Registered agreements do not guarantee specific performance; plaintiffs must demonstrate readiness and willingness to perform the contract along with valid intent.

JUDGMENT :

A challenge has been made to the judgment and decree of the Trial Court, dismissing the suit for specific performance and granting only the alternative relief of directing the defendant to pay a sum of Rs.10,00,000/- with interest @ 9% from the date of agreement dated 04.01.2018 till the date of judgment and decree and thereafter, with interest @ 6% till the date of realization.

2. Notice to the respondents/defendants is dispensed with, as no adverse judgment is going to be rendered against them. The main case is taken up for final disposal at the admission stage itself.

3. The parties are arrayed as per their own ranking before the Trial Court.

4. It is the case of the plaintiff that the defendant had agreed to sell the suit property for a total sale consideration of Rs.12,00,000/- and executed a registered sale agreement dated 04.01.2018. On the date of agreement, a sum of Rs.10,00,000/- had been paid by the plaintiff to the defendant and it was agreed between the parties that the sale should be completed within a period of two years from the date of agreement on payment of the remaining sale consideration of Rs.2,00,000/-. Despite repeated demands, the defendant has not come forward to execute the sale deed and therefore, the plaintiff has issued a legal notice on 05.12.2019. Though the notice had been received by the defendant, there was no reply on the side of the defendant.

5. The defendant has filed a written statement, contending that he never executed any agreement for sale and an agreement came into existence in a loan transaction. Both the plaintiff and defendant were close relatives and as the defendant's daughter was studying medicine in a foreign country, he borrowed a loan for a sum of Rs.10,00,000/- on interest and he was paying Rs.30,000/- towards interest. Thereafter, the plaintiff was insisting higher rate of interest, which the defendant had refused to accept and annoyed by the same, the defendant had issued a legal notice on 05.12.2019. According to him, though the plaintiff had agreed in the presence of Panchayathars that he will not go to Court, he has filed a suit.

6. The Trial Court, based on the above pleadings framed the following issues:

i) Whether the agreement for sale was for the loan transaction of Rs.10,00,000/-?

ii) Whether the sale agreement dated 04.01.2018 is true and valid?

iii) Whether the plaintiff is ready and willing to perform the contract?

iv) Whether the plaintiff is entitled to the relief of specific performance?

v) To what other relief the plaintiff is entitled to?

7. On the side of the plaintiff, P.W.1 and P.W.2 were examined and Ex.A1 to Ex.A3 were marked. On the side of the defendant, D.W.1 and D.W.2 were examined and Ex.B1 to Ex.B12 were marked.

8. The Trial Court, after appreciation of evidence, found that the agreement came into existence in a loan transaction. That apart, the Trial Court also held that the plaintiff has not established his readiness and willingness to perform his part of contract and thereby dismissed the suit for specific performance. In the alternative, the Trial Court directed the defendant to pay a sum of Rs.10,00,000/- with interest @ 9% p.a. Challenging the findings of the Trial Court, the present appeal has been filed.

9. Learned counsel for the appellant would mainly submit that once a registered agreement has been entered into between the parties, the defendants ca