Where a vendor admits the execution of a sale agreement and the receipt of significant advance consideration, the vendee is entitled to specific performance unless the vendor proves effective discharge of the contract. Time is not of the essence where the vendor has failed to fulfill auxiliary contractual obligations.

JUDGMENT :

C.V.KARTHIKEYAN, J.

The defendant in O.S.No. 25 of 2010 on the file of II Additional District Court at Ranipet is the appellant herein.

2. The said suit in O.S.No.25 of 2010 had been filed by the respondents seeking a direction against the defendant to execute a sale deed conveying the suit schedule properties to the plaintiffs for a sum of Rs.1,10,00,000/- on receipt of the balance sale price of Rs.8,00,000/- and in case of failure, for the Court to execute such sale deed and deliver possession of the suit properties to the plaintiffs and for permanent injunction restraining the defendant from alienating the suit properties and for costs of the suit.

3. The suit properties as described in the schedule to the plaint was land measuring 38,400 sq.ft., together with buildings, 5 shops, rice mill, 2 HP electric motor starters and electricity service connections at S.No. 148/115, Gandhi Road, Arakkonam Town, Vellore District, now Ranipet District. By Judgment dated 31.07.2015, the suit was decreed with costs directing the defendant to execute the sale deed after receiving the balance sale consideration of Rs.8,00,000/-. A further direction was issued to the plaintiffs to pay the balance sale consideration within two months from the date of decree and to the defendant to execute the sale deed within one month thereafter and on failure thereof, for the Court to execute the sale deed and deliver vacant possession of the suit properties. Aggrieved by the said Judgment and Decree, the defendant had filed the present Appeal.

4. Pending the Appeal, the defendant died and his legal representatives have been brought on record.

O.S.No. 25 of 2020-II Additional District Court at Ranipet:

5. In the plaint, it had been contended that on 04.07.2004, the defendant, claiming to be the absolute owner of the suit properties offered to sell the same to the plaintiffs for a total consideration of Rs.1,10,00,000/-. A registered agreement of sale deed dated 19.05.2005 was entered into between the parties. The plaintiffs had paid a sum of Rs.1,00,00,000/- as advance sale consideration. This fact had been stated in the agreement itself. It was further contended that the defendant agreed to receive the balance sale consideration of Rs.10,00,000/- within a period of 11 months, namely, on or before 18.04.2006 and agreed to execute a registered sale deed conveying the suit properties to the plaintiffs.

6. The plaintiffs had called upon the defendant to execute the sale deed and sent telegram dated 17.04.2006. It was however contended that time was never agreed to be the essence of the contract. There were tenants in occupation in a portion of the building and the defendant had undertaken to vacate them. The defendant however demanded a further sum of Rs.2,00,000/- as additional advance to vacate the tenants. It had been further stated that on 22.06.2007, the defendant and his son came to Chittoor and received the further advance amount of Rs.2,00,000/- and this was also endorsed on the agreement of sale itself. The son was an attestor to the said endorsement. It had been stated that the defendant had then eceived a total sum of Rs.1,