Defendant admits signature in Sale Agreement but pleads that Agreement was executed only as Security for Loan transaction - conduct of Plaintiff receiving original Title Deeds would only lead to an inference that documents were handed over as Security for loan - Plaintiff not entitled to Specific Performance.

Citation 

2024 (4) СТС 157

IN THE HIGH COURT OF MADRAS 

P.B. Balaji, J.S.A. No.549 of 2017 & C.M.P. No.13406 of 201731.1.2024

N.Basuvaraj.....Appellant

...Vs...

Gullamma......Respondent

Specific Relief Act, 1963 (47 of 1963), Sections 16(c) & 20 - Evidence Act, 1872 (1 of 1872), Section 92 Suit for Specific Performance Defendant admits signature in Sale Agreement but pleads that Agreement was executed only as Security for Loan transaction - Total consideration: ₹55,000 Plaintiff paid Advance of ₹50,000 on date of Agreement itself One year fixed for payment of balance consideration - Facts disclose that Plaintiff had wherewithal to pay entire Sale consideration on date of Sale Agreement itself - DW2- Scribe admits that Sale Agreement was intended only to be a Security Plaintiff not entitled for Specific Performance Decree of Trial Court dismissing Suit, justified Decree of Appellate Court granting Specific Performance set aside - Second Appeal allowed. (Paras 18, 21 & 23)

Specific Relief Act, 1963 (47 of 1963), Sections 16(c) & 20 - Suit for Specific Performance filed on basis of Sale Agreement dismissed Suit Appellate Court reversed Decree Trial Court Defendant filed Second Appeal - Records show that Sale Agreement is executed as Security for Loan transaction and not with an intention to sell Plaintiff received original Title document at time of Sale Agreement itself Such conduct of Plaintiff is unnatural Owner does not normally part with custody of original Title Deeds Witnesses examined by Plaintiff admits that Sale Agreement was obtained as Security Peculiar conduct of Plaintiff receiving original Title Deeds would only lead to an inference that documents were handed over as Security for borrowing money . Held, Plaintiff not entitled to Specific   Performance (Para 21)

Specific Relief Act, 1963 (47 of 1963), Sections 16(c) & 20 Suit for Specific Performance - Relief sought in such Suit is not only equitable but also discretionary - Plaintiff has to first establish factum of an enforceable Sale Agreement - Plaintiff also bound to satisfy Court that he was always ready and willing to perform his or her part of Sale Agreement at all relevant point of time.(Para 22)