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2025 Supreme(Mad) 3454

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
Pakiyalakshmi - Appellant
Versus
Danalakshmi - Respondent
A.S.No.544 of 2022 & CMP.Nos.20344 & 20345 of 2022
Decided on : 20-02-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr.L.Abrar MD Abdullah
For the Respondent: Mr.R.Shreedhar

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.

Headnote:(A) Specific Relief Act, 1963 - Section 10 - Indian Evidence Act, 1872 - Section 92 - Appeal against decree for specific performance - Plaintiff alleged agreement for sale of property, paid advance, but defendant claimed it was a loan transaction - Court found plaintiff failed to prove readiness and willingness to perform contract - Legal notice issued just before expiry of limitation period - Court ruled registered document cannot be contradicted without convincing evidence - Plaintiff entitled to return of advance with interest. (Paras 10, 11, 14, 17)

(B) Specific Performance - Requirements - Plaintiff must establish both readiness and willingness to perform contract - Mere existence of agreement insufficient without proof of capacity to mobilize funds and intent to complete transaction. (Paras 14, 15)

Facts of the case:
The plaintiff approached the defendant to purchase property for Rs.21 lakhs, paid Rs.10 lakhs as advance, but the defendant delayed execution of the sale deed and attempted to sell to another party. The defendant claimed the agreement was related to a loan transaction.

Findings of Court:
The trial Court granted specific performance, but the appellate court found the plaintiff did not prove readiness and willingness to perform the contract and set aside the decree, awarding the return of the advance amount instead.

Issues: The main issues were whether the sale agreement was intended for sale, whether the plaintiff was ready and willing to perform the contract, and entitlement to specific performance.

Ratio Decidendi: The court held that a registered document cannot be contradicted without substantial evidence, and the plaintiff's failure to demonstrate readiness and willingness negated her claim for specific performance.

Result: Appeal partly allowed; decree set aside; defendant ordered to return advance with interest.

JUDGMENT :

Challenging the decree and judgment passed in the suit filed for specific performance, the present appeal suit has been filed.

2. The parties are arrayed as per their own ranking before the trial Court.

3. It is the case of the plaintiff that she came to know through brokers that the defendant is going to sell the suit property. Accordingly, the plaintiff approached the defendant and the defendant agreed to sell the suit property for a total sale consideration of Rs.21 lakhs. The plaintiff had paid an advance of Rs.10 lakhs in instalments in the presence of witnesses. Thereafter, the suit agreement came to be registered on 28.10.2010. The defendant prayed one year time to execute the sale deed by producing all the parent deeds, patta, encumbrance certificate in respect of the suit property. The balance sale consideration to be paid in such time. Despite the defendant has agreed to hand over all the documents, he has not handed over the documents and defendant started adopting delaying tactics. Thereafter, the plaintiff came to know that the defendant is trying to sell the property to some other person. Therefore, the plaintiff had issued legal notice to the defendant calling upon her to receive the balance sale consideration and complete the sale. The plaintiff was always ready with the balance sale consideration. Hence, the suit.

4. The defence taken in the written statement to the effect that the plaintiff was running a chit business and the defendant was known to the plaintiff through her neighbour. The defendant subscribed a chit with the plaintiff. Thereafter, she borrowed a loan for the purpose of construction of a house in the suit property. For the said loan, the defendant had obtained signatures in blank papers. One such document has been used as a suit agreement. The defendants had also paid interest at the rate of Rs.25,000/- per month and they had paid interest for several months. Hence, opposed the suit.

5. On the basis of the above pleadings, the following issues have been framed by the trial Court :

1. Whether the sale agreement dated 28.10.2020 is true, valid and enforceable?

2. Whether the plaintiff is always ready and willing to perform the contract?

3. Whether the defendant borrowed loan from the plaintiff and as security gave the original deed as alleged?

4. Whether the defendant repaid the monthly interest of Rs.25,000/- per month for several months as alleged?

5. Whether the plaintiff is entitled to the decree as prayed for?

6. To what other relief, the plaintiff is entitled to?

6. On the side of the plaintiff, plaintiff examined herself as P.W.1 and Ex.A.1 to Ex.A.4 have been marked. On the side of the defendant, her husband has been examined as D.W.1 and no document has been marked on her side.

7. The trial Court considering entire evidence and documents granted specific performance. Challenging the same, the present Appeal Suit came to be filed.

8. The main contention of the appellant is that though the sale agreement is a registered one, the parties have never intended to sell the property. Infact, the said document has been executed in respect of a loan transaction. The denial by the party indicate that the agreement is not intended for sale of the property. As far as readiness and willingness is concerned, the same has not been established. The plaintiff has not come to the Court with clean hands. Hence, prayed to set aside the decree and judgment of the trial Court.

9. Whereas, it is the contention of the learned counsel for the respondent that the plaintiff has not entered into the witness box and only her husband has been examined as D.W.1. Further, while adducing additional evidence before this Court, D.W.1 has admitted that he is not aware of the nature of the contract. Therefore, it is his contention that once, a registered document has been executed, the defendant cannot take a contrary plea other than the contents of the documents. The trial Court after analysing entire documents has decreed the

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