Case Note & Summary
The plaintiffs, a group of 52 individuals, filed a suit for specific performance of an alleged agreement for sale of flats in a building to be constructed by the defendant developer. They also sought an interim injunction restraining the defendant from selling, transferring, or alienating the suit property. The plaintiffs claimed that they had paid booking amounts and were issued allotment letters, but the defendant failed to execute formal agreements and complete construction. The defendant contended that no concluded contract existed as essential terms such as consideration, time for performance, and mode of payment were never finalized. The court examined the allotment letters and found that they did not contain all essential terms of a contract. The court held that for an agreement to be enforceable, all essential terms must be settled. In the absence of agreement on price, payment schedule, and possession date, no binding contract arises. The court further held that the plaintiffs failed to make out a prima facie case for grant of injunction, and the balance of convenience was not in their favor. The notice of motion was dismissed, and the interim relief granted earlier was vacated.
Headnote
A) Specific Relief Act - Interim Injunction - Prima Facie Case - Plaintiffs sought injunction to restrain developer from selling flats - Court held that no concluded contract existed as essential terms like consideration, time for performance, and mode of payment were not agreed upon - Plaintiffs failed to make out a prima facie case for grant of injunction (Paras 10-15). B) Contract Law - Enforceable Contract - Essential Terms - For an agreement to be enforceable, all essential terms must be settled - In absence of agreement on price, payment schedule, and possession date, no binding contract arises - Mere issuance of allotment letter does not create a concluded contract (Paras 12-14). C) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Plaintiff must plead and prove readiness and willingness to perform his part of contract - In absence of concluded contract, question of readiness and willingness does not arise (Para 16).
Issue of Consideration
Whether the plaintiffs are entitled to an interim injunction restraining the defendant from selling, transferring, or alienating the suit property pending disposal of the suit for specific performance.
Final Decision
Notice of Motion dismissed. Interim relief granted earlier vacated. No order as to costs.
Law Points
- Specific performance
- Prima facie case
- Balance of convenience
- Irreparable loss
- Injunction
- Agreement for sale
- Enforceable contract
- Essential terms
- Section 16(c) Specific Relief Act
- 1963
