In the facts of M.M.S. Investments
case [M.M.S. Investments v. V. Veerappan, (2007) 9
SCC 660] , after the trial court decreed the suit, the
property was conveyed to the plaintiff. It is only
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AS.No.1116/2015
thereafter that the appellants in that case purchased
the property. In the facts of the present case,
Defendants 2 and 3 purchased the property even
before the suit for specific performance was filed. In
the present case there is no conveyance in favour of
the plaintiff after which Defendants 2 and 3 purchased
the property.
In the facts of M.M.S. Investments case, after the trial
court decreed the suit, the property was conveyed to the
plaintiff. It is only thereafter that the appellants in that case
purchased the property. In the facts of the present case,
Defendants 2 and 3 purchased the property even before the suit
for specific performance was filed. In the present case there is
no conveyance in favour of the plaintiff after which Defendants
2 and 3 purchased the property. The ratio of M.M.S.
Investments would therefore be of no assistance to the appellant
herein. On the other hand, the three-Judge Bench decision
in Ram Awadh would apply on all fours."
So far this submission is concerned, in the decision of
M.M.S. Investments, Madurai (supra) the Hon'ble Supreme
Court has referred the decision of (2000) 2 Supreme court Cases
428 (Ram Awadh and others v. Achhaibar Dubey and another)
and without discussing the facts of that case at paragraph 5
mentioned that it is to be noted that the decision in Ram Awadh
case (supra) relates to a case where there was only an agreement.
Except this there is nothing with respect to the case of Ram
Awadh.
38. The First Appellate Court placed reliance on the
decision in the case of M.M.S. INVESTMENTS, MADURAI AND
OTHERS vs. V.VEERAPPAN AND OTHERS4. The facts and
circumstances in the case before the Hon'ble Apex Court is
that a suit for specific performance of the contract was
decreed by the trial Court and after passing such decree, the
defendants through their power of attorney holder sold large
extent of properties including the subject-matter of the suit in
4
(2007) 9 SCC 660
30
favour of a third party who are the appellants before the
Hon'ble Apex Court. The appellants being the subsequent
purchasers after passing of the decree, filed application before
the High Court seeking to implead themselves as appellants in
the appeal that was preferred by the original defendants. The
High Court on considering rival submissions held that there is
no bar for the appellants to raise any issue on merits of the
appeal for consideration except the defence of readiness and
willingness as provided under Section 16(c) of the Specific
Relief Act, 1963. Accordingly, the CMP filed by the subsequent
purchasers was dismissed. The same was challenged before
the Hon'ble Apex Court. Under such circumstances, Hon'ble
Apex Court held in Paragraph No.6 as under:
In the light of the ratio of the larger bench of
the Hon'ble Supreme Court in Ram Awadh's case, the
contention that the defence under Section 16(c) is not
open to defendants and the judgment in M.M.S
Investments' case has to be followed cannot be accepted.
The trial Court failed to properly appreciate the pleadings,
evidence, law and the precedents on compliance of Section
16(c) of the Specific Relief Act. Therefore, the finding that
the plaintiff was ever ready and willing to perform its part
of the contract is unsustainable.