2024 Supreme(Mad) 2181
IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. LAKSHMINARAYANAN, J.
E.Rathinabai - Appellant
Versus
E.Shanmugam (Died) - Respondent s
Second Appeal Nos.411 & 468 of 2014 & M.P.No.1 of 2013
Decided on : 15-04-2024
For the Appellant : Mr.S.K.Rahul Vivek, for Mr.J.James
For the Respondents: Mr.S.Udayakumar
A party cannot seek specific performance of a contract after relinquishing rights through acceptance of payment, as established under Section 16(c) of the Specific Relief Act.
Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Agreement for sale - Plaintiff sought specific performance of a re-conveyance agreement dated 25.08.1980, claiming the defendant failed to execute the sale deed - The court found that the plaintiff had given up her rights under the agreement by accepting a sum of Rs.83,500/- on 19.01.1994, thus rendering the suit for specific performance untenable - The plaintiff's claim for rent arrears was also dismissed, allowing her to pursue the claim in separate proceedings. (Paras 21, 73)
(B) Readiness and Willingness - The court emphasized that the plaintiff must prove readiness and willingness to perform the contract, which was not established in this case. (Paras 43, 48)
Facts of the case:
The plaintiff entered into a re-conveyance agreement with the defendant, who later failed to execute the sale deed despite receiving payment. The plaintiff alleged fraud and sought specific performance, but the court found she had relinquished her rights.
Findings of Court:
The court dismissed the suit for specific performance, allowing the plaintiff to claim Rs.40,000/- from the defendant with interest.
Issues: The main issues included whether the plaintiff had annulled the re-conveyance agreement and whether she was entitled to specific performance.
Ratio Decidendi: The court ruled that the plaintiff's acceptance of payment constituted a relinquishment of her rights, and she could not seek specific performance thereafter.
Result: The suit for specific performance was dismissed, and the defendant was ordered to pay Rs.40,000/- with interest.
JUDGMENT :
These two second appeals arise out of the judgment and decree of the court of the I Additional District Judge at Thiruvallur in A.S.No.13 of 2012 dated 13.12.2013 in partly modifying the judgment and decree of the court of Subordinate Judge at Tiruttani in O.S.No.21 of 2010 dated 31.10.2011.
2. For the sake of convenience, parties will be referred to as per their ranks in the original suit.
3. O.S.No.70 of 2008 was originally presented before the learned Subordinate Judge at Tiruvallur. Subsequently, it was transferred and renumbered as O.S.No.29 of 2010 on the file of the Sub Court, Tiruttani.
4. The plaintiff has sought for the following reliefs:
“i. Directing the defendant to execute the sale deed based on the agreement of re conveyance dated 25.08.1980 and 18.01.1994, the letter by the defendant after receiving the sale consideration of Rs.83,500/-.
ii. Directing the defendant pay to the plaintiff the arrears of rent received by the defendant from the tenants from 1994 to the year 2007 for a sum of Rs.60,000/-
iii. For permanent injunction restraining the defendant and his agents from collecting the rents for the suit premises from the tenants.
iv. For the costs of the suit
v. For any other relief or reliefs as this Hon'ble Court may deem fit under proper circumstances of the case and render justice accordingly.”
5. This suit has a background. On 10.02.1974, the plaintiff/Rathinabai entered into an agreement for sale regarding the suit schedule mentioned property with one Nathamuni Udayar vagayara. The plaintiff was put in possession of the property pursuant to the agreement as part performance of the same. Since the original vendors namely Nathamuni Udayar and others did not come forward to execute the sale deed, the plaintiff decided to file a suit for specific performance. Accordingly, she approached the defendant for filing the same.
6. The plaintiff pleaded that she is an illiterate lady and had approached the defendant with a hope that the defendant will get the property from Nathamuni Udayar on her behalf. The defendant had advised her that the sale agreement be transferred in his name and believing his words, the plaintiff transferred the agreement of sale in favour of the defendant. This was by virtue of the deed dated 25.08.1980. It is her specific case that this document is not supported by consideration. On getting the sale deed executed in his name, the defendant had agreed to reconvey the same to the plaintiff on the same day.
7. As per the agreement of re-conveyance, the plaintiff was to collect the rents, but unfortunately the defendant prevented her from doing so. Since the plaintiff did not have any income, she had leased out the suit schedule mentioned property, which had been given to her in part performance of the agreement dated 10.02.1974, in favour of a hotelier and she left for Bangalore.
8. On the basis of the agreement dated 25.08.1980, the defendant had filed a suit for specific performance against Nathamuni Udayar and others. However, the defendant did not inform the plaintiff about what transpired in the same. The plaintiff pleaded that sometime in 1993, she enquired about the case and she was informed by the defendant that the matter is now pending in second appeal. She stated that she visited the defendant subsequently on 19.01.1994. During that meeting, the defendant received the original re-conveyance agreement and handed over a letter dated 18/1/1994. The defendant had paid a sum of Rs.38,500/- namely Rs.20,000/- in cash and Rs.18,500/- by cheque to the plaintiff. The plaintiff without proper understanding had received the amount. She thought that the defendant was paying the rents that he had collected from the tenants.
9. In and about 01.10.2007, the plaintiff was informed by one Narasimhan, her friend who was residing in Agraharam Village that the second appeals filed against Nathamuni Udayar and others had come to a conclusion and pursuant thereto, the learned District Munsif at Tirutta