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2024 Supreme(Online)(MAD) 38615

HIGH COURT OF MADRAS
S. Srimathy, J
Selvi – Appellant
Versus
A. Thangasamy – Respondent
S.A.(MD).No.491 of 2022 | C.M.P.(MD)Nos.6314 and 10137 of 2022



Advocates:
For the Appellants/Petitioners: J. Barathan
For the Respondents: B. Bhuvanesvari, A. Ganesan, K. Guhan

A document executed on white paper with adhesive stamps, in violation of the Indian Stamp Act and without established consensus between parties, cannot be enforced; furthermore, an unexplained, significant delay in filing a suit for specific performance indicates a failure to maintain continuous readiness and willingness.

Headnote:(A) Indian Stamp Act, 1899 - S. 2(12) and S.11 - Specific Relief Act, 1963 - S. 16(c) - Suit for specific performance of sale agreement - Execution of agreement on white paper with adhesive stamps being non-compliant with law - Absence of consensus between parties - Failure to prove readiness and willingness - Delay in filing suit without explanation - Fraudulent nature of agreement.

Facts of the case:
The plaintiff sought specific performance of an alleged sale agreement dated 06.02.1994, claiming he entered into an agreement to purchase the defendant's property for Rs.35,000/-. The defendant, illiterate, denied the execution, asserting that the plaintiff obtained her signature on blank papers using adhesive stamps under the guise of an earlier loan transaction involving jewels and property security. The trial court dismissed the suit, but the lower appellate court reversed this decision. The defendants appealed.

Findings of Court:
The Court held that the purported sale agreement was fundamentally flawed for being executed on unauthorized paper with adhesive stamps in violation of the Stamp Act, and that the execution was not proven as there was no consensus ad idem. The Court further noted that the plaintiff failed to demonstrate continuous readiness and willingness, given the unexplained 1.5-year delay in instituting the suit.

Issues: Whether the sale agreement was validly executed under the Stamp Act, whether there was consensus, and whether the plaintiff proved readiness and willingness.

Ratio Decidendi: A document executed on illegal paper with adhesive stamps, where execution is denied and no consensus is established, cannot form the basis for specific performance. Furthermore, a substantial, unexplained delay in filing a suit for specific performance demonstrates a lack of the requisite readiness and willingness.

Result: Second Appeal allowed.

Table of Content
1. overview of the suit for specific performance and factual background regarding the alleged agreement. (Para 1 , 2 , 3 , 4 , 5)
2. invalidity of sale agreements executed using adhesive stamps instead of required non-judicial stamp paper. (Para 6 , 7 , 8 , 9)
3. requirement of strict proof of execution when a party denies signing or alleges signature on blank papers. (Para 10 , 11 , 12)
4. requirement of continuous readiness and willingness by plaintiff; fatal effect of unexplained delay in filing suit. (Para 13 , 14 , 15)
5. final appellate decision setting aside the lower court judgment and dismissing the suit. (Para 16 , 17)

*****

JUDGMENT

The present second appeal is filed by the legal heirs of the defendant in the suit against the Judgment and Decree dated 30.08.2019 passed in the Appeal in A.S.No.9 of 2006 on the file of the First Additional Subordinate Court, Madurai, reversing the Judgment and Decree, dated 30.08.2005, passed in the suit in O.S.No.640 of 2004 on the file of the District Munsif Court, Madurai Taluk at Madurai.

2. The plaintiff in the suit is the respondent herein and the defendant in the suit is the appellant herein. For the sake of convenience, the parties are referred as plaintiffs and defendant as per the ranking in the suit.

3. The brief facts stated in the plaint is that the plaintiff and the defendant are brother and sister. The suit property belongs to the defendant sister. The defendant has agreed to sell the property to the plaintiff and the plaintiff has also agreed to purchase the same. The sale consideration was fixed as Rs.35,000/- and it has also been reduced into writing on 06.02.1994. The defendant had received a sum of Rs.15,000/- as advance on 06.02.1994 and the balance Rs.20,000/- has to be paid within three months and the defendant has to execute sale deed within three months from the date of agreement. The plaintiff has also paid Rs.10,000/- another part of sale agreement on 10.02.1994 and the necessary endorsement was made in the agreement itself. Subsequently, the plaintiff has purchased necessary stamp papers on 28.03.1994 for the purpose of writing the sale deed. The plaintiff has sent a letter dated 04.04.1994 intimating the purchase of stamp papers and requesting the defendant to come to Alanganallur and execute sale deed on receipt of the balance sale consideration. But the defendant failed to appear nor sent any reply. The plaintiff has gone to Ayyapatty and requested the defendant to come and execute the sale deed but there was no response from the defendant side. Hence, the plaintiff sent another letter, dated 02.05.1994, to come to Alanganallur Sub Registrar Office and execute the sale deed. Again, there was no response from the defendant. Then, the plaintiff has sent a lawyer notice, dated 21.07.1994 and the defendant refused to receive the same returned the lawyer notice. Though all these steps taken by the plaintiff, the defendant has assured to come and execute the sale deed in the presence of friends and relatives but she has not turned up nor chosen to reply. The plaintiff has sent a telegram on 03.08.1994 to the defendant. The defendant has sent a reply denying the execution of sale agreement and stated the defendant had borrowed Rs.5,000/- from one Muniyandi, Kovilpatty on 17.11.1993 and delivered the possession of the suit property to the said Muniyandi allowing him to enjoy the same in lieu of interest. The said Muniyandi has also made over the pro note, dated 17.11.1993, in favour of the plaintiff on receipt of the principal amount of Rs.5,000/-, delivered the possession of the property to the plaintiff on 05.10.1994 itself. The dispute has also been referred to the Sub Inspector of Police, Alanganallur. The defendant has sent a lawyer notice, dated 04.10.1994, to the plaintiff and also sent the notice to the Sub Inspector of Police denying the execution of sale agreement. The very existence of sale agreement was denied and requested the Sub Inspect

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