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2025 Supreme(Online)(Mad) 8512

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. Karthikeyan, R. Vijayakumar, JJ
S. Krishnan – Appellant
Versus
V. Arumugam – Respondent
AS(MD). No.205 of 2020|CMP(MD) No.7250 of 2020



Advocates:
For the Appellants/Petitioners: H. Arumugam
For the Respondents: M. Antony Rajadurai, S. Rajasekar

A plaintiff in a suit for specific performance must mandatorily prove continuous readiness and willingness to perform the contract by establishing financial capacity to pay the balance consideration from the date of the agreement until the decree, as per Section 16(c) of the Specific Relief Act.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Suit for specific performance - Readiness and willingness - Requirement of proof - Mere plea in plaint is insufficient; party must establish continuous readiness and availability of funds from date of agreement until decree - Burden of proof lies on plaintiff to show financial capacity and willingness to perform reciprocal obligations. (Paras 17-20)

(B) Specific Performance - Conduct of parties - Where plaintiff has long-standing occupation of part of the property as tenant, contention that sale is conditional upon measurement of property is viewed as an excuse to avoid payment - Absence of documentary proof for balance sale consideration throughout trial period indicates lack of bona fide readiness. (Paras 15, 21-22)

Facts of the case:
The appellant (owner) and respondent (tenant) entered into an agreement of sale for property at Kanyakumari. The respondent paid an advance but failed to pay the balance consideration despite notices from the appellant to complete the transaction. The trial court decreed the suit, finding the respondent ready and willing; the appellants challenged this in appeal.

Findings of Court:
The High Court held that the trial court erred in concluding the respondent was ready and willing. There was no documentary evidence of financial capacity to pay the balance consideration, and the respondent’s insistence on a land survey was a dilatory tactic, given his long-term occupation of the property.

Issues: Whether the plaintiff was ready and willing to perform his part of the contract as required under Section 16(c) of the Specific Relief Act.

Ratio Decidendi: Continuous readiness and willingness is a condition precedent for specific performance, which must be proved by evidence of financial capacity and bona fide conduct, not merely by the filing of a suit or verbal claims. Result : Appeal allowed; suit dismissed.

Table of Content
1. overview of the contract for sale and the subsequent dispute. (Para 1 , 2 , 3 , 4)
2. summary of issues framed and evidentiary records marked. (Para 5 , 6 , 7)
3. assessment of readiness, willingness, and the impact of the plaintiff's conduct. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. established legal precedents on mandatory proof of readiness under section 16(c). (Para 17 , 18 , 19 , 20)
5. final analysis of evidence leading to the dismissal of the suit. (Para 21 , 22 , 23 , 24)

JUDGMENT

(Judgment of the Court was delivered by C.V.KARTHIKEYAN, J.)

The defendants in OS No.165/2010 on the file of the Principal District Court, Kanyakumari at Nagercoil are the appellants herein. OS No.165/2010 had been filed by the respondent seeking specific performance of an agreement of sale deed dated 04.09.2009 relating to the plaint schedule property. By judgment dated 12.10.2010, the suit was decreed. The defendants have therefore filed the present first appeal.

2. OS No.165 of 2010 – Principal District Court, Kanyakumari at Nagercoil:

It had been contended in the plaint that the first defendant was the owner of land and building measuring 4.5 cents of land at Vadiveeswaram Village at Nagercoil. The building consisted of two portions. The plaintiff was occupying the northern portion from the year 2004 as lessee. The defendant had been occupying southern portion. It had been contended that the first defendant wanted to sell the suit schedule property in entirety and the plaintiff had agreed to purchase the same and an agreement of sale was arrived at on 04.09.2009. The total sale consideration was determined at Rs.32/- lakhs. An advance of Rs.1,00,000/- was paid. Subsequently another amount of Rs.80,000/- was paid on 02.11.2009 and a further sum of Rs.1,20,000/- was paid on 04.11.2009. It was contended that the total advance of Rs.3/- lakhs was paid and the balance sale consideration payable was Rs.29/- lakhs. It had been contended that the first defendant had to measure the property and fix the boundaries. It had been further contended that the plaintiff was always ready and willing to perform his part of the agreement.

3. It had been further contended that on 04.02.2010, the plaintiff requested the first defendant to come over to the Sub Registrar's office at Nagercoil on 05.02.2010 and receive the entire sale consideration and execute the sale deed with respect to the plaint schedule property. It was further contended that the plaintiff was waiting at the Sub Registrar's Office at Nagercoil on 05.02.2010, but the first defendant did not come. Thereafter, the plaintiff issued a notice on 25.02.2010 asking the first defendant to receive the entire balance of Rs.29/- lakhs and execute the sale deed in favour of the plaintiff. The first defendant sent a reply on 03.03.2010 contending that he was waiting in the Sub Registrar's office on 05.02.2010, but that the plaintiff had only Rs.20/- lakhs and did not have the entire balance sale consideration. The first defendant stated that if the balance sale consideration is paid by way of Demand Draft, he would execute the sale deed. The plaintiff issued a rejoinder on 10.03.2010 that the plaintiff was always ready with the balance sale consideration and calling upon the defendant to provide the documents of the suit schedule property and fix a date for execution of the sale deed. It had been contended that the first defendant did not hand over the documents. It had been contended that thereafter the property was measured on 18.08.2010. The plaintiff then issued a further notice on 30.08.2010 calling upon the first defendant to perform his part of the agreement and fix a date for execution of the sale deed. The first defendant issued a reply on 16.09.2010 that he had executed a gift deed with respect to the property in the name of the 2nd defendant. The first defendant also returned the advance amount of Rs.3/- lakhs by way of demand draft to the plaintiff. The plaintiff conten

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