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2024 Supreme(Mad) 2074

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P.Vadamalai, J.
Periya Samy and ors. – Appellants
Versus
Vijaya Kumar (Died) and ors. – Respondents
S.A(MD)No.53 of 2017, C.M.P(MD)No.1153 of 2017
Decided On : 09-09-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr.G.Gomathi Sankar
For the Respondent: Mr.S.Balakarthick, Mr.C.Senthil Murugan

A registered unconditional gift settlement deed cannot be unilaterally revoked, and specific performance can be granted if the plaintiff proves readiness and willingness to perform the contract.

Headnote:(A) Civil Procedure Code - Section 100 - Specific performance - The plaintiff sought specific performance of a sale agreement for property originally belonging to the first defendant’s mother, which was contested by subsequent purchasers - The trial court found the sale agreement valid and the defendants failed to prove their claims of fraud regarding the gift deed - The appellate court confirmed the trial court's decision. (Paras 8, 15, 21)

(B) Gift Settlement Deed - Unilateral cancellation - The court held that a registered unconditional gift settlement deed cannot be revoked unilaterally without valid grounds, reaffirming the principle that once a gift is complete, it cannot be rescinded. (Paras 20, 21)

Facts of the case:
The plaintiff entered into a sale agreement with the first defendant for property originally owned by her mother, who later attempted to cancel the gift deed in favor of the first defendant and sold the property to subsequent defendants. The plaintiff claimed specific performance after the first defendant failed to execute the sale deed despite readiness to pay the balance.

Findings of Court:
The courts below found that the plaintiff proved the sale agreement and that the first defendant had the right to execute the sale deed, dismissing the claims of the subsequent purchasers.

Issues: The main issues included whether the sale agreement was valid, whether the first defendant had the title to execute the sale deed, and the validity of the cancellation of the gift deed.

Ratio Decidendi: The court ruled that the first defendant had a valid title to the property and that the unilateral cancellation of the gift deed was invalid, thus the plaintiff was entitled to specific performance.

Result: Second Appeal dismissed.

JUDGMENT :

P.Vadamalai, J.

PRAYER :- This Second Appeal is filed under Section 100 of the Civil Procedure Code, to set aside the judgment and decree, dated 24.08.2016 made in A.S.No.68 of 2015 on the file of the Principal District Court, Dindigul, confirming the judgment and decree passed dated 30.10.2015 made in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur and to allow this Second Appeal.

This Second Appeal is preferred against the judgment and decree, dated 24.08.2016 passed in A.S.No.68 of 2015 on the file of the Principal District Court, Dindigul, confirming the judgment and decree, dated 30.10.2015 passed in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur.

2. The appellants are defendants 3 and 4 and the respondents 1 to 3 are the plaintiff and defendants 1 & 2 in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur. The 1st respondent/plaintiff filed the suit for specific performance directing the 1st defendant to execute sale deed after receiving the balance sale consideration of Rs.55,000/- in respect of the suit property.

3. For the sake of convenience, the parties referred as plaintiff and defendants as arrayed in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur.

4. Case of the plaintiff:

The suit property originally belonged to the first defendant’s mother Marudayammal. Marudayammal purchased the suit property from Ellammal and another by virtue of a registered sale deed, dated 09.04.1999. Then, Marudayammal gifted the suit property to the first defendant by executing unconditional gift settlement deed, dated 09.09.2011. The plaintiff and the first defendant entered into a sale agreement, dated 27.10.2012 regarding the suit property for a total sale consideration of Rs.1,30,000/- (Rupees One lakh thirty thousand only) and a sum of Rs.75,000/- (Rupees Seventy five thousand only) was paid as advance. The time for completion of sale deed was fixed as six months. The plaintiff was ready and willing to pay balance and get the sale deed executed, but, the first defendant had been evading to receive the balance sale consideration and register the sale deed. The plaintiff issued a legal notice, dated 22.04.2013. The first defendant sent a reply admitting the sale agreement, sale consideration and receipt of advance sale amount. However, the first defendant informed that her mother Marudayammal cancelled the gift settlement deed and sold the suit property to 2nd defendant, who in turn sold the same to defendants 3 and 4. The first defendant also informed that his brother forcefully evicted the first defendant and captured all the original deeds and hence, he lodged a police complaint. The plaintiff further learnt that in order to avoid the execution of sale deed, the first defendant colluded with her mother and defendants 2 to 4 cancelled the gift settlement deed and executed the sale deed. Hence, the suit.

5. Case of the 1st Defendant :

The first defendant admitted the sale agreement, dated 27.10.2012 entered into with the plaintiff. Despite the plaintiff attempted to pay the balance sale consideration, due to existence of family dispute the first defendant was unable to receive the balance and execute the sale deed. Without knowledge of the first defendant, her brothers and her mother Marudayammal cancelled the gift settlement deed executed in favour of the 1st defendant and sold the suit property to 2nd defendant, who in turn sold to defendants 3 and 4. The brothers forcibly evicted the first defendant from the suit property and took away all the original deeds. The first defendant is always ready and willing to execute the sale deed but in the absence of all the originals she is unable to perform her part of contract. The suit is to be dismissed.

6. Case of the defendants 2 to 4:

It is true that the suit property belonged to Marudayammal, mother of the first defendant, by virtue of sale deed, dated 09.04.1999. But she had not executed a gift deed to the first defendant on 09.09.2011. The fir

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