Case Note & Summary
The appellants, Jugraj K. Ranka, Ramesh K. Ranka, and Suresh K. Ranka, filed a suit for specific performance of an agreement for sale dated 15th June 2005, whereby the respondent Mulchand K. Ranka agreed to sell a flat in a building to be constructed on a plot of land. The consideration was Rs. 1,10,00,000, of which Rs. 10,00,000 was paid as earnest money. The balance was to be paid at the time of registration of the conveyance. The construction did not commence, and the respondent failed to perform. The appellants filed Suit No. 261 of 2011 for specific performance. The trial court dismissed the suit on the ground that the appellants were not ready and willing to perform their part of the contract and that time was of the essence. The appellants appealed. The High Court allowed the appeal, holding that time was not of the essence as the construction had not commenced and no date for completion was fixed. The court further held that the appellants had shown readiness and willingness by depositing the balance consideration in court. The court decreed specific performance in favor of the appellants.
Headnote
A) Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - The court held that readiness and willingness must be assessed at the time of performance, not at the time of filing suit. The plaintiffs had shown readiness by depositing the balance consideration in court. (Paras 10-15) B) Contract - Time Not of Essence - Agreement for Sale - The court held that time was not of the essence in an agreement for sale of a flat under construction, as the construction had not commenced and no date for completion was fixed. (Paras 8-9) C) Specific Performance - Delay in Performance - The court held that mere delay in performance does not disentitle a party to specific relief if the delay is not attributable to the plaintiff and the defendant has not suffered prejudice. (Paras 12-14)
Issue of Consideration
Whether the agreement for sale was frustrated due to non-commencement of construction and whether the plaintiffs were ready and willing to perform their part of the contract.
Final Decision
Appeal allowed. The judgment and decree of the trial court are set aside. The suit for specific performance is decreed in favor of the appellants.
Law Points
- Specific performance
- readiness and willingness
- time not of essence
- agreement to sell
- construction delay
- Section 16(c) Specific Relief Act
- 1963
