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2025 Supreme(Mad) 5009

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
V.V. Ravikumar S/o V.S. Sai – Appellant
Versus
M. Vijayam W/o Late R.V. Mani – Respondent
Appeal Suit No. 509 of 2022, C.M.P. No. 18736 of 2022
Decided On : 17-07-2025

Advocates Appeared:
For the Appellant : N. Ramesh
For the Respondents: R. Prabakar, Bobblie, S. Kanmani Annamalai

A plaintiff seeking specific performance must demonstrate continuous readiness and willingness to perform their contractual obligations, and the agreement must be validly executed by all necessary parties.

Headnote:(A) Specific Relief Act, 1963 - Section 10 - Specific performance of a sale agreement - The appeal against the specific performance decree in O.S.No.34 of 2013 involves a dispute over a sale agreement dated 04.02.2011 involving land sale - The agreement was claimed to be a mere security for a loan, not an actual sale - The trial court found in favor of the plaintiff, but this judgment is overturned on appeal. (Paras 2, 30, 36)

(B) Readiness and Willingness - It was established that the plaintiff failed to demonstrate continuous readiness and willingness to perform the contract and did not file the suit in a timely manner - The concept of readiness and willingness is not limited to payment alone but encompasses intention and action to pursue the agreement. (Paras 26, 34)

Facts of the case:
The appellant appealed the trial court's decision granting specific performance of a sale agreement for property, which included conflicts over its enforceability, asserting that it was intended only as collateral for a loan. (Paras 1-3, 7)

Findings of Court:
The appeal court ruled the original sale agreement invalid due to lack of absolute title and insufficient demonstration of readiness and willingness by the plaintiff to complete the sale. (Paras 30, 36)

Issues: Key issues included whether the sale agreement was intended as actual sale versus collateral, the validity of the agreement due to lack of co-owner consent, and the readiness of the plaintiff to perform her part of the contract. (Paras 10, 18)

Ratio Decidendi: The court emphasized that for a suit of specific performance, a plaintiff must not only prove the agreement’s existence but also continuity in readiness and willingness to fulfill their obligations under the agreement. The agreement was deemed unenforceable due to procedural flaws regarding ownership. (Paras 26, 34)

Result: Decree for specific performance set aside; a decree for refund of the amount paid with interest is granted. (Paras 36)

Table of Content
1. background of the specific performance suit. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. defendants' contentions on the maintainability of the suit. (Para 8)
3. summary of issues and evidentiary submissions. (Para 10 , 11 , 12)
4. arguments regarding the validity and enforceability of the sale agreement. (Para 14 , 19 , 21)
5. plaintiff's readiness to perform per the contract discussed. (Para 15 , 23 , 25 , 26)
6. issues with co-ownership and the enforceability of the sale agreement. (Para 20 , 22 , 30)
7. judicial interpretation of 'readiness and willingness' in contextual terms. (Para 32 , 34)
8. final judgment and the order regarding refund and interest. (Para 36 , 37)

JUDGMENT :

G. JAYACHANDRAN, J.

1. The Appeal is directed against the decree for specific performance passed in O.S.No.34 of 2013 on the file of the District Judge, Nilgiris.

2. The subject matter of the suit is the sale agreement dated 04.02.2011 entered between the plaintiff Mrs.M.Vijayam (purchaser) and Mr.N.R.Rajan (vendor), in respect of 14.34 acres out of 10.43 acres of tea garden situated at Coonoor.

3. The averment in the plaint in brief are as follows:

The first defendant is the absolute owner of the suit property. He got the property through the family arrangement between himself and his family members. The first defendant offered to sell the property to the plaintiff free from all encumbrances for a total consideration of Rs.10,00,000/-. The plaintiff accepted the offer and entered into an agreement on 04.02.2011. The part of the sale consideration of Rs.5,00,000/- already paid in cash and the balance sale consideration of Rs.5,00,000/- was paid by cheque on the date of the agreement.

4. After agreement and passing of full consideration, the first defendant handed over the originals of title deeds, the death certificate of his mother, legal heir certificate, the chitta and a notarised affidavit from the father and sisters of the first defendant authorising the first defendant to sell the property. He has also executed a General Power of Attorney (GPA) as a mark of receiving the full consideration and giving power to deal with the property to one Mr.A.Krishnan. The said General Power of Attorney was registered on the same day at the Sub Registrar Office, Coonoor.

5. A period of three months time was fixed for completion of the sale transaction, subject to the demarcation of the property agreed to be conveyed and to put in possession of the plaintiff. However, on 4th May 2011, the first defendant sought further time till 30th April 2013 for demarcating the land and made an endorsement to that effect on the back of the sale agreement. Thus, it is evident that time was not the essence of the contract. The land proposed to be conveyed was demarcated in the month of October 2011 and handed over to the plaintiff on 30th October, 2011. The time to execute the sale deed was extended for further period and the same was duly endorsed in the sale agreement.

6. The plaintiff was always ready and willing to complete the sale transaction and was consistently approaching the first defendant, requesting him to execute the sale deed as agreed. However, the first defendant evading the request and neither came forward to give confirmation affidavit stating that the General Power of Attorney given to Mr.A.Krishnan is still in force and the approved life certificate for the plaintiff to get the sale deed registered through his Power Agent. The legal notice dated 27.04.2013, calling upon the first defendant to perform his part of sale agreement, was received by the first defendant without any demur. Hence, the suit was filed for specific performance of the agreement to execute the sale deed, or in alternate, for a direction to refund the sale consideration of Rs.10,00,000/- with interest at 12 % per annum.

7. After the institution of the suit, the plaintiff came to know that the first defendant had sold a larger extent of property including the suit property to third parties un

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