Case Note & Summary
The appeal arose from a suit for specific performance of an agreement for sale of agricultural land entered into on February 20, 1975 by Smt. Janabai in favour of the appellant. The appellant agreed to purchase the suit lands for Rs. 7,000 and paid Rs. 2,000 as earnest money. The balance was payable at execution. The respondents, her sons and daughter-in-law, inherited the property after her death. The appellant claimed he paid an additional Rs. 1,000 on July 30, 1976 and Rs. 800 on August 20, 1977, totaling Rs. 3,800. He issued notice to Smt. Janabai on May 5, 1976 to execute the sale deed and after her death sent a registered notice to respondents on March 13, 1978. Upon their failure, he filed the suit in 1978. The trial court dismissed the claim for specific performance, treating the transaction as a money lending arrangement and passed a money decree for Rs. 3,800. The first appellate court reversed the finding on nature of transaction, holding it was an agreement to sell, but still denied specific performance for non-compliance with Section 16(c) of the Specific Relief Act and Form 47 of CPC. The High Court in second appeal affirmed that view. The Supreme Court examined paragraphs 6 and 10 of the plaint. Paragraph 6 stated that the appellant had sent notices to execute the sale deed on May 5, 1976 and March 13, 1978, indicating efforts to obtain performance. Paragraph 10 specifically averred that the appellant was willing to pay fees, registration costs, and the balance of Rs. 3,200. The appellant also deposed that he was ready to pay the remaining amount and perform the agreement. Respondent No.1 admitted in cross-examination that the plaintiff was ready for the sale deed but he himself was not ready. The Court held that these averments and evidence sufficiently established readiness and willingness, and that the lower courts had erred in requiring a specific formulaic averment. The Court noted the appellant was in possession since 1976 and, due to depreciation in rupee value, directed him to pay Rs. 16,000 in lieu of the balance Rs. 3,200. The suit for specific performance was decreed subject to depositing that amount and stamp duty/registration charges within one month; the respondents were directed to execute the sale deed within one month of deposit. If the appellant failed to deposit, the judgment under appeal would remain undisturbed. No costs were awarded.
Headnote
A) Specific Relief - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - Specific Performance of Agreement for Sale - Plaint averments indicating efforts to obtain sale deed and willingness to pay balance consideration, combined with deposition evidence, satisfied statutory requirement - Lower courts erred in requiring a specific formulaic averment; appellant proved continuous readiness and willingness through notices dated May 5, 1976 and March 13, 1978 and deposition statements - Held that non-compliance with Section 16(c) was not established and appellant entitled to specific performance (Paras 1-3). B) Specific Relief - Grant of Specific Performance with Adjusted Balance Consideration - Section 16(c) Specific Relief Act, 1963 - Modification of Payment Due to Depreciation - Appellant had paid Rs. 3,800 out of Rs. 7,000 and was in possession since 1976; considering depreciation of rupee, court directed appellant to deposit Rs. 16,000 in lieu of remaining Rs. 3,200 along with stamp duty and registration charges within one month; respondents to execute sale deed within one month of deposit, else lower court judgment stands - Held that such equitable adjustment was necessary to do complete justice (Paras 1-3).
Issue of Consideration
Whether the appellant satisfied the mandatory requirement of readiness and willingness under Section 16(c) of the Specific Relief Act, 1963, and was entitled to specific performance of an agreement for sale of land.
Final Decision
The Supreme Court allowed the appeal, decreed the suit for specific performance subject to the appellant depositing Rs. 16,000 along with stamp duty and registration charges in the trial court within one month. Respondents shall execute the sale deed within one month of deposit. If appellant fails to deposit, the judgment under appeal shall remain undisturbed. No costs.
Law Points
- Readiness and willingness under Section 16(c) of Specific Relief Act
- 1963 can be inferred from plaint averments and evidence
- specific performance decree
- equitable adjustment of consideration due to depreciation
