement dated 16.11.2005. The plaintiff entered into a sale agreement for purchasing the suit property for a total sale consideration of Rs. 2,70,000/- and on that date itself, the plaintiff has paid an advance of Rs. 2,50,000/-. It was further agreed that the defendant shall execute the sale deed in favour of the plaintiff after receiving the balance consideration of Rs. 20,000/- within seven months from the date of agreement.

4. According to the plaintiff, he approached the defendant on many occasions and requested the defendant to execute the sale deed by tendering the balance sale consideration of Rs. 20,000/-. Since the defendant did not show any interest, finally on 15.05.2006 the plaintiff met the defendant in person and requested to perform his part of the contract. Since it did not materialize, the plaintiff sent legal notice on 16.11.2005 calling upon the defendant to come to the Sub Registrar Office on 26.11.2005 to execute the sale deed, but the defendant have evaded the service of notice. According to the plaintiff, he was always ready and willing to perform his part of contract, since the defendant evaded, he has come with the suit for specific performance of the sale agreement dated 16.11.2005.

5. The defendant resisted the suit by filing the written statement disputing the sale agreement in Ex.A.1. According to the defendant, he borrowed a loan from M/s. Mettur, M/s. Mettur Chollan Finance and Investments, Mettur, M/s. Erode Cheran Corporation and Mettur Pandiyan Finance and Investments, Mettur and Seran Finance and Investments, Mettur. On 04.09.2000, the defendant borrowed a sum of Rs. 1,50,000/- to purchase a tata vehicle from the above said financiers, for which, the financiers obtained unfilled signed cheques from the defendant along with signed unfilled 20 Rupees stamp papers, two unfilled signed conquer sheets and four unfilled signed pro notes, all for security purposes. According to the defendant, the plaintiff's son Madesh and plaintiff's wife Pappathi are partners in Mettur Seran Finance and in Erode Seran Corporation Finance. The defendant had also borrowed a sum of Rs. 4,50,000/- for purchasing a rig vehicle from Erode Seran Corporation Finance, during the month of June 2004.

6. According to the defendant, he had closed the loan account. However, while availing the loan, the financiers obtained the signatures from the defendant on two unfilled 20 rupees stamp papers, four unwritten green concur sheets and four unfilled stamped pronotes. Even after the completion of the loan amount, these documents were not returned. Further, according to the defendant, one Appu @ Perumal obtained loan from the finance and the defendant was compelled to give unfilled documents as a security. Even after settling all these accounts, the finances retained those documents and set up the plaintiff and created the sale agreement by utilising unfilled stamp papers and concur shee

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