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2026 Supreme(Mad) 295

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K. Govindarajan Thilakavadi, J.
P. Dharmichand - Appellant
Versus
C.M. Kamal Kamala Bai (since deceased) - Respondent
S.A.No.950 of 2021 and C.M.P. Nos.18024 of 2021, 2097 of 2022 and 4461 of 2022
Decided On : 10-02-2026

Advocates Appeared:
For the Appellant :Mr. E.Om Prakash, Senior Advocate for Mr. E. Senthilkumar of M/s. Sampathkumar and Associaties
For the Respondent: Mr. K.V. Ananthakrushnan

The court affirmed that the burden of proving forgery lies with the party alleging it and upheld the validity of the sale agreement, reinforcing principles of specific performance in contract law.

Headnote:(A) Specific Relief Act, 1963 - Sections pertinent to specific performance of contracts - Alleged agreement for sale - Plaintiff claimed specific performance of a contract, supported by evidence of payment of advance - Defendants contended the alleged agreement was forged and denied its execution - Courts upheld the enforceability of the agreement despite defendants' claims. (Paras 5, 10)

(B) Burden of Proof - The burden lies on the party alleging forgery to prove it; the defendants failed in this duty - The conduct of the 1st defendant, including failing to testify, led to adverse inferences against them. (Paras 10)

Facts of the case:
The plaintiff entered into a sale agreement with the 1st defendant for property worth Rs.7,70,000/-; the 1st defendant later sold the property to the 2nd defendant, claiming he was a bonafide purchaser without notice of the previous agreement. The plaintiff sought specific performance after the 1st defendant refused to execute the deed upon payment of the advance amount. The courts ruled in favor of the plaintiff, establishing valid execution of the sale agreement. (Paras 2, 3.1, 10)

Findings of Court:
The lower courts concluded that the plaintiff proved the sale agreement's validity and upheld the specific performance, rejecting the defendants' claims of forgery and non-execution. (Paras 10)

Issues: The main question addressed was whether the courts erred in granting specific performance despite the 2nd defendant’s claim of being a bonafide purchaser without notice. (Para 5)

Ratio Decidendi: The court found the 2nd defendant failed to prove he was a bonafide purchaser without notice. The execution of the agreement was supported by both documentary and testimonial evidence provided by the plaintiff. The court ruled that the failure of the 1st defendant to testify led to an adverse inference against them. (Para 10)

Result: The Second Appeal is dismissed. No costs.

Table of Content
1. details of the contract and related disputes (Para 1 , 2 , 3)
2. appellate and legal proceedings overview (Para 4 , 5 , 6)
3. arguments from both parties regarding sale agreement execution (Para 7 , 8)
4. judicial reasoning and consideration of evidence (Para 9)
5. final judgment and confirmation of previous court rulings (Para 10 , 11)

JUDGMENT :

K. Govindarajan Thilakavadi, J.

This Second Appeal is preferred as against the decree and judgment dated 15.03.2021 passed in A.S. No.25 of 2018, on the file of the II Additional District Court, Vellore @ Ranipet, confirming the Judgment and decree dated 23.07.2018 passed in O.S. No.168 of 2010, on the file of the Sub Court, Ranipet, Vellore.

2. The present Second Appeal is preferred by the 2nd defendant in the above suit. The 1st respondent as plaintiff filed the above suit for specific performance of contract of sale agreement and alternatively to refund the advance amount of Rs.2,75,359/- to the plaintiff by the defendants together with future interest at 18% per annum and for costs.

3. The facts leading to filing of the above suit are as follows:

3.1. The 1st defendant is the absolute owner of the suit property. She entered into a sale agreement with the plaintiff to sell the suit property for a valid consideration of Rs.7,70,000/- on 18.04.2008 to meet out her medical expenses. On the date of agreement, the 1st defendant received a sum of Rs.2,70,000/- and agreed to receive the balance amount of Rs.5,00,000/- at the time of registration of sale deed. Since the 1st defendant had to undergo heart surgery, no time was stipulated for the execution of the sale deed. The plaintiff is always ready and willing to perform his part of contract to pay the balance consideration of Rs.5,00,000/- and to get the sale deed in his favour. But the 1st defendant evaded to perform her part of contract. Hence, a legal notice was issued on 25.05.2009 calling upon the 1st defendant to execute the sale deed on receipt of the balance sale consideration on or before 10.06.2009. The 1st defendant sent a reply on 28.05.2009 with false allegations and also stated that she had sold the property to the 2nd defendant. Both the defendants colluded together and brought out the alleged sale deed in favour of the 2nd defendant to avoid the sale agreement in favour of the plaintiff and to defeat his valuable rights. Hence, the suit.

3.2. The claim of the plaintiff is resisted by the defendants stating that, the 1st defendant never executed the suit sale agreement in favour of the plaintiff and received any amount as advance. The plaintiff is in possession of the suit property only as a tenant under the defendant. The alleged agreement is a forged and created with an intention to grab the property from the defendants. The 1st defendant has already sold the property to the 2nd defendant in the month of January 2009 and therefore, the question of execution of any sale deed in favour of the plaintiff does not arise. The 2nd defendant is a bonafide purchaser for valid consideration and without notice of the alleged fraudulent agreement dated 18.04.2008. The 2nd defendant is not liable to execute any sale deed in favour of the plaintiff, since there is no contract between them. Hence, the sale agreement cannot be enforced as against the 2nd defendant. Hence, prayed for dismissal of the suit.

4. Based upon the materials on record, the trial court granted the decree of specific performance of contract in favour of the plaintiff. Aggrieved by this, the 2nd defendant preferred the appeal suit in A.S. No.25/2018 and the 1st defendant preferred the appeal suit in A.S. No.14/2019. The first appellate court dismissed the above appeal suits. Challenging the judgment and decree passed in A.S. No.25/2018, the present Second Appeal is preferred by the 2nd defendant.

5. The Second Appeal has been admitted on the following substantial question of law:

“Whether decreeing the suit for specific performance by the courts below, witho

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