Bombay High Court Allows Specific Performance Appeal Despite Unproven Part Payment. Failure to Prove Payment of Rs.300 Does Not Justify Refusal of Specific Performance When Plaintiff Shows Readiness and Willingness.

High Court: Bombay High Court In Favour of Accused
  • 63
Judgement Image
Font size:
Print

Case Note & Summary

The appellant-plaintiff filed a suit for specific performance of an agreement for sale dated 6th June 1974, whereby the respondent-defendant agreed to sell suit land for Rs.3,000. The plaintiff claimed that he had paid Rs.300 as part of the consideration. The trial court and first appellate court dismissed the suit, holding that the plaintiff failed to prove payment of Rs.300 and therefore was not ready and willing to perform his part of the contract. The plaintiff appealed to the High Court. The High Court framed substantial questions of law: (b) whether failure to prove payment of Rs.300 amounts to unwillingness to perform; (c) whether Exhibit 59, a pursis filed by the plaintiff asserting willingness to pay the balance of Rs.500, is sufficient to show readiness and willingness; and (d) whether specific performance can be refused solely because the assertion of payment of Rs.300 is not proved. The High Court held that the plaintiff's failure to prove payment of a small part of consideration does not necessarily indicate unwillingness. The plaintiff's express willingness to pay the balance, as evidenced by Exhibit 59, is sufficient to show readiness and willingness. The court cannot refuse specific performance solely on the ground that the part payment claim is not proved. The High Court allowed the appeal, set aside the judgments of the lower courts, and decreed the suit for specific performance. The plaintiff was directed to deposit the balance consideration of Rs.2,700 within three months, and the defendant was directed to execute the sale deed.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Failure to prove payment of a small part of consideration does not necessarily indicate unwillingness to perform the contract - The court must consider the plaintiff's overall conduct and express willingness to pay the balance - Held that the plaintiff's assertion of payment of Rs.300 out of Rs.3,000, even if not proved, does not disentitle him to specific performance if he otherwise shows readiness and willingness (Paras 1-3).

B) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Exhibit 59 (pursis) - A pursis filed by the plaintiff specifically asserting willingness to pay the balance purchase price of Rs.500 is sufficient to show readiness and willingness - The court must consider such documentary evidence of willingness (Paras 1-3).

C) Specific Relief Act, 1963 - Section 20 - Discretion of Court - Refusal of specific performance - The court cannot refuse specific performance solely on the ground that the plaintiff's claim of part payment is not proved - The discretion must be exercised judicially, considering the plaintiff's overall readiness and willingness (Paras 1-3).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether failure to prove payment of a small part of consideration amounts to unwillingness to perform the contract, and whether a plaintiff can be refused specific performance solely on the ground that his assertion of payment of Rs.300 is not proved.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the appeal, set aside the judgments and decrees of the trial court and the first appellate court, and decreed the suit for specific performance. The plaintiff was directed to deposit the balance consideration of Rs.2,700 within three months, and the defendant was directed to execute the sale deed in favor of the plaintiff.

Law Points

  • Specific performance
  • readiness and willingness
  • part payment
  • burden of proof
  • Section 16(c) Specific Relief Act
  • 1963
Subscribe to unlock Law Points Subscribe Now

Case Details

2005 LawText (BOM) (01) 114

Second Appeal No.335 of 1988

2005-01-14

A.S. Oka

Mr. V.A. Thorat for the Appellant

Kisan Savala Rajpure

Anand Laxman Rajpure

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

Nature of Litigation

Civil suit for specific performance of an agreement for sale of land.

Remedy Sought

The appellant-plaintiff sought a decree for specific performance of the agreement for sale dated 6th June 1974, directing the respondent-defendant to execute the sale deed upon payment of balance consideration.

Filing Reason

The respondent-defendant failed to execute the sale deed despite the plaintiff's readiness and willingness to perform his part of the contract.

Previous Decisions

The trial court and the first appellate court dismissed the suit, holding that the plaintiff failed to prove payment of Rs.300 as part of the consideration and therefore was not ready and willing to perform his part of the contract.

Issues

Whether failure to prove payment of a small part of consideration amounts to unwillingness to perform the contract. Whether Exhibit 59, a pursis filed by the plaintiff asserting willingness to pay the balance purchase price of Rs.500, is sufficient to show readiness and willingness. Whether the plaintiff can be refused specific performance only on the ground that his assertion of payment of Rs.300 is not proved.

Submissions/Arguments

The appellant argued that the failure to prove payment of Rs.300 out of Rs.3,000 does not indicate unwillingness to perform the contract, and that Exhibit 59 shows his willingness to pay the balance. The respondent argued that the plaintiff's failure to prove the part payment shows he was not ready and willing to perform his part of the contract.

Ratio Decidendi

Failure to prove payment of a small part of consideration does not necessarily indicate unwillingness to perform the contract. The plaintiff's express willingness to pay the balance, as evidenced by Exhibit 59, is sufficient to show readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The court cannot refuse specific performance solely on the ground that the plaintiff's claim of part payment is not proved.

Judgment Excerpts

Whether the failure of the Plaintiff to prove payment of small part of the consideration of Rs.300/- out of agreed purchase price of Rs.3,000/- amounts to his unwillingness to perform his part of contract. Whether the Exhibit 59, a pursis filed by the Plaintiff, the Plaintiff specifically asserted his willingness to pay balance purchase price of Rs.500/- is sufficient for showing his willingness to perform his part of the contract. Whether the Plaintiff can be refused specific performance of an agreement only on the ground that his assertion of payment of Rs.300/- is held not to be proved.

Procedural History

The appellant-plaintiff filed a suit for specific performance which was dismissed by the trial court. The first appellate court confirmed the dismissal. The plaintiff then filed a second appeal before the High Court, which was admitted on 6th October 1988 on substantial questions of law. The High Court heard the appeal and delivered judgment on 14th January 2005.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c), Section 20
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Acquits Accused in Dowry Death Case Due to Lack of Evidence of Cruelty and Demand for Dowry. Conviction under Sections 498-A and 304-B IPC set aside as prosecution failed to prove that deceased was subjected to cruelty or hara...
Related Judgement
High Court Bombay High Court Allows Specific Performance Appeal Despite Unproven Part Payment. Failure to Prove Payment of Rs.300 Does Not Justify Refusal of Specific Performance When Plaintiff Shows Readiness and Willingness.