SARAVANAN Vs. RAJKUMAR

JUDGEMENT

(1.) The unsuccessful plaintiff is the appellant.

(2.) The plaintiff filed the suit for specific performance of the agreement of sale and both the courts dismissed the suit. The case of the plaintiff was that the respondent agreed to sell the suit property for a sum of Rs.1,75,000/= and received an advance of Rs.1,50,000/= and entered into the agreement of sale dated 16.12.1994 and as per the agreement of sale, three years time was fixed for completing the sale transaction and on 10.1.1997, the appellant demanded the respondent to execute the sale deed and respondent sent a reply denying the execution of agreement of sale and therefore, the suit was filed for specific performance.

(3.) The respondent contested the suit by contending that he never entered into an agreement of sale as claimed by the appellant and also explained the circumstances under which his signatures were obtained in the blank papers. It is the specific case of the respondent that the respondent and the brother of the appellant were known to each other and the respondent and his brother availed the loan from the Tamil Nadu Industrial Investment Corporation (TIIC) for running a service station and also borrowed loans from various persons and when the creditors pressed for payment, they approached the appellant and his brother for advice and the appellant and his brother Vijayakumar are running Suba Investments and Selvi Investment and yet another finance company and they agreed to finance the respondent to pay off the creditors and believing them, the respondent, as suggested by them, executed an agreement of sale in favour of the appellant and his brother executed another agreement of sale in favour of the appellant's brother and also delivered the documents of title and the agreements of sale were not intended to be acted upon and the agreements of sale were executed only as a security for the loan availed from the appellant and his brother and they also repaid the loan and the agreement of sale executed by the respondent's brother was cancelled by the brother of the appellant and the suit was filed on the basis of agreement of sale executed by the respondent and therefore, they are not bound to execute the sale deed.