K K VELUSAMY Vs. N PALANISAMY

JUDGEMENT

(1.) Leave granted.

(2.) The Respondent herein has filed a suit for specific performance (OS No. 48/2007) alleging that the Appellant-Defendant entered into a registered agreement of sale dated 20.12.2006 agreeing to sell the suit schedule property to him, for a consideration of Rs. 240,000/-; that he had paid Rs.160,000/- as advance on the date of agreement; that the Appellant agreed to execute a sale deed by receiving the balance of Rs. 80,000/- within three months from the date of sale; that he was ready and willing to get the sale completed and issued a notice dated 16.3.2007 calling upon the Appellant to execute the sale deed on 20.3.2007; and that he went to the Sub-Registrars office on 20.3.2007 and waited, but the Appellant did not turn up to execute the sale deed. On the said averments, the Respondent sought specific performance of the agreement of sale or alternatively refund of the advance of Rs. 160,000/- with interest at 12% per annum from 20.12.2006.

(3.) The Appellant resisted the suit. He alleged that he was in need of Rs.150,000 and approached the Respondent who was a money lender, with a request to advance him the said amount as a loan; that the Respondent agreed to advance the loan but insisted that the Appellant should execute and register a sale agreement in his favour and also execute some blank papers and blank stamp-papers, as security for the repayment of the amount to be advanced; and that trusting the Respondent, the Appellant executed the said documents with the understanding that the said documents will be the security for the repayment of the loan with interest. The Appellant therefore contended that the Respondent - Plaintiff was not entitled to specific performance.