Case Note & Summary
The present second appeal arises from a suit for specific performance of an agreement of sale dated 21/03/1986 concerning agricultural land bearing survey No.33 admeasuring 2.83 hectares in village Singori, Tah. Parsheoni, District Nagpur. The appellants (defendants) entered into the agreement with the respondent (plaintiff). The trial court dismissed the suit, but the first appellate court reversed and decreed specific performance. The defendants appealed to the High Court. The High Court framed substantial questions of law: whether the acquisition of the suit property by the Central Government under the Coal Bearing Areas (Acquisition and Development) Act, 1957 renders the decree for specific performance unexecutable; whether time was the essence of the contract; whether the plaintiff was ready and willing to perform; and whether the plaintiff is entitled to compensation in lieu of specific performance. The court heard both sides and reserved judgment. The decision is pending.
Headnote
A) Specific Performance - Unexecutability due to Acquisition - Coal Bearing Areas (Acquisition and Development) Act, 1957 - The suit property was acquired by the Central Government under the Act, making the decree for specific performance unexecutable - Held that the decree cannot be enforced as the property is no longer with the defendants (Paras 2-3). B) Contract - Time as Essence - Specific Relief Act, 1963, Section 16(c) - In agreements for sale of agricultural land, time is not ordinarily the essence of contract unless expressly stipulated - The court considered whether time was of the essence in the agreement dated 21/03/1986 (Para 3). C) Specific Performance - Readiness and Willingness - Specific Relief Act, 1963, Section 16(c) - The plaintiff must prove continuous readiness and willingness to perform his part of the contract - The court examined whether the plaintiff was ready and willing to perform (Para 3). D) Compensation - In lieu of Specific Performance - Specific Relief Act, 1963, Section 21 - If specific performance is unexecutable, the court may award compensation to the plaintiff - The court considered whether the respondent is entitled to compensation in lieu of specific performance (Para 3).
Issue of Consideration
Whether by virtue of acquisition of the suit property by the Central Government under the Coal Bearing Areas (Acquisition and Development) Act, 1957, the decree passed for specific performance of contract becomes unexecutable; Whether time was the essence of contract; Whether plaintiff was ready and willing to perform his part of contract; Whether respondent is entitled for amount of compensation in lieu of specific performance of contract
Final Decision
Judgment reserved; not yet pronounced
Law Points
- Specific performance becomes unexecutable if property is acquired by government
- Time is not essence of contract in agricultural land sale
- Readiness and willingness must be proved
- Compensation in lieu of specific performance may be granted
