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2024 Supreme(Online)(Mad) 78008

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P. VADAMALAI, J.
Periya Samy – Appellant
Versus
Vijaya Kumar (Died) – Respondent
S.A(MD)No.53 of 2017, C.M.P(MD)No.1153 of 2017
Decided On : 09-09-2024
 

Advocates Appeared:
For the Appellant : Mr.G.Gomathi Sankar
For the Respondent: Mr.S.Balakarthick, Mr.C.Senthil Murugan

Unilateral cancellation of a registered gift deed is invalid; valid title is essential for specific performance, and admissions of readiness by parties fulfill evidentiary requirements for relief.

Headnote:(A) Specific Relief Act, 1963 - Section 20 - Transfer of Property Act, 1882 - Sections 122, 123, and 126 - Suit for specific performance - Plaintiff filed suit for specific performance of a sale agreement and was originally awarded relief by trial court - Defendants claimed cancellation of the gift deed executed in favor of the plaintiff's vendor - The court upheld the validity of the gift deed stating unilateral cancellation by the donor was invalid - Unilateral cancellation of a registered deed does not hold merit in law. (Paras 14-21)

(B) Subsequent Purchasers - Good faith and Marketable Title - Subsequent purchasers cannot anchor rights on an invalidated deed of cancellation - Validity of title must exist at point of sale; incorrect claim leads to denied relief of specific performance. (Paras 18-21)

Facts of the case:
The plaintiff entered into a sale agreement with the first defendant regarding a property originally owned by the first defendant's mother, who executed a gift settlement deed in favor of the first defendant. The first defendant collaborated with her family to nullify the gift deed and convey the property to subsequent defendants without honoring the sale agreement with the plaintiff. (Paras 4-6)

Findings of Court:
The trial court's judgment was maintained, asserting the plaintiff's entitlement to specific performance based on the acknowledged and valid sale agreement, rejecting the assertion that the first defendant lacked title or was not ready to perform. (Paras 8-9, 12, 22)

Issues: 1) Whether the sale agreement was valid. 2) Whether the first defendant had the title to execute the sale deed. 3) Validity of the gift deed's cancellation was raised. (Paras 10)

Ratio Decidendi: The courts elaborated upon the principles of readiness and willingness required for specific performance, defining the invalidity of unilateral cancellations and reaffirming the claimant's established rights through understood agreements—emphasizing evidentiary weight of defendant's admissions. (Paras 14, 16, 21)

Result: Second Appeal dismissed; judgments of lower courts confirmed. (Paras 22)

Table of Content
1. factual background of the property dispute. (Para 1 , 2 , 4 , 5 , 6)
2. observations on trial court findings. (Para 8 , 9 , 10 , 14)
3. arguments regarding the validity of the sale agreement. (Para 11 , 12 , 16 , 17)
4. legal analysis of the validity of the gift deed. (Para 15 , 20 , 21)
5. conclusion and dismissal of the appeal. (Para 22 , 23)

JUDGMENT :

P.VADAMALAI, J.

This Second Appeal is preferred against the judgment and decree, dated 24.08.2016 passed in A.S.No.68 of 2015 on the file of the Principal District Court, Dindigul, confirming the judgment and decree, dated 30.10.2015 passed in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur.

2. The appellants are defendants 3 and 4 and the respondents 1 to 3 are the plaintiff and defendants 1st & 2 in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur. The 1st respondent/plaintiff filed the suit for specific performance directing the 1 defendant to execute sale deed after receiving the balance sale consideration of Rs.55,000/- in respect of the suit property.

3. For the sake of convenience, the parties referred as plaintiff and defendants as arrayed in O.S.No.97 of 2013 on the file of the Sub Court, Vedasandur.

4. Case of the plaintiff:

The suit property originally belonged to the first defendant’s mother Marudayammal. Marudayammal purchased the suit property from Ellammal and another by virtue of a registered sale deed, dated 09.04.1999. Then, Marudayammal gifted the suit property to the first defendant by executing unconditional gift settlement deed, dated 09.09.2011. The plaintiff and the first defendant entered into a sale agreement, dated 27.10.2012 regarding the suit property for a total sale consideration of Rs.1,30,000/- (Rupees One lakh thirty thousand only) and a sum of Rs.75,000/- (Rupees Seventy five thousand only) was paid as advance. The time for completion of sale deed was fixed as six months. The plaintiff was ready and willing to pay balance and get the sale deed executed, but, the first defendant had been evading to receive the balance sale consideration and register the sale deed. The plaintiff issued a legal notice, dated 22.04.2013. The first defendant sent a reply admitting the sale agreement, sale consideration and receipt of advance sale amount. However, the first defendant informed that her mother Marudayammal cancelled the gift settlement deed and sold the suit property to 2nd defendant, who in turn sold the same to defendants 3 and 4. The first defendant also informed that his brother forcefully evicted the first defendant and captured all the original deeds and hence, he lodged a police complaint. The plaintiff further learnt that in order to avoid the execution of sale deed, the first defendant colluded with her mother and defendants 2 to 4 cancelled the gift settlement deed and executed the sale deed. Hence, the suit.

5. Case of the 1st Defendant :

The first defendant admitted the sale agreement, dated 27.10.2012 entered into with the plaintiff. Despite the plaintiff attempted to pay the balance sale consideration, due to existence of family dispute the first defendant was unable to receive the balance and execute the sale deed. Without knowledge of the first defendant, her brothers and her mother Marudayammal cancelled the gift settlement deed executed in favour of the 1st defendant and sold the suit property to 2nd defendant, who in turn sold to defendants 3 and 4. The brothers forcibly evicted the first defendant from the suit property and took away all the original deeds. The first defendant is always ready and willing to execute the sale deed but in the absence of all the originals she is unable to perform her part of contract. The suit is to be dismissed.

6. Case of the defendants 2 to 4:

It is true that the suit property belonged to Marudayammal, mother of the first defendant, by virtue of sale deed, dated 09.04.1999. But she had not executed a gift deed to the first defendant on 09.09.2011. The first defendant asked

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