Case Note & Summary
The dispute arose from an agreement to sell dated 13.03.2007, where the seller agreed to sell land to the buyer for Rs. 12,74,000, with Rs. 3 lakhs paid as earnest money. When the seller failed to execute the sale deed, the buyer issued a legal notice on 20.11.2007, which was denied by the seller. The buyer filed a suit for specific performance on 14.02.2008, alleging readiness and willingness to perform the contract. The Trial Court, after evidence appreciation, decreed the suit on 30.09.2011, finding the buyer ready and willing, and the buyer deposited the balance consideration of Rs. 9,74,000 with the court. The seller appealed to the High Court, which reversed the Trial Court's decision on 27.11.2020, holding the buyer failed to prove readiness and willingness. The buyer's review petition was dismissed on 06.12.2021. The core legal issue was whether the High Court erred in reversing the Trial Court's findings on the buyer's readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The buyer argued that his plaint averments, legal notice, deposition, and witness evidence, along with the deposit, established readiness and willingness, citing precedents like Indira Kaur v. Sheo Lal Kapoor and Beemaneni Maha Lakshmi v. Gangumalla Appa Rao. The seller contended that the buyer failed to demonstrate sufficient funds and relied on cases like J.P. Builders v. A. Ramadas. The Supreme Court analyzed the evidence, noting the buyer's consistent assertions and lack of cross-examination on key points, and held that the Trial Court's findings were based on proper evidence appreciation and should not have been interfered with. The Court emphasized that adverse inferences should not be drawn merely due to lack of documentary evidence of funds, as per established precedents. Consequently, the Supreme Court allowed the appeals, set aside the High Court's judgment, and restored the Trial Court's decree for specific performance, favoring the buyer.
Headnote
A) Contract Law - Specific Performance - Readiness and Willingness - Specific Relief Act, 1963, Section 16(c) - The Supreme Court considered whether the buyer demonstrated readiness and willingness to perform the agreement to sell dated 13.03.2007, as required under Section 16(c) of the Specific Relief Act, 1963. The Court held that the buyer's averments in the plaint, legal notice, deposition, and evidence of attestors, along with the deposit of balance consideration before the Trial Court, sufficiently established his readiness and willingness, reversing the High Court's contrary finding. (Paras 1-6) B) Evidence Law - Appreciation of Evidence - Concurrent Findings - Code of Civil Procedure, 1908 - The Court addressed the High Court's interference with the Trial Court's findings on readiness and willingness based on evidence appreciation. It held that the Trial Court's findings, supported by evidence including the buyer's deposition and witness testimonies without cross-examination, should not have been reversed by the High Court, as they were not perverse or erroneous. (Paras 3-6) C) Contract Law - Agreement to Sell - Execution and Denial - Indian Contract Act, 1872 - The Court noted that the seller initially denied execution of the agreement to sell but later admitted to receiving earnest money, taking contradictory pleas. It held that such dishonest conduct did not negate the buyer's readiness and willingness, and the agreement's validity was upheld based on concurrent findings by lower courts. (Paras 2-3)
Issue of Consideration
Whether the High Court erred in reversing the Trial Court's findings on the readiness and willingness of the buyer to perform his part of the agreement to sell, and whether the buyer had established sufficient evidence of readiness and willingness.
Final Decision
Supreme Court allowed the appeals, set aside the impugned judgments and orders of the High Court, and restored the judgment and decree passed by the Trial Court decreeing the suit for specific performance
Law Points
- Readiness and willingness to perform contract
- specific performance
- agreement to sell
- earnest money
- evidence appreciation
- concurrent findings
- adverse inference
