Case Note & Summary
The case involves an appeal by Sanjeev Builders Private Limited and Vineet Builders Private Limited against Life Insurance Corporation of India (LIC) arising from Suit No.894 of 1986. The appellants had entered into an agreement for sale with LIC for a property, but LIC terminated the agreement alleging that the appellants failed to perform their obligations. The appellants filed a suit for specific performance and injunction. The trial court dismissed the suit, holding that the appellants had not proved readiness and willingness to perform the contract. The appellants appealed to the High Court. The High Court examined the evidence and found that the appellants did not demonstrate financial capacity or any steps taken to pay the balance consideration or obtain necessary approvals. The court held that the burden of proving readiness and willingness under Section 16(c) of the Specific Relief Act, 1963 lies on the plaintiff, and the appellants failed to discharge that burden. The court also upheld the termination of the agreement by LIC as valid. Consequently, the appeal was dismissed, and the notice of motion was disposed of.
Headnote
A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - The appellants failed to prove continuous readiness and willingness to perform the contract for sale of property. The court held that the burden is on the plaintiff to show readiness and willingness from the date of the contract till the date of decree. The appellants did not demonstrate financial capacity or steps taken to perform their obligations. (Paras 1-10) B) Contract Law - Termination of Agreement - Validity - The respondent Life Insurance Corporation of India terminated the agreement for sale due to the appellants' failure to perform. The court upheld the termination as valid, noting that the appellants had not shown any readiness to pay the balance consideration or obtain necessary approvals. (Paras 11-20) C) Evidence Act, 1872 - Burden of Proof - The court reiterated that the plaintiff must prove readiness and willingness by leading evidence of financial resources and steps taken. Mere filing of a suit does not establish readiness. (Paras 21-30)
Issue of Consideration
Whether the appellants had proved their readiness and willingness to perform their part of the contract for specific performance of an agreement for sale, and whether the termination of the agreement by the respondent was valid.
Final Decision
Appeal dismissed. The judgment of the trial court is upheld. Notice of Motion No.680 of 2019 disposed of.
Law Points
- Specific performance
- Readiness and willingness
- Section 16(c) Specific Relief Act
- 1963
- Termination of contract
- Agreement for sale
- Continuous readiness
- Burden of proof
