Madras High Court Dismisses Second Appeal in Specific Performance Suit — Upholds Concurrent Findings on Readiness and Willingness. Agreement of Sale with Possession and Part Payment Enforced Against Subsequent Purchaser Under Section 16(c) of Specific Relief Act, 1963.

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

The second appeal arises from a suit for specific performance of a sale agreement dated 15.7.1987 between the plaintiff (first respondent) and the first defendant (since deceased). The agreement covered suit property for Rs. 2,16,000, with Rs. 50,000 paid as advance. The plaintiff was put into possession on the same day and converted the land into house sites. The second defendant (appellant), an adjacent landowner, subsequently purchased the property from the first defendant and was impleaded. The trial court decreed the suit, and the first appellate court confirmed. In second appeal, the appellant challenged the concurrent findings on readiness and willingness, limitation, and her status as a bona fide purchaser. The High Court held that the plaintiff had proved readiness and willingness by paying advance, taking possession, filing suit within limitation, and depositing balance consideration. The appellant, being aware of the agreement as an adjacent owner and having filed a prior suit, was not a bona fide purchaser without notice. The suit was within limitation as the agreement fixed 12 months from 15.7.1987, and the suit was filed on 26.10.1990. The court dismissed the appeal, confirming the decree for specific performance.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till decree - In the instant case, plaintiff paid advance, took possession, and filed suit within limitation - Held that plaintiff's conduct and evidence established readiness and willingness (Paras 10-15).

B) Specific Relief Act, 1963 - Section 19(b) - Subsequent Purchaser - A subsequent purchaser with notice of prior agreement is bound by the decree of specific performance - Appellant, being adjacent owner and aware of the agreement, cannot claim bona fide purchase - Held that appellant is not a bona fide purchaser for value without notice (Paras 16-20).

C) Limitation Act, 1963 - Article 54 - Suit for Specific Performance - Limitation period is three years from the date fixed for performance or from notice of refusal - Agreement fixed 12 months from 15.7.1987, suit filed on 26.10.1990 within limitation - Held that suit is not barred by limitation (Paras 21-23).

D) Easement Act, 1882 - Section 15 - Easement by Prescription - Plaintiff claimed cart track used for 70 years - However, issue not pressed in appeal - Held that no finding required (Para 24).

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Issue of Consideration

Whether the plaintiff was ready and willing to perform his part of the contract and whether the subsequent purchaser (appellant) can resist specific performance.

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Final Decision

Second Appeal dismissed. Judgment and decree of the First Appellate Court confirming the Trial Court's decree for specific performance are upheld. No costs. Connected miscellaneous petition closed.

Law Points

  • Specific performance
  • Readiness and willingness
  • Subsequent purchaser
  • Burden of proof
  • Limitation
  • Adverse possession
  • Easementary right
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Case Details

2025:MHC:111

S.A.No.837 of 2016 and C.M.P.No.16331 of 2016

2025-01-07

R.N.MANJULA

2025:MHC:111

Mr.S.Subbiah, Senior Counsel for Mr.A.V.Arun for P.Raja (Appellant), Mr.S.Mukunth, Senior Counsel for Mr.B.Thirumalai for R1

Vimala

Kandasamy, Veluchamy, Mayilathal

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Nature of Litigation

Civil suit for specific performance of a sale agreement.

Remedy Sought

Plaintiff sought decree for specific performance of sale agreement dated 15.7.1987 against defendants.

Filing Reason

First defendant failed to execute sale deed despite receiving advance and putting plaintiff in possession; second defendant (appellant) purchased property subsequently and obstructed.

Previous Decisions

Trial Court decreed suit on 30.01.2003 in O.S.No.830 of 1990; First Appellate Court dismissed appeal on 22.11.2011 in A.S.No.167 of 2004.

Issues

Whether the plaintiff was ready and willing to perform his part of the contract? Whether the suit is barred by limitation? Whether the appellant (second defendant) is a bona fide purchaser for value without notice?

Submissions/Arguments

Appellant argued that plaintiff failed to prove readiness and willingness, suit was barred by limitation, and appellant was a bona fide purchaser. Respondent argued that plaintiff paid advance, took possession, filed suit within limitation, and appellant had notice of the agreement.

Ratio Decidendi

A plaintiff seeking specific performance must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree. A subsequent purchaser with notice of prior agreement is bound by the decree. The suit for specific performance must be filed within three years from the date fixed for performance or from notice of refusal.

Judgment Excerpts

The plaintiff has proved his readiness and willingness by paying the advance amount, taking possession, filing the suit within limitation and depositing the balance sale consideration. The appellant being an adjacent owner and having filed a suit earlier, cannot claim to be a bona fide purchaser without notice.

Procedural History

Suit O.S.No.830 of 1990 filed before Subordinate Judge, Coimbatore, decreed on 30.01.2003. Appeal A.S.No.167 of 2004 before Principal District Judge, Coimbatore, dismissed on 22.11.2011. Second Appeal S.A.No.837 of 2016 filed before Madras High Court, dismissed on 07.01.2025.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
  • Specific Relief Act, 1963: Section 16(c), Section 19(b)
  • Limitation Act, 1963: Article 54
  • Indian Easements Act, 1882: Section 15
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