Bombay High Court Dismisses Appeal in Specific Performance Suit — Agreement to Sell Enforceable Despite Vendor's Death. Legal Representatives Bound by Contract Executed for Necessity, and Suit Filed Within Limitation Is Maintainable.

High Court: Bombay High Court In Favour of Prosecution
  • 88
Judgement Image
Font size:
Print

Case Note & Summary

The case involves a second appeal filed by the defendants (appellants) against the judgment of the Third Extra Assistant Judge, Solapur, which confirmed the decree of specific performance of contract passed by the Civil Judge, Jr. Divn., Mangalwedha. The plaintiff-respondent, Balasaheb Krishna Khandagale, had filed a suit for specific performance of an agreement to sell dated 5.6.1973 executed by deceased Namdeo Bapu Khandagale, the original owner of the suit land. The consideration was Rs. 7,000, which was paid in full. The agreement stipulated that the sale deed would be executed after obtaining necessary permission for sale. However, Namdeo died on 29.9.1973 before the permission could be obtained. The plaintiff issued a notice dated 28.10.1974 to the legal representatives (defendants) calling upon them to perform the contract, but they gave an evasive reply. Consequently, the plaintiff filed the suit on 19.12.1974 for specific performance and, in the alternative, for refund of earnest money. The trial court decreed the suit, and the first appellate court confirmed it. In the second appeal, the appellants contended that the suit was barred by limitation and that the plaintiff was not ready and willing to perform his part. The High Court, after examining the evidence, held that the suit was within limitation as the agreement did not fix a specific date for performance, and the suit was filed within three years of the notice. The court also found that the plaintiff had pleaded and proved readiness and willingness, as he had paid the full consideration and issued a notice. The court further held that the agreement was for necessity (marriages of daughters and household expenses), and therefore, the legal representatives were bound to execute the sale deed. The appeal was dismissed with no order as to costs.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Specific Performance - Readiness and Willingness - Plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree - In the present case, plaintiff issued notice and filed suit within limitation, and the courts below concurrently found readiness and willingness - No interference in second appeal (Paras 1-6).

B) Transfer of Property Act, 1882 - Section 54 - Agreement to Sell - Legal Representatives - An agreement to sell executed by a deceased vendor for necessity binds his legal representatives - The suit land was sold for performing marriages of daughters and household expenses, which constitutes necessity - Legal representatives are liable to execute the sale deed (Paras 2-5).

C) Limitation Act, 1963 - Article 54 - Suit for Specific Performance - Limitation period is three years from the date fixed for performance, or if no date is fixed, from the date of notice - In this case, the agreement was dated 5.6.1973, notice was issued on 28.10.1974, and suit was filed on 19.12.1974 - Suit is within limitation (Paras 2-3).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the suit for specific performance of contract is maintainable against the legal representatives of the deceased vendor and whether the plaintiff was ready and willing to perform his part of the contract.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court dismissed the second appeal with no order as to costs, confirming the decree for specific performance of contract.

Law Points

  • Specific performance of contract
  • Agreement to sell
  • Legal representatives bound by contract
  • Necessity
  • Limitation
  • Section 16(c) Specific Relief Act
  • 1963
  • Section 54 Transfer of Property Act
  • 1882
Subscribe to unlock Law Points Subscribe Now

Case Details

2005 LawText (BOM) (05) 180

Second Appeal No. 455 of 1984

2005-06-09

P.V. Kakade, J.

Mr. M.R. Katikar for the appellants, Mr. M.V. Sali for the respondent

Sadashiv Namdeo Khandagale and others

Balasaheb Krishna Khandagale

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

Nature of Litigation

Second appeal against concurrent findings in a suit for specific performance of contract.

Remedy Sought

Appellants sought to set aside the decree for specific performance of contract.

Filing Reason

Appellants challenged the judgment of the first appellate court confirming the trial court's decree for specific performance.

Previous Decisions

Trial court decreed the suit on 14.9.1981; first appellate court dismissed the appeal on 30.4.1984.

Issues

Whether the suit for specific performance is maintainable against the legal representatives of the deceased vendor? Whether the plaintiff was ready and willing to perform his part of the contract? Whether the suit is barred by limitation?

Submissions/Arguments

Appellants argued that the suit was barred by limitation and that the plaintiff was not ready and willing to perform his part. Respondent argued that the suit was within limitation and that he had always been ready and willing to perform.

Ratio Decidendi

An agreement to sell executed by a deceased vendor for necessity binds his legal representatives. The plaintiff must plead and prove readiness and willingness, which was done in this case. The suit was within limitation as it was filed within three years of the notice.

Judgment Excerpts

The appellant has preferred this appeal against the judgment and order passed by the Third Extra Assistant Judge, Solapur, dismissing his appeal and confirming the order passed by the Civil Judge, Jr. Divn., Mangalwedha on 14.9.1981 decreeing the suit of the plaintiffs for specific performance of the contract between the parties. The plaintiff brought the suit for specific performance of contract dated 5.6.1973. After receiving the consideration of Rs.7000/-, sale deed was to be executed after obtaining necessary permission for sale, but during the pendency of the proceeding, Namdeo died.

Procedural History

The plaintiff filed a suit for specific performance in the court of Civil Judge, Jr. Divn., Mangalwedha, which was decreed on 14.9.1981. The defendants appealed to the Third Extra Assistant Judge, Solapur, who dismissed the appeal on 30.4.1984. The defendants then filed the present second appeal in the High Court of Bombay, which was dismissed on 9.6.2005.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Transfer of Property Act, 1882: Section 54
  • Limitation Act, 1963: Article 54
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Appeal Against Refusal of Interim Injunction in Trademark 'Covishield' Passing Off Dispute. Cutis Biotech failed to establish prima facie case of passing off as the mark 'Covishield' is descriptive and not exclusively asso...
Related Judgement
High Court Bombay High Court Dismisses Appeal in Specific Performance Suit — Agreement to Sell Enforceable Despite Vendor's Death. Legal Representatives Bound by Contract Executed for Necessity, and Suit Filed Within Limitation Is Maintainable.