Case Note & Summary
The dispute arose from an Agreement to Sell dated 10th September 1980, where the Appellant agreed to sell her half share of land to the 1st Respondent. The agreement stipulated that the Sale Deed was to be executed by 30th June 1981, with a payment of Rs. 20,000 made at the time of the agreement. A suit was filed by the 2nd Respondent claiming ownership of the land, which resulted in an interim order preventing the Appellant from alienating the property. On the due date, both parties appeared before the Sub-Registrar, but the Appellant could not deliver possession due to the pending suit. The 1st Respondent refused to execute the Sale Deed unless all conditions were met, leading to a trial court ruling that denied specific performance but ordered a refund of the advance payment and compensation. The 1st Respondent appealed, later indicating willingness to accept the Sale Deed without possession. The first Appellate Court allowed the appeal, but the Appellant contested this in a second appeal. The Supreme Court found that the 1st Respondent had previously elected not to accept part performance and thus could not later claim it. The court restored the trial court's decision, emphasizing that the conditions of Section 12(3) of the Specific Relief Act were not met, as the 1st Respondent had not paid the full consideration and had not relinquished claims to the remaining part of the contract. The court varied the trial court's decree regarding compensation, ordering the Appellant to repay the advance with interest and an additional sum as per the agreement terms. The appeal was disposed of without costs.
Headnote
A) Specific Relief - Specific Performance - Conditions for Specific Performance - Specific Relief Act, 1963, Section 12(3) - The court held that the 1st Respondent had elected not to accept part performance and thus could not later claim specific performance. The court emphasized that once a party elects not to accept part performance, they cannot later resile from that election (Paras 45-46).
Issue of Consideration
Whether the 1st Respondent is entitled to the benefit of Section 12(3) of the Specific Relief Act.
Final Decision
The Supreme Court set aside the orders of the first Appellate Court and the High Court, restoring the trial court's decree which denied specific performance and ordered the Appellant to repay Rs. 20,000 with interest and an additional sum of Rs. 20,000 as per the agreement terms.
Law Points
- Specific performance
- part performance
- readiness and willingness
- Specific Relief Act
- 1963
- election not to accept part performance
