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2025 Supreme(Mad) 4534

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
M/s. Club Pioneer (India) Pvt Ltd, Rep. by its Director, Mr. Sarath Kakkumanu – Appellant
Versus 
Deluxe Tools And Moulders, A Partnership firm, Rep. by its Partners and Ors. – Respondents
A.S.Nos.543, 544 and 546 of 2024 and C.M.P. Nos.16393, 28391, 28296, 29299, 16405, 28292, 29301, 16474, 28288 of 24 & 593, 594, 335 of 25.
Decided On : 25-06-2025 

Advocates Appeared:
For the Appellants : Mr. P.R. Raman, Senior Counsel for M/s. Abitha Banu.
For the Respondents: Ex-parte in Lower Court, Mr. R. Srinivas, Senior Counsel for Mrs. Mythili Srinivas, M/s. Rita Chandrasekar for Aiyar & Dolia.

The court established that lack of evidence for readiness and willingness to perform contractual obligations resulted in the dismissal of specific performance claims, as well as any requests for refunds due to limitations.

Headnote:(A) Specific Relief Act, 1963 - Sections 10, 14 and 16(1) - Code of Civil Procedure, 1908 - Order II Rule 2 - Dismissal of suits for specific performance due to lack of readiness and willingness - Plaintiffs failed to prove their explicit intent to perform contractual obligations or demonstrate readiness within stipulated timeframe - Contracts not executed due to seller's inability to fulfill conditions precedent. (Paras 1, 3, 10, 11, 23)

(B) Limitation - The suit for specific performance filed after a considerable delay, post-repudiation of the contract, is held barred by limitation as per principles under Order II Rule 2 - Claims for alternate relief of refund of advance also dismissed due to the same limitation. (Paras 25, 26)

(C) Evidence - Absence of evidence showing any willingness on part of the plaintiffs to proceed with the agreement after repudiation signifies a failure to establish grounds for specific performance - Inconsistencies in pleadings regarding possession damage credibility and entitlement to relief. (Paras 27, 23)

Facts of the case:
Plaintiffs entered into agreements for the purchase of land but sellers failed to fulfill obligations, leading to time exceeding the original four-month limit. The defendants later sold the property to a third party despite the agreements.

Findings of Court:
The trial court found that the plaintiffs were not ready or willing to perform the contract, leading to the dismissal of their suits for specific performance and the rejection of subsequent claims for refund on grounds of limitation.

Issues: Main issues included the readiness and willingness of the plaintiffs to perform the agreements, limitation, and whether suits were maintainable under procedural rules.

Ratio Decidendi: The court specified that mere part payments do not establish willingness; readiness must be evidenced, and the original contract obligations were not fulfilled. The agreement was repudiated before the suits were filed, rendering them time-barred.

Result: Appeals dismissed.

Table of Content
1. overview of the contractual agreements and issues. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. defendants' challenge against plaintiffs' claims. (Para 8 , 10)
3. court's consideration of readiness and willingness. (Para 9 , 11 , 13)
4. requirements for specific performance established. (Para 12 , 14 , 16 , 17 , 18)
5. lack of evidence undermines plaintiffs' claims. (Para 19 , 21 , 22 , 23 , 24 , 25)
6. dismissal of suits due to limitation and lack of evidence. (Para 26)
7. inconsistencies in pleadings affect credibility. (Para 27 , 28)

JUDGMENT :

(G. JAYACHANDRAN, J.)

The suits for specific performance filed by these three appellants against the vendors, who are common to all three suits, but had sold their land in three separate parts to the appellants, were dismissed by the Trial Court through a common judgment. Hence, these three appeals have been filed.

2. Brief facts for better understanding of the dispute:

The property in question, comprised in R.S.No.7 and 8/2 (Part) T.S.No.11/7, Door No.23/1, Block No.11 at Nelson Manickam Road, Vada Agaram No.173, Madras-29 within the Registration Sub District of Kodambakkam and Registration District of Madras, measuring a total of 3 grounds and 1800 sq.ft., was owned by M/s. Delux Tools and Moulders, a partnership firm represented by its partners, including Mr.O.M. Shahul Hameed, O.M. Syed Ahmed and O.M.S Ahmed Ibrahim. On 04.09.1996, the following three plaintiffs entered into separate sale agreements with defendants 1 to 4, who are common to all three suits:

1. Ms.Nisha Pritha Kakkumanu, plaintiff in O.S. No.12016 of 2010, agreed to purchase 2,796.1 sq.ft. of land for a total consideration of Rs.24,00,000/-, and paid Rs.1,00,000/- as advance.

2. Mr.Sarath Kakkumanu, plaintiff in O.S. No.12149 of 2010, agreed to purchase 2,520.65 sq.ft. of land for Rs.24,00,000/-, and paid Rs.13,00,000/- as advance.

3. M/s.Club Pioneer (India) Private Limited, plaintiff in O.S. No. 13637 of 2010 (represented by its Director, Mr. Sarath Kakkumanu, also the plaintiff in O.S. No. 12149 of 2010), agreed to purchase 3,683.25 sq.ft. of land for Rs. 24,00,000/-, and paid Rs. 1,00,000/- as advance.

As per the agreements, the time for performance was fixed at four months, subject to the vendors (defendants 1 to 4) handing over vacant possession and producing the Income Tax Clearance certificate before registration.

3. However, the time frame could not be adhered to, as:

• The title documents were hypotheticated with the Kilpauk Benefit Fund.

• The property was in possession of tenants.

• The defendants were unable to redeem the property or obtain possession or documents, thereby failing to fulfill the contract conditions.

Initially, time was treated as the essence of the contract. However, the defendants continued to receive part payments from the plaintiffs on different dates, indicating that both parties treated time as non-essential. Meanwhile, the defendants, along with adjacent landowners such as Saral Beevi and others, applied to the MMDA for reclassification of the land from residential to commercial use. This request was made first in 1997 and again in 2000.

4. Despite ongoing payments and willingness on the part of the plaintiffs to perform their contractual obligations, the defendants failed to:

• Obtain the income tax clearance certificate,

• Vacate the tenants from the suit property,

• Retrieve the title documents from Kilpauk Benefit Fund.

While matters stood thus, on 10.03.2001, the defendants entered into a transaction with the 5th defendant, selling the entire property, measuring 3 grounds and 1800 sq.ft., along with the building, by executing a sale deed in his favour vide Document No. 2475 of 2001. The 5th defendant purchased the property with full knowledge of the plaintiffs’ prior agreements. He purchased the property without any benefit on his part just to divide the interest of the plaintiffs.

5. After executing the sale deed, the defendants withdrew the MMDA reclassification proposal. As a result, the pl

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