Case Note & Summary
The plaintiff, Miloni Shah, filed a Commercial Suit seeking specific performance of an agreement to sell dated 15th March 2019, allegedly entered into with the defendants for the purchase of a flat. The plaintiff claimed that she paid a total of Rs. 1,10,00,000/- as part consideration and was ready to pay the balance. The defendants filed a notice of motion seeking rejection of the plaint under Order VII Rule 11 of the CPC on the grounds that the plaint did not disclose a cause of action, the agreement was not signed by defendant No.2, and the plaintiff failed to show readiness and willingness. The court examined the pleadings and found that the plaintiff did not specifically plead readiness and willingness as required under Section 16(c) of the Specific Relief Act, 1963. The court also noted that the agreement was not signed by defendant No.2, who was the owner of the property, and that the plaintiff did not comply with the mandatory pre-institution mediation under Section 12A of the Commercial Courts Act, 2015. The court held that the plaint did not disclose a cause of action and was liable to be rejected. The notice of motion was allowed, and the suit was dismissed with costs.
Headnote
A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - The plaintiff must plead and prove continuous readiness and willingness to perform her part of the contract from the date of the agreement till the date of decree. The court found that the plaintiff failed to make such pleadings and did not demonstrate financial capacity to pay the balance consideration. (Paras 10-12) B) Code of Civil Procedure, 1908 - Order VII Rule 11 - Rejection of Plaint - The court can reject a plaint if it does not disclose a cause of action. The plaintiff's suit for specific performance was based on an agreement that was not signed by the defendant No.2, and the plaintiff failed to show any binding contract. (Paras 13-15) C) Commercial Courts Act, 2015 - Section 12A - Mandatory Pre-Institution Mediation - The plaintiff did not comply with the mandatory pre-institution mediation requirement under Section 12A of the Commercial Courts Act, 2015, which is a bar to the maintainability of the suit. (Para 16)
Issue of Consideration
Whether the plaintiff has disclosed a cause of action for specific performance of an agreement to sell and whether the plaintiff has been ready and willing to perform her part of the contract.
Final Decision
The notice of motion is allowed. The plaint is rejected under Order VII Rule 11 of the CPC. The suit is dismissed with costs.
Law Points
- Specific performance
- Readiness and willingness
- Cause of action
- Agreement to sell
- Commercial suit
- Order VII Rule 11 CPC
- Section 16(c) Specific Relief Act
- 1963
