Bombay High Court Dismisses Appeal in Specific Performance Suit — Agreement to Sell Not Proved as Genuine and Enforceable. Court upholds trial court's finding that the plaintiff failed to discharge burden of proving the agreement and readiness and willingness to perform.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appellant, Merit Magnum Constructions (formerly Vimal Buildings), a partnership firm, filed a suit for specific performance of an agreement to sell dated 15th June 2005 allegedly executed by the respondents, who are members of the Vaity family, in respect of a property at Vaity Wadi, Deonar, Mumbai. The plaintiff claimed that the respondents agreed to sell the property for a total consideration of Rs. 1,50,00,000 and that a sum of Rs. 15,00,000 was paid as earnest money. The plaintiff alleged that despite repeated requests, the respondents failed to execute the sale deed. The respondents denied the agreement and contended that the document was forged and fabricated. The trial court dismissed the suit, holding that the plaintiff failed to prove the execution and genuineness of the agreement and also failed to prove readiness and willingness to perform the contract. The plaintiff appealed. The High Court, after re-appreciating the evidence, affirmed the trial court's findings. The court noted that the plaintiff did not produce the original agreement and the attesting witness denied his signature. The court held that the plaintiff failed to discharge the burden of proof under Section 101 of the Evidence Act, 1872 and also failed to prove readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The appeal was dismissed with costs.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Burden of Proof - The plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract from the date of the agreement till the date of decree. Mere filing of suit is not sufficient. (Paras 10-15)

B) Evidence Act, 1872 - Section 101 - Burden of Proof - The burden of proving the execution and genuineness of an agreement to sell lies on the plaintiff who asserts it. In the absence of credible evidence, the agreement cannot be enforced. (Paras 8-12)

C) Specific Performance - Agreement to Sell - Genuineness of Document - Where the plaintiff fails to produce the original agreement or satisfactory explanation for its non-production, and the attesting witness denies execution, the court may draw an adverse inference against the plaintiff. (Paras 8-12)

D) Civil Procedure Code, 1908 - Order 41 Rule 31 - Appellate Judgment - The appellate court must independently assess the evidence and record findings on each issue. The judgment must be a reasoned one. (Paras 5-7)

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Issue of Consideration

Whether the plaintiff proved the agreement to sell dated 15th June 2005 and its terms, and whether the plaintiff was ready and willing to perform his part of the contract to be entitled to specific performance.

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Final Decision

The High Court dismissed the appeal with costs, affirming the trial court's judgment and decree.

Law Points

  • Specific performance
  • burden of proof
  • readiness and willingness
  • agreement to sell
  • genuineness of document
  • Section 16(c) Specific Relief Act
  • 1963
  • Section 101 Evidence Act
  • 1872
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Case Details

2013:BHC-OS:10185-DB

Appeal No.443 of 2013 in Notice of Motion No.1716 of 2010 in Notice of Motion No.3679 of 2007 in Suit No.2715 of 2007

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2013:BHC-OS:10185-DB

Merit Magnum Constructions (formerly known as Vimal Buildings)

Nand Kumar Anant Vaity and 38 others

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Nature of Litigation

Civil suit for specific performance of an agreement to sell immovable property.

Remedy Sought

The plaintiff sought a decree of specific performance directing the defendants to execute a sale deed in respect of the suit property, or in the alternative, refund of earnest money with interest.

Filing Reason

The plaintiff alleged that the defendants agreed to sell the property but failed to execute the sale deed despite receiving earnest money.

Previous Decisions

The trial court dismissed the suit, holding that the plaintiff failed to prove the agreement and readiness and willingness.

Issues

Whether the plaintiff proved the execution and genuineness of the agreement to sell dated 15th June 2005? Whether the plaintiff was ready and willing to perform his part of the contract?

Submissions/Arguments

The appellant argued that the trial court erred in not believing the plaintiff's evidence and that the agreement was duly proved. The respondents contended that the agreement was forged and that the plaintiff failed to produce the original document or prove its execution.

Ratio Decidendi

The plaintiff must prove the execution and genuineness of the agreement to sell and also prove continuous readiness and willingness to perform the contract. Failure to produce the original agreement and lack of credible evidence leads to dismissal of the suit for specific performance.

Judgment Excerpts

The plaintiff has not produced the original agreement to sell. The attesting witness has denied his signature. In these circumstances, the trial court was justified in holding that the plaintiff failed to prove the agreement. The plaintiff has not pleaded or proved that he was ready and willing to perform his part of the contract. Mere filing of the suit is not sufficient.

Procedural History

The plaintiff filed Suit No.2715 of 2007 for specific performance. The trial court dismissed the suit. The plaintiff filed Appeal No.443 of 2013 against the dismissal.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Indian Evidence Act, 1872: Section 101
  • Code of Civil Procedure, 1908: Order 41 Rule 31
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