IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.GOVINDARAJAN THILAKAVADI, J.
Varadharajan @ Pandian – Appellant
Versus
Thayar – Respondent
S.A.No.531 of 2023 and C.M.P. No.16591 of 2023
Decided On : 02-02-2026
| Table of Content |
|---|
| 1. background of the second appeal regarding land sale. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7) |
| 2. decision criteria involving bonafide purchase and compensation. (Para 8 , 11 , 13) |
| 3. arguments regarding the bonafide purchase status. (Para 9 , 10) |
| 4. analysis on the unregistered document admissibility. (Para 12) |
| 5. final judgment and directives issued. (Para 14) |
JUDGMENT :
K.GOVINDARAJAN THILAKAVADI, J.
1. The present Second Appeal is preferred against the decree and judgment dated 25.10.2021 passed in A.S. No.5 of 2020, on the file of the II Additional District and Sessions Court, Chidambaram, confirming the Judgment and decree dated 05.09.2019 passed in O.S. No.89 of 2013, on the file of the Subordinate Court, Chidambaram.
2. The appellant herein is the 2nd defendant in the above suit. The respondent herein is the plaintiff in the suit. The parties will be referred to in the rank assigned to them in the suit for the purpose of convenience and clarity.
3. The plaintiff instituted the suit seeking for the relief of specific performance of the Agreement of Sale dated 05.07.2013 executed by the 1st defendant in favour of the plaintiff agreeing to sell the suit land.
4. The case of the plaintiff is that the suit property was agreed to be sold for total sale consideration of Rs.1,01,000/-. Towards the said amount, the plaintiff had paid a sum of Rs.20,000/- as advance and agreed to pay the balance amount of Rs.81,000/- within a period of one month and failing which the plaintiff is entitled to file a suit to get the sale deed executed. The plaintiff approached the 1st defendant several times within a stipulated period of one month to tender balance amount and requested him to execute the sale deed, but the 1st defendant evaded with an intention to defeat the rights of the plaintiff. On 16.08.2013, the plaintiff sent a legal notice calling upon the 1st defendant to receive the balance sale consideration and to execute the sale deed. Meanwhile, the 1st defendant sold the property to the 2nd defendant. The 1st and 2nd defendants colluded together and created a sale deed knowing fully well about the agreement between the plaintiff and the 1st defendant. Hence, the suit.
5. The 1st defendant remained ex parte. The 2nd defendant resisted the claim of the plaintiff and submitted that he purchased the suit property from the 1st defendant on 20.08.2013 for a proper sale consideration of Rs.65,700/-. After purchase by the 2nd defendant, the plaintiff, being the adjacent owner, created the suit sale agreement. Hence, prayed for dismissal of the suit.
6. The trial court, decreed the suit in favour of the plaintiff and the same was confirmed by the first appellate court.
7. Challenging the same, the present Second Appeal is filed by the 2nd defendant.
8. This Second Appeal is admitted on the following substantial question of law:
“Whether the courts below are right in arriving at the conclusion that the appellant is not an innocent bonafide purchaser by not properly appreciating the evidence on record and thereby, not granting him the protection under Section 19(b) of the Specific Relief Act.”
9. Mr.S. Subramaniya, the learned counsel for the appellant / 2nd defendant contends that the 2nd defendant is the bonafide purchaser without notice of the alleged agreement between the plaintiff and the 1st defendant. He contends that the entire transaction was entered into in a bonafide manner and the sale deed having been registered, the courts below erroneously held that the 2nd defendant has no locus standi to object the case of the plaintiff. He would further submit that the suit sale agreement is an unregistered and unstamped document fabricated by the plaintiff in order to defeat the right of the 2nd defendant. Moreover, in Ex.A2 legal notice, the plaintiff has stated that the entire sale consideration was paid to the 1st defendant. Whereas, in the plaint, it is mentioned that the plaintiff has paid a sum of Rs.20,000/- as advance and balance amount
K.N. Nagarajappa and others vs. H. Narasimha Reddy
Narayan Sitaramji Badwaik (dead) through Legal representatives vs. Bisaram and others
The court determined the bonafide status of the purchaser without notice and the necessity for the plaintiff to prove readiness and willingness for specific performance.
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.
The plaintiff's failure to prove readiness and willingness to perform the essential terms of the contract, as required by Sec. 16(c) of the Specific Relief Act, influenced the Court's decision to set....
The main legal point established in the judgment is the requirement for the plaintiff to prove the execution of the agreement of sale, payment of consideration, and continuous readiness and willingne....
The plaintiff must establish continuous readiness and willingness to perform a contract to be entitled to specific performance under Section 16(c) of the Specific Relief Act.
The court ruled that statutory rights of a bona fide purchaser prevail over equitable rights of an agreement holder in cases of specific performance, particularly in the absence of evidence proving r....
In a suit for specific performance, the plaintiff must demonstrate both readiness and willingness to perform the contract, and failure to do so within the stipulated time can bar the relief, regardle....
The court affirmed that specific performance can be granted when the execution of the sale agreement is proven and the plaintiff demonstrates readiness and willingness to perform their contractual ob....
Point of law: When cancellation may be ordered - (1) Any person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument, if left outstanding ma....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.