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2025 Supreme(Mad) 2818

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
P. Balakrishnan - Appellant 
Versus
M. Susairaj - Respondent 
A.S.No.75 of 2024 and C.M.P.No.2613 of 2024 & C.M.P.No.29365 of 2024
Decided on : 25-03-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr.T.Saikrishnan
For Respondent: Mr.A.Muthukumar

The court affirmed that a valid agreement of sale, once established, obligates the defendant to perform, and the plaintiff's readiness to fulfill his obligations is crucial for specific performance.

Headnote:

(A) Specific Relief Act, 1963 - Section 10 - Agreement of Sale - The plaintiff sought specific performance of a sale agreement dated 21.07.2015 for a property, having paid Rs.7,20,000/- towards the total consideration of Rs.17,00,000/- - The 1st defendant denied the agreement, claiming it was unregistered and fabricated - The trial court found the agreement valid and the plaintiff ready to perform his obligations, granting specific performance. (Paras 4, 9, 10, 29)

(B) Evidence - Burden of Proof - The court held that once the execution of the agreement was established by the plaintiff, the burden shifted to the defendant to disprove it, which he failed to do. (Paras 20, 28)

Facts of the case:
The plaintiff entered into a sale agreement with the 1st defendant for a property, having paid substantial amounts as part of the sale consideration. The 1st defendant later denied the agreement and demanded a higher price. The plaintiff sought specific performance after the defendant refused to execute the sale deed. (Paras 5.1, 5.4, 11)

Findings of Court:
The trial court found the sale agreement valid and the plaintiff had always been ready and willing to perform his part of the contract, thus granting specific performance. (Paras 9.2, 28)

Issues: The main issues included the validity of the sale agreement and whether the plaintiff was ready and willing to perform his part of the contract. (Paras 8, 16)

Ratio Decidendi: The court ruled that the plaintiff proved the execution of the sale agreement and his readiness to perform, while the defendant failed to substantiate claims of fabrication. (Paras 20, 28)

Result: Appeal suit dismissed, confirming the trial court's decree for specific performance.

 JUDGMENT :

Challenging the judgement and decree passed by the learned III Additional District Judge, Coimbatore, dated 06.10.2023 in O.S.No.235 of 2016 granting a decree for specific performance of contract, the 1st defendant is before this court with the present appeal suit. The 1st respondent is the plaintiff and the 2nd respondent is the 2nd defendant in the suit.

2. No appeal suit or cross objection from the partly unsuccessful plaintiff as against the dismissal part of the suit refusing to grant a decree of permanent injunction against the defendants.

3. For clarity and ease of reference, the parties involved in this appeal suit will hereinafter be referred to according to their status in the original suit.

4. The suit in O.S.No.235 of 2016 has been filed against the defendants praying for a judgement and decree of (a) specific performance of agreement of sale dated 21.07.2015 directing the 1st defendant to execute a sale deed after receiving balance sale consideration of Rs.9,30,000/- within the time frame fixed by the court and if the defendants fail to execute the sale deed, the court should execute the sale deed or in the alternative, directing the 1st defendant to pay a sum of Rs.7,70,000/- to the plaintiff together with interest @ 24% per annum from the date of plaint till date of realisation; (b) permanent injunction restraining the defendants, their men, agents, servants or anybody claiming any right through them from in any way disturbing the plaintiff's peaceful possession and enjoyment of the suit property; and (c) for costs of the suit.

5.0 The case of the plaintiff in brief is as follows: -

5.1 The suit schedule mentioned property belongs to the 1st defendant. The suit property is situated in Coimbatore District. Since the 1st plaintiff has been residing in Erode District, the 2nd defendant, who is none other than the brother of the 1st plaintiff was asked to look after the suit property.

5.2. The plaintiff has been inducted as a tenant for the suit schedule mentioned property in 2012 under the 2nd defendant on a monthly rent of Rs.3,500/-. The plaintiff was paying the rent without any default. Thereafter, on 21.05.2015, the plaintiff entered into a lease agreement with the 2nd defendant. While so, in the month of June 2015, the 2nd defendant informed him that his brother (1st defendant) decided to sell his property which is the suit schedule mentioned property. The plaintiff expressed his willingness to purchase the same. Subsequently, the plaintiff and the 1st defendant entered into a sale agreement on 21.07.2015. The total sale consideration was fixed as Rs.17,00,000/- and on the same day a sum of Rs.2,00,000/- was paid as advance under agreement. It was agreed between the plaintiff and the 1st defendant to complete the sale transaction by six months.

5.3 Thereafter, on 01.10.2015 the 1st defendant received another Rs.3,50,000/- as a part of sale consideration and made an endorsement on the sale agreement. Following that, on 28.12.2015 and 01.01.2016, the 1st defendant received Rs.5,000/- and Rs.15,000/- respectively as part sale consideration from the plaintiff. The plaintiff had spent Rs.1,50,000/- to get the suit property repaired. The plaintiff paid a premium of Rs.1,50,000/- on 21.05.2015 while entering into the lease agreement with the 2nd defendant. Thus, in total, the plaintiff paid Rs.7,20,000/- a sum of Rs.7,20,00/- to the 1st defendant and the balance to be paid was Rs.9,30,000/- only.

5.4 The plaintiff secured a home loan from Religare Home Loans Bank. This fact was informed to the 1st defendant. The bank requested the vendor's appearance so as to issue the loan amount in the form of cheque in the name of the 1st defendant. Initially, the 1st defendant agreed to accept the cheque, but then declined to visit the bank. The 1st defendant purposefully neglected to appear. The loan was briefly stopped by bank officials. When asked, the 1st defendant insisted on payment of the balance sale consideration in c

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