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2024 Supreme(Mad) 975

IN THE HIGH COURT OF JUDICATURE AT MADRAS
HON’BLE MR. JUSTICE P.B. BALAJI, J.
Nagarajan – Appellant
Versus
Selvi @ Sellammal (Died) – Respondent
S.A. No. 649 of 2019, C.M.P. Nos. 11762, 11763 of 2019
Decided On : 15-03-2024

Advocates:
Advocate Appeared:
For the Appellant : Sharath Chandran.
For the Respondent: S. Chandrasekharan.

IMPORTANT POINT
The court established that in a suit for specific performance, the plaintiff's readiness and willingness to perform the contract must be assessed in light of the entire context, including possession and payment of the sale consideration, and that delays in enforcement may not bar relief if the vendor has acquiesced to the delay.

Headnote:

SPECIFIC PERFORMANCE - AGREEMENT OF SALE - SPECIFIC RELIEF ACT, 1963; LIMITATION ACT, 1963, ARTICLE 54 - The court discussed the provisions of the Specific Relief Act, particularly Section 16(c) regarding 'readiness and willingness' of the plaintiff to perform the contract, and Article 54 of the Limitation Act concerning the time frame for filing a suit for specific performance. The court interpreted that the plaintiff had fulfilled his obligations by paying the full sale consideration and being in possession of the property, thus establishing readiness and willingness. The court also noted that the delay in filing the suit was not a bar due to the lack of a fixed time for performance in the agreements, and the defendants' failure to act against the plaintiff's possession supported the plaintiff's claim.

Fact of the Case:

The plaintiff entered into a registered agreement of sale with M. Loganathan for a property, paying Rs. 1,50,000 as advance and later the balance of Rs. 50,000. A supplementary agreement was made, and the plaintiff was given possession of the property. After a long delay, the plaintiff sought to enforce the sale agreement, leading to a dispute with the defendants, who claimed the agreements were fabricated and the suit was barred by limitation.

Finding of the Court:

The trial court dismissed the suit, finding the plaintiff not ready and willing to perform the contract and that the suit was barred by limitation. The appellate court upheld the trial court's findings regarding readiness but found the suit was timely. However, it denied specific performance based on perceived inequity due to increased property values.

Issues: 1. Whether the lower courts erred in rejecting the sale agreements despite admissions by the defendants. 2. Whether the suit was barred by limitation under Article 54 of the Limitation Act. 3. Whether the courts misapplied the principles of specific performance and readiness and willingness.

Ratio Decidendi: The court found that the plaintiff had established his case through admissions by the defendants and evidence of possession. It ruled that the delay in filing the suit was not a bar due to the nature of the agreements and the lack of a fixed time for performance. The court emphasized that the increase in property value should not deny the plaintiff equitable relief, as he had fulfilled his obligations.

Final Decision: The court allowed the Second Appeal, set aside the judgments of the lower courts, and directed the defendants to execute and register the sale deed in favor of the plaintiff within eight weeks.

JUDGMENT :

P.B. BALAJI, J.

1. The plaintiff, in a suit for specific performance, having suffered concurrent findings before the trial Court as well as the first appellate Court, is the appellant herein. The parties are described as per their litigative status in the suit.

2. The brief and material facts, that are necessary for deciding the above Second Appeal, are as follows:

    (i) The plaintiff entered into a registered agreement of sale on 04.12.1997 with M.Loganathan for purchase of the suit property, on an agreed sale consideration of Rs.2,00,000/-. Under the said agreement, the sale deed had to be executed on payment of balance sale consideration of Rs.50,000/-, Rs.1,50,000/- having been paid as advance even on the execution of the said agreement, within one year period. It is his further case that at the fag end of the one year period viz., on 10.11.1998, a supplementary agreement was entered into and the entire balance consideration of Rs.50,000/- was paid by the plaintiff to the said M.Loganathan and the said M.Loganathan had handed over possession of the suit property to the plaintiff. In the said supplementary agreement, it was also agreed that as and when the plaintiff wanted registration of the sale deed, the defendant would co-operate and do the needful. It is also claimed that the defendant executed a registered general power of attorney in favour of the plaintiff on 14.12.1998, empowering the plaintiff to deal with the property in any manner that the plaintiff may deem fit and proper. The further case of the plaintiff is that in furtherance of the above documents as well as registered power of attorney, the plaintiff has also let out the suit property to a tenant and has been collecting/enjoying the rents.

(ii) On 05.04.2011, the plaintiff issued a pre-suit notice, calling upon the legal heirs of M.Loganathan viz., the defendants in the suit to come forward to register a sale deed in favour of the plaintiff on 20.04.2011. The said notice was received by the defendants and a reply was sent with all untenable allegations, thus, constraining the plaintiff to file the suit.

3. The defendants resisted the suit claim by filing a written statement, contending that M.Loganathan, under whom, they were claiming, had only borrowed money from the plaintiff and in all Rs.70,000/- had been borrowed and at the time of borrowing money from the plaintiff, the plaintiff had obtained signatures of the defendants' husband and father respectively.

4. It is the further case of the defendants that the power of attorney was executed only to take care of the property since M.Loganathan was going out of town and taking advantage of the signatures obtained from the said M.Loganathan, the plaintiff had brought about the sale agreement and caused great mental agony to M.Loganathan, which, in fact, resulted in his unfortunate demise. The plaintiff has no valid sale agreement in his favour and it is a fabricated document brought about to grab the valuable suit property from the defendants.

5. The defendants also denied the alleged payment of Rs.2,00,000/- on various dates and also stated that the suit was barred by limitation since for 13 years, the plaintiff had not taken any steps to seek enforcement of the alleged agreement.

6. The trial Court found that (i) the plaintiff was not ready and willing to conclude the transaction; (ii) the extension agreement dated 10.11.1998 marked as Ex.A.2 was a sham document; (iii) the suit was barred by limitation in view of Article 54 of the Limitation Act and (iv) on the ground that the plaintiff has not established to have been in possession of the suit property, dismissed the suit.

7. On appeal, the first appellate Court held that even the sale agreement Ex.A.1 dated 04.12.1997 was not proved and confirmed the findings of the trial Court with regard to the plaintiff's lack of readiness and willingness. However, the first appellate Court found the suit to be in time and not hit by Article 54 of the Limitation Act.

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