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MADRAS HIGH COURT
Krishnan Ramasamy, J.
Vijayalakshmi – Appellant
versus
A. Ganesan (died) and Ors. – Respondents
S.A.(MD) No.469 of 2009 and M.P.(MD) Nos.2 and 3 of 2009
Decided on 4.9.2023

Advocates:
Counsel for the Parties:
For the Appellant:Mr. R. Subramanian, Advocate
For the Respondents: Mr. Anand Chandrasekar for R2 to R8
For the Respondents: R1 - Died

IMPORTANT POINT
Specific Performance of Contract – Readiness and willingness does not mean readiness and willingness to pay or receive money but intention of parties to execute their part of Agreement from date of Agreement till date of its expiry.

Headnote:

Specific Relief Act, 1963 – Section 16(c) – Indian Evidence Act, 1872 – Section 114 – Agreement to Sell – Suit seeking relief of specific performance and permanent injunction – Readiness and willingness does not mean readiness and willingness to pay or receive money but intention of parties to execute their part of Agreement from date of Agreement till date of its expiry – This aspect was not at all considered by Trial Court as well as Appellate Court – Deceased first respondent/plaintiff had no intention to purchase properties at the time of entering into Agreement – Time provided in Sale Agreement is for repayment of hand loan alone and not for execution of sale deed – Such presumption is possible under Section 114 of Evidence Act – If parties had no intention to execute Agreement at the time of entering into Agreement and it was executed as a security for loan or for some other purpose, in such case, unless and otherwise real intention of parties have been reflected in Agreement, no equitable relief of specific performance would be granted – Impugned Judgment and Decree set aside. (Paras 22, 24, 27 and 33)

Result: Second Appeal allowed.

JUDGMENT

The appellant is the defendant in the suit in O.S.No.412 of 2002 on the file of the Subordinate Court, Periyakulam. The deceased first respondent is the plaintiff in the above suit.

2. The first respondent, who is the plaintiff in the suit has passed away and his legal representatives are brought on record as respondents 2 to 8.

3. The suit was filed by the deceased first respondent / plaintiff seeking for equitable relief of specific performance and permanent injunction restraining the appellant / defendant from alienating or encumbering the suit properties.

4. The case of the plaintiff is that the suit properties belong to the defendant. The defendant agreed to sell the properties to the plaintiff for a sale consideration of Rs.2,00,000/- and both parties registered a Sale Agreement dated 21.05.1998. On that day itself, the defendant received a sum of Rs.1,75,000/- as advance. As per the Sale Agreement, the defendant should receive the balance amount of Rs.25,000/- within a period of two and half years i.e., on or before 21.11.2000 from the plaintiff and execute a Sale Deed in favour of the plaintiff or the persons mentioned by the plaintiff at the cost of the plaintiff. The plaintiff sent a telegraphic notice dated 11.11.2000 to the defendant stating that he would wait in the Sub Registrar Office on 21.11.2000 and the defendant should come and execute the Sale Deed as per the Agreement. However, the defendant has not responded to the same. Though the plaintiff waited at the Sub Registrar Office throughout the day on 21.11.2000, the defendant has not come forward to execute the Sale Deed. Thereafter, the defendant had come to the plaintiff and promised orally that she will execute the Sale Deed and therefore, the plaintiff waited even after the expiry of the Agreement. However, since the plaintiff came to know that the defendant is about to execute a Sale Deed in favour of a third party, he has filed this suit for specific performance on 18.11.2000. It is his case that, in the meantime, the defendant and her husband filed a suit in O.S.No.68 of 2002 on the file of the District Munsif Court, Periyakulam against the plaintiff and his son seeking permanent injunction restraining them from interfering with the peaceful possession and enjoyment of the defendant and her family.

5. The case of the defendant is that for the past 14 years, for the purpose of Pickle Business, the defendant and her husband have received money from the plaintiff’s family and they also used to execute Sale Agreement as security. In a similar way, in the year 1995, Sale Agreements were executed along with Power of Attorney and upon Settlement of money, the Sale Agreements were not acted upon and the Power of Attorney was also cancelled. Subsequently, a sum of Rs.2,00,000/- was borrowed from the plaintiff, for which the Sale Agreement dated 21.05.1998 came to be executed nominally at the Sub Registrar Office, Bodi in favour of the plaintiff. There are two schedules in the suit properties. The first schedule belong to the defendant and she had no intention to sell the same. The second schedule is a poromboke land measuring an extent of 30 cents. The defendant has settled the total sum of Rs.2,00,000/- in the month of August 2001. Since the plaintiff forced the defendant to execute the Sale Deed, the defendant and her husband have filed a suit in O.S.No.68 of 2002 on the file of the District Munsif Court, Periyakulam against the plaintiff and his son seeking for permanent injunction. The readiness and willingness alleged by the plaintiff is false, if so, the plaintiff would have filed the suit once he received summon in O.S.No 68 of 2002. Further, on the date of filing the present suit, the plaintiff has paid only a sum of Rs.1,000/- as stamp fee, which shows that he was not ready and willing to perform his part of contract. The contention that, subsequent to 21.11.2000, the defendant approached the plaintiff and promised to execute the Sale Deed is

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