Madras High Court Allows Appeal in Specific Performance Suit — Agreement of Sale Not Proved, Plaintiff Failed to Establish Readiness and Willingness. The court set aside the decree for specific performance and refund of advance under the Specific Relief Act, 1963, as the plaintiff did not prove the execution of the agreement or his continuous readiness and willingness.

High Court: Madras High Court In Favour of Accused
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Case Note & Summary

The appeal arises from a suit for specific performance of an agreement of sale. The plaintiff/respondent claimed that on 14.09.2015, the defendants/appellants agreed to sell suit property for Rs.58,08,000/- and received an advance of Rs.20,00,000/-. A further sum of Rs.10,00,000/- was paid on 18.12.2015 with an extension of time till January 2016. The plaintiff alleged that the defendants failed to measure the property and execute the sale deed despite his readiness and willingness. The trial court decreed the suit, directing specific performance or refund of Rs.33,42,000/- with interest. The defendants appealed. The High Court examined the evidence and found that the plaintiff did not examine any attesting witness or the scribe of the agreement, and the defendants denied execution. The plaintiff also failed to prove his financial capacity to pay the balance consideration. The court held that the plaintiff did not discharge the burden of proving the agreement or his readiness and willingness. Consequently, the appeal was allowed, the judgment and decree of the trial court were set aside, and the suit was dismissed. No order as to costs.

Headnote

A) Specific Performance - Agreement of Sale - Proof of Execution - The plaintiff must prove the execution of the agreement of sale by examining the attesting witnesses or by other cogent evidence. In the absence of examination of any attesting witness or scribe, the execution of the agreement remains unproved. (Paras 10-12)

B) Specific Performance - Readiness and Willingness - Burden of Proof - Under Section 16(c) of the Specific Relief Act, 1963, the plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract. Mere issuance of a notice does not discharge this burden; the plaintiff must show financial capacity and actual steps taken. (Paras 13-15)

C) Specific Performance - Alternate Relief of Refund - Entitlement - Even if specific performance is not granted, the plaintiff is entitled to refund of advance amount if the agreement is proved. However, if the agreement itself is not proved, the claim for refund also fails. (Paras 16-18)

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Issue of Consideration

Whether the plaintiff proved the agreement of sale and his readiness and willingness to perform his part of the contract, entitling him to specific performance or alternate relief of refund of advance with interest.

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Final Decision

Appeal allowed. The judgment and decree dated 06.08.2018 in O.S.No.23 of 2016 on the file of III Additional District and Sessions Court, Erode at Gobichettipalayam are set aside. The suit is dismissed. No order as to costs.

Law Points

  • Specific performance
  • agreement of sale
  • readiness and willingness
  • burden of proof
  • Section 16(c) Specific Relief Act
  • 1963
  • Order 41 Rule 1 CPC
  • Section 96 CPC
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Case Details

2026:MHC:1334

AS No. 924 of 2018 and CMP No.23611 of 2018

2026-04-02

C.V. Karthikeyan, K.Rajasekar

2026:MHC:1334

Mr.S.Kaithamalai Kumaran for appellant(s), Mr.S.A.Mohamed Mubarak for respondent(s)

T.Meyyappan and Venugopal

C.Selvan

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Nature of Litigation

Appeal against decree for specific performance of agreement of sale

Remedy Sought

Appellants (defendants) sought to set aside the judgment and decree dated 06.08.2018 in O.S.No.23 of 2016

Filing Reason

Aggrieved by the decree directing specific performance or refund of advance with interest

Previous Decisions

Trial court decreed the suit on 06.08.2018

Issues

Whether the plaintiff proved the execution of the agreement of sale? Whether the plaintiff proved his readiness and willingness to perform his part of the contract?

Submissions/Arguments

Appellants argued that the agreement was not proved as no attesting witness or scribe was examined. Appellants contended that the plaintiff failed to show financial capacity to pay the balance consideration. Respondent argued that the agreement was executed and he was always ready and willing.

Ratio Decidendi

In a suit for specific performance, the plaintiff must prove the execution of the agreement of sale by examining attesting witnesses or other reliable evidence. The plaintiff must also plead and prove continuous readiness and willingness to perform his part of the contract, including financial capacity. Failure to do so results in dismissal of the suit.

Judgment Excerpts

The plaintiff did not examine any attesting witness or the scribe of the agreement. Therefore, the execution of the agreement remains unproved. The plaintiff failed to prove his financial capacity to pay the balance sale consideration. Mere issuance of a notice does not establish readiness and willingness.

Procedural History

The suit O.S.No.23 of 2016 was filed by the respondent/plaintiff for specific performance. The trial court decreed the suit on 06.08.2018. The defendants filed the present appeal under Order 41 Rule 1 CPC read with Section 96 CPC. The High Court reserved judgment on 09.03.2026 and pronounced on 02.04.2026.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 41 Rule 1, Section 96
  • Specific Relief Act, 1963: Section 16(c)
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