Case Note & Summary
The appellant/plaintiff filed a suit for specific performance of an oral agreement for sale of immovable property dated 20/05/2021, under which the plaintiff paid Rs.51,000/- as earnest money to the defendants/respondents. The defendants agreed to execute the sale deed within four months and to hand over relevant documents. The plaintiff published public notices on 26/07/2021 and 09/08/2021 inviting objections and informing the public about the agreement. The defendants failed to supply the required documents and gave evasive replies. The plaintiff then filed a suit for specific performance and an application for temporary injunction under Order 39 Rules 1 and 2 CPC to restrain the defendants from creating third party interests. The trial court rejected the injunction application on the ground that the plaintiff failed to prove readiness and willingness to perform the contract as required under Section 16(c) of the Specific Relief Act, 1963. The High Court allowed the appeal, holding that at the stage of injunction, the court need only examine whether a prima facie case exists. The plaintiff's conduct of paying earnest money and issuing public notices demonstrated readiness and willingness. The balance of convenience was in favor of the plaintiff, and irreparable loss would be caused if the defendants were allowed to alienate the property. The High Court set aside the trial court's order and granted injunction restraining the defendants from creating third party interests until the disposal of the suit.
Headnote
A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Oral Agreement for Sale - The plaintiff entered into an oral agreement for sale of immovable property and paid earnest money of Rs.51,000/-. The plaintiff published public notices and demanded documents from defendants. The trial court rejected the injunction application holding that the plaintiff failed to prove readiness and willingness. The High Court held that readiness and willingness need not be proved by documentary evidence alone; the plaintiff's conduct of paying earnest money and issuing public notices demonstrated readiness. The court also noted that the defendants did not object to the public notice. (Paras 2-10) B) Civil Procedure Code, 1908 - Order 39 Rules 1 and 2 - Temporary Injunction - Prima Facie Case - The High Court held that the plaintiff had made out a prima facie case for grant of injunction as there was an oral agreement, payment of earnest money, and the defendants were attempting to create third party interests. The balance of convenience was in favor of the plaintiff and irreparable loss would be caused if injunction was not granted. (Paras 11-14) C) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - The court clarified that the requirement of readiness and willingness under Section 16(c) is a condition precedent for specific performance, but at the stage of injunction, the court need only see if the plaintiff has made out a prima facie case. The trial court erred in delving into the merits of readiness and willingness at the interim stage. (Paras 12-13)
Issue of Consideration
Whether the plaintiff has made out a prima facie case for grant of temporary injunction restraining the defendants from creating third party interest in the suit property, and whether the trial court erred in rejecting the injunction application on the ground that the plaintiff failed to prove readiness and willingness to perform the contract.
Final Decision
The High Court allowed the appeal, set aside the order of the trial court, and granted an injunction restraining the defendants from creating any third party interest in the suit property until the disposal of the suit.
Law Points
- Specific performance
- readiness and willingness
- oral agreement
- earnest money
- public notice
- Section 16(c) Specific Relief Act
- 1963
- Order 39 Rule 1 and 2 CPC
- prima facie case
- balance of convenience
- irreparable loss
