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2025 Supreme(Online)(Mad) 72774

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.Dhanabal, J
Love and Concern – Appellant
Versus
Dhananjayan – Respondent
C.S.No.104 of 2022|O.A.Nos.322 and 323 of 2022



Advocates:
For the Appellants/Petitioners: S.Nambi Arroram, K.V.Ramesh, S.K.Masthan
For the Respondents: P.T.Perumal, V.Chandrakanthan

Specific performance is a discretionary equitable remedy requiring proof of continuous readiness and willingness. If performance is impossible or the party is unwilling, courts may exercise equitable jurisdiction to grant a money decree for the refund of advance payments based on defendant admissions, even without specific prayer.

Headnote:(A) Civil Procedure Code, 1908 - Order VII Rule 1 - Specific Relief Act, 1963 - Section 22 - Specific performance of contract - Suit for immovable property - Readiness and willingness - Plaintiff must aver and prove readiness and willingness to perform his part of the contract from the date of the agreement till the date of the sale deed - Admissions by plaintiff regarding inability to pay balance consideration demonstrate lack of readiness - (Paras 13, 15)

(B) Specific Relief Act, 1963 - Nature of relief - Specific performance is a discretionary and equitable remedy - Absent a specific claim for refund of advance in the plaint, the Court may still grant a money decree in favor of the plaintiff based on the defendant's admission and equitable principles regarding the return of advance amounts - (Paras 18, 19)

(C) Contract Law - Immovable property - Time as the essence of contract - Unless a specific condition is mentioned regarding time as the essence in the agreement, time is generally not considered the essence for immovable property transactions - (Para 12)

Facts of the case:
Plaintiff initiated a civil suit seeking specific performance of a registered sale agreement for an immovable property, along with permanent injunctions. The defendants challenged the maintainability of the suit, pointing to previous expired agreements and a Memorandum of Understanding, and argued that the plaintiff failed to perform his obligations within the timeline. The defendants also claimed the plaintiff lacked the necessary funds and the agreements were entered into with individuals holding only life interests.

Findings of Court:
The court observed that the plaintiff failed to establish readiness and willingness, particularly noting the express admission that the plaintiff lacked the funds to complete the transaction. Furthermore, the court found the plaintiff was not in lawful possession of the entire area as claimed. Given the defendants' admission of receiving the advance, the court exercised its equitable jurisdiction to grant a money decree for the return of the advance amount.

Issues: The main issues were the maintainability of the suit, the enforceability of the sale agreement against life interest holders, whether time was the essence of the contract, and the plaintiff's readiness and willingness to perform the contract.

Ratio Decidendi: The principle that a party seeking specific performance must consistently prove readiness and willingness is paramount; failing such proof, the discretionary relief of specific performance is denied. However, under equitable jurisdiction and based on the defendant's admission of receipt of advance, the court is authorized to grant a money decree for the refund, even in the absence of a specific prayer in the plaint.

Result: Suit for specific performance dismissed; money decree granted for the refund of advance amount with interest conditional upon failure to repay within the stipulated time.

Table of Content
1. summary of factual background and conflicting party assertions. (Para 1 , 2 , 3 , 4)
2. overview of issues framed and respective party submissions. (Para 5 , 6 , 7 , 8)
3. maintainability of suit and validity of the sale agreement. (Para 9 , 10 , 11)
4. analysis of readiness, willingness, and possession of property. (Para 12 , 13 , 14 , 15 , 16 , 17)
5. granting equitable refund of advance despite dismissing specific performance. (Para 18 , 19)

J U D G M E N T

This Civil Suit has been filed by the plaintiff as against the defendants for the relief of Specific Performance of Contract based on the agreement dated 07.05.2018; for permanent injunction restraining the defendants from interfering with the plaintiff’s peaceful possession and enjoyment of property and for relief of permanent injunction restraining the defendants from alienating or encumbering the suit property to any third parties.

2. The brief averments of the plaint are as follows:-

(i) The plaintiff, viz., M/s Love and Concern (Trust) represented as President of the Plaintiff had originally entered into a tenancy agreement in respect of the suit property with the 1st defendant and the said agreement is dated 11.03.1992. Pursuant to the said agreement, the plaintiff had been in possession and enjoyment of the property and he is paying rent of Rs.1,800/- per month. Further, the plaintiff had paid a sum of Rs.20,000/- as advance. Originally, the suit property belongs to T.R.P.Kothandaraman and after his demise, the defendants 1 to 10, being legal heirs are entitled to the suit property. The defendants 1 to 10 agreed to sell the suit property to the plaintiff for a sum of Rs.3,51,14,365/- and the registered sale agreement was executed between the parties on 07.05.2018 and on the same day, a sum of Rs.1,15,42,500/- was paid towards advance of the sale price.

(ii) Further more, the plaintiff and the defendants had entered into a Memorandum of Understanding pertaining to the suit property prior to the suit agreement, but due to certain unexpected subsequent events, they were unable to proceed further with the same, thereby they decided to enter into a registered agreement dated 07.05.2018. On various dates, the plaintiff paid a sum of Rs.1,15,42,500/- to the defendants. The remaining amount of Rs.2,35,71,865/- to be paid at the time of execution of sale deed. In the said agreement, it was clearly mentioned that the purchaser, as a tenant, who was already in possession of 2790 sq.ft., of the schedule mentioned property, through tenancy agreement dated 11.03.1992 and after entering into the said agreement, the plaintiff is in occupation of entire suit property and enjoying the same.

(iii) The time fixed for completion of sale is 10 months, the plaintiff was always ready and willing to perform his part of contract by paying a balance of sale consideration, but the defendants evaded to receive the balance of sale consideration and to execute the sale deed. Thereafter, the plaintiff issued notice dated 11.12.2021 to the defendants expressing his willingness to purchase the property by paying the remaining sale price. But the defendants have failed to perform their part of contract. The plaintiff is in possession of the property and the defendants are bound to execute the sale deed, therefore, filed the suit.

3. The brief averments of the Written Statements filed by the defendants 1, 2 and 6 to 8 are as follows:

(I) As per the plaint averments, the plaintiff is a Trust, but no documents have been filed to show that the plaintiff is a Trust. The plaintiff has no locus-standi to file the suit on behalf of the Trust. The agreement has been made between the defendants and M/s Love and Concern represented by Mr.John Venkatesan, but no authorisation letter was filed along with the plaint to show that the said John Venkatesan is representing the plaintiff’s trust. The suit is based on the agreement of sale dated 07.05.2018 and the suit was filed on 22.12.2021, therefore,

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