IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
Chinna Thambi - Appellant
Versus
R. Anandaraj - Respondent
A.S. No. 287 of 2022, C.M.P. No. 9156 of 2022
Decided On : 04-03-2025
JUDGMENT :
1. Challenging the decree and judgment of the trial Court decreeing the suit for recovery of a sum of Rs.10,08,942/- with further interest at the rate of 6% per annum from the date of filing of this suit till the date of realization and in addition, a charge is also created on the remaining unsold properties out of the suit properties till the realization of the above amount by the first defendant to the plaintiff, the present appeal has been filed.
2. The parties are arrayed as per their own ranking before the trial Court.
3. The case of the plaintiff is that the first defendant executed an agreement on 13.11.2007 for sale of 2.89 acres of the property for a total sale consideration of Rs.7,22,500/- and received an advance of Rs.one lakh on the date of agreement. Thereafter, on 16.03.2008, an additional advance of a sum of Rs.50,000/- has been received by the wife of the first defendant. Again on 20.04.2008, another sum of Rs.50,000/- has been paid and made an endorsement. Thereafter, a sum of Rs.1,50,000/- has also been paid on 05.08.2008 to the first defendant and totally a sum of Rs.3,50,000/- has been paid as a part of sale consideration to the first defendant. The first defendant agreed to receive the remaining sale consideration at the time of registration. The plaintiff is always ready and willing to perform his part of the contract. However, the first defendant has delayed the transaction. As the first defendant is prolonging the issue, the plaintiff issued a notice on 21.12.2014 for return of the amount. But the said notice has been returned with an endorsement of intimation delivered. According to the plaintiff, there are several alienations and the properties have been sold to various persons. Hence, the suit has been filed for return of the amount and for damages.
4. According to the first defendant, he had borrowed a sum of Rs.one lakh from the plaintiff and for the said loan, the plaintiff had obtained signature of the defendant in blank stamp papers. The first defendant had never executed any agreement for sale. The wife of the defendant has also not signed in any document. The alleged document dated 13.11.2007 is forged and fabricated.
5. On the basis of the above pleadings, the following issues have been framed by the trial Court :
1. Whether the suit sale agreement is fabricated by the plaintiff?
2. Whether the suit claim is barred by limitation?
3. Whether the suit is bad for non-joinder of necessary parties?
4. Whether the time is essence of contract for the suit sale agreement?
5. Whether the plaintiff is entitled for return of advance amount with subsequent interest?
6. To what other relief the plaintiff is entitled?
6. On the side of the plaintiff, plaintiff examined himself as P.W.1 and marked Ex.A.1 to Ex.A.8. On the side of the defendants, the first defendant examined himself as D.W.1 and no document has been marked on his side.
7. The trial Court considering entire evidence decreed the suit in favour of the plaintiff. Challenging the same, the present Appeal Suit came to be filed.
8. The learned counsel appearing for the appellant would submit that a sum of Rs.3,50,000/- has been paid as an advance towards sale consideration for purchase of the property. Whereas, the suit has been decreed for a sum of Rs.10,08,942/- with subsequent interest at the rate of 6% per annum. According to the appellant, the interest claimed by the appellant in the suit is usurious. It is his further contention that the suit itself is barred by limitation. Hence, prayed for allowing the appeal.
9. Whereas, the learned counsel for the respondent would submit that though the agreement has been disputed, the signature in the agreement has not been denied. Once, the signature is admitted, the contention of the first defendant that there was fabrication, has no legs to stand. Further, it is his contention that as the suit has been filed for recovery of advance amount, which has been given towards, purchase of the property, there wil
The court affirmed that a claim of forgery must be substantiated by the defendant, and the statutory charge allows recovery of advance payments within the limitation period.
The burden of proof for alleging forgery lies with the defendants, and mere evasive denials are insufficient to counter the plaintiff's claims.
Buyer entitled to charged decree within limitation under Section 55(6)(b) of the Transfer of Property Act if non-performance not due to buyer's fault.
The court ruled that mere proof of signature does not establish the execution of a sale agreement if fabrication is probable, thus denying specific performance.
The main legal point established in the judgment is the entitlement of the plaintiff to a refund of advance money and the absence of a charge over the property in the absence of specific recital for ....
A statutory charge under Section 55(6)(b) of the Transfer of Property Act cannot be granted by a court without framing a specific issue and conducting an inquiry into whether the buyer had fulfilled ....
The court can grant alternative relief of refund even if not explicitly claimed, ensuring fair justice is delivered in contract disputes.
The court has discretion to award interest under Section 34 of the C.P.C. even if not specified in the contract, affirming the trial court's decree for interest on the principal amount.
The plaintiff bears the burden of proof to establish the existence of a valid agreement, failing which claims for specific performance will be dismissed, as per evidentiary standards.
A sale agreement must be duly stamped and registered if it involves possession transfer; time is of the essence unless explicitly stated otherwise.
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