IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR
R. Mani – Appellant
Versus
S.Manickam – Respondent
A.S.No.140 of 2023
Decided on : 21-04-2025
(A) Specific Relief Act, 1963 - Section 10 - Specific performance of contract - The plaintiff entered into an agreement to purchase property for Rs.24,60,000/- and paid Rs.2,50,000/- as advance, followed by Rs.10,00,000/- - The defendant delayed execution despite receiving payments - The Trial Court decreed the suit for specific performance - The defendant's claims of the agreement being a loan security were disbelieved. (Paras 3-8, 10-19)
(B) Readiness and Willingness - The court emphasized that the plaintiff's readiness and willingness to perform the contract must be assessed from the conduct of the parties, not merely the passage of time. (Paras 16-18)
(C) Assignment of Rights - The court held that the assignment of rights during the pendency of the suit does not extinguish the plaintiff's right to seek specific performance. (Paras 17-18)
Facts of the case:
The plaintiff alleged that the defendant agreed to sell property for Rs.24,60,000/- and received an advance of Rs.2,50,000/- but failed to execute the sale deed despite further payments. The defendant claimed the agreement was merely a loan security.
Findings of Court:
The Trial Court found in favor of the plaintiff, confirming the agreement's validity and the defendant's obligation to execute the sale deed.
Issues: The main issues included whether the plaintiff proved readiness and willingness for specific performance and whether the sale agreement was intended for sale.
Ratio Decidendi: The court ruled that the plaintiff's conduct demonstrated readiness and willingness to perform the contract, and the defendant's contradictory claims were not credible.
Result: Appeal dismissed.
J U D G M E N T
Challenging the judgment and decree of the Trial Court, decreeing the suit for specific performance, the unsuccessful defendant has filed the present appeal before this Court.
2. The parties are arrayed as per their own ranking before the Trial Court.
3. The case of the plaintiff is that the defendant agreed to sell the property for a total sale consideration of Rs.24,60,000/- and received an advance amount of Rs.2,50,000/- on 10.01.2008 and executed an agreement in favour of the plaintiff. It was agreed between the parties that the remaining sale consideration would be paid within a period of 90 days. The plaintiff was ready and willing to perform his part of contract. Pursuant to the agreement, further sum of Rs.10,00,000/- has also been paid towards balance sale consideration on 28.03.2008 and therefore, the plaintiff had to pay only Rs.12,00,000/-, for which, he was always ready and willing.
4. It is further case of the plaintiff that the defendant has delayed the execution of the sale even after receipt of the balance sale consideration and therefore, the plaintiff issued a legal notice on 24.04.2009. The defendant has also sent a reply, expressing his readiness to complete the sale. The plaintiff also sent a rejoinder on 05.05.2009. However, the defendant has not come forward to execute the sale deed, which forced the plaintiff to file a suit.
5. In the written statement, the defendant, except making an evasive denial, stated that he never intended to sell the property. The property is worth about Rs.90,00,000/- and therefore, there was no necessity for him to execute an agreement for sale of the property for a meagre sum of Rs.24,60,000/-. According to the defendant, he had executed the agreement as a security for the loan of Rs.2,50,000/- borrowed by him and he also denied that he received Rs.10,00,000/- from the plaintiff subsequently. In the additional written statement, it was stated that while availing the loan of Rs.2,50,000/-, the plaintiff has obtained signatures on the blank papers in order to grab the property. The legal notice has been sent only on 17.04.2009 and hence, the defendant opposed the suit.
6. The Trial Court, based on the above pleadings framed the following issues:
i) Whether it is true that the defendant has executed the sale agreement only in a loan transaction for borrowal of Rs.2,50,000/-?
ii) Whether it is true that the defendant has borrowed Rs.2,50,000/- and executed the sale agreement for sale?
iii) Whether it is true that the defendant has not received Rs.10,00,000/- on 28.03.2008?
iv) Whether the plaintiff was ready and willing to perform his part of contract?
v) Whether the defendant is liable to execute a sale deed after receipt of sale consideration of Rs.12,10,000/-?
vi) In the event of failure on the part of the defendant to execute the sale deed, whether the plaintiff is entitled to get the sale deed executed through Court of Law?
vii) To what other relief the plaintiff is entitled to?
7. On the side of the plaintiff, P.W.1 was examined and Ex.A1 to Ex.A12 were marked. On the side of the defendant, D.W.1 and D.W.2 were examined and Ex.B1 & Ex.B2 were marked.
8. The Trial Court, after appreciation of the material documents and evidence, disbelieved the evidence of the defendant and decreed the suit in favour of the plaintiff. Challenging the judgment and decree of the Trial Court, the present appeal has been filed.
9. Learned counsel for the appellant would mainly submit that as per Ex.A1, 90 days' time has been agreed between the parties and the said 90 days expired on 09.04.2008 itself. Though the defendant is said to have paid another Rs.10,00,000/- on 28.03.2008, the remaining sale consideration has not been paid. Legal Notice has been issued only on 17.04.2009 and the suit has been filed on 28.08.2009. Learned counsel for the appellant would further submit that the plaintiff has not proved his readiness and willingness at the inception. When the agreement stipulates a specifie
The court affirmed that a plaintiff's readiness and willingness to perform a contract must be evaluated based on conduct, and an assignment of rights does not negate the right to seek specific perfor....
A plaintiff must establish both readiness and willingness to perform a contract to seek specific performance; failure to do so renders the claim unsustainable.
Proof of continuous readiness and willingness is essential for specific performance; failure to demonstrate such readiness undermines entitlement to equitable relief.
The court affirmed that a registered agreement for sale is binding unless the party asserting otherwise provides credible evidence to the contrary.
Registered agreements do not guarantee specific performance; plaintiffs must demonstrate readiness and willingness to perform the contract along with valid intent.
Specific performance – Relief of specific performance is equitable remedy – Plaintiff have to necessarily show their readiness and willingness in performing their part of contract from date of agreem....
The plaintiff must continuously prove readiness and willingness to perform a contract to be entitled to specific performance, as per Section 16(c) of the Specific Relief Act.
Agreement to Sell – Continuous willingness on part of plaintiff is condition precedent to grant relief of specific performance.
Continuous readiness and willingness to perform contractual obligations is a prerequisite for specific performance under the Specific Relief Act.
Plaintiff's failure to prove continuous readiness and willingness to perform contract negates entitlement to specific performance under Specific Relief Act.
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