Bombay High Court Allows Specific Performance of Agreement to Sell Agricultural Land — Plaintiff Proves Readiness and Willingness. The court held that the appellant had continuously shown readiness and willingness to perform the contract, and there was no valid ground to deny specific performance under Section 20 of the Specific Relief Act, 1963.

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

The appellant, Shrikrishna Ganuji Sonone, filed a suit for specific performance of an agreement to sell an agricultural field (Gat No.36, admeasuring 1.20 hectare) situated at Bramhanwada, Taluka Shegaon, District Buldhana, for a consideration of Rs.17,000/-. The appellant claimed that the respondent, Vitthal s/o Shankar Bajre, agreed to sell the field due to financial needs and received Rs.5,000/- as earnest money. The respondent denied the agreement and contended that the appellant was not ready and willing to perform. The trial court decreed the suit, but the first appellate court set aside the decree. The High Court, in second appeal, initially allowed the appeal and restored the trial court's decree. However, the Supreme Court set aside that judgment and remitted the matter for fresh disposal on merits. On remand, the High Court framed substantial questions of law regarding the validity of the agreement, readiness and willingness, and the discretion to grant specific performance. The court analyzed the evidence, including the testimony of the appellant and the attesting witness, and found that the agreement was proved. The court held that the appellant had shown readiness and willingness by depositing the balance consideration in court and filing the suit promptly. The court also noted that the respondent failed to prove any valid reason to deny specific performance. Consequently, the High Court allowed the appeal, set aside the first appellate court's judgment, and decreed the suit for specific performance with costs.

Headnote

A) Specific Relief Act - Specific Performance - Agreement to Sell - Readiness and Willingness - The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree, as required under Section 16(c) of the Specific Relief Act, 1963. The court held that the appellant had proved his readiness and willingness by depositing the balance consideration and filing the suit promptly. (Paras 10-15)

B) Specific Relief Act - Specific Performance - Discretion of Court - Section 20 - The court's discretion to grant specific performance must be exercised judicially, considering all circumstances. The court held that there was no valid reason to deny specific performance as the agreement was proved and the plaintiff was ready and willing. (Paras 16-18)

C) Evidence Act - Burden of Proof - Agreement to Sell - The burden is on the plaintiff to prove the agreement and his readiness and willingness. The court found that the appellant had discharged this burden by cogent evidence. (Paras 7-9)

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Issue of Consideration

Whether the appellant/plaintiff is entitled to a decree of specific performance of the agreement to sell the suit field, and whether the appellant has proved his readiness and willingness to perform his part of the contract.

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Final Decision

The appeal is allowed. The judgment and decree of the District Judge, Khamgaon in Regular Civil Appeal No.68 of 1988 dated 14.10.1997 are set aside. The decree of specific performance passed by the trial court in Regular Civil Suit No.86 of 1987 dated 22.4.1988 is restored. The respondent is directed to execute the sale deed within three months from the date of the judgment, failing which the appellant may get it executed through court. No order as to costs.

Law Points

  • Specific performance
  • Agreement to sell
  • Earnest money
  • Readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • Section 20 Specific Relief Act
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Case Details

2013 LawText (BOM) (11) 72

Second Appeal No.75 of 1998

2013-11-20

S.B. Shukre, J.

Mr. Anjan De for the Appellant, Mr. G.G. Mishra for the Respondent

Shrikrishna Ganuji Sonone

Vitthal s/o Shankar Bajre

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Nature of Litigation

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

Remedy Sought

Decree of specific performance directing the respondent to execute the sale deed of the suit field in favour of the appellant.

Filing Reason

The respondent failed to execute the sale deed despite receiving earnest money and the appellant being ready and willing to pay the balance consideration.

Previous Decisions

Trial court decreed the suit on 22.4.1988; first appellate court partly allowed the appeal and set aside the decree on 14.10.1997; High Court initially allowed the second appeal on 17.12.2009; Supreme Court set aside that judgment and remitted the matter on 2.12.2011.

Issues

Whether the appellant proved the agreement to sell and payment of earnest money? Whether the appellant proved his readiness and willingness to perform his part of the contract? Whether the appellant is entitled to a decree of specific performance?

Submissions/Arguments

Appellant argued that the agreement was proved by oral and documentary evidence, and he was always ready and willing to perform. Respondent argued that the agreement was not proved, and the appellant was not ready and willing to pay the balance consideration.

Ratio Decidendi

The appellant proved the agreement to sell and his readiness and willingness to perform the contract. The respondent failed to show any valid reason to deny specific performance. Therefore, the appellant is entitled to a decree of specific performance.

Judgment Excerpts

It was the case of the appellant/original plaintiff that the respondent/original defendant was in need of money to pay all the debts in respect of the agricultural field and to meet household expenses. The appellant contended that it was agreed between him and the respondent that amount of Rs.5,000/- would be paid to the respondent as an earnest money and it was accordingly paid to the respondent. The court held that the appellant had proved his readiness and willingness by depositing the balance consideration and filing the suit promptly.

Procedural History

The appellant filed Regular Civil Suit No.86 of 1987 for specific performance, which was decreed on 22.4.1988. The respondent appealed to the District Judge, Khamgaon in Regular Civil Appeal No.68 of 1988, which was partly allowed on 14.10.1997, setting aside the decree. The appellant then filed Second Appeal No.75 of 1998 in the High Court, which was initially allowed on 17.12.2009. The respondent appealed to the Supreme Court in Civil Appeal No.10537538 of 2011 (arising out of SLP (C) Nos.2859728598 of 2010), which set aside the High Court's judgment on 2.12.2011 and remitted the matter for fresh disposal on merits. The High Court then heard the appeal afresh and delivered the present judgment on 20.11.2013.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c), Section 20
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