IN THE HIGH COURT OF JUDICATURE AT MADRAS
Rmt. Teekaa Raman, J.
A.G. Dakshinamoorthy – Appellant
Versus
Krishnamoorthy and Others – Respondents
A.S. No. 45 of 2011
Decided On : 19-03-2024
Specific Performance - Sale Agreement - Code of Civil Procedure - Section 96, Order XLI Rule 1 - [Specific Performance] - [Code of Civil Procedure] - [Section 16(3) of the Specific Relief Act] - The court discussed the validity of the sale agreement, the readiness and willingness of the plaintiff to perform the contract, the binding nature of the power of attorney, and the status of the defendants as bonafide purchasers for valuable consideration. The court found that the sale agreement was doubtful, the plaintiff failed to prove his readiness and willingness, and the defendants were bonafide purchasers, leading to the dismissal of the suit.
Fact of the Case:
The plaintiff filed a suit seeking specific performance of a sale agreement. The defendants contested the validity of the agreement and the plaintiff's readiness and willingness to perform the contract. The trial court dismissed the suit, leading to the appeal.
Finding of the Court:
The court found that the sale agreement was doubtful, the plaintiff failed to prove his readiness and willingness, and the defendants were bonafide purchasers, leading to the dismissal of the suit.
Issues: Validity of the sale agreement, plaintiff's readiness and willingness to perform the contract, binding nature of the power of attorney, status of the defendants as bonafide purchasers for valuable consideration, and the sustainability of the trial court's order.
Ratio Decidendi: The plaintiff failed to prove the validity of the sale agreement and his readiness and willingness to perform the contract. The defendants were found to be bonafide purchasers for valuable consideration. The trial court's order was sustained.
Final Decision: The appeal was dismissed, and the judgment and decree of the trial court were confirmed. No costs were awarded.
JUDGMENT :
(Prayer: This First Appeal is filed under Section 96 and Order XLI Rule 1 of Code of Civil Procedure to set aside the judgment and decree dated 23.09.2010 in O.S.No.57 of 2006 on the file of the Court of the Additional District Court (Court No.2) Cuddalore.)
1. The unsuccessful plaintiff is the appellant herein. He filed a suit in O.S.No.57 of 2006 before the Additional District Court, Cuddalore seeking specific performance of the suit sale agreement Ex.A1. The defendants 5, 8, 9 & 10 filed written statement and others have remained ex-parte.
2. The brief facts of the case are as under:-
It is the specific case of the plaintiff that they have entered into agreement of sale with all the defendants except defendants 9&10 who are the owners of the property. The property originally belonged to one Vaiyapuri and his son Pakkiri died. The defendants 1 to 4 are the legal heirs of Vaiyapuri and defendants 5 to 8 are the legal heirs of the pre-deceased son Pakkiri. Defendants 9 & 10 are the purchasers from Defendants 1 to 8.
3 (a) As per the plaint, the plaintiff and all the defendants 1 to 8 have entered into Ex.A1 - suit sale agreement on 23.06.2006 for sale of the suit schedule property and the sale consideration was Rs.11,40,000/- and paid Rs.1,00,000/- as advance. Duration for completion of the sale agreement is five months. Since Manjula Devi - D8 was admitted in hospital for delivery and Vijayalakshmi - D5, mother of Manjula Devi accompanied to hospital, they have not signed Ex.A1 agreement.
(b) The defendants 1 to 8 have executed General Power of Attorney Ex.B1 on 20.07.2006, having came to know the same, he issued a notice by way of telegram under Exs.A7 & A8 to Manimaran, the Power of Attorney holder. Despite the same, Manimaran, General Power of Attorney of the other defendants had executed a sale deed Ex.B18 and Ex. B24 in favour of his wife Uma Rani and her brother Valavan on 27.07.2006. Since the parties are getting ready for registration before the Sub Registrar, Kurincipadi, the appellant/plaintiff had filed the suit on the very same day, i.e., 27.07.2006.
4. From the records, I find that the suit and the sale deeds Exs.B18 and B25 are on the very same date. The signatory to the Ex.A1 - sale agreement have remained ex-parte. While D5 - Vijayalakshmi and D8 - Manjula Devi had filed written statement alleging that they are not the signatory to the said suit sale agreement and hence the same is not binding upon them and also pleaded that the suit sale agreement is bogus one, created after execution of the sale deed in favour of Defendants 9 & 10. The defendants 9 & 10 have filed separate written statements alleging that they are bonafide purchasers for valuable consideration and Ex.A1 was subsequently created for the purpose of this case.
5. On bahalf of the plaintiff, he examined himself as P.W.1 and the scribe of Ex.A1 suit sale agreement (unregistered) was examined as P.W.2 Venkatesan and P.W.3 - Sivaji and P.W.4 -Udayasuriyan are the attestors of Ex.A1 - suit sale agreement. Exs.P1 to P12 were marked. On behalf of the defendants, 8th defendant examined himself as D.W.1 and purchasers 9th and 10th defendants - Umarani and Valavan respectively were examined as D.W.2 and D.W.3 and Manimaran who is the husband of D.W.2 and Power of Attorney holder and attestor of the Sale Deed in favour of D9 and D10 (P.W.2 and P.W.3) is examined as D.W.5.
6. On consideration of both oral and documentary evidence, the trial Court had came to the conclusion that the co-owner of the property were not signatory to the Ex.A1 suit sale agreement and Ex.A1 agreement is doubtful and the sale in favour of the defendants 9 & 10 is true and valid and is not hit by doctrine of lis pendence and the plaintiff is not ready and willing to perform his part of contract accordingly dismissed the suit and hence the appeal.
7. On hearing the learned counsel for the plaintiff/appellant, this Court has arrived at the following points for determination-
The plaintiff must prove the validity of the sale agreement and his readiness and willingness to perform the contract in a specific performance case.
Comparison of signatures by Court is always a hazardous course. Court should not as a matter of course loosely resort to application of Section 73 of Indian Evidence Act.
The court affirmed that specific performance is a discretionary remedy, requiring the plaintiff to prove the validity of the contract and readiness to perform.
The main legal point established in the judgment is that the agreement dated 04.04.1996 was valid and enforceable, and the plaintiff was ready and willing to perform the contract. The court also foun....
Absence of the buyer's signature invalidates a sale agreement, requiring proof of the parties' intentions; the suit for specific performance is timely if filed within limitation after notice of refus....
Specific performance of an agreement is discretionary and unenforceable if not all necessary parties consent, and plaintiffs must demonstrate readiness to perform their obligations.
The main legal point established in the judgment is the court's affirmation of the specific performance of the agreement of sale dated 05-8-1995, and the rejection of the 4th defendant's claim as a b....
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