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2026 Supreme(Mad) 141

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, R.SAKTHIVEL, JJ.
K. Venkatachalam – Appellants
Versus
K. Revathi – Respondents
AS No. 30 of 2026 and CMP.No.568 of 2026
Decided On : 27-02-2026

Advocates Appeared:
For the Appellants : Mr. N. Manoharan
For the Respondents: Mr. Prakash Goklaney for Mr. P. Muralidharan

A valid agreement for specific performance requires clear intent and consistent evidence of readiness and willingness from the plaintiff to execute the contract, which was not established in this case.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Code of Civil Procedure, 1908 - Section 96 - Appeal against specific performance decree - The court considers multiple agreements for sale made with respect to a property - The plaintiff asserts that several payments were made towards a sale agreement, while defendants contended that these transactions were loan agreements disguised as sales. The case revolves around the validity of these documents and the plaintiff's readiness to perform. (Paras 1-20)

(B) Sale Agreement - The intention behind multiple agreements is questioned - The Court emphasizes the need for consensus ad idem and voluntary execution of agreements for them to be enforceable. (Paras 8, 18)

(C) Readiness and Willingness - The court finds that the plaintiff failed to prove consistent readiness and willingness to perform his part of the contract, leading to doubts about entitlement to specific performance. (Paras 10, 18)

Facts of the case:
The plaintiff claims she entered into multiple agreements to sell land with the defendants, providing a total of Rs.50,00,000/- towards the sale, but faced delays and disputes concerning the nature of these agreements. The defendants argue that they were merely loan transactions disguised as sale agreements, citing evidence of the plaintiff's financial background and the manner of document execution.

Findings of Court:
The trial court was found to misdirect itself in decreeing the suit; the appeal is allowed, the prior decree set aside and an alternate deed for the return of the sum paid with interest granted.

Issues: 1. Existence of a contract of sale; 2. Nature of transactions; 3. Loan repayment clarification; 4. Plaintiff's willingness to perform; 5. Entitlement to specific performance.

Ratio Decidendi: Documents signed bear evidence suggesting they initially intended for loan transactions rather than sale—showing inability to establish a valid contract under Section 16(c) of the Specific Relief Act, which stipulates conditions for specific performance persisting readiness and willingness.

Result: Appeal allowed and the prior decree set aside, with an alternative relief awarded for the return of the advance payment.

Table of Content
1. details of the agreements and transactions (Para 2)
2. arguments of the appellant regarding loan transaction (Para 4 , 5 , 6)
3. issues framed by the trial court (Para 8 , 9)
4. court observations on agreements and execution (Para 11 , 12)
5. prohibited evidence regarding the agreements (Para 15 , 16)
6. court's findings on repayment and entitlements (Para 18 , 19)
7. final order and decree (Para 20 , 21)

JUDGMENT :

N.Sathish Kumar, J.

1. Challenging the decree and judgment of the Trial Court decreeing the suit for specific performance to execute sale deed in favour of the plaintiff in respect of the suit property, the present appeal has been filed by the defendants.

2. Brief facts in filing this appeal suit are as follows:-

2.a. It is the case of the plaintiff that the first defendant has agreed to sell all the piece and parcel of land to an extent of 76 cents comprised in S.No.111/2 of No.84, Pudupatti Village, Pappireddipatti Taluk, Dharmapuri District together with customary right of way on the western side less the land if any, acquired in future by the Highways Department of Tamil Nadu for road widening. The sale consideration fixed in the agreement was computed at Rs.1,60,000/- per cent totalling Rs.1,23,20,000/- for the above land of an extent of 76 cents as per documents and 77 cent as per Patta No.274 comprised in S.No.111/2. An initial advance of Rs.11,50,000/- was paid by the plaintiff to the first defendant in cash and as per the agreement, the plaintiff agreed to pay a further advance of Rs.13,50,000/- within 40 days from the date of this agreement and further advance of Rs.25,00,000/- within three months from the date of this agreement. The plaintiff paid the sum of Rs.13,50,000/- in two instalments of Rs.10,00,000/- on 18.04.2020 and Rs.3,50,000/- on 05.05.2020 respectively and the same has been endorsed by the first defendant in the presence of other defendants and witnesses including the power agent of the plaintiff. The balance of Rs.98,20,000/- was payable within 1 year from the date of agreement against registration of the deed of sale and possession being handed over. Later at the request of the defendants on 10.08.2020, a further advance of Rs.21,00,000/- was paid by thy plaintiff. Accordingly, the plaintiff has paid a total sum of Rs.46,00,000/- out of total sale consideration of Rs.1,23,20,000/- as on 10.08.2020. In these circumstances, the defendants executed a similar agreement for sale dated 10.08.2020 in favour of the plaintiff under which the defendants confirmed that the sale consideration in the first agreement and agreed to execute the sale within 192 days from the date of agreement for sale dated 10.08.2020 (2nd agreement for sale). On 07.10.2020, the plaintiff also paid a sum of Rs.4,00,000/- which is also endorsed by the defendant. Accordingly, the plaintiff has paid totally paid a sum of Rs.50 lakhs in entirety towards the sale consideration out of total sale consideration of Rs.1,23,20,000/- as on 07.10.2020.

2.b. The defendant once again on 17.02.2021 executed a further similar agreement for sale in favour of the plaintiff reiterating the terms and conditions of the earlier two agreements. On 15.02.2021, when the plaintiff informed that she was ready to pay the balance sale consideration and complete the purchase, the defendants informed the plaintiff that vide Order No.N.K.51/2021/B2, the Tahsildar inter-alia banned the registration of the sale of the above property and as such the defendant could not execute or register the sale of the property. Later with the intervention of local people known to them, it was agreed between the plaintiff and the defendant that they have to wait till the Tahsildar lifted the said ban and the defendant should execute the deed of sale in favour of the plaintiff, within the six months from the date of agreement dated 17.02.2021, i.e., on or before 16.08.2021. It was also agreed that in the event of ban not being lifted by the Government within the s

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