Bombay High Court Allows Specific Performance of Sale Agreement in Cross Appeals — Upholds Trial Court Decree for Execution of Sale Deed. Agreement to Sell for Rs. 17,000 with Rs. 13,275 Earnest Money and Possession Delivered; Defendant's Refusal to Execute Sale Deed Despite Plaintiff's Readiness and Williness.

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

The case involves two cross appeals arising from a suit for specific performance of contract. The plaintiff, Haji Begum, filed Regular Civil Suit No. 202/1981 seeking specific performance of an agreement to sell dated 14th April 1978 for a house in Nanded. The agreed sale price was Rs. 17,000, out of which the plaintiff paid Rs. 13,275 as earnest money and was put in possession of the suit property. The defendant, Jani Begum, refused to execute the sale deed despite the plaintiff's offer to pay the balance of Rs. 3,725. The plaintiff issued a notice on 4th February 1981 and subsequently filed the suit. The defendant denied the agreement and possession. The trial court decreed the suit in favor of the plaintiff, directing specific performance. The first appellate court partly allowed the appeal, modifying the decree to require the plaintiff to pay the balance amount within a specified period. Both parties appealed to the High Court. The High Court heard the appeals together. The court noted that the defendant's counsel was absent. The court upheld the trial court's decree for specific performance, finding that the plaintiff was ready and willing to perform her part of the contract. The court dismissed the defendant's appeal and allowed the plaintiff's appeal, restoring the trial court's decree with directions for execution of the sale deed upon payment of the balance amount.

Headnote

A) Specific Relief Act - Specific Performance of Contract - Agreement to Sell - Section 16(c) Specific Relief Act, 1963 - Readiness and Willingness - The plaintiff filed a suit for specific performance of an agreement to sell a house for Rs. 17,000, having paid Rs. 13,275 as earnest money and being put in possession. The defendant refused to execute the sale deed despite the plaintiff's offer to pay the balance. The court held that the plaintiff was ready and willing to perform her part and decreed specific performance. (Paras 3-4)

B) Contract Law - Earnest Money - Agreement to Sell - Possession - The agreement to sell dated 14.04.1978 was executed, and the plaintiff was put in possession. The defendant received substantial earnest money. The court found that the plaintiff had performed her obligations and was entitled to specific performance. (Paras 3-4)

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Issue of Consideration

Whether the plaintiff is entitled to specific performance of the agreement to sell dated 14th April, 1978, and whether the plaintiff was ready and willing to perform her part of the contract.

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Final Decision

The High Court allowed Second Appeal No. 130/1988 filed by the plaintiff and dismissed Second Appeal No. 238/1989 filed by the defendant. The trial court's decree for specific performance was restored, directing the defendant to execute the sale deed upon payment of the balance amount of Rs. 3,725 by the plaintiff within a specified period.

Law Points

  • Specific performance of contract
  • Agreement to sell
  • Earnest money
  • Possession
  • Readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
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Case Details

2010 LawText (BOM) (01) 246

Second Appeal No. 130 of 1988 and Second Appeal No. 238 of 1989

2010-01-11

N. D. Deshpande, J.

Shri K. G. Khadar for the appellant in SA 130/1988 and respondent in SA 238/1989; Shri B. B. Lakhakar for the respondents in SA 130/1988 and appellants in SA 238/1989 (absent)

Haji Begum D/o Sayed Tajuddin (in SA 130/1988); Smt. Jani Begum wd/o Mohd. Hussain (since deceased through LRs) (in SA 238/1989)

Jani Begum W/o M. Hussain (since deceased through LRs) (in SA 130/1988); Smt. Haji Begum D/o Sayed Tajuddin (in SA 238/1989)

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Nature of Litigation

Civil suit for specific performance of contract of sale of immovable property.

Remedy Sought

Plaintiff sought decree for specific performance of agreement to sell dated 14.04.1978, directing defendant to execute sale deed and deliver possession, or in alternative, refund of earnest money with damages.

Filing Reason

Defendant refused to execute sale deed despite plaintiff's offer to pay balance consideration.

Previous Decisions

Trial court decreed specific performance; first appellate court modified decree requiring payment of balance within specified period.

Issues

Whether the plaintiff is entitled to specific performance of the agreement to sell dated 14th April, 1978? Whether the plaintiff was ready and willing to perform her part of the contract?

Submissions/Arguments

Plaintiff argued that she paid substantial earnest money, was put in possession, and was ready to pay balance, but defendant refused to execute sale deed. Defendant denied the agreement and possession, but did not appear before the High Court.

Ratio Decidendi

The plaintiff had performed her part of the contract by paying substantial earnest money and being put in possession, and she was ready and willing to pay the balance. The defendant's refusal to execute the sale deed without valid reason entitled the plaintiff to specific performance under Section 16(c) of the Specific Relief Act, 1963.

Judgment Excerpts

The appellant Haji Begum D/o Sayed Tajoddin, is the original plaintiff in Regular Civil Suit No. 202/1981. She filed a suit for specific performance of contract of sale in respect of suit house bearing Municipal No. 4.6.198 situated at Gadipura area at Nanded belonging to the defendant who agreed to sale for Rs. 17,000/ on 14th April, 1978 and received Rs. 13,275/ from the plaintiff as earnest money and also put plaintiff in possession of the suit house.

Procedural History

The plaintiff filed Regular Civil Suit No. 202/1981 in the trial court, which decreed specific performance. The defendant appealed to the first appellate court in Regular Civil Appeal No. 236/1983, which partly allowed the appeal modifying the decree. Both parties filed second appeals in the High Court, which were heard together and disposed of by this judgment.

Acts & Sections

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