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2026 Supreme(Mad) 1143

IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.D. MARIA CLETE, J.
Chinnapappa – Appellant
Versus
A.S. Palanivel – Respondent
AS Nos. 637, 638 of 2018, CMP No. 5647 of 2023
Decided On : 21-04-2026

Advocates Appeared:
For the Appellant : M. Vijayakumar
For the Respondent: M. Aravindan

Sale agreement for property with owned and expectant portions is contingent and unenforceable for unowned part if conveyance event fails; specific performance limited to divisible owned portion with adjustments.

Headnote:(A) Specific Relief Act, 1963 - Sections 12, 13(1)(a), 13(1)(b), 14(d) - Indian Contract Act, 1872 - Section 32 - Transfer of Property Act, 1882 - Sections 43, 53A - Civil Procedure Code, 1908 - Order XLI Rules 27, 33 - Sale agreement for property with residential portion (absolute title) and non-residential portion (pending conveyance from statutory authority) - Agreement contingent on obtaining conveyance for non-residential portion within three months - Contingent contract unenforceable under Section 32 as event did not occur and statutory authority under no obligation to convey - Specific performance granted for residential portion (divisible contract under Section 12); mandatory injunction for non-residential portion set aside (continuous supervision barred under Section 14(d), third party not bound under Section 13(1)(b)) - Sections 43, 13(1)(a) inapplicable absent misrepresentation of title - Unregistered agreement fails part performance under Section 53A for possession claim; tenant status continues - CMP for additional evidence dismissed as document irrelevant - Entire deposit adjusted towards residential sale and rent arrears for non-residential portion. (Paras 19, 22-28, 30-31, 32, 36-39, 41)

(B) Property Law - Divisible contracts - Where property bifurcated into owned and expectant portions, decree for specific performance limited to owned portion; excess consideration adjusted as rent arrears for unowned portion occupied as tenant - Appellate power under Order XLI Rule 33 to do complete justice avoiding restitution. (Paras 32-39)

Facts of the case:
Sale agreement for entire property (residential portion conveyed, non-residential pending); advance paid, further payment with possession claim; vendors sued for title deeds return/injunction, purchaser for specific performance; trial court decreed specific performance for both portions; appeals challenge enforceability.

Findings of Court:
Residential portion decree confirmed (sale deed executed, possession delivered); non-residential portion decree set aside (contingent, unenforceable); deposit withdrawn by vendors towards residential consideration and rent arrears; tenant liable for future rent/occupation charges, eviction rights open.

Issues: Whether sale agreement contingent and unenforceable for non-residential portion; part performance established for possession; additional evidence admissible; mandatory injunction sustainable; divisible specific performance.

Ratio Decidendi: Contingent contract to sell unowned expectant interest lapses if collateral event impossible/uncertain; no part performance absent registered agreement and possession recital; statutory authority not compellable; divisible contract permits partial enforcement with equitable adjustments.

Result: A.S.638/2018 dismissed; A.S.637/2018 partly allowed (residential confirmed, non-residential set aside); CMP dismissed.

Table of Content
1. appeals from trial court suits on sale agreement disputes. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. sale agreement conditional on tnscb conveyance for non-residential portion. (Para 9 , 10)
3. trial court decreed specific performance for residential portion. (Para 11 , 12)
4. parties contend on contract enforceability and part performance. (Para 13 , 14 , 15 , 16)
5. cmp for additional evidence dismissed as irrelevant. (Para 17 , 19)
6. sale agreement contingent on uncertain tnscb conveyance; unenforceable for item ii. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
7. mandatory injunction for item ii unsustainable under specific relief act. (Para 28)
8. no part performance; defendant remains tenant for item ii. (Para 29 , 30 , 31)
9. partial specific performance confirmed for item i. (Para 32 , 33 , 34 , 35 , 36)
10. excess consideration adjusted towards rent arrears for item ii. (Para 37 , 38 , 39)
11. as 638 dismissed; as 637 partly allowed with modifications. (Para 40 , 41)

JUDGMENT :

A.D. MARIA CLETE, J.

1. The present appeals, A.S. Nos. 637 and 638 of 2018, arise out of the common judgment and decree dated 14.03.2018 passed by the XV Additional Judge, City Civil Court, Chennai, in O.S. Nos. 6774 and 6773 of 2015 respectively.

2. A.S. No. 638 of 2018 is directed against the judgment and decree passed in O.S. No. 6773 of 2015, while A.S. No. 637 of 2018 is directed against the judgment and decree passed in O.S. No. 6774 of 2015.

3. The suit in O.S. No. 6773 of 2015 was instituted by the vendor seeking a direction to the purchaser to return the title deeds relating to Item I of the suit schedule property, and for a permanent injunction restraining him from interfering with the vendor’s possession of the suit property.

4. The suit in O.S. No. 6774 of 2015 was filed by the purchaser against the vendors seeking execution of a sale deed in respect of Item No. I of the property, and a mandatory injunction directing the vendors to obtain a sale deed from the Tamil Nadu Slum Clearance Board and thereafter execute a sale deed in favour of the purchaser in respect of Item No. II of the property, in terms of the sale agreement dated 15.12.2005.

5. The trial Court tried both suits jointly and, by a common judgment, declined to order return of the documents/title deeds and dismissed O.S. No. 6773 of 2015, while granting the relief of specific performance as prayed for in O.S. No. 6774 of 2015 and decreeing the said suit.

6. For the sake of convenience, the parties are referred to as they were arrayed before the trial Court in O.S. No. 6773 of 2015.

7. The plaintiff in O.S. No. 6774 of 2015, who is the respondent in both the appeals, filed C.M.P. No. 5647 of 2023 in A.S. No. 637 of 2018 under Order XLI Rule 27 CPC seeking to receive an additional document, namely, a certified copy of the sale deed dated 28.09.2015.

8. Since both the appeals arise out of a common judgment and relate to the same subject matter in both appeals, and as the averments in the plaint in one suit substantially correspond to the averments in the written statement in the other, both the appeals are being disposed of by this common judgment.

9. Brief contents of the plaint in O.S. No. 6773 of 2015 and the written statement in O.S. No. 6774 of 2015 are as follows: The suit property bears Door No. 5, Old No. 3, Kamarajar Salai, Kanniappa Nagar, Ashok Nagar, Chennai, measuring about 990 sq. ft. The residential portion of the property was conveyed by the Tamil Nadu Slum Clearance Board in favour of the plaintiff under a registered sale deed dated 24.05.2002, whereas the non-residential portion had not yet been conveyed by the Board. The defendant, who is in occupation of the non-residential portion as a tenant, was paying a monthly rent of Rs.1,730/-. The plaintiff and her legal heirs entered into a sale agreement dated 15.12.2005 with the defendant for sale of the entire property for a total sale consideration of Rs.24,50,000/-, under which a sum of Rs.7,00,000/- was paid a

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