IN THE HIGH COURT OF JUDICATURE AT MADRAS
THE HONOURABLE Mr. JUSTICE G.ARUL MURUGAN
Duraisamy (died) – Appellant
Versus
C.Ranganathan - Respondent
S.A.No.1599 of 2011 and M.P.No.1 of 2011
Decided on : 19-03-2024
SPECIFIC PERFORMANCE - CONTRACT LAW - SECTION 100 OF THE CIVIL PROCEDURE CODE, SECTION 16(c) OF THE SPECIFIC RELIEF ACT, 1963 - The court analyzed the provisions of Section 16(c) of the Specific Relief Act, 1963, which mandates that a plaintiff must prove readiness and willingness to perform their part of the contract to be entitled to specific performance. The court found that the plaintiff's actions indicated a lack of readiness and willingness, particularly after a police complaint was lodged where the defendant agreed to return the advance amount. The court concluded that the plaintiff's claim for specific performance was not sustainable, leading to the reversal of the lower appellate court's decision.
Fact of the Case:
The plaintiff filed a suit for specific performance of a sale agreement dated 05.03.2004, claiming he paid an advance of Rs.2,50,000 for a property worth Rs.3,00,000, with a balance of Rs.50,000 due within 15 months. The defendant denied the agreement, asserting it was a loan transaction. The trial court dismissed the suit, but the lower appellate court reversed this decision, leading to the defendant's appeal.
Finding of the Court:
The court found that the plaintiff failed to demonstrate continuous readiness and willingness to perform the contract as required by Section 16(c) of the Specific Relief Act. The plaintiff's actions, including lodging a police complaint and agreeing to receive the advance back, indicated he was not willing to proceed with the sale. The court concluded that the lower appellate court's ruling was erroneous and set it aside.
Issues: 1. Did the plaintiff demonstrate readiness and willingness to perform the contract? 2. Was the lower appellate court correct in granting specific performance despite the plaintiff's actions indicating otherwise?
Ratio Decidendi: The court emphasized that under Section 16(c) of the Specific Relief Act, a plaintiff must prove readiness and willingness to perform their part of the contract. The plaintiff's conduct, including the lodging of a police complaint and the agreement to return the advance amount, demonstrated a lack of such readiness and willingness, which barred him from obtaining specific performance.
Final Decision: The second appeal was allowed, the lower appellate court's judgment was set aside, and the plaintiff was granted an alternative relief of refunding the advance amount with interest.
JUDGMENT :
THE HONOURABLE Mr. JUSTICE G.ARUL MURUGAN
Prayer:- Second Appeal filed under Section 100 of the Civil Procedure Code against the judgment and decree dated 27.07.2011 in A.S.No.83 of 2010 passed by the learned I Additional District Judge, Salem, reversing the judgment and decree dated 30.07.2010 in O.S.No.12 of 2007 passed by the learned I Additional Subordinate Judge, Salem.
The defendant in the suit for specific performance is the appellant before this Court.
2. Pending this appeal, the sole appellant died and his legal heirs were brought on record as appellants 2 to 6.
3. This Second Appeal has been filed challenging the judgment and decree dated 27.07.2011 in A.S.No.83 of 2010 on the file of the I Additional District Court, Salem, reversing the judgment and decree dated 30.07.2010 in O.S.No.12 of 2007 on the file of the I Additional Sub Court, Salem.
4. For the sake of convenience, the parties are referred to according to their ranking as before the Trial Court.
The brief facts, which gave rise to this Second Appeal, are as follows:
5. According to the plaintiff, the defendant is the owner of the suit property and he had purchased the suit property through a registered sale deed in document no.1271 of 2002. The defendant had entered into an agreement to sell the suit property with the plaintiff on 05.03.2004 for a sale consideration of Rs.3,00,000/-. On the date of sale agreement itself, the plaintiff had paid a sum of Rs.2,50,000/- as advance, out of the total consideration of Rs.3,00,000/-. It had been specifically agreed that the balance of sale consideration has to be paid within a period of 15 months i.e., on or before 05.06.2005. The plaintiff was always ready and willing to get the sale deed executed by paying the balance sale consideration of Rs.50,000/-, but, the defendant postponed the execution of sale deed for some reasons. As the defendant evaded, it instigated the plaintiff to lodge a police complaint before the Suramangalam Police station for the misbehaviour and indifferent attitude and intention of cheating by the defendant. The case was registered as Crime No.232 of 2005 on 11.05.2005.
6. According to the plaintiff, on enquiry, the defendant admitted the said sale agreement liability and agreed to return the advance amount to the plaintiff within 150 days. Accordingly, the police closed the matter by recording the same and obtained signatures of both the parties. After having accepted his liability, the defendant neither returned the amount nor acted as per the sale agreement dated 05.03.2004. Contrarily, the defendant issued a legal notice by suppressing entire real facts and introduced a new story. However, the plaintiff had narrated entire facts and issued a reply dated 19.05.2005 to the defendant and also called him to be present in the Suramangalam Sub Registrar's Office on 27.05.2005 for the execution of the sale deed, after receiving the balance sum of Rs.50,000/-. The plaintiff had also prepared the amount of Rs.50,000/- by withdrawing it from the Subramanianagar Co-operative Urban Bank on 27.05.2005 and was present for the whole day at the Sub Registrar Office. But, the defendant neither presented himself for execution of the sale deed nor issued any reply. According to the plaintiff, the defendant, however, requested him in person that he would perform his part of contract within another 20 months. Based on the request, the plaintiff was eagerly waiting to get the sale deed executed in his favour, but all his efforts went in vain. As such, the plaintiff issued another legal notice and since the defendant did not choose to respond, the plaintiff has come up with the suit for specific performance to execute the sale deed as per the sale agreement dated 05.03.2004 or in the alternative, pass a decree directing the defendant to refund the advance amount with interest @ 12% p.a from the date of the suit till the date of realization.
7. The defendant resisted the suit by filing a written statement and
A.R.Madana Gopal ETC vs. M/s.Ramnath Publications Pvt. Ltd and another reported in 2021 SCC 300
Ferrodous Estates (Pvt) Ltd vs. P.Gopirathnam (died) and others reported in 2020 SCC 825
His Holiness Acharya Swami Ganesh Dassji vs. Shri Sita Ram Thapar reported in (1996) 4 SCC 526
J.P.Builders and anothers vs. A.Ramadas Rao and another reported in (2011) 1 SCC 429.
K.S.Sundaramayyar vs. K.Jagadeesan reported in 1965 AIR (Mad) 85
Kantilal C.Shah vs. A.G.Devarajulu Reddiar reported in 1977 (2) MLJ 484
Mademsetty Satyanarayana vs. G.Yelloji Rao & others reported in 1965 AIR (SC) 1405
N.P. Thirugnanam vs. Dr. R. Jagan Mohan Rao & Ors.
R.C. Chandiok & Anr. vs. Chuni Lal Sabharwal & Ors.
Slough Estates Limited vs. Buckinghamshire County Council reported in 1969 (2) All.E.R. 988
T.Thangamuthu vs. A.Gowrishanker reported in 1983 (2) MLJ 215
Vairavan vs. K.S.Vidyanandam and others reported in AIR 1996 Mad 353;1995 (2) LW 50
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