As per case facts, the plaintiff sought specific performance of a sale agreement, where the second defendant (plaintiff's wife and first defendant's power agent) entered into the agreement. The first ...
2026:MHC:1918SA(MD). No.237 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Reserved on : 20.04.2026
Delivered on : 05.06.2026
CORAM
THE HONOURABLE MR. JUSTICE P.B.BALAJI
SA(MD). No.237 of 2024
and
CMP(MD)No.4666 of 2024
Pambaiyan, ... Appellant / Appellant / Plaintiff
Vs.
1. V.Sethuraman,
2. Ayyammal, ... Respondents / Respondents / Defendants
PRAYER :- Second Appeal filed under Section 100 of Civil Procedure
Code, to set aside the decree and the judgment dated 23-08-2023 passed
in A.S.No.56 of 2017, on the file of the IV Additional District Judge,
Madurai confirming the decree and the Judgment dated 28-07-2017
passed in O.S.No.1074 of 2012, on the file of the I Additional Sub Court,
Madurai (Camp at Melur), by allowing this second appeal.
For Appellant : Mrs.P.Jessi Jeeva Priya,
For Respondents : Mr.S.M.Arun Kumar, for R1
: No appearance for R2
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SA(MD). No.237 of 2024
JUDGMENT
The plaintiff, in a suit for specific performance is the appellant,
aggrieved by the concurrent findings rendered by the trial Court as well
as the first appellate Court.
2. The second appeal was admitted on 05.12.2024 on the following
substantial questions of law:
“(i) Whether the Courts below are correct in law in
not accepting Exhibit A1, the Power of Attorney, when the
first respondent himself has admitted his signature and its
execution failed to prove that the Power of Attorney has
been obtained by undue influence and created by fraud?
(ii) Whether the Court below is justified in
dismissing the suit especially when the first respondent
failed to rebut the presumption under Section 114(e) of
the Indian Evidence Act as to the genuineness of the
registered documents Exhibits A1 and A2?
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(iii) Whether the Judgements of the Courts below
are justified in declining the decree of specific
performance of a legal and valid registered agreement to
sale executed in favour of the plaintiff contrary to the
provisions of the Specific Relief Act, 1963 and the law
laid down by the Apex Court?"
3. For the sake of convenience, the parties are referred to as per
their rank before the trial Court.
4. I have heard Mrs. P.Jessi Jeeva Priya, learned counsel for the
appellant and Mr.S.M.Arun Kumar, learned counsel for the first
respondent.
5. Brief facts that are necessary for deciding the second appeal are
as hereunder:
The plaintiff entered into a registered agreement of sale with the
second defendant on 13.01.2011 for purchasing the suit property for a
total sale consideration of Rs.2,60,000/-. The plaintiff had advanced a
sum of Rs.75,000/- towards part payment to the second defendant. The
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agreement was to be concluded within 2 ½ years, on receipt of balance
sale consideration of Rs.1,85,000/-. The plaintiff contending that the
plaintiff is always ready and willing to perform his part of the contract
and despite demands, including lawyer's notice dated 19.06.2012, the
defendants have neither come forward to execute the sale deed nor issued
any reply and hence, the plaintiff was constrained to institute the present
suit, particularly in view of the fact that third parties are attempting to
alienate the suit property.
6. The suit was resisted by the first defendant stating that the first
defendant is the owner of the property and the second defendant is the
sister of the first defendant. The plaintiff’s claim is that the first
defendant has denied the plaintiff’s contention that he executed a power
of attorney on 26.08.2004, appointing the second defendant as his
General Power of Attorney. He would further state that the second
defendant is none other than the wife of the plaintiff. It is alleged that, on
imaginary and untenable grounds, the plaintiff and the second defendant
claim to have obtained a General Power of Attorney, and that the same
was registered, though the first defendant had no occasion to appoint his
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sister as his power of attorney agent and the first defendant has not
received any advance as alleged by the plaintiff. Any sale agreement
executed by the second defendant in favour of the plaintiff, will not bind
the first defendant. The first defendant had originally married the
plaintiff’s daughter, however, the marriage was not a happy one.
Subsequently, the first defendant married another woman and begot four
children. It is alleged that, only in order to wreak vengeance, the present
suit has been filed.
