Supreme Court Dismisses Appeal in Specific Performance Case with Directions for Compensation. The court affirmed the lower courts' decree for specific performance while directing the respondent to compensate the appellant for the delay in execution.

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Case Note & Summary

The dispute arose from a suit filed by the respondent for specific performance of a contract against the appellant, who was the unsuccessful defendant. The respondent had entered into agreements for the sale of property on two occasions, with the last date for execution being extended multiple times. After the appellant failed to execute the sale deed, the respondent filed the suit on 26.11.1987. The courts below decreed the suit for specific performance, leading to the appeal. The appellant contended that the respondent did not plead readiness and willingness as required under Section 16 of the Specific Relief Act. The Supreme Court examined the judgments of the lower courts and noted that the respondent had demonstrated continuous readiness and willingness through his conduct, including depositing the sale consideration and being present for registration. The court dismissed the appeal, affirming the lower courts' decisions, but also directed the respondent to compensate the appellant with Rs. 1 lakh for the delay, failing which the suit would be dismissed. The court emphasized that the appellant must execute the sale deed upon receipt of the compensation, ensuring peaceful possession of the property was handed over to the respondent.

Headnote

A) Specific Relief - Readiness and Willingness - Requirement for Specific Performance - Specific Relief Act, 1963, Section 16(c) - The court held that the plaintiff must aver readiness and willingness to perform the contract, which can be shown through conduct rather than strict phraseology. The plaintiff's continuous readiness was evident from his actions, including deposit of sale consideration and presence for registration, justifying the decree for specific performance (Paras 1-2).

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Issue of Consideration

Whether the respondent demonstrated readiness and willingness to perform the contract for specific performance.

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Final Decision

The Supreme Court dismissed the appeal, affirming the lower courts' decree for specific performance while directing the respondent to pay Rs. 1 lakh to the appellant within three months. If the amount was not paid, the suit would stand dismissed automatically. Upon payment, the appellant was to execute the sale deed and hand over possession of the property.

Law Points

  • Specific performance
  • readiness and willingness
  • Section 16 Specific Relief Act
  • 1963
  • conduct of parties
  • compensation for delay
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Case Details

2006 LawText (SC) (09) 115

Appeal (civil) 4223 of 2006

2006-09-21

Dr. AR. Lakshmanan, Tarun Chatterjee

Amar Vivek

Faquir Chand

Sudesh Kumari

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Nature of Litigation

Suit for specific performance of a contract for sale of property.

Remedy Sought

The respondent sought specific performance or alternatively damages.

Filing Reason

The appellant failed to execute the sale deed despite multiple agreements and extensions.

Previous Decisions

The lower courts decreed the suit for specific performance.

Issues

Whether the respondent demonstrated readiness and willingness to perform the contract for specific performance.

Submissions/Arguments

The appellant argued that the respondent did not plead readiness and willingness as required under Section 16 of the Specific Relief Act. The appellant cited the rise in property prices and sought damages instead of specific performance.

Ratio Decidendi

The court held that the requirement of readiness and willingness under Section 16(c) of the Specific Relief Act does not necessitate specific phraseology but can be established through the conduct of the parties.

Judgment Excerpts

The language under Section 16(c) of the Act... only that the plaintiff must aver that he has performed or has always been ready and willing to perform his part of the contract. We therefore, direct the respondent herein to pay the appellant herein a sum of Rs.100,00/- (Rupees one lakh only) within three months from today.

Procedural History

The respondent filed a suit for specific performance, which was decreed by the lower courts. The appellant appealed against the decree, leading to the Supreme Court's review.

Acts & Sections

  • Specific Relief Act: 16
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