Case Note & Summary
The appellants, original plaintiffs, filed a suit for specific performance of an agreement of sale dated 23rd July 1971 (Exh. 29) and another agreement dated 3rd April 1972 (Exh. 51) for suit land Gut No.384 at Mauje Lakhalgaon, admeasuring 8H 28R. The plaintiffs claimed that the defendants agreed to sell the land for Rs. 8,000 and received earnest money of Rs. 2,000, and later an additional Rs. 1,000. The plaintiffs were put in possession of the land. The defendants failed to execute the sale deed despite repeated requests. The trial court decreed the suit, but the lower appellate court reversed the decree. The High Court framed substantial questions of law regarding readiness and willingness, part performance, and limitation. The High Court held that the plaintiffs had proved readiness and willingness by depositing the balance consideration in court and filing the suit within limitation. The court also held that the plaintiffs were put in possession pursuant to the agreement and continued in possession, attracting Section 53A of the Transfer of Property Act, 1882. The High Court allowed the appeal, set aside the appellate decree, and restored the trial court's decree for specific performance.
Headnote
A) Specific Performance - Agreement of Sale - Readiness and Willingness - Plaintiffs proved readiness and willingness to perform their part of the contract by depositing balance consideration and filing suit within limitation - Held that the lower appellate court erred in reversing the trial court's decree on this ground (Paras 10-15). B) Transfer of Property Act - Part Performance - Section 53A - Possession - Plaintiffs were put in possession of suit land pursuant to agreement of sale and continued in possession - Held that Section 53A protects their possession and supports claim for specific performance (Paras 16-20). C) Limitation - Suit for Specific Performance - Article 54 of Limitation Act, 1963 - Suit filed within three years from date fixed for performance or from notice of refusal - Held that suit was within limitation as performance was to be completed after obtaining permission and plaintiffs filed suit after refusal (Paras 21-25).
Issue of Consideration
Whether the plaintiffs are entitled to specific performance of the agreement of sale dated 23rd July 1971 and 3rd April 1972, and whether the lower appellate court erred in reversing the trial court's decree.
Final Decision
The High Court allowed the second appeal, set aside the judgment and decree of the lower appellate court dated 26th July 1991, and restored the trial court's decree dated 29th October 1986 directing specific performance of the agreement of sale.
Law Points
- Specific performance
- agreement of sale
- part performance
- readiness and willingness
- limitation
- Section 53A Transfer of Property Act
- 1882
- Section 16(c) Specific Relief Act
- 1963
