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2023 Supreme(Mad) 3404

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
THE HONOURABLE MR. JUSTICE C. KUMARAPPAN, J.
Anbukarasu - Appellant
Versus
Santhanam and Anr. – Respondents
S.A.(MD)No.565 of 2017 and C.M.P.(MD)No.12112 of 2017 & 768 of 2017
Decided On : 27-09-2023

Advocates Appeared:
For the Appellant : Mr. PT. S. Narendravasan.
For the Respondents: Mr. F.G. Shankar Ganesh, Mr. T. Pon Ramkumar.

IMPORTANT POINT
A plaintiff seeking specific performance must demonstrate continuous readiness and willingness to perform the contract, and the withdrawal of a previous suit does not bar a subsequent suit if the earlier suit was not decided on merits.

Headnote:

SPECIFIC PERFORMANCE - CONTRACT LAW - Specific Relief Act, 1963, Section 20; Code of Civil Procedure, Order 2 Rule 2 - The court analyzed the requirements for specific performance under Section 20 of the Specific Relief Act, emphasizing the necessity for the plaintiff to demonstrate readiness and willingness to perform the contract. The court interpreted the provisions of Order 2 Rule 2 of the CPC, clarifying that the earlier suit's withdrawal did not bar the current suit as it was not decided on merits. The court ultimately found that the plaintiff failed to prove his readiness and willingness, leading to the dismissal of the appeal.

Fact of the Case:

The plaintiff entered into a sale agreement with the second defendant, who was acting under a power of attorney from the first defendant. The plaintiff paid an advance but faced delays in executing the sale deed. The first defendant later canceled the power of attorney, claiming coercion in its execution. The plaintiff sought specific performance of the sale agreement, which was initially dismissed by the trial court but later decreed by the first appellate court.

Finding of the Court:

The trial court found insufficient evidence of fraud or collusion and dismissed the suit. The first appellate court reversed this decision, asserting the plaintiff's readiness to perform the contract. However, the second appeal court found that the plaintiff did not adequately prove his readiness and willingness to perform the contract, leading to the restoration of the trial court's dismissal.

Issues: 1) Did the plaintiff satisfy the requirements for specific performance under Section 20 of the Specific Relief Act? 2) Was the first appellate court correct in its findings without independently examining the material evidence?

Ratio Decidendi: The court emphasized that a plaintiff seeking specific performance must prove readiness and willingness to perform the contract. The court also clarified that the withdrawal of a previous suit does not bar a subsequent suit if the earlier suit was not decided on merits.

Final Decision: The second appeal was allowed, the order of the first appellate court was set aside, and the trial court's dismissal of the suit was restored.

JUDGMENT :

(C. Kumarappan, J.)

(Prayer : Second Appeal filed under Section 100 of the Code of Civil Procedure, against the judgment and decree dated 23.01.2017 made in A.S.No.52 of 2015 on the file of the V Additional District Court, Madurai, reversing the judgment and decree, dated 15.04.2014 made in O.S.No.430 of 2008 on the file of the I Additional Subordinate Judge, Madurai.)

The appellant herein is the respondent/first defendant, the first respondent herein is the appellant/plaintiff and the second respondent herein is the second respondent/second defendant before the Court below.

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

3. The brief averments of the plaint are as follows:

The plaintiff submits that the first defendant has executed a general power of attorney in favour of the second defendant, vide document dated 14.03.2007 registered under Document No.114/2007, in respect of the suit property. The plaintiff has entered into a sale agreement with the second defendant, who is the power agent of the first defendant vide sale agreement dated 19.09.2007. The total sale consideration is Rs.4,90,000/-. Out of the total sale consideration, Rs.4,80,000/- has been paid as an advance and three month performance period has been fixed. In spite of repeated request, the second defendant had delayed the execution of the sale deed. Therefore, the plaintiff sent a letter to him on 15.02.2007, requesting him to receive the balance sale consideration of Rs.10,000/- and to execute the sale deed. However, the second defendant did not send any reply. Hence, the plaintiff has met the second defendant in person on 30.12.2007 and when enquired with him, he came to know that the first defendant has cancelled the power of attorney dated 14.03.2007, by way of cancellation deed, dated 03.12.2007. The said factum was intimated to the second defendant through a letter, dated 06.12.2007. The second defendant submitted to the plaintiff that, in view of the cancellation of the power deed, he was not in a position to execute the sale deed, and requested the plaintiff to proceed to enforce the agreement according to law. Hence, the plaintiff has come forward with the prayer seeking specific performance against the defendant.

4. Brief statement of the written statement filed by the first defendant is as follows:

The first defendant submits that the very general power of attorney deed dated 14.03.2007 is the outcome of coercion and undue influence through police. It is the further submission of the defendant that the above fact can be established by the report of the Inspector of Police, Melur Police Station, dated 28.01.2007 and a letter of the plaintiff to the Additional Superintendent of Police, dated 17.07.2007. According to the defendant, the general power of attorney deed is not a genuine one and the same was not executed by the first defendant voluntarily. The defendant further submits that, the plaintiff had filed a suit based upon the fraudulent promissory note, dated 28.07.2007 in O.S.No.177 of 2007. After the said suit was decreed, the plaintiff preferred an appeal before the High Court. Even the instant suit for specific performance, according to the defendant, is an abuse of process of law. The defendant disputed the sale agreement as a result of collusion between the plaintiff and the second defendant. The defendant also denies the receipt of the advance amount. It is the further submission of the defendant that the plaintiff has never shown his readiness and willingness to perform his part of the contract till the date of cancellation of power of attorney deed, on 03.02.2007. The defendant submits that the suit property is worth of Rs.17,00,000/-. However, to grab the property, the plaintiff and the second defendant entered into a fraudulent sale agreement. The defendant further submits that he has cancelled the power of attorney vide cancellation deed, dated 03.12.2007. According to t

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