Case Note & Summary
The appeal arises from a suit for specific performance of a contract for sale of a shop. The appellant/plaintiff, Dilip Waghmare, entered into an agreement with the respondent/defendant, Ashok Sirsikar, to purchase Shop Block No.2 admeasuring 283.50 sq. ft. for a total consideration of Rs.16 Lacs. The plaintiff paid Rs.5 Lacs as earnest money and was ready and willing to pay the balance of Rs.11 Lacs at the time of execution of the sale deed. However, the defendant failed to execute the sale deed and instead created third party rights over the property. The plaintiff filed Special Civil Suit No.227 of 2013 seeking specific performance. The trial court dismissed the suit for default. The plaintiff appealed. The High Court held that the plaintiff was ready and willing to perform his part of the contract and the defendant committed breach. The court allowed the appeal, set aside the dismissal order, and directed the trial court to restore the suit and decide it on merits expeditiously.
Headnote
A) Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - Plaintiff's readiness and willingness to perform contract - The appellant/plaintiff had paid earnest money of Rs.5 Lacs and was ready to pay balance consideration of Rs.11 Lacs at the time of execution of sale deed. The respondent/defendant failed to perform his part of the contract to sell the shop with clear title. Held that the plaintiff was ready and willing to perform his part and the defendant committed breach. (Paras 3-5) B) Contract - Breach of Contract - Earnest Money - Sale of Immovable Property - The respondent/defendant did not execute the sale deed despite receipt of earnest money and created third party rights. The plaintiff sought specific performance of the agreement. Held that the defendant's failure to perform constituted breach, entitling the plaintiff to specific performance. (Paras 3-5)
Issue of Consideration
Whether the appellant/plaintiff was ready and willing to perform his part of the contract for sale of shop and whether the respondent/defendant committed breach by not executing the sale deed.
Final Decision
Appeal allowed. Order of dismissal of suit set aside. Trial court directed to restore Special Civil Suit No.227 of 2013 to its original number and decide it on merits expeditiously, preferably within six months from the date of appearance of parties.
Law Points
- Specific performance
- readiness and willingness
- breach of contract
- earnest money
- sale of immovable property
