THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
N. Sivakumar - Appellant
Versus
Mr. B. Kavitha – Respondent
A.S.No.172 of 2022
Decided On : 28-03-2025
| Table of Content |
|---|
| 1. agreement execution and claims of the parties (Para 3 , 4) |
| 2. the trial court framed specific issues for consideration. (Para 5) |
| 3. arguments regarding the nature of the agreement (Para 8 , 9) |
| 4. court analysis on contract validity and evidence (Para 11 , 12 , 13 , 14 , 15) |
| 5. readiness and willingness to perform contractual obligations (Para 16 , 17) |
| 6. conclusion and dismissal of the appeal (Para 18) |
JUDGMENT :
(N. SATHISH KUMAR, J.)
Challenging the judgment and decree of the trial Court decreeing the suit filed by the plaintiff for specific performance, the present appeal has been filed by the unsuccessful defendant.
2. The parties are arrayed as per their own ranking before the trial Court.
3. It is the case of the plaintiff that the defendant agreed to sell the suit property for a total sale consideration of Rs.14 lakhs and received a sum of Rs.10 lakhs on 25.11.2013 and executed a registered sale agreement on the same day. It is admitted between the parties that the sale shall be completed within a period of 11 months from the date agreement. The plaintiff was always ready and willing to perform her part of the contract. However, the defendant postponed the registration under some pretext or other and has not come forward to execute the sale deed. The plaintiff is always ready and willing to perform her part of the contract from July 2014 onwards. As the defendant has not come forward to receive the balance sale consideration and execute the sale, a legal notice was issued to the defendant on 10.10.2014 calling upon him to perform his part of the contract. Despite receipt of legal notice, as the defendant has not come forward to receive the balance sale consideration and execute the sale deed, the suit has been filed.
4. It is the stand of the defendant in the written statement that he has not entered into an agreement for sale at any point of time. The plaintiff is only a house wife and she has no source to advance any amount to buy the suit property. The plaintiff’s husband is working in a ration shop and he is none other the cousin brother of the defendant. The defendant had sought financial assistance to the tune of Rs.10 lakhs for building his house and agreed to pay the amount within one year. As there was delay in processing the loan, he approached the plaintiff’s husband for a loan agreeing to repay the loan along with interest at the rate of 12% per annum. The plaintiff’s husband agreed to lend the loan provided an agreement for sale is executed. When the defendant hesitated to execute an agreement for sale, plaintiff husband informed him that the agreement for sale is only sham and nominal. Therefore, the defendant signed in the document styled as agreement for sale. The defendant was paying interest every month promptly. In the meanwhile, the plaintiff insisted to return the loan amount during August 2015. As the defendant was not in a position to pay such a huge amount, he was made to execute a sale deed pertaining to another property belonging to him. The defendant had to sell 40 cents of land at throw away rate of Rs.10,000/- per cent. The sale deed was executed in favour of the brother of the plaintiff. Apart from that a sum of Rs.5 lakhs has already been paid to the plaintiff and further sum of Rs.6 lakhs has also been paid to the plaintiff. Therefore, it is his contention that the agreement for sale is sham and nominal. Hence, prayed for dismissal of the suit.
5. On the basis of the above pleadings, the following issues have been framed by the trial Court :-
1. Whether the suit agreement dated 25.011.2013 was executed only for a loan transaction as claimed by the defendant?
2. Whether the plaintiff is always ready and willing to perform her part of the contract?
3. Whether the plaintiff is entitled for the relief of specific performance as prayed for?
4. To what relief is the plaintiff entitled?
6. On the side of the plaintiff P.W.1 has been examined and Ex.A.1 to A.3 have been marked. On side of the
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.
The plaintiff must demonstrate readiness and willingness from the inception of the contract to be entitled to specific performance; mere existence of a registered agreement is insufficient.
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 party seeking specific performance must prove both readiness and willingness to perform the contract, which cannot be established merely by the existence of a registered agreement.
A plaintiff must establish both readiness and willingness to perform a contract to seek specific performance; failure to do so renders the claim unsustainable.
The court affirmed that a sale agreement is enforceable when the plaintiff proves readiness and willingness to perform, and the defendants fail to substantiate claims against the agreement.
Admitted unregistered sale agreement enforceable if defendant fails to prove sham; plaintiff readiness via notice and deposit suffices for specific performance.
A registered sale agreement may be deemed a loan transaction if its terms are inconsistent with a true sale, supported by the burden of proof on the party disputing its intended meaning.
A plaintiff seeking specific performance must demonstrate continuous readiness and willingness to perform the contract, which was not established in this case.
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