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2026 Supreme(Mad) 738

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, R.SAKTHIVEL, JJ.
M. Ismail – Appellant
Versus
K.M. Abdul Rahim Mohideen – Respondent
A.S. No. 403 of 2022, C.M.P. No. 14388 of 2022
Decided On : 07-01-2026

Advocates Appeared:
For the Appellants : V. Raghavachari, N. Umapathi
For the Respondents: Ramaswamy Meyyappan

Proof of continuous readiness and willingness is essential for specific performance; failure to demonstrate such readiness undermines entitlement to equitable relief.

Headnote:(A) Specific Relief Act - Section 16 - Specific performance - Contractual agreement for sale - Defendants executed a registered sale agreement receiving an advance, stipulating a timeline for completion - Plaintiff alleged readiness to perform, yet suit filed after significant delay without explanation - Court relies on time stipulation in assessing readiness and willingness. (Paras 6, 12, 13)

(B) Time is not the essence of the contract - While time can be stipulated, its breach does not automatically extinguish the agreement if other conditions aren't met - Yet, proof of continuous readiness and willingness remains essential for relief in specific performance. (Paras 12, 13)

Facts of the case:
The plaintiff agreed to purchase property for Rs.35,00,000/- under a sale agreement executed on 29.09.2015 and paid Rs.25,00,000/- as advance. Allegations arose regarding defendants not fulfilling their end of clearing mortgage debts which prompted legal actions. (Para 4)

Findings of Court:
The court concludes the plaintiff failed to demonstrate required readiness and willingness for specific performance; instead, a refund of the advance with interest is granted based on the delay and circumstances. (Paras 14, 13)

Issues: The court examined the plaintiff's entitlement to specific performance versus merely receiving a refund, focusing on the readiness and willingness to complete the sale. (Paras 12, 13)

Ratio Decidendi: A plaintiff must establish continued readiness and willingness to perform under auspices of a contract to seek specific performance; mere delay and lack of action undermined their claim. (Paras 6, 12, 14)

Result: The appeal is allowed; trial court's decree for specific performance is set aside, and a refund is granted with interest. (Paras 14)

Table of Content
1. the parties in the appeal. (Para 1 , 2 , 3)
2. plaintiff's case on the sale agreement. (Para 4)
3. defendants' denial and claim of loan. (Para 5)
4. issues framed by the trial court. (Para 6)
5. evidence presented during trial. (Para 7)
6. defendants challenging the trial court's decree. (Para 8)
7. arguments by defendants' counsel. (Para 9 , 10)
8. arguments by plaintiff's counsel. (Para 11)
9. key issues arising for court consideration. (Para 12)
10. court's reasoning on plaintiff's readiness and willingness. (Para 13)
11. court's final judgment and order. (Para 14)

JUDGMENT :

N. SATHISH KUMAR, J.

1. Challenging the judgment and decree of the Trial Court decreeing the suit for specific performance, the present appeal has been filed by the unsuccessful defendants.

2. The defendants in O.S.No.110 of 2017, on the file of the Principal District Court, Villupuram, are the appellants herein and the plaintiff in the said suit is the respondent herein.

3. For the sake of convenience, the parties are referred to as per their rankings in the trial Court.

4. The brief fact of the plaintiff’s case is as follows :-

The case of the plaintiff is that the defendants agreed to sell the suit property for a total sale consideration of Rs.35,00,000/- and executed a sale agreement dated 29.09.2015, receiving a sum of Rs.25,00,000/- as advance. It was agreed between the parties that the sale transaction shall be completed within a period of four months. Though a time limit of four months was stipulated, time was not the essence of contract. The defendants also undertook to clear the mortgage debts due to Sriram City Union Finance Ltd., out of the advance amount paid by the plaintiff and thereafter, agreed to execute the sale deed in respect of the suit property, free from all encumbrances. The plaintiff was always ready and willing to perform his part of the contract by paying the remaining balance sale consideration of Rs.10,00,000/- to the defendants. (ii) On 23.01.2016, the plaintiff issued a legal notice expressing his readiness to pay the balance sale consideration. Though the defendants received the said legal notice on 25.01.2016, they neither sent any reply nor complied with the demand. The plaintiff’s power of attorney holder also insisted the defendants to clear their debts due to Sriram City Union Finance Ltd., and to execute the sale deed. However, the defendants deliberately delayed the execution of the sale deed. Hence, the suit came to be filed.

5. The defendants, in his written statement, denied the agreement of sale:

(i) It is the contention of the defendants that first defendant is running a famous bed mart in Villupuram Town and that the property is a multi-storeyed building. As their creditors insisted on payment of the borrowed amount, the defendants borrowed a sum of Rs.20,00,000/- from the plaintiff. According to the defendants, the plaintiff insisted upon the execution of a sale agreement as security for the said loan and accordingly, the alleged agreement of sale was executed.

(ii) It is further contended by the defendants that there was no agreement for sale, and that the document was executed only in connection with the loan transaction. Even after issuance of the legal notice, the defendants met the plaintiff and the plaintiff assured them that he would not take any action based on the legal notice. Believing his words, the defendants did not send any reply to the legal notice. Hence, the defendants prayed for dismissal of the suit.

6. Based on the pleadings, the Trial Court framed the following issues:-

1. Whether the plaintiff is entitled to get specific performance as prayed for?

2. Whether the sale agreement executed for security for loan as alleged by the defendants ?

3. To what other relief.?

7. On the side of the plaintiff, the Power of Attorney of the plaintiff has been examined as P.W.1, and one Noormohamed, one of the attesting witness in the sale agreement was examined as P.W.2. and four documents were marked a E

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