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2024 Supreme(Mad) 1019

IN THE HIGH COURT OF JUDICATURE AT MADRAS
THE HONOURABLE MR. JUSTICE S.SOUNTHAR
Vijay Anand - Appellant
Versus
Kamala – Defendant
S.A.No.39 of 2017 and C.M.P.No.638 of 2017 and C.M.P.No.5625 of 2023
Decided On : 04-01-2024

Advocates:
Advocate Appeared:
For the Appellant :Mrs. Hema Sampath Senior Advocate for M/s.R.Meenal
For the Respondent:Mr. V. Raghavachari Senior Advocate for M/s. S. Srinivasan Narayanan

IMPORTANT POINT
A party seeking specific performance must disclose all material facts and cannot benefit from their own suppression of evidence; the principles of novation apply when a new contract supersedes an old one.

Headnote:

CIVIL PROCEDURE - SPECIFIC PERFORMANCE - CIVIL PROCEDURE CODE, SECTION 100; INDIAN CONTRACTS ACT, SECTION 62 - The court discussed the principles of novation under Section 62 of the Indian Contracts Act, which states that a contract can be discharged by novation when a new contract is made. The court found that a subsequent registered Sale Agreement superseded the original Suit Sale Agreement, thus barring the suit for specific performance. The court also interpreted the limitation period for filing the suit, concluding that the appellant's claim was timely based on the extension of time for performance until possession was taken. The court emphasized the necessity for parties seeking equitable relief to approach the court with clean hands, which the appellant failed to do by not disclosing the subsequent agreement.

Fact of the Case:

The appellant entered into a Suit Sale Agreement for property purchase but later a registered Sale Agreement was executed, which the respondent claimed superseded the original agreement. The appellant sought specific performance after the respondent failed to execute the Sale Deed, claiming readiness and willingness to perform his part of the contract.

Finding of the Court:

The court found that the appellant did not approach the court with clean hands, having suppressed the existence of the subsequent registered Sale Agreement. The court upheld the lower courts' decisions that the suit was barred by the principles of novation and limitation.

Issues: 1. Whether the suit was barred by limitation despite the respondent receiving portions of the sale consideration. 2. Whether the courts were correct in holding that there was novation of contract due to the subsequent registered Sale Agreement.

Ratio Decidendi: The court held that the subsequent registered Sale Agreement constituted a novation of the original agreement, thus barring the suit for specific performance. It also ruled that the appellant's failure to disclose the new agreement and his lack of continuous readiness and willingness to perform his obligations disqualified him from equitable relief.

Final Decision: The Second Appeal was dismissed, confirming the judgments of the lower courts, with no order as to costs.

JUDGMENT :

THE HONOURABLE MR. JUSTICE S.SOUNTHAR

Prayer in S.A.No.39 of 2017:- Second Appeal is filed under Section 100 of Civil Procedure Code, praying to set aside the judgement and the decree dated 29.10.2015 in A.S.No.43 of 2015 on the file of the Third Additional District Court, Salem, confirming the judgement and the decree dated 07.03.2014 in O.S.No.332 of 2012 before the First Additional Sub Court, Salem.

Prayer in C.M.P.No.5625 of 2023:- Civil Miscellaneous Petition is filed under Order 41 Rule 27 of Civil Procedure Code, praying to receive the documents listed in the petition hereto as additional evidence in the above second appeal.

    List of Documents

Sl.No.

Date

Description

Remarks

1

20.02.2008

Registered Sale agreement executed among Kamala, Saradha and Vijay Anand

Original

2

 

Petition and orders in R.E.P.No.105 of 2008 in O.S.No.392 of 1997 on the file of the Additional District Munsif, Salem

Certified copy

3

15.04.2011

Possession delivery receipt

Certified copy

The unsuccessful plaintiff in a suit for specific performance is the appellant. The suit as well as first appeal filed by him were dismissed. Hence, he is before this Court.

Plaint Averments:-

2 (i) It is the case of the appellant/plaintiff that he entered into a Suit Sale Agreement with respondent and her sister-Saradha on 13.02.2008. The agreed sale consideration was Rs.13,750/- per cent. The extent of the property agreed to be conveyed under the agreement was 80 and 1/2 cents. Thus, the total agreed sale consideration would be Rs.11,06,875/-. On the date of agreement itself, the appellant paid a sum of Rs.3,25,000/- to the respondent and said Saradha. The balance sale consideration was agreed to be paid within a period of six months. It was averred by the appellant that though time was specified in the Suit Sale Agreement, it was not treated as essence of contract. At the time of agreement, the agreement vendors were not in physical possession of the suit property and execution petition filed by him for taking delivery of the agreement mentioned property was pending. Therefore, it was specifically recited in the agreement that time shall stand extended till possession was taken.

2 (ii) It was further averred by the appellant that the respondent and her sister had received a further sum of Rs.50,000/- and Rs.25,000/- on later dates and made endorsement in the Suit Sale Agreement. It was also claimed that the respondent herself received a sum of Rs.10,000/- on 30.04.2008, Rs.30,000/- on 17.09.2008, Rs.20,000/- on 30.03.2009, again Rs.20,000/- on 17.11.2009, Rs.5,000/- on 16.02.2010, Rs.10,000/- on 26.04.2010, Rs.15,000/- on 26.06.2010, Rs.10,000/- on 09.10.2010, Rs.21,000/- on 27.01.2011 and Rs.50,000/- on 18.04.2011 from the appellant/plaintiff and made endorsements on the Suit Sale Agreement. Thus, the respondent alone had received a further sum of Rs.1,91,000/- under the endorsements referred above. It was claimed by the appellant that in the initial advance amount paid on the date of agreement and the further amounts paid based on joint endorsement of respondent and her sister, the respondent's half share would be Rs.2,15,000/- and she herself received a sum of Rs.1,91,000/- on various subsequent dates under the endorsements. Therefore, totally the respondent received a sum of Rs.4,06,000/- from the appellant.

2 (iii) It was also contended that the respondent and her sister Saradha had taken possession of the agreement mentioned property through Court during April-2011. Thereafter, the respondent's sister Saradha executed a Sale Deed after receiving balance of sale price as per the Suit Sale Agreement. However, the defendant postponed the execution of the Sale Deed as per the agreement under some pretext or other. In these circumstances, on 11.04.2012, the respondent issued a legal notice with false allegations. Immediately, the appellant issued a reply no

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