Madras High Court Sets Aside Specific Performance - Lack of Readiness and Willingness

07 May 2024 8:19 AM

By: Admin

Mr. Justice Krishnan Ramasamy, "Equity demands that specific performance should only be granted when all aspects, including the intentions and actions of both parties, are carefully considered. In this case, the balance tilted in favor of setting aside the order for specific performance."

In a recent landmark judgment, the Madurai Bench of the Madras High Court, led by the Honourable Mr. Justice Krishnan Ramasamy, set aside a specific performance order in a contentious property case. The case, S.A.(MD)No.469 of 2009, had been a subject of legal dispute for several years.

The crux of the matter revolved around a Sale Agreement executed for the purchase of certain properties. The defendant, in this case, contested the suit for specific performance, contending that the Agreement was executed as security for a loan and not with the intent to sell the property.

The court's decision hinged on a critical evaluation of the evidence presented. It was revealed that there was a lack of readiness and willingness on the part of the plaintiff, which was a crucial factor in determining whether specific performance was warranted.

The judgment noted several key aspects that had been overlooked by the lower courts, including the fact that the Sale Agreement was related to a poromboke land without proper title verification. Furthermore, the defendant had filed a suit for permanent injunction, refused to execute the Sale Deed on the agreed date, and pointed to delays on the part of the plaintiff in filing the suit.

In light of these findings, the equitable relief of specific performance was deemed inappropriate. Consequently, the Madras High Court set aside the earlier judgment and decree, offering a direction that the appellant defendant should return the advance payment of Rs.1,75,000/- to the respondents with interest at the rate of 12% per annum from the date of the Agreement until the date of payment, with a stipulated timeframe of six months.

This judgment serves as a significant precedent in property law and emphasizes the importance of readiness and willingness in cases involving specific performance. It also underscores the need for a thorough examination of all relevant evidence before granting such equitable relief.

Dated: 04.09.2023

Vijayalakshmi vs .A.Ganesan