Case Note & Summary
The appellant/plaintiff filed a suit for specific performance of an agreement dated 26.03.1998 for sale of property by defendant no. 1 for Rs. 30,00,000/-. The plaintiff paid Rs. 3,00,000/- as advance on the date of agreement and allegedly paid an additional Rs. 15,00,000/- between 26.03.1998 and 12.09.1998, extending the agreement period. The defendant denied the transaction, claiming signatures were obtained on blank papers. The Trial Court found the agreement proved but denied specific performance under Section 20 of the Specific Relief Act, 1963, ordering refund of Rs. 18,00,000/- with interest. The High Court, in appeal by defendant no. 1, reduced the refund to Rs. 3,00,000/- only, holding that the additional payment of Rs. 15,00,000/- was not proved due to lack of corroboration and omission in the suit notice. The Supreme Court dismissed the plaintiff's appeal, affirming the High Court's finding that the plaintiff failed to prove the additional payment by positive evidence. The Court noted that the endorsement for the additional payment had the witness signing before the defendant, which was unusual, and the suit notice did not mention the additional amount. The parties were directed to bear their own costs.
Headnote
A) Specific Performance - Refund of Advance Consideration - Burden of Proof - Section 20 Specific Relief Act, 1963 - The plaintiff sought specific performance of an agreement for sale and alternatively refund of Rs. 18,00,000/- paid as advance. The Trial Court denied specific performance but ordered refund of Rs. 18,00,000/-. The High Court reduced refund to Rs. 3,00,000/- holding that payment of additional Rs. 15,00,000/- was not proved. The Supreme Court upheld the High Court's finding, noting lack of corroboration and omission in the suit notice. Held that the plaintiff failed to prove the additional payment by positive evidence (Paras 11-13).
Issue of Consideration
Whether the plaintiff proved payment of Rs. 15,00,000/- additional advance consideration beyond the initial Rs. 3,00,000/- under the agreement for sale.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's judgment that the plaintiff is entitled to refund of only Rs. 3,00,000/- with 12% interest per annum from the date of suit till realisation. Parties to bear their own costs.
Law Points
- Specific performance
- Refund of advance consideration
- Burden of proof
- Corroboration of payment
- Section 20 Specific Relief Act
- 1963
