Case Note & Summary
The dispute arose from an agreement of sale dated 26.10.1988 between the appellant and the respondent for a property sale. The respondent agreed to sell her property for Rs.43,50,000/- and received Rs.9,50,000/- as an advance. The agreement stipulated that the sale was to be completed within 30 days of receiving necessary clearances from the Income Tax authorities. After a series of communications and a subsequent agreement on 2.5.1989, the sale was to be completed by 19.6.1989. However, the appellant did not complete the sale, leading the respondent to terminate the agreement. The appellant then filed a suit for specific performance, which was contested by the respondent on grounds of breach. The High Court dismissed the suit, finding that the appellant was not ready and willing to perform the contract. The appellant's appeal to the Supreme Court was dismissed, affirming the lower court's findings. The court noted that the appellant's insistence on additional documentation regarding municipal taxes constituted a breach of the agreement, as the respondent had indicated her willingness to proceed with the sale. The court emphasized that the burden of proof lay with the appellant to show readiness to perform the contract, which he failed to do.
Headnote
A) Contract Law - Specific Performance - Readiness and Willingness - Specific Relief Act, 1963, Section 20 - The appellant failed to demonstrate readiness and willingness to perform the contract as he did not pay the entire balance consideration as agreed. The court held that the appellant's insistence on additional conditions constituted a breach, justifying the dismissal of the suit for specific performance (Paras 7-9).
Issue of Consideration
Whether the appellant was ready and willing to perform the contract as per the agreement of sale.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's decision that the appellant was not ready and willing to perform the contract, thus justifying the dismissal of the suit for specific performance.
Law Points
- Specific performance
- breach of contract
- readiness and willingness
- municipal tax liability
- evidence burden
