Bombay High Court Allows Second Appeal in Specific Performance Suit — Defendant's Possession and Readiness to Perform Established. Court sets aside concurrent findings of courts below, holding that plaintiff failed to prove readiness and willingness to perform contract under Section 16(c) of Specific Relief Act, 1963.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The appellant, original defendant Waman s/o Jema Jadhav, challenged the concurrent judgments of the trial court and first appellate court decreeing specific performance of an agreement to sell dated 01.06.2012 in favor of the respondent/plaintiff Govind s/o Kishan Pawar. The suit property was agricultural land. The plaintiff claimed that the defendant agreed to sell the land for Rs. 1,50,000 and received Rs. 50,000 as earnest money, with balance payable at the time of registration. The defendant denied the agreement and contended that the plaintiff was not ready and willing to perform. The trial court decreed the suit, and the first appellate court confirmed. In second appeal, the High Court framed a substantial question of law: whether the plaintiff proved readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The High Court noted that the plaintiff did not examine any witness to show financial capacity, did not produce bank statements or evidence of arranging funds, and did not issue any notice or take steps to perform. The court held that the concurrent findings were perverse and based on no evidence. The appeal was allowed, the judgments of the courts below were set aside, and the suit was dismissed.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Burden of Proof - The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree. In the present case, the plaintiff failed to adduce evidence of financial capacity or steps taken to perform, and the courts below erred in granting decree without such proof. (Paras 10-15)

B) Civil Procedure Code, 1908 - Section 100 - Second Appeal - Substantial Question of Law - Concurrent findings of fact can be interfered with if perverse or based on no evidence. Here, the lower appellate court's finding that plaintiff was ready and willing was perverse as it ignored the plaintiff's failure to prove financial readiness. (Paras 8-9)

C) Evidence Act, 1872 - Section 101 - Burden of Proof - In a suit for specific performance, the burden lies on the plaintiff to show readiness and willingness. The plaintiff's mere assertion without corroborative evidence (e.g., bank statements, sale of assets) is insufficient. (Para 12)

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Issue of Consideration

Whether the plaintiff proved his readiness and willingness to perform his part of the contract for specific performance of agreement to sell?

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Final Decision

Second Appeal allowed. Judgment and decree of the Principal District Judge, Latur dated 19-10-2018 in Civil Misc. Application No. 170 of 2018 and judgment and decree of 2nd Joint Civil Judge (J.D.), Ausa dated 22-06-2018 in Regular Civil Suit No. 481 of 2012 are set aside. Suit for specific performance stands dismissed. No order as to costs.

Law Points

  • Specific performance
  • readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • burden of proof
  • concurrent findings
  • substantial question of law
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Case Details

2019 LawText (BOM) (03) 8

Second Appeal No. 0931 of 2018

2019-02-05

Smt. Vibha Kankanwadi

Mr. M.L. Dharashive for appellant, Mr. B.R. Kedar for respondent

Waman s/o Jema Jadhav

Govind s/o Kishan Pawar

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Nature of Litigation

Civil suit for specific performance of agreement to sell agricultural land.

Remedy Sought

Plaintiff sought decree of specific performance directing defendant to execute sale deed.

Filing Reason

Plaintiff claimed defendant agreed to sell land for Rs. 1,50,000 and received Rs. 50,000 earnest money, but failed to execute sale deed.

Previous Decisions

Trial court decreed suit on 22-06-2018; first appellate court confirmed on 19-10-2018.

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?

Submissions/Arguments

Appellant argued that plaintiff failed to prove readiness and willingness, no evidence of financial capacity, no notice or steps taken. Respondent argued that concurrent findings of fact cannot be interfered with in second appeal.

Ratio Decidendi

In a suit for specific performance, the plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree. Mere assertion is insufficient; the plaintiff must adduce evidence of financial capacity or steps taken to perform. Failure to do so results in dismissal of the suit.

Judgment Excerpts

The plaintiff has not examined any witness to show that he had financial capacity to pay the balance consideration. The concurrent findings of the courts below are perverse and based on no evidence. The appeal is allowed. The suit for specific performance stands dismissed.

Procedural History

Plaintiff filed Regular Civil Suit No. 481 of 2012 in the court of 2nd Joint Civil Judge (J.D.), Ausa, which was decreed on 22-06-2018. Defendant appealed to the Principal District Judge, Latur in Civil Misc. Application No. 170 of 2018, which was dismissed on 19-10-2018. Defendant then filed Second Appeal No. 0931 of 2018 in the Bombay High Court, Aurangabad Bench, which was allowed on 05-02-2019.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Code of Civil Procedure, 1908: Section 100
  • Indian Evidence Act, 1872: Section 101
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