Bombay High Court Allows Second Appeal in Specific Performance Suit, Sets Aside Decree Due to Non-Compliance with Section 16(c) of Specific Relief Act, 1963. Plaintiff Failed to Plead and Prove Readiness and Willingness to Perform Contract.

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

The case involves a second appeal filed by the defendant (Peeraji) against the judgment and decree of the First Appellate Court which granted specific performance of an agreement to sell agricultural land and permanent injunction in favor of the plaintiff (Hariba). The plaintiff had filed a suit for specific performance alleging that on 25.12.1978, the defendant agreed to sell two agricultural plots for Rs. 12,500/-, received Rs. 1,000/- as earnest money, and delivered possession. The plaintiff claimed he was ready and willing to pay the balance but the defendant avoided execution and denied the contract on 25.3.1979. The suit was filed on 29.3.1979. The defendant denied the agreement, alleging that his thumb impression was obtained fraudulently on a security bond. The trial court dismissed the suit, but the First Appellate Court reversed and decreed specific performance. In the second appeal, the High Court framed a substantial question of law regarding compliance with Section 16(c) of the Specific Relief Act, 1963. The High Court found that the plaintiff's plaint lacked necessary averments of readiness and willingness, and the evidence did not establish that the plaintiff had the balance consideration ready. The court held that the First Appellate Court erred in granting specific performance without such proof. Consequently, the High Court allowed the appeal, set aside the decree of the First Appellate Court, and restored the trial court's dismissal of the suit.

Headnote

A) Specific Relief Act - Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - The plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the date of decree. In the present case, the plaintiff failed to make necessary averments in the plaint and did not lead evidence to show that he was ready and willing to pay the balance consideration. The First Appellate Court erred in granting specific performance without such proof. (Paras 1-10)

B) Evidence Act - Burden of Proof - Section 101 Evidence Act, 1872 - The burden lies on the plaintiff to prove his readiness and willingness. Mere execution of agreement and payment of earnest money is insufficient. The plaintiff must show that he had the means and intention to pay the balance amount. (Paras 5-10)

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Issue of Consideration

Whether the plaintiff in a suit for specific performance of contract has pleaded and proved his readiness and willingness to perform his part of the contract as required under Section 16(c) of the Specific Relief Act, 1963.

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Final Decision

The High Court allowed the second appeal, set aside the judgment and decree of the First Appellate Court, and restored the trial court's dismissal of the suit.

Law Points

  • Specific performance
  • Readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • Burden of proof
  • Pleading requirements
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Case Details

2014 LawText (BOM) (03) 5

Second Appeal No. 568 of 1991

2014-03-20

T.V. Nalawade, J.

Mr. P.K. Joshi for appellants, Mr. Sachin Deshmukh for respondent Nos. 1(1) to 1(5)

Peeraji s/o. Limbaji Agawane (deceased through L.Rs.)

Hariba s/o. Nana Bhinge (deceased through L.Rs.)

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Nature of Litigation

Second appeal against decree of specific performance of contract for sale of agricultural land.

Remedy Sought

Appellant sought setting aside of the First Appellate Court's decree granting specific performance and permanent injunction.

Filing Reason

Appellant contended that the plaintiff failed to plead and prove readiness and willingness as required under Section 16(c) of the Specific Relief Act, 1963.

Previous Decisions

Trial Court dismissed the suit; First Appellate Court allowed the appeal and decreed specific performance.

Issues

Whether the plaintiff pleaded and 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 the plaintiff did not make necessary averments in the plaint regarding readiness and willingness and failed to prove the same. Respondent argued that the agreement was proved and the plaintiff was ready and willing.

Ratio Decidendi

In a suit for specific performance, the plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the date of decree. Failure to do so disentitles the plaintiff to the relief of specific performance under Section 16(c) of the Specific Relief Act, 1963.

Judgment Excerpts

The plaintiff must plead and prove his readiness and willingness to perform his part of the contract. The plaint does not contain necessary averments regarding readiness and willingness.

Procedural History

The plaintiff filed Regular Civil Suit No. 157/1979 for specific performance. The trial court dismissed the suit. The plaintiff appealed in Regular Civil Appeal No. 191/1984, which was allowed by the First Appellate Court. The defendant filed Second Appeal No. 568/1991 in the High Court.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Indian Evidence Act, 1872: Section 101
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High Court Bombay High Court Allows Second Appeal in Specific Performance Suit, Sets Aside Decree Due to Non-Compliance with Section 16(c) of Specific Relief Act, 1963. Plaintiff Failed to Plead and Prove Readiness and Willingness to Perform Contract.
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