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2025 Supreme(Online)(Mad) 32628

IN THE HIGH COURT OF JUDICATURE AT MADRAS
T.V.THAMILSELVI, J
N.Thiyagarajan – Appellant
Versus
K.Sengodan – Respondent
S.A. No.867 of 2013, M.P.No.1 of 2013



Advocates:
For the Appellants/Petitioners: Mr.K.Ramanraj
For the Respondents: Mr.S.Senthilnathan

A plaintiff seeking specific performance must approach the court with clean hands and prove readiness to perform their part of the contract, failing which relief may be denied.

Headnote:(A) Specific Relief Act, 1963 - Sections 16 and 20 - Specific performance - The plaintiff entered into a sale agreement with the first defendant for a property, paying an advance, but the first defendant tried to transfer it to the second defendant, leading to a suit for specific performance - The trial court granted specific performance, but the appellate court upheld the second defendant's claims of being a bona fide purchaser - The second defendant argued that the sale agreement was collusive and fraudulent, and the courts below failed to appreciate the evidence regarding the cancellation of the power of attorney - The Second Appeal was allowed based on the finding that the plaintiff approached the court with unclean hands. (Paras 9, 14, 19)

Facts of the case:
The plaintiff entered into a notarized sale agreement with the first defendant, who later attempted to sell the property to the second defendant. The first defendant admitted the sale agreement but did not testify, leaving the second defendant to contest the suit.

Findings of Court:
The court found that the plaintiff had not proven his entitlement to specific performance as he had not established that the power of attorney was revoked and lacked clean hands in his dealings.

Issues: The main issues were whether the plaintiff was entitled to specific performance despite allegations of collusion and whether the second defendant's purchase was valid.

Ratio Decidendi: The court emphasized that the plaintiff's conduct and the necessity of proving the cancellation of the power of attorney were critical to the case, ruling that the plaintiff did not meet the burden of proof required for specific performance.

Result: Second Appeal allowed; suit dismissed with costs.

Table of Content
1. appellant's background in the suit. (Para 1 , 2)
2. details of the sale agreement and contesting claims. (Para 3 , 4 , 5)
3. trial court's issues and findings. (Para 6 , 7)
4. grounds for appeal by the 2nd defendant. (Para 8 , 10)
5. arguments presented by both parties. (Para 11 , 12 , 13)
6. court's analysis of evidence and conduct. (Para 14 , 15)
7. legal principles governing specific performance. (Para 16 , 17)
8. final judgment and dismissal of the suit. (Para 18 , 19)

JUDGMENT

The appellant herein is the 2nd defendant in the suit in O.S.No.321 of 2010 on the file of II Addl. Subordinate Judge, Erode filed by the 1st respondent/plaintiff seeking for the relief of specific performance directing the defendants to execute a sale deed by receiving balance sale consideration and other consequential reliefs. The 1st defendant remained exparte. The 2nd defendant alone contested the case. On hearing both sides, the trial judge granted the relief of specific performance in favour of plaintiff. Aggrieved over the said findings, the 2nd defendant preferred an appeal suit in A.S.No.5 of 2012 on the file of II Addl. District Judge, Erode, wherein also the findings of the trial judge was confirmed and the Appeal Suit was dismissed. Challenging the said findings, the 2nd defendant preferred this Second Appeal.

2. For the sake of convenience, the parties are addressed as per the ranking in the suit.

3. Brief facts of the case is as follows :- The 1st defendant is the absolute owner of the suit property with whom, the plaintiff entered into sale agreement to purchase the same for a valid consideration of Rs.6,50,000/- and the plaintiff paid a sum of Rs.4,50,000/- as advance and within one year, the 1st defendant is bound to execute the sale deed free of all encumbrances and a notarised sale agreement was executed on 30.01.2005. On the same day itself, the 1st defendant handed over the xerox copies of parent document and also delivered the possession of suit property as part performance of contract. Again on 24.02.2006 the 1st defendant received another sum of Rs.1,50,000/- and made endorsement on the back side of the sale agreement. The remaining balance sum of Rs.50,000/- alone was payable by the plaintiff. When the same was informed to the 1st defendant, he evaded and also attempted to transfer the property in favour of 2nd defendant, who is his brother. Hence, the plaintiff issued lawyer's notice on 15.11.2006 along with demand drafts for the balance sum of Rs.50,000/-, for which, the 1st defendant has not given any reply and the 2nd defendant gave a reply stating that he purchased the property for the valid consideration from his brother through his father viz., power agent on 27.04.2006. But, the said sale claimed by the 2nd defendant is fraudulent one and collusive in order to defraud the plaintiff and to defeat the terms of sale agreement as agreed by the defendants. Hence, the plaintiff came forward with the suit seeking for the relief of specific performance with alternative relief.

4. In the written statement filed by the 1st defendant, he admits the sale agreement with the plaintiff and also admits that he had received part of sale consideration on 24.02.2005, but he denied that he is trying to transfer the property in favour of 2nd defendant and submitted that he was also not aware of the alleged sale deed dated 27.04.2006 said to be executed by his power agent/father Nachimuthu. In fact, his father was bedridden and he had no sound state of mind for the past few years. He also submitted that long back in the year 1973, he executed a power of attorney in favour of his father to maintain the property and the power deed was also been cancelled long back. Therefore, the alleged sale deed relied on by the 2nd defendant would not bind him nor it is valid one. However, he is ready to execute the sale deed in favour of plaintiff as per the terms of sale agreement. Hence, he prayed to dismiss the suit.

5. The 2nd defendant filed

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