7. The second defendant has filed a written statement supporting
the plaintiff’s case; however, she additionally contends that an advance
amount of Rs.75,000/- was received from the plaintiff and handed over to
the first defendant and that the first defendant had promised to execute
the sale deed in favour of the plaintiff; hence, the second defendant did
not hesitate to exercise the power of attorney for executing the sale deed
in favour of the plaintiff, her husband.
8. Based on the above pleadings, the parties went to trial. The
plaintiff examined himself as P.W.1 and one Kallanai examined as P.W.2
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and five documents were marked as Ex.A1 to Ex.A5. On the side of the
defendants, the first defendant examined himself as D.W.1 and marked
original power of attorney deed, dated 04.02.2011 as Ex.B1.
9. Upon consideration of the evidence adduced by the parties, the
trial Court came to the conclusion that the plaintiff is not entitled to the
discretionary relief of specific performance and also the relief of
permanent injunction, as he has not substantiated his claim of having
been put in possession of the suit property. The plaintiff preferred in
A.S. No.56 of 2017, before the IV Additional District Court, Madurai
and the first appellate Court by judgment and decree dated 23.08.2023
confirmed the findings of the trial Court and dismissed the appeal. As
against the concurrent findings of the Courts below, the present second
appeal has been filed.
10. Mrs.P.Jessi Jeeva Priya, learned counsel for the appellant/
plaintiff would state that the first defendant had categorically admitted to
the factum of execution and registration of the power agent and in such
circumstances, the second defendant was well within her rights to enter
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into the agreement of sale in favour of any person, including her
husband, the plaintiff and the same cannot be found fault with. The
learned counsel would also state that even though the agreement of sale
was entered into on 13.01.2011 and a period of 2½ years was fixed for
completion of the sale deed, even on 19.01.2012, the plaintiff issued
Ex.A2 legal notice calling upon the defendants to perform their part of
the contract. Despite receipt of the said notice, there was no reply from
the first defendant. After waiting for some time, the suit came to be filed
in November 2012 itself. Mrs.P.Jessi Jeeva Priya, learned counsel would
contend that both the Courts below have erred in deciding the matter on
irrelevant considerations relating to the relationship between the parties
and have failed to adjudicate the vital issue of readiness and willingness,
which is the sole determinative issue in a suit for specific performance.
11. Inviting my attention to the written statement, Mrs. P. Jessi
Jeeva Priya, learned counsel, would submit that the first defendant has
categorically made admissions in his written statement. She would
further contend that, though the power of attorney under Ex.B1 was
subsequently cancelled, the first defendant has not alleged any foul play
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or undue influence, which are merely set up in the plaint with a view to
non-suit the plaintiff to the relief of specific performance. She would
also state that the revocation of the power of attorney was not even
communicated to the power agent and, therefore, it did not take effect. It
is, therefore, her argument that the Courts below failed to appreciate that
the plaintiff was always ready and willing to perform his part of the
contract and that the first defendant had, in fact, made admissions
relating to the transaction itself, including receipt of an advance amount
of Rs.75,000/-. “The learned counsel further submits that the burden was
therefore heavily cast upon the first defendant, particularly to establish
that the power of attorney was obtained by undue influence or
misrepresentation.
12. In support of her submissions, the learned counsel for the
appellant relied on the following decisions:
(i) Judgment of the Division Bench of this Court in Gopamma v.
Murugesan reported in 2026-1-MWN(Civil)-530;
(ii) Judgement of the Hon'ble Supreme Court in Arunima Baruah
v. Union of India reported in 2007-6-SCC-120; and
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(iii) Judgment of the Hon'ble Supreme Court in Bishundeo Narain
v. seogeni Rai reported in 1951-SCC-447.
13. Per contra, Mr.S.M.Arun Kumar, learned counsel for the first
respondent / first defendant would state that the plaintiff did not even
come to Court with clean hands and has suppressed that the plaintiff is
the husband of the second defendant, who is the power of attorney of the
first defendant. He would therefore submit that the plaintiff and the
second defendant have colluded in relation to the transaction concerning
the plaintiff’s valuable property. He would further state that the first
defendant had married the plaintiff’s daughter and that disputes arose
within the family, which ultimately resulted in separation and he would
therefore contend that it was only because of the said disputes that the
second defendant, who happens to be the sister of the first defendant,
with the active assistance and in collusion with the plaintiff, brought
about the execution of the power of attorney. He would therefore state
that in fact,there was no necessity for executing a power of attorney in
favour of his sister, the second defendant. He would further state that the
plaintiff has also not been ready and willing to perform his part of the
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contract and rightly the Courts below have denied the relief of specific
performance.
