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2024 Supreme(Mad) 1884

THE HIGH COURT OF JUDICATURE AT MADRAS
R.Subramanian, C.Kumarappan, JJ.
S.Ramani and ors. – Appellants
Versus
P.N.Balaji – Respondent
A.S.No.813 of 2009 and C.M.P.No.9853 of 2024
Decided On : 14-11-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr.R.Bharath Kumar
For the Respondent: Mr.G.Vigneswaran

The court affirmed that a plaintiff can seek part performance of a contract under Section 12 of the Specific Relief Act, even when part of the property is disputed, provided the plaintiff is ready and willing to perform.

Headnote:(A) Specific Relief Act, 1963 - Section 12 - Specific performance of contract - Plaintiff entered into an agreement for sale of 17.31 acres, paid Rs.18,00,000/- as advance - Defendants claimed title defect due to forgery - Court found plaintiff ready and willing to perform and entitled to part performance - Decree granted for 9 acres 7 cents. (Paras 30, 18, 21)

(B) Time is essence of contract - Conduct of parties indicated time was not intended to be essence - Delay in filing suit explained by defendants' actions. (Paras 21, 22)

(C) Authority to enter into agreement - 2nd defendant's late claim of lack of authority rejected due to acquiescence. (Paras 24, 29)

Facts of the case:
The plaintiff filed a suit for specific performance of a sale agreement dated 05.10.2005 for 17.31 acres, having paid Rs.18,00,000/- as advance. Defendants claimed title issues due to alleged forgery. The plaintiff sought performance for 9.90 acres excluding disputed land.

Findings of Court:
The court found the plaintiff entitled to specific performance for 9 acres 7 cents, directing the defendants to execute the sale deed.

Issues: The main issues included whether the plaintiff was ready and willing to perform the contract, whether time was of the essence, and the authority of the 1st defendant to act on behalf of the 2nd defendant.

Ratio Decidendi: The court ruled that the plaintiff's conduct demonstrated readiness to perform, and the defendants' claims of title issues did not negate the agreement. The authority of the 1st defendant was upheld due to the 2nd defendant's acquiescence.

Result: Appeal partly allowed; decree for specific performance granted for items 1 to 8.

JUDGMENT :

R.SUBRAMANIAN, J.

Prayer: Appeal filed under Section 96 read with Order 41 Rule 11 of the Code of Civil Procedure, 1908, praying to set aside the judgment and decree of the Principal District Judge, Krishnagiri, dated 03.04.2009 in O.S.No.57 of 2006.

For the sake of convenience, the parties are referred to as per their rank in the suit.

2. The instant appeal has been filed by the defendants in O.S.No.57 of 2006, a suit for specific performance.

3. According to the plaintiff, the defendants have entered into an agreement of sale on 05.10.2005 agreeing to convey an extent of 17.31 acres, which was described as Item Nos.1 to 8 in the agreement, for a total consideration of Rs.31,61,000/-. On the date of agreement, a sum of Rs.10,00,000/- was paid as advance. A period of one month was fixed for performance. The time fixed for performance ended on 04.11.2005. In the interregnum, the plaintiff paid a further advance of Rs.2,00,000/- and after 04.11.2005, the plaintiff paid a further advance of Rs.5,00,000/- on 06.11.2005 and another sum of Rs.1,00,000/- on 28.11.2005. Thus, the total sum of Rs.18,00,000/- was paid as advance.

4. On 10.12.2005 the plaintiff issued a notice demanding performance of the contract, claiming that he has been ready and willing to perform his part of the contract. A notice was sent by the defendants on 01.04.2006 without reference to the notice issued by the plaintiff on 10.12.2005 admitting the agreement and claiming that they have come to know that the power of attorney holder M.M.Suresh Kumar, who had executed the sale deed in respect of 7.39 acres out of 17.31 acres of land subject matter of the agreement had forged the signature of the owner Ms.Vijayalakshmi in the power of attorney on 04.12.1997 and therefore their title have become defective and hence they cannot convey the entire property. On the said ground the defendants wanted the plaintiff to cancel the agreement and take back the advance.

5. The plaintiff sent a reply to the said notice on 13.04.2006 seeking execution of the sale deed in respect of the remaining lands excluding the 7.39 acres of land which is in controversy. To this a re-joinder was issued by the learned counsel for the defendants, wherein, this request was not acceded to. Another notice was sent by the learned counsel for the defendants upon instruction of the defendants on 30.08.2006 requiring the plaintiff to take back the advance.

6. Thereafter, the plaintiff came up with the suit seeking specific performance in respect of the total extent of 9.90 acres out of the extent of 17.31 acres, excluding the land which, according to the defendants, was in dispute. The plaintiff in the plaint itself had pleaded that in view of the stand taken by the defendants that the property which is described as Item Nos.1 to 4 in the schedule to the sale agreement purchased from Vijayalakshmi through her power of attorney M.M.Suresh Kumar is in dispute and therefore the said land is excluded and he is ready and willing to pay the balance of sale consideration proportionate to the extent to which he is seeking conveyance.

7. This suit was resisted by the defendants contending that time is the essence of the contract. The plaintiff was not ready and willing to perform his part of the contract. Fortunately for the plaintiff, the defendants admitted the agreement and receipt of Rs.18,00,000/- as advance as claimed by the plaintiff. The dispute was only with reference to 7.39 acres of land which was purchased by the defendants from one Ms.Vijayalakshmi. It was also claimed that the defendants were not ready to sell the land in piecemeal and therefore the suit itself has to be dismissed. It will be pertinent to point out that the 2nd defendant did not file a written statement separately and she adopted the written statement filed by the 1st defendant admitting the execution of agreement.

8. On the above pleadings, the learned trial Judge framed the following issues :-

    1. Whether the plaintiff is alwa

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