Bombay High Court Upholds Specific Performance Decree in Flat Sale Dispute — Agreement to Sell Enforceable Despite Alleged Breach of Conditions. Court holds that time was not of essence in the agreement and that the purchaser was ready and willing to perform, directing execution of sale deed within two months.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The case involves an appeal against a judgment and decree dated 07/08/2013 passed by the learned Judge, City Civil Court, Greater Bombay, in Regular Civil Suit No.5732 of 2006. The suit was filed by the respondents (plaintiffs) for specific performance of an agreement to sell a flat owned by the original defendant, Vilasben Vinodchandra Dhruva. The plaintiffs, residents of the USA, were interested in purchasing a flat in Mumbai and entered into an agreement with the defendant. The defendant agreed to sell flat No.304 on the 3rd floor of Jamuna Mahal, Prabhat Colony, Santacruz. The plaintiffs paid an advance and were ready and willing to pay the balance consideration, but the defendant failed to execute the sale deed. The trial court decreed the suit, directing the defendant to execute the sale deed within two months. The defendant's legal representatives appealed. The High Court examined the evidence and found that the plaintiffs had demonstrated readiness and willingness to perform their part of the contract. The court noted that time was not of the essence of the contract and that the defendant had not proved any breach by the plaintiffs. The court upheld the trial court's decree and dismissed the appeal, directing the appellants (legal representatives) to execute the sale deed in favor of the respondents within two months.

Headnote

A) Specific Performance - Readiness and Willingness - Time Not of Essence - The court examined whether the plaintiffs were ready and willing to perform their obligations under the agreement to sell. It held that the plaintiffs had demonstrated readiness and willingness by depositing the balance consideration and expressing willingness to complete the transaction. Time was not of the essence of the contract, and the defendants failed to prove any breach by the plaintiffs. (Paras 1-59)

B) Contract Law - Agreement to Sell - Enforceability - The court considered the enforceability of an agreement to sell a flat where the defendant had agreed to sell the property to the plaintiffs. The court found that the agreement was valid and binding, and the plaintiffs were entitled to specific performance. The defendants' legal representatives were directed to execute the sale deed. (Paras 1-59)

C) Civil Procedure - Appeal Against Decree - Scope - The court analyzed the scope of an appeal against a decree for specific performance. It held that the appellate court would not interfere with the trial court's findings unless they were perverse or based on no evidence. The trial court's decree was upheld. (Paras 1-59)

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Issue of Consideration

Whether the judgment and decree for specific performance of an agreement to sell a flat was valid and whether the plaintiffs were ready and willing to perform their part of the contract.

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Final Decision

The High Court dismissed the appeal and upheld the trial court's decree for specific performance, directing the appellants to execute the sale deed in favor of the respondents within two months.

Law Points

  • Specific performance
  • readiness and willingness
  • time not of essence
  • agreement to sell
  • execution of sale deed
  • legal representatives
  • civil suit
  • appeal against decree
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Case Details

2023 LawText (BOM) (06) 71

First Appeal No. 1252 of 2013 with Civil Application No. 3479 of 2013, Interim Application No. 3007 of 2022, Interim Application No. 18033 of 2022

2023-06-12

Smt. Anuja Prabhudessai

2023:BHC-AS:15811

Mr. Mayur Khandeparkar a/w. Mr. Sanket Mungale for the Appellants; Mr. Kevic Setalvad, senior Advocate with Vatsal Shah, Mr. Chetan Mehta, Ms Vidhi Shah i/b. M/s. M.M.K. Law Associates for the Respondents in FA/1252/2013 and for the Applicants in IA/3007/2022

Girish Vinodchandra Dhruva, Jagdish Vinodchandra Dhruva, Rajesh Vindochandra Dhruva, Smt. Malini V. Dholkia, Smt. Mayuri J. Gaglani

Smt. Neena Paresh Shah, Paresh Ramesh Shah

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Nature of Litigation

Civil appeal against a decree for specific performance of an agreement to sell a flat.

Remedy Sought

The appellants (defendants' legal representatives) sought to set aside the trial court's decree directing execution of the sale deed.

Filing Reason

The appellants challenged the judgment and decree dated 07/08/2013 in Regular Civil Suit No.5732 of 2006, which decreed the suit for specific performance.

Previous Decisions

The trial court (City Civil Court, Greater Bombay) decreed the suit on 07/08/2013, directing the defendants to execute the sale deed within two months.

Issues

Whether the plaintiffs were ready and willing to perform their part of the contract? Whether time was of the essence of the contract? Whether the trial court's decree for specific performance was valid?

Submissions/Arguments

The appellants argued that the plaintiffs were not ready and willing to perform and that time was of the essence. The respondents argued that they were always ready and willing and that time was not of the essence.

Ratio Decidendi

The court held that the plaintiffs had demonstrated readiness and willingness to perform their obligations under the agreement to sell. Time was not of the essence of the contract, and the defendants failed to prove any breach by the plaintiffs. Therefore, the decree for specific performance was valid and enforceable.

Judgment Excerpts

The challenge in this Appeal is to the judgment and decree dated 07/08/2013 in Regular Civil Suit No.5732 of 2006. The brief facts necessary to decide this Appeal are as under :-

Procedural History

The respondents filed Regular Civil Suit No.5732 of 2006 in the City Civil Court, Greater Bombay, seeking specific performance of an agreement to sell a flat. The trial court decreed the suit on 07/08/2013. The appellants, legal representatives of the original defendant, filed First Appeal No.1252 of 2013 in the Bombay High Court challenging the decree. The High Court heard the appeal along with related applications and delivered judgment on 12/06/2023, dismissing the appeal and upholding the decree.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
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