14. In support of his submissions, Mr.S.M.Arun Kumar, learned
counsel relies on my decision in N.Basuvaraj v. Gullamma, reported in
2024-1-LW-620 and the decision of the Hon'ble Division Bench of this
Court in P.Varadharajan v. Senthilkumar in A.S.No.330 of 2011, dated
12.01.2023.
15. I have carefully considered the submissions advanced by the
learned counsel on either side. I have also gone through the pleadings,
deposition of the witnesses, documentary evidence as well as the
judgments of the trial Court and the first appellate Court. I have also kept
the principles laid down in the various judgments referred herein above
in mind, while deciding the substantial questions of law that have been
framed at the time of admission.
16. The plaintiff sought for enforcement of an agreement of sale
entered into with him, by his wife as power agent of his brother-in-law.
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Though the brother-in-law as first defendant denied the validity of the
said power agent, contending that it was obtained by undue influence and
that it is not binding on him, both the Courts have rightly found that the
first defendant has not been able to establish the plea of undue influence,
and therefore the first defendant is bound by the consequences of the
execution of the power of attorney. It is also relevant to note that, during
the subsistence of the power of attorney, the power agent entered into an
agreement of sale with her husband for the sale of the suit property for a
total sale consideration of Rs.2,60,000/- and a sum of Rs.75,000/- was
received as advance, and a period of 2½ years was fixed under the said
agreement for completion of the transaction.
17. The plaintiff, admittedly within the said period of 2 ½ years,
has issued a lawyer's notice on 19.06.2012 under Ex.A3, calling upon
both the defendants, viz., brother-in-law (principal) as well as the power
agent to execute the sale deed, on receipt of the balance sale
consideration. The said lawyer's notice was served on the first defendant
personally on 20.06.2012. However, the first defendant did not come
forward to even reply to the said notice. It is therefore the contention of
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the learned counsel for the appellant, Mrs.P.Jessi Jeeva Priya, that when
the Courts below have disbelieved the theory of undue influence set up
by the first defendant, the Courts ought to have granted the relief of
specific performance. She would further state that the Courts have not
dealt with the aspect of readiness and willingness, which is the core issue
to be considered in a suit for specific performance.
18. Merely because the agreement is held to be binding on the first
defendant, it does not automatically follow that a decree for specific
performance of the agreement of sale is to be granted. No doubt, the
Courts have not dealt with the issue of readiness and willingness at all.
Their focus has been diverted to the fact that the plaintiff and the second
defendant are husband and wife, and that neither the agreement nor the
pre-suit notice discloses this relationship. It is further pointed out that the
plaint also does not disclose the fact that the power agent of the first
defendant is none other than the wife of the plaintiff. The Courts, under
such pretext, have disbelieved the case of the plaintiff regarding the
transactions between the plaintiff and the second defendant.
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19. Once the Courts had held that the power of attorney was
binding on the first defendant, they ought to have accepted the agreement
of sale. The Courts have, in effect, rejected the contention of the first
defendant, but at the same time erred in disbelieving the agreement of
sale on the ground of collusion.
20. Be that as it may, the plaintiff has suffered concurrent findings
before the Courts below, which have taken serious note of the fact that
the advance sale consideration of Rs.75,000/- was paid to the wife of the
plaintiff himself and the further plea that the transaction was entered into
with the consent of the first defendant, the owner of the property, has
also not been established . The Courts below also found that the plaintiff
was not put in possession of the property, pursuant to the agreement of
sale and the power agent also did not deal with the possession of the suit
property. Therefore, the power agent could not have handed over
possession of the suit property to the agreement holder. The agreement
also does not deal with the factum of possession. This aspect has not
been considered by both the Courts while arriving at the conclusion that
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the plaintiff was not in possession and is, therefore, not entitled to the
relief of permanent injunction
21. Even though the Courts below had not gone into the issue of
readiness and willingness, I have also considered whether the matter
should be remanded for the purpose of rendering a finding on readiness
and willingness. However, from the available evidence on record, I find
that, except for the plea in the plaint that the plaintiff was ready and
willing to perform his part of the contract, viz., to pay the balance sale
consideration and complete the transaction, there is nothing to establish
readiness and willingness. There is not a single document exhibited on
the side of the plaintiff to show that he was possessed of sufficient funds
at all relevant points of time to meet the balance sale consideration.
