Case Note & Summary
The present appeal arises from a judgment and decree passed by the Civil Judge, Senior Division, Aurangabad in Special Civil Suit No.26/2014, whereby the suit for specific performance of contract for sale was decreed in favour of the plaintiff-respondent No.1. The appellants are original defendant Nos.4 to 6, who were impleaded as subsequent purchasers of the suit property. The plaintiff, a registered partnership firm, filed the suit alleging that on 18.01.2011, defendant No.1 (original owner) executed an agreement of sale in respect of plot No.49 admeasuring 344.5 sq. meters with a two-storied building for a total consideration of Rs.2,11,00,000/-. The plaintiff paid an earnest amount of Rs.2,00,00,000/- by RTGS cheque dated 13.01.2011, which was credited to the account of Yog Industries, where defendant No.1's brother was Managing Director. The balance consideration of Rs.11,00,000/- was payable within three months at the time of execution of the sale deed. The plaintiff alleged that defendant No.1 failed to execute the sale deed despite repeated requests and subsequently sold the property to defendant Nos.2 to 6. The plaintiff claimed specific performance of the agreement or in the alternative refund of earnest money with interest. The defendants denied the execution of the agreement and contended that the plaintiff was not ready and willing to perform the contract. The trial court decreed the suit for specific performance, directing defendant No.1 to execute the sale deed upon payment of balance consideration, and in default, the plaintiff could get the deed executed through court. The court also held that the subsequent purchasers (defendant Nos.2 to 6) were bound by the decree. Aggrieved, defendant Nos.4 to 6 filed the present appeal. The High Court examined the evidence and found that the plaintiff had duly proved the execution of the agreement by examining the attesting witness and the scribe. The court also noted that the plaintiff had deposited the balance consideration in court and had issued a notice to defendant No.1 expressing readiness to perform. The court held that the plaintiff had satisfied the requirement of continuous readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The court further held that the trial court had correctly exercised its discretion in granting specific performance. The appeal was dismissed with costs.
Headnote
A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Plaintiff must plead and prove continuous readiness and willingness to perform the contract - In the present case, plaintiff proved that it was ready and willing to perform by depositing balance consideration in court and issuing notice to defendant - Held that plaintiff satisfied the requirement of Section 16(c) (Paras 10-12). B) Specific Relief Act, 1963 - Section 20 - Discretion of Court - Court's discretion to grant specific performance is to be exercised on sound legal principles - Where agreement is proved and plaintiff is ready and willing, decree of specific performance is normally granted - Held that trial court correctly exercised discretion in favour of plaintiff (Paras 13-15). C) Evidence Act, 1872 - Section 68 - Proof of Execution of Document - When execution of document is denied, burden is on party relying on document to prove its execution - In this case, plaintiff examined attesting witness and scribe to prove agreement - Held that execution of agreement was duly proved (Paras 7-9).
Issue of Consideration
Whether the trial court was justified in decreeing the suit for specific performance of contract for sale when the defendants alleged that the agreement was not executed and that the plaintiff was not ready and willing to perform the contract.
Final Decision
The appeal is dismissed with costs. The judgment and decree passed by the Civil Judge, Senior Division, Aurangabad in Special Civil Suit No.26/2014 is confirmed.
Law Points
- Specific performance of contract
- Agreement of sale
- Earnest money
- Readiness and willingness
- Burden of proof
- Section 16(c) of Specific Relief Act
- 1963
- Section 20 of Specific Relief Act
