Bombay High Court Allows Appeal in Property Dispute — Sets Aside Decree for Specific Performance. Plaintiff Failed to Prove Readiness and Willingness Under Section 16(c) of Specific Relief Act, 1963.

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

The appellant, Mrs. Kiran Nashine, filed two appeals against the judgment and decree dated 30.09.2009 passed by the Joint Civil Judge, Senior Division, Nagpur in Special Civil Suit No. 123 of 2008. The suit was filed by the respondent No.1, Vivek Mokadam, seeking specific performance of an agreement to sell dated 15.10.1960 in respect of Plot No.294, Gandhi Nagar, Nagpur admeasuring 4620 sq.ft. The trial court decreed the suit in favor of the plaintiff, directing the defendant (appellant) to execute the sale deed upon receipt of balance consideration. The appellant challenged the decree on the ground that the plaintiff was not ready and willing to perform his part of the contract. The High Court analyzed the evidence and found that the plaintiff failed to prove his readiness and willingness as required under Section 16(c) of the Specific Relief Act, 1963. The court noted that the plaintiff did not produce any evidence of financial capacity, did not deposit the balance consideration in court, and did not take any steps to complete the transaction despite the agreement being old. The court held that mere filing of the suit does not constitute readiness and willingness. The appeals were allowed, the trial court's decree was set aside, and the suit for specific performance was dismissed. However, the court granted the plaintiff the option to claim refund of earnest money if any, in accordance with law.

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 - Held that mere filing of suit does not prove readiness; plaintiff must show financial capacity and actual steps taken to perform (Paras 10-15).

B) Contract Law - Sale Agreement - Time Not Essence - Where time is not made essence of contract, court may still consider delay and conduct of parties - Held that even if time is not essence, plaintiff must show reasonable diligence and readiness (Paras 16-18).

C) Evidence - Burden of Proof - Section 101 Evidence Act, 1872 - The burden to prove readiness and willingness lies on the plaintiff seeking specific performance - Held that plaintiff failed to discharge burden as he did not produce evidence of financial capacity or deposit of balance consideration (Paras 19-22).

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Issue of Consideration

Whether the plaintiff was ready and willing to perform his part of the contract for sale of suit property and whether the trial court erred in granting decree for specific performance.

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Final Decision

Appeals allowed. Judgment and decree dated 30.09.2009 passed by Joint Civil Judge, Senior Division, Nagpur in Special Civil Suit No. 123 of 2008 is set aside. Suit for specific performance stands dismissed. Plaintiff is at liberty to claim refund of earnest money if any, in accordance with law. No order as to costs.

Law Points

  • Specific performance
  • readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • burden of proof
  • continuous readiness
  • sale agreement
  • time is not essence
  • equitable relief
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Case Details

2014 LawText (BOM) (07) 153

First Appeal No.1436 of 2009 and First Appeal No.1437 of 2009

2014-07-01

S.B. Shukre, J.

Shri Ashutosh C. Dharmadhikari for Appellant; Respondent No.1 in person; Shri A.M. Deshpande for Respondent Nos.2 and 4; Mr.A.G. Gharote for Respondent No.5

Mrs. Kiran w/o. Sukumar Nashine

Vivek s/o. Ramdas Mokadam

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Nature of Litigation

Civil appeal against decree for specific performance of agreement to sell immovable property.

Remedy Sought

Appellant sought setting aside of trial court decree directing execution of sale deed.

Filing Reason

Appellant contended that plaintiff/respondent was not ready and willing to perform his part of contract.

Previous Decisions

Trial court decreed suit for specific performance in favor of plaintiff/respondent.

Issues

Whether the plaintiff was ready and willing to perform his part of the contract for sale of suit property? Whether the trial court erred in granting decree for specific performance?

Submissions/Arguments

Appellant argued that plaintiff failed to prove readiness and willingness as required under Section 16(c) of Specific Relief Act, 1963. Respondent argued that he was always ready and willing and that time was not essence of contract.

Ratio Decidendi

For a decree of 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. Mere filing of suit does not suffice; plaintiff must show financial capacity and actual steps taken. Failure to do so disentitles him to equitable relief under Section 16(c) of Specific Relief Act, 1963.

Judgment Excerpts

The plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract. Mere filing of suit does not prove readiness; plaintiff must show financial capacity and actual steps taken to perform.

Procedural History

Respondent No.1 filed Special Civil Suit No. 123 of 2008 for specific performance. Trial court decreed suit on 30.09.2009. Appellant filed two appeals (First Appeal No.1436/2009 and First Appeal No.1437/2009) against the decree. High Court heard both appeals together and delivered judgment on 01.07.2014.

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 Appeal in Property Dispute — Sets Aside Decree for Specific Performance. Plaintiff Failed to Prove Readiness and Willingness Under Section 16(c) of Specific Relief Act, 1963.
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