Case Note & Summary
The dispute arose from an agreement dated 3.7.1973, where the respondent sold two plots to the appellant for Rs. 15,000, and subsequently agreed to reconvey the properties within two years. The respondent filed a suit for specific performance, alleging the appellant refused to reconvey despite readiness to perform. The trial court dismissed the suit, stating the respondent was not ready and willing, a decision upheld by the first appellate court. However, the High Court reversed this, finding the respondent had shown willingness through notices sent to the appellant. During the second appeal, the properties were acquired by the State, leading the appellant to argue that specific performance was impossible and the High Court erred in reappraising evidence. The Supreme Court held that the High Court could reappraise evidence if findings were vitiated by non-consideration of relevant evidence. It confirmed the High Court's finding that the respondent was willing to perform and that the appellant was in breach. The Court noted that under Section 21 of the Specific Relief Act, compensation could be awarded in lieu of specific performance when the contract became impossible due to no fault of the plaintiff. The Court modified the decree to award compensation equivalent to the amount determined for the land acquisition, deducting Rs. 1,50,000 for the appellant's expenses. The judgment emphasized the distinction between Indian and English law regarding compensation and specific performance, ultimately allowing the amendment for compensation to ensure complete justice.
Headnote
A) Specific Relief - Specific Performance - Compensation for Breach - Specific Relief Act, 1963, Section 21 - Court held that where the contract becomes impossible for no fault of the plaintiff, compensation can be awarded in lieu of specific performance. The High Court's findings regarding the respondent's readiness to perform were confirmed, and the decree was modified to award compensation instead of specific performance due to land acquisition (Paras 572-579).
Issue of Consideration
Whether the High Court erred in granting specific performance despite the acquisition of the suit properties and the appellant's claims regarding the respondent's readiness to perform the contract.
Final Decision
The Supreme Court modified the High Court's decree for specific performance to an award of compensation equivalent to the amount determined for the land acquisition, deducting Rs. 1,50,000 for the appellant's expenses.
Law Points
- Specific performance
- Compensation
- Contract breach
- Reappreciation of evidence
- Notice service
- Amendment of plaint
