SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Online)(Mad) 80108

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.R.SWAMINATHAN, M.JOTHIRAMAN, JJ
T.Balasubramanaian – Appellant
Versus
C.Thanga Pandian – Respondent
A.S.(MD)No.81 of 2022 | C.M.P.(MD)No.3063 of 2022 | C.M.P.(MD)No.516 of 2025



Advocates:
For the Appellants/Petitioners: Mrs.N.Krishnaveni, Senior Counsel, For Mr.M.Kumar
For the Respondents: Mr.R.Ganesh, For Mr.D.Venkatesh for R1
Mr.S.Meenakshmi Sundaram, Senior Counsel, For Mr.A.Senthil Kumar for R4 to R6
Mr.M.Perumal for R7 to R9

The court reinforced that specific performance can be granted even if inadequacy of consideration is alleged, provided the sale agreement is valid and properly executed.

Headnote:(A) Specific Relief Act, 1963 - Sections 16 and 20 - Specific performance of contract - The plaintiff entered into a sale agreement with defendants for a share in property - Defendants contended agreement was a sham and not valid - Court found sale agreement valid as executed under power of attorney and reaffirmed adequacy of consideration is not ground to deny relief - Court upheld decree of specific performance. (Paras 10, 12, 14, 16)

(B) Government Servants Conduct Rules - The appellant (government servant) contended he needed prior permission for the transaction - Court differentiated between entering a sale agreement and acquiring property which does not necessitate immediate sanction - Specific performance was justified as the plaintiff was considered willing to perform contract. (Paras 15, 20)

Facts of the case:
The plaintiff sought specific performance involving a sale agreement for 2/3rd share in property after defendants canceled the power of attorney based on alleged collusion and fraud. The trial court decreed specific performance based on evidence.

Findings of Court:
The sale agreement was deemed valid and enforceable despite the appellant’s claims of inadequacy and the alleged need for prior governmental approval due to the appellant's status as a government servant.

Issues: The primary issues addressed were the validity of the sale agreement and whether the plaintiff was entitled to specific performance despite challenges to the transaction’s legitimacy.

Ratio Decidendi: The court ruled that the sale agreement was legitimate as it was registered and executed properly; allegations of inadequacy and contingent compliance with government conduct rules did not undermine its enforceability.

Result: Appeal dismissed; decree of lower court confirmed with no costs.

Table of Content
1. the nature of the suit and the agreement involve specific performance. (Para 2)
2. plaintiff’s position and the defense against the sale agreement. (Para 3 , 4 , 5)
3. court's considerations on potential collusion and agency validity. (Para 8 , 9 , 10)
4. findings on the validity of the sale agreement and adequacy. (Para 12 , 16)
5. final decision on appeal and confirmation of lower court judgment. (Para 22)

JUDGMENT

(By G.R.Swaminathan, J.)

This appeal is directed against the judgment and decree dated 24.09.2021 made in O.S.No.48 of 2016 on the file of the Additional District Court, Dindigul. The third defendant is the appellant herein. It was a suit for specific performance. The Court below by the impugned judgment and decree directed the plaintiff to deposit the balance sale consideration of Rs.26,50,000/- and on receipt of the same, the defendants 1 to 3 were directed to execute a sale deed in favour of the plaintiff in respect of their 2/3rd share in the suit property as per the sale agreement.

2.The case of the plaintiff is as follows:-

The suit property belonged to Thirumalaisamy Gounder. He passed away intestate in the year 2009 leaving behind seven legal heirs (second defendant [wife], defendant 1 and 3 [sons] and four daughters). On 24.12.2009, vide document No.2243/2009, the daughters of Thirumalaisamy Gounder released their undivided 4/7th share in favour of the other sharers. The share of defendants 1 and 3 enlarged to 2/3rd undivided share in the suit property. The plaintiff is none other than the son-in-law of the second defendant. The defendants 1 and 2 agreed to convey their undivided share for a sum of Rs.27,00,000/-. The defendants 1 and 2 executed a power of attorney in favour of the plaintiff's wife / Vijayalakshmi (D4) vide Document No.876/2013 on the file of the Sub Registrar, Chatrapatti. Based on the same, the suit sale agreement dated 27.05.2013 came to be registered as Document No. 1006/2013. Under the sale agreement, advance amount of Rs.50,000/- was paid and the balance amount of Rs.26,50,000/- was to be paid within a period of three years. The plaintiff came to know in December 2015 that documents have been created to his prejudice. The power of attorney executed in favour of the fourth defendant was cancelled. The defendants 1 and 2 relinquished their 2/3rd share in favour of the third defendant / appellant herein. Power of Attorney was executed in favour of one Natachimuthu. Hence, the plaintiff issued the suit notice / Ex.A5 dated 17.12.2015 calling upon the defendants 1 and 2 to act in terms of the agreement. The defendants 1 and 2 declined to comply with the demand and issued reply notice / Ex.A7 dated 04.01.2016. Left with no other option, the plaintiff filed the suit for specific performance on 20.04.2016.

3.The first defendant filed written statement controverting the plaint averments. It was pleaded therein that the plaintiff, serving as Inspector of Police in SB-CID Wing of Tamil Nadu Police Department, could not have entered into the suit transaction without getting permission from the government. The market value of the suit property was Rs.2 Crores when the agreement was entered into. Since Thirumalaisamy Gounder had incurred huge debts on account of giving the four daughters in marriage, it was proposed to sell the share of defendants 1 and 2 and that it was for that purpose, power of attorney was executed in favour of the plaintiff's wife (fourth defendant) / one of the daughters of Thirumalaisamy Gounder. The understanding was that the power agent would obtain prior approval from the principal before fixing the sale price and identifying the purchaser. When the defendants 1 and 2 realized that the power agent had entered into a collusive transaction with her husband / plaintiff for selling their undivided share for a throwaway price, they cancelled the power of attorney itself.

4.The third defendant also filed written statement adopting the same defence. In addition, he ple

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top