Bombay High Court Allows Second Appeal in Agreement to Sell Dispute — Rescission of Contract and Possession Granted. Appellant entitled to rescind agreement and recover possession as respondent failed to prove readiness and willingness to perform contract under Section 53A of Transfer of Property Act, 1882.

High Court: Bombay High Court Bench: AURANGABAD
  • 2
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, Kishan Ghorpade, filed a suit for rescission of an agreement to sell dated 17.06.1978 and for possession of the suit property, claiming that the respondent, Shivaji Thombre, had failed to pay the balance consideration of Rs. 5,500/- despite notices. The respondent admitted the agreement and possession but contended that he had paid Rs. 2,000/- on 18.06.1978 and the remaining Rs. 3,500/- at the Registrar's office, and that the appellant avoided execution. The trial court decreed the suit, holding that the respondent failed to prove readiness and willingness. The lower appellate court reversed, finding the respondent had paid the balance and was entitled to protection under Section 53A of the Transfer of Property Act, 1882. In this second appeal, the High Court examined whether the respondent had proved his readiness and willingness. The court noted that the respondent's case of payment on 18.06.1978 was inconsistent with the agreement's schedule, and the evidence of payment at the Registrar's office was not credible. The court held that the lower appellate court's findings were perverse and not based on proper appreciation of evidence. Consequently, the High Court allowed the appeal, set aside the appellate judgment, and restored the trial court's decree, granting the appellant rescission of the agreement and possession of the suit property.

Headnote

A) Transfer of Property Act - Section 53A - Protection of Possession - Readiness and Willingness - The respondent claimed protection under Section 53A of the Transfer of Property Act, 1882, alleging he had paid the entire consideration and was ready to perform. The court held that the burden was on the respondent to prove his readiness and willingness, and he failed to discharge that burden. The appellate court's finding that the respondent had paid the balance consideration was based on erroneous appreciation of evidence. (Paras 6-8)

B) Contract Law - Rescission of Agreement - Failure to Perform - The appellant sought rescission of the agreement to sell dated 17.06.1978 on the ground that the respondent failed to pay the balance consideration. The court held that since the respondent failed to prove his readiness and willingness, the appellant was entitled to rescind the agreement and recover possession. (Paras 9-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the respondent/defendant proved his readiness and willingness to perform his part of the agreement to sell, entitling him to protection under Section 53A of the Transfer of Property Act, 1882.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the second appeal, set aside the judgment of the lower appellate court, and restored the decree of the trial court. The suit for rescission of the agreement and possession was decreed in favor of the appellant.

Law Points

  • Section 53A Transfer of Property Act
  • 1882
  • readiness and willingness to perform contract
  • burden of proof
  • rescission of contract
  • possession under agreement to sell
Subscribe to unlock Law Points Subscribe Now

Case Details

2022 LawText (BOM) (03) 30

Second Appeal No. 247 of 1992 with CA/11710/2016

2022-03-21

Mangesh S. Patil

Mr S. C. Arora, Mr. S. R. Sapkal

Kishan s/o Gajananrao Ghorpade

Shivaji s/o Sarjerao Thombre

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Second appeal against appellate judgment dismissing suit for rescission of agreement to sell and possession.

Remedy Sought

Appellant sought rescission of agreement to sell dated 17.06.1978 and possession of suit property with mesne profits.

Filing Reason

Respondent failed to pay balance consideration and perform his part of the contract despite notices.

Previous Decisions

Trial court decreed suit; lower appellate court allowed respondent's appeal and dismissed suit.

Issues

Whether the respondent proved his readiness and willingness to perform the agreement to sell? Whether the respondent was entitled to protection under Section 53A of the Transfer of Property Act, 1882?

Submissions/Arguments

Appellant argued that respondent failed to pay balance consideration and prove readiness and willingness. Respondent contended that he paid the entire consideration and was ready to perform, and was in lawful possession under the agreement.

Ratio Decidendi

The burden of proving readiness and willingness to perform a contract under Section 53A of the Transfer of Property Act, 1882 lies on the party seeking protection. The respondent failed to discharge this burden, and the lower appellate court's findings were perverse and not based on proper appreciation of evidence.

Judgment Excerpts

Admittedly, the appellant had agreed to sell the suit property which was exclusively owned by him to the respondent for a total consideration of Rs. 13,500/- by accepting Rs. 8000/- as an earnest money. The trial court decreed the suit holding that the respondent had failed to prove that he was ready and willing to perform his part under the agreement. The lower appellate court has held that the respondent had duly established the fact of having paid the balance amount of consideration and was entitled to a protection under Section 53A of the Transfer of Property Act.

Procedural History

Appellant filed suit for rescission and possession. Trial court decreed suit. Respondent appealed to lower appellate court which allowed appeal and dismissed suit. Appellant filed second appeal in High Court.

Acts & Sections

  • Transfer of Property Act, 1882: 53A
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Second Appeal in Agreement to Sell Dispute — Rescission of Contract and Possession Granted. Appellant entitled to rescind agreement and recover possession as respondent failed to prove readiness and willingness to perform c...
Related Judgement
Supreme Court Supreme Court Upholds Acquittal of School Teacher Despite Finding He Is a Public Servant Under IPC Section 21 Clause 9. The Teacher’s Acceptance of Money to Secure a Job Did Not Constitute an Offence Under Section 161 IPC or Section 5(1)(d) of the ...