Under these circumstances, there is no scope even for remanding the
matter for the purpose of recording a finding on readiness and
willingness, in view of the total absence of evidence in that regard. The
Courts have already non-suited the plaintiff on the ground of lack of
proof of the essential requirements for equitable relief. Even if the
plaintiff’s claim is to be tested on the ground of readiness and
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willingness, no useful purpose would be served by such examination, in
view of the facts already discussed. In the light of the above, I do not find
any justifiable or substantial grounds arising in the present second appeal
to interfere with the concurrent findings rendered by the Courts below.
22. Coming to the decisions that have been relied on, the Hon'ble
Supreme Court in Bishundeo Narain's case, held that undue influence
and coercion are separate and separable categories in law and there must
be separately pleaded and also proved at trial. The Hon'ble Supreme
Court Arunima Baruah's case, dealt with what is suppression of
material fact and held that for the Court to refuse to exercise its
discretionary jurisdiction, suppression must be of material fact. What
would be a material fact, suppression whereof would disentitle the
appellant to obtain a discretionary relief, would depend upon the facts
and circumstances of each case. Here, the plaintiff has suppressed the
relationship between the parties; however, I do not find such non-
disclosure amounting to suppression of a material fact. It is not the case
of the first defendant that the plaintiff obtained an order behind the back
of the first defendant, suppressing the fact that the parties are closely
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related. In such circumstances, as held by the Hon'ble Supreme Court
Arunima Baruah's case, I am unable to countenance the argument of the
learned counsel that non-mentioning of the fact that the power agent is
the wife of the plaintiff amounts to material suppression, on the basis of
which alone the discretionary relief of specific performance should be
denied.
23. In Gopamma's case, the Hon'ble Division Bench held that
when there is a revocation of agency, reasonable notice of such
revocation must be given to the agent and in the absence of the same, the
revocation itself would be fatal. In the present case also, no evidence was
brought on record by the first defendant that he has cancelled the power
agent after informing the power agent. However, I do not find it
necessary to dwell further on this issue, for the simple reason that I have
already held that the agreement was entered into during the subsistence
of the power of attorney, and therefore the first defendant is bound by the
acts of the power agent in executing the sale agreement even in favour of
her husband.
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24. The Hon'ble Division Bench of this Court in P.Varadharajan's
case, this Court held that when the suit agreement is merely a product of
collusion between the plaintiff and the fourth defendant, it cannot be
specifically enforced
25. In N.Basuvaraj's case, I held that in a suit for specific
performance, the relief sought is only an equitable relief but, also a
discretionary, the plaintiff has to firstly establish the factum of an
enforceable agreement of sale between the plaintiff and the defendant
and additionally is also bound to satisfy the Court that the plaintiff was
always ready and willing to perform his or her part of the said agreement
of sale at all relevant points of time and only if these twin factors are
satisfied, the plaintiff would become entitled to the relief of specific
performance. Applying the recent judgment laid down in Basuvaraj's
case to the facts of the present case, even if the plaintiff may have
succeeded in establishing the conditions for enforcement of the sale
agreement, inso far as readiness and willingness are concerned, the
plaintiff has miserably failed to bring on record any cogent or
satisfactory evidence to show that he was possessed of sufficient funds.
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The plaintiff has also not taken any steps to deposit the balance sale
consideration either at the time of filing of the suit or during the
pendency of the suit.
26. In the light of the above, I do not see any justifiable grounds to
interfere with the findings rendered by the Courts below. The substantial
questions of law are answered against the appellant.
27. In fine, the second appeal is dismissed. There shall be no order
as to costs. Consequently, connected Miscellaneous Petition is closed.
.05.06.2026
NCS : Yes/No
Index : Yes / No
Internet : Yes / No
LS
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TO
1. The IV Additional District Judge,
Madurai.
2. The I Additional Sub Court,
Madurai (Camp at Melur).
3.The Section Officer,
VR Section,
Madurai Bench of Madras High Court,
Madurai.
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P.B.BALAJI,J.
LS
Pre-delivery judgment made in
SA(MD) No.237 of 2024
05.06.2026
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Legal Notes
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