Bombay High Court Allows Appeal in Specific Performance Suit — Plaintiff Failed to Prove Readiness and Willingness. Decree for Specific Performance Set Aside as Plaintiff Did Not Show Continuous Readiness and Willingness Under Section 16(c) of Specific Relief Act, 1963.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
  • 11
Judgement Image
Font size:
Print

Case Note & Summary

The appellants (original defendants) challenged the order of the Extra Adhoc District Judge, Kelapur, dated 19.1.2011, in Regular Civil Appeal No.181 of 2002, which confirmed the trial court's decree for specific performance of a contract for sale of land. The original plaintiff, Champatrao Laxmanrao Kale (since deceased, represented by his legal heirs), had filed a suit for specific performance based on an agreement dated 12.5.1988 for sale of land for Rs. 1,00,000. The plaintiff claimed that he paid Rs. 25,000 as earnest money and was ready and willing to pay the balance, but the defendants did not execute the sale deed. The trial court decreed the suit, and the first appellate court confirmed it. The High Court framed the question whether the plaintiff proved readiness and willingness. The court noted that the plaintiff did not examine himself or any witness to show that he had the money or made efforts to arrange it. The only evidence was the agreement and a notice. The court held that the plaintiff failed to discharge the burden under Section 16(c) of the Specific Relief Act, 1963. The court observed that even if time was not the essence, the plaintiff must show continuous readiness. The conduct of the plaintiff in not depositing the balance or showing financial capacity indicated lack of readiness. The court allowed the appeal, set aside the decrees of the courts below, and dismissed the suit.

Headnote

A) Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree. In this case, the plaintiff failed to produce any evidence of having sufficient funds or making efforts to arrange the balance consideration. The court held that mere filing of suit does not prove readiness and willingness. (Paras 5-7)

B) Specific Performance - Time Not Essence of Contract - Conduct of Plaintiff - Even if time is not the essence of the contract, the plaintiff must show that he was always ready and willing to perform. The plaintiff's conduct of not depositing the balance amount or showing financial capacity indicated lack of readiness. The appellate court erred in decreeing the suit. (Paras 6-8)

C) Evidence - Burden of Proof - Section 101 Evidence Act, 1872 - The burden to prove readiness and willingness lies on the plaintiff. In the absence of any documentary evidence of funds or steps taken to arrange money, the plaintiff cannot be said to have discharged the burden. (Para 7)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the plaintiff was ready and willing to perform his part of the contract for sale of land, and whether the trial court and first appellate court correctly decreed specific performance despite the plaintiff's failure to prove readiness and willingness.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal allowed. The order dated 19.1.2011 passed by the Extra Adhoc District Judge, Kelapur, in Regular Civil Appeal No.181 of 2002, and the decree of the trial court, are set aside. The suit for specific performance stands dismissed. No order as to costs.

Law Points

  • Specific performance
  • readiness and willingness
  • time not essence of contract
  • Section 16(c) Specific Relief Act
  • 1963
  • burden of proof
  • conduct of plaintiff
Subscribe to unlock Law Points Subscribe Now

Case Details

2011 LawText (BOM) (07) 54

Appeal Against Order No.32 of 2011

2011-07-25

R. K. Deshpande, J.

Shri M.I. Dhatrak for appellants, Shri A.S. Dhore for respondents

Sou. Ashatai w/o Vijayrao Warekar, Vijayrao s/o Dadaji Warekar, Yusuf Sharif Mehbood Sharif

Champatrao Laxmanrao Kale (since dead through legal representatives Pramod Champatrao Kale and Ganesh Champatrao Kale)

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

Nature of Litigation

Civil appeal against concurrent decrees for specific performance of contract for sale of land.

Remedy Sought

Appellants (original defendants) sought setting aside of the decree for specific performance and dismissal of the suit.

Filing Reason

The appellants challenged the order of the first appellate court confirming the trial court's decree for specific performance, on the ground that the plaintiff failed to prove readiness and willingness.

Previous Decisions

Trial court decreed the suit for specific performance; first appellate court confirmed the decree.

Issues

Whether the plaintiff proved his readiness and willingness to perform his part of the contract as required under Section 16(c) of the Specific Relief Act, 1963. Whether the concurrent findings of the courts below are sustainable in the absence of evidence of readiness and willingness.

Submissions/Arguments

Appellants argued that the plaintiff did not examine himself or any witness to show that he had the money or made efforts to arrange the balance consideration. The only evidence was the agreement and a notice, which is insufficient. Respondents argued that the trial court and first appellate court correctly decreed the suit based on the agreement and the plaintiff's conduct.

Ratio Decidendi

The plaintiff in a suit for specific performance must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree. Mere filing of suit or issuance of notice does not discharge this burden. The plaintiff must adduce evidence of having sufficient funds or steps taken to arrange the balance consideration. Failure to do so results in dismissal of the suit.

Judgment Excerpts

The plaintiff has not stepped into the witness box to state that he was ready and willing to perform his part of the contract. The burden to prove readiness and willingness is on the plaintiff and in the absence of any evidence, the suit cannot be decreed. Even if time is not the essence of the contract, the plaintiff must show that he was always ready and willing to perform.

Procedural History

The original plaintiff filed a suit for specific performance in the trial court, which was decreed. The defendants appealed to the District Court, which confirmed the decree. The defendants then filed the present appeal before the High Court.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Indian Evidence Act, 1872: Section 101
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Appeal in Specific Performance Suit — Plaintiff Failed to Prove Readiness and Willingness. Decree for Specific Performance Set Aside as Plaintiff Did Not Show Continuous Readiness and Willingness Under Section 16(c) of Spec...
Related Judgement
High Court Bombay High Court Quashes MPDA Detention Order Against Petitioner for Non-Application of Mind and Multiple Preventive Actions on Same Set of Facts. The court held that the detention order under Section 3 of MPDA Act was unsustainable as it was based ...