High Court Sets Aside Trial Court's Order Permitting Deposit of Sale Consideration in Specific Performance Suit. The Trial Court's failure to consider statutory provisions led to the High Court's intervention under Article 227.

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

The case involved civil revision petitions filed by the legal representatives of a deceased defendant in a specific performance suit. The original suit, O.S.No.318 of 2000, was decreed ex-parte on 18.07.2001, with a total sale consideration of Rs.1,00,000/-, of which Rs.50,000/- was paid, leaving a balance of Rs.50,000/- to be paid within one month. The defendant passed away, and his legal representatives attempted to set aside the ex-parte decree but were unsuccessful. Subsequently, the respondent filed an application to deposit the remaining amount, which was allowed by the Trial Court on 25.01.2017. The petitioners challenged this order, arguing that the Trial Court did not consider their objections or the statutory provisions under the Specific Relief Act. The High Court noted that while it could exercise its power under Article 227, the petitioners had delayed their challenge and participated in the execution proceedings. Ultimately, the High Court set aside the Trial Court's order, remanding the matter for a fresh decision on the application to deposit the balance amount, while dismissing the petition to strike off the execution petition as meritless. The execution petition was ordered to be kept in abeyance pending the outcome of the remanded application.

Headnote

A) Specific Relief - Ex-parte Decree - Validity of Allowing Deposit of Sale Consideration - Specific Relief Act, 1963, Section 28 - The Trial Court's order permitting the deposit of the balance sale consideration was set aside due to failure to consider statutory provisions and objections raised. The High Court found that the petitioners had a right to seek rescission of the contract due to non-compliance with the deposit condition. Held that the matter should be decided afresh by the Trial Court (Paras 6-8).

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Issue of Consideration

Whether the Trial Court erred in allowing the deposit of the balance sale consideration after an ex-parte decree.

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Final Decision

The High Court allowed CRP.No.4830 of 2023, set aside the order dated 25.01.2017 in I.A.No.157 of 2008, and remitted the matter to the Trial Court for a fresh decision. CRP.No.4834 of 2023 was dismissed, and the execution petition was kept in abeyance pending the outcome of the remanded application.

Law Points

  • Specific performance
  • ex-parte decree
  • deposit of sale consideration
  • Article 227
  • rescission of contract
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Case Details

2026 LawText (MAD) (08) 116

CRP Nos.4830 & 4834 of 2023

2026-08-18

P.B. Balaji

Mr.A.Muthuprakash, Mr.R.Bharathkumar

M.Deivanayaki, M.Rajalakshmi, M.Karthikeyani

K.Palanisamy

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Nature of Litigation

Civil revision petitions regarding specific performance and execution of a sale agreement.

Remedy Sought

Petitioners sought to set aside the Trial Court's order allowing deposit of sale consideration and to strike off the execution petition.

Filing Reason

The petitioners contested the Trial Court's order permitting the deposit of the balance sale consideration.

Previous Decisions

The ex-parte decree was not set aside despite attempts by the petitioners.

Issues

Whether the Trial Court erred in allowing the deposit of the balance sale consideration. Whether the petitioners' delay in filing the revision petitions affected their claims.

Submissions/Arguments

Petitioners argued that the Trial Court did not consider their objections or statutory provisions. Respondent contended that the petitioners had participated in the proceedings and delayed their challenge.

Ratio Decidendi

The Trial Court's failure to consider statutory provisions under Section 28 of the Specific Relief Act warranted the High Court's intervention to ensure justice.

Judgment Excerpts

The petitioners having slept over the matter for close to 10 years, have thought it fit to approach this Court under Article 227. I am unable to justify the reasons assigned by the Trial Court in allowing I.A.No.157 of 2008.

Procedural History

The petitioners filed two civil revision petitions against the orders of the Trial Court regarding the deposit of sale consideration and execution petition.

Acts & Sections

  • Specific Relief Act, 1963: Section 28
  • Constitution of India: Article 227
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