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2026 Supreme(Mad) 1281

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
A.D. MARIA CLETE, J. 
K.Soundarrajan - Appellant 
Versus 
K.Balasubramaniam, Rep. by his guardian Indira – Respondent
A.S. Nos. 87 and 368 of 2018 and C.M.P.No.9322 of 2020 
Decided On : 28-04-2026 

Advocates Appeared:
For the Appellants : Mr.R.Mubarak Basha
For the Respondent: Mr.S.Venkatesan

Proof of sale agreement and advance insufficient for specific performance without continuous readiness and willingness under Section 16(c); denying contract precludes forfeiture; additional appellate evidence exceptional under Order XLI Rule 27.

Headnote:(A) Specific Relief Act - Section 16(c) - Code of Civil Procedure, 1908 - Order XLI Rule 27 - Suit for specific performance of unregistered sale agreement dated 18.01.2012 for one-third share in property - Trial Court upheld execution of agreement and payment of advance of Rs.4,00,000/- but denied specific performance for lack of continuous readiness and willingness, decreed refund with 12% interest till judgment and 6% thereafter - Appeals by plaintiff and defendants dismissed - Plaintiff failed to prove continuous readiness and willingness from date of agreement till decree despite one-month stipulation, evidenced by 13-month delay in notice, 14-month further delay in suit, admissions in cross-examination lacking documentary proof, unsubstantiated oral demands and mediation claims - Time not essence but prolonged inaction relevant per K.S. Vidyanadam v. Vairavan (1997 (3) SCC 1) - Additional evidence under Order XLI Rule 27 rejected as documents available earlier, not needed for effective judgment (Paras 14-17, 24-32).

(B) Specific Performance - Discretionary equitable relief - Proof of agreement and advance payment insufficient without mandatory continuous readiness and willingness under Section 16(c) - Subsequent deposit of balance does not prove prior continuity (Paras 24, 29-32).

(C) Sale Agreement - Refund of advance - Defendants denying execution and receipt cannot claim forfeiture under same agreement - Mutually destructive pleas - Refund directed where agreement genuine but specific performance refused (Paras 33-34).

Facts of the case:
Plaintiff purchased two-thirds share from co-sharers, sought specific performance of agreement for defendants' one-third share alleging advance payment, readiness and defendants' evasion. Defendants denied agreement as forged, claimed forfeiture. Trial Court confirmed agreement and payment but found no readiness, decreed refund.

Findings of Court:
Sale agreement and advance payment proved by attestor testimony, reply notice acknowledging agreement, postal acknowledgments and weak defence denial. No continuous readiness due to delays, admissions, lack of proof.

Issues: Whether additional documents receivable under Order XLI Rule 27; proof of agreement execution and advance; continuous readiness and willingness; entitlement to specific performance; propriety of refund decree.

Ratio Decidendi: Continuous readiness and willingness under Section 16(c) mandatory, proved by plaintiff's conduct not defendant's obstruction; appellate additional evidence exceptional; denial of contract precludes forfeiture claim; specific performance discretionary despite proved agreement.

Result: Appeals and miscellaneous petition dismissed, trial court judgment and decree confirmed. No costs.

JUDGMENT :

A.D. MARIA CLETE, J. 

The present appeals arise from the judgment and decree dated 20.09.2017 passed in O.S. No. 155 of 2014 on the file of the V Additional District Judge, Coimbatore, whereby the suit for the specific performance was dismissed and granted decree for the refund of the advance amount with interest.

2. For the sake of convenience, the parties are referred to as they were arrayed before the Trial Court. The plaintiff has preferred A.S. No.87 of 2018 challenging the dismissal of specific performance, while the defendants have preferred A.S. No.368 of 2018 challenging the decree insofar as refund of the advance amount with interest.

3. The Plaintiff’s case is that ,the suit property originally formed part of the family properties of Govindappa Gounder and Nanjammal. Under a settlement deed dated 25.08.1962, the properties were divided into six schedules, of which the A-schedule fell to Nachimuthu Gounder who is the maternal grandfather of defendants. It is his further case that Nachimuthu Gounder also purchased 4.05 acres in S.F. No.41/2 under a sale deed dated 11.06.1967, and that both items were his separate and self acquired properties. After Nachimuthu Gounder died intestate on 08.06.1993, his legal heirs succeeded to the properties and remained in joint possession. The plaintiff claims to have purchased the two-thirds share of the other co- sharers of the defendants under registered sale deeds dated 22.03.2012, bearing Document Nos.4338 of 2012 and 4339 of 2012, and states that possession, patta and revenue records were thereafter transferred in his favour. The present suit, according to him, concerns only the remaining one-third share belonging to the defendants.

4. The plaintiff further states that defendants 1 to 4 entered into an unregistered sale agreement with him on 18.01.2012 agreeing to sell their one-third share for a total sale consideration of Rs.13,09,000/-, of which Rs.4,00,000/- was paid as advance, leaving a balance of Rs.9,09,000/-. It is his case that he was always ready and willing to perform his part of the contract, but the defendants failed to execute the sale deed. Though he issued a legal notice dated 19.02.2013 calling upon the defendants to complete the sale, they sent a reply dated 08.03.2013 with untenable reasons, while admitting the agreement. He would further allege that the defendants thereafter demanded more money, lodged complaints before the police and the District Registrar, and filed O.S. No.460 of 2013 challenging his earlier purchase deeds and seeking partition, all with a view to evade the agreement. On these pleadings, the plaintiff sought specific performance of the agreement dated 18.01.2012, and in the alternative, refund of the advance amount with interest 15% per annum from the date of suit filed till the date of realization.

5. Defendants’ case: The fourth defendant filed the written statement, which was adopted by defendants 1 to 3. The defendants admitted the relationship of parties and that the property originally belonged to Nachimuthu Gounder, but contended that no partition had taken place among his heirs after his death. According to them, the defendants, being the heirs of Ramathal who is the daughter of Nachimuthu Gounder, were entitled to one-third share, while the remaining two-thirds belonged to the other legal heirs of Nachimuthu Gounder. They would state that, when they demanded partition, the same was refused, and they later came to know that the other co-sharers had executed sale deeds in favour of the plaintiff under Document Nos.4338 of 2012 and 4339 of 2012 without their knowledge or consent. Challenging the said alienations, they issued legal notice dated 16.08.2013 and also filed O.S. No.460 of 2013 seeking declaration that the sale deeds were null and void, partition and separate possession of their share, and consequential injunction.

6. Insofar as the suit agreement dated 18.01.2012 is concerned, the defendants specifically denied execu

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