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2026 Supreme(Mad) 246

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V.KARTHIKEYAN, K.KUMARESH BABU, JJ.
P. Ramakrishnan, (died) – Appellant
Versus
V. Arumugam – Respondent
AS No. 548 of 2018 and CMP No.13921 of 2018
Decided On : 12-02-2026

Advocates Appeared:
For the Appellant: Mr. N. Manokaran
For the Respondent: Mr. P. Valliappan, Senior Counsel For Mr. N. Loganathan.

The court affirmed that a party's denial of an agreement's execution precludes them from claiming non-performance when readiness to perform has been established, resulting in a right to specific performance.

Headnote:(A) Code of Civil Procedure, 1908 - Order 41 Rule 1 r/w Section 96 - Specific performance of contract - Plaintiff sought direction for execution of sale deed denied by the trial court, but alternate relief granted. - Appellant contended he was ready and willing to perform the agreement. Court found the authenticity of the agreement established, and defendants’ denial of execution was proven to be false, warranting specific performance. (Paras 21, 30)

(B) Contract law - Breach of contract - The essence of time can be extended where one party denies the agreement's execution; appellant cannot be non-suited for not paying further advances prior to lawsuit due to fraud by defendants. (Paras 28, 30)

Facts of the case:
The plaintiff, having paid a total advance of Rs.9,50,000/- towards a sale agreement for a property valued at Rs.27,00,000/-, filed a suit for specific performance claiming the defendants delayed executing the sale deed. The trial court denied specific performance, granting only refund of the advance amount. The defendants denied the agreement's execution, claiming the plaintiff was not willing to perform his part.

Findings of Court:
The court found the unregistered and registered agreements valid based on forensic evaluation, affirming the signatures belonged to the defendants. It concluded that the denial of the agreement was unfounded and the payment of further advance was conditional on the defendants’ stance.

Issues: The main issue was whether the appellant was ready and willing to perform his part of the agreement given the defendants' conduct and denial of execution.

Ratio Decidendi: The court ruled that since the defendants denied the agreement's execution and the plaintiff was forced to establish the validity through trial, time could not be seen as the essence of the agreement, thus allowing specific performance.

Result: Appeal allowed; specific performance directed.

Table of Content
1. plaintiff's claims and facts about the sale agreement. (Para 3 , 4 , 5 , 6 , 7)
2. arguments by defendants against the agreement. (Para 9 , 10)
3. analysis of evidence regarding agreement's validity. (Para 14 , 15 , 16 , 17)
4. court's review of trial findings and agreement execution. (Para 20 , 21 , 22 , 23)
5. conclusions on specific performance and appeal. (Para 27 , 28 , 29 , 30)
6. court's ruling on specific performance granted. (Para 31)

JUDGMENT :

C.V. Karthikeyan J.

The plaintiff in O.S.No.212 of 2012, on the file of the IV Additional District Court at Bhavani, aggrieved by the judgment dated 27.03.2018 had filed the present Appeal Suit.

2.Pending the appeal, the plaintiff / appellant died and his legal representatives had been brought on record.

3.O.S.No.212 of 2012 had been filed seeking a direction against the defendants 1, 2 and 3 to execute sale deed in favour of the plaintiff for a sum of Rs.27,00,000/- with respect to the suit property after receiving the balance sale consideration and on failure, for the Court to execute the sale deed and to put the plaintiff in lawful possession of the suit property or in the alternate to refund of the advance sale consideration together with interest. By judgment dated 27.03.2018, the relief of specific performance was denied and the alternate relief of payment of advance amount had been granted. Challenging that judgment, the Appeal Suit had been filed.O.S.No.212 of 2012 (IV Additional District Court, Bhavani):

4.In the plaint, it had been contended that the suit property consisting of vacant land of 13,200 sq.ft. (0.30 cents) at Pachampalayam Village, Bhavani Taluk, belonged to the 1st defendant, V.Arumugam who had been allotted the same under a partition deed dated 26.02.1998. The 2nd and 3rd defendants are the sons of the 1st defendant. The 1st, 2nd and 3rd defendants had offered to sell the said suit property for a total sale consideration of Rs.27,00,000/- to the plaintiff and an unregistered agreement of sale was executed on 24.09.2009 and an advance of Rs.6,00,000/- had been paid towards part sale consideration. The plaintiff had earlier paid a sum of Rs.50,000/- as advance which had also been reduced into writing on 03.09.2009. Thereafter, a registered agreement of sale was entered into with the plaintiff and the 4th and 5th defendants on one part and the 1st, 2nd and 3rd defendants on the other part on 01.10.2009. The 4th and 5th defendants were added as necessary parties for proper adjudication of the case. The time stipulated for performance of the contract was one year under the unregistered agreement of sale. It was contended that possession had also been handed over to the plaintiff. It was also contended that the cart track running East to West ending with the Panchayat Road had not been formed and handed over to the Panchayat. In view of that particular fact, the sale deed had not been executed by the 1st, 2nd and 3rd defendants who delayed execution of the sale deed giving one reason or the other.

5.It was contended that a further advance was paid on 23.12.2009 for a sum of Rs.1,50,000/- and an endorsement was made on the agreement dated 24.09.2009. A further advance of Rs.2,00,000/- was paid on 23.03.2010 and this again was endorsed in the agreement of sale deed dated 24.09.2009. Thereafter, the 3rd defendant had been hospitalized and the 1st and 2nd defendants stated that they would obtain his signature after he recovered from his illness. It was contended that the plaintiff had paid a total advance of Rs.9,50,000/- to the 1st 2nd and 3rd defendants. It was further contended that the plaintiff was ready and willing to pay balance sale consideration.

6.It was further contended that the 1st , 2nd and 3rd defendants were attempting to alienate the suit property to third parties necessitating the plaintiff to issue a legal notice on 27.08.2012 calling upon them to perform their part of the agreement. The 1st and 2nd defendants had received the notices. T

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