Bombay High Court Dismisses Appeals in Specific Performance Suit — Upholds Trial Court's Refusal to Grant Decree Due to Lack of Continuous Readiness and Willingness. Court holds that under Section 20 of the Specific Relief Act, 1963, the court has discretion to refuse specific performance where plaintiff fails to prove readiness and willingness from date of contract to date of decree.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The case involves two first appeals filed by Veljiben V. Satra and Nitin V. Satra (appellants) against the judgment and decree dated 30/06/2016 passed by the City Civil Court, Bombay, in L.C. Suit No. 1234 of 1990. The appellants were the original plaintiffs who had filed a suit for specific performance of an agreement to sell dated 01/10/1985 in respect of a property situated at Goregaon, Mumbai. The respondents were the original defendants, including the owners of the property and other parties. The trial court dismissed the suit, holding that the plaintiffs had failed to prove their readiness and willingness to perform their part of the contract continuously from the date of the agreement to the date of the decree. The appellants challenged this dismissal in the High Court. The High Court, after hearing the parties, dismissed the appeals, upholding the trial court's discretion to refuse specific performance. The court held that the burden to prove readiness and willingness is continuous and that the plaintiffs had not shown that they were ready and willing to pay the balance consideration. The court also noted that the plaintiffs had not deposited the balance amount in court and had delayed in making payment. The court further held that the trial court's discretion under Section 20 of the Specific Relief Act, 1963 was properly exercised and that there was no ground to interfere with the same. The appeals were dismissed with no order as to costs.

Headnote

A) Specific Relief Act - Specific Performance - Readiness and Willingness - Section 20 of the Specific Relief Act, 1963 - The court has discretion to refuse specific performance even if the plaintiff is ready and willing, if the conduct of the plaintiff or other circumstances make it inequitable to grant the decree. The burden to prove readiness and willingness is continuous from the date of the contract to the date of the decree. (Paras 10-15)

B) Specific Relief Act - Specific Performance - Conduct of Plaintiff - Section 20 of the Specific Relief Act, 1963 - The plaintiff must not only prove readiness and willingness but also show that he has performed or been ready to perform his part of the contract. Delay in payment of balance consideration and failure to deposit the amount in court may disentitle the plaintiff to specific performance. (Paras 16-20)

C) Specific Relief Act - Specific Performance - Discretion of Court - Section 20 of the Specific Relief Act, 1963 - The court's discretion to grant or refuse specific performance is judicial and must be exercised on sound legal principles. The appellate court will not interfere with the trial court's discretion unless it is shown to be perverse or based on wrong principles. (Paras 21-25)

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Issue of Consideration

Whether the appellants (original plaintiffs) were entitled to a decree for specific performance of the agreement to sell dated 01/10/1985, and whether the trial court erred in dismissing the suit despite finding that the plaintiffs were ready and willing to perform their part of the contract.

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Final Decision

Both first appeals are dismissed. The judgment and decree of the trial court are confirmed. No order as to costs.

Law Points

  • Specific performance
  • Readiness and willingness
  • Section 20 Specific Relief Act
  • 1963
  • Discretion of court
  • Continuous burden of proof
  • Conduct of plaintiff
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Case Details

2026 LawText (BOM) (01) 199

First Appeal No.797 of 2016 with Civil Application No.4357 of 2016 and Civil Application No.1521 of 2016 along with First Appeal No.798 of 2016 with Civil Application No.4358 of 2016 and Civil Application No.1523 of 2016

0000-00-00

2016:BHC-AS:25058

Veljiben V. Satra and Nitin V. Satra

Kanaiyalal Purshottamdas Shah and others

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Nature of Litigation

Civil appeal against dismissal of suit for specific performance of agreement to sell

Remedy Sought

Decree for specific performance of agreement to sell dated 01/10/1985

Filing Reason

Appellants claimed that respondents failed to execute sale deed despite readiness and willingness

Previous Decisions

Trial court dismissed the suit on 30/06/2016

Issues

Whether the appellants proved their readiness and willingness to perform their part of the contract continuously from the date of the agreement to the date of the decree? Whether the trial court erred in exercising its discretion under Section 20 of the Specific Relief Act, 1963 to refuse specific performance?

Submissions/Arguments

Appellants argued that they were always ready and willing to perform their part of the contract and that the trial court erred in dismissing the suit. Respondents argued that the appellants failed to prove continuous readiness and willingness and that the trial court's discretion should not be interfered with.

Ratio Decidendi

The court held that the burden to prove readiness and willingness is continuous from the date of the contract to the date of the decree. The trial court's discretion under Section 20 of the Specific Relief Act, 1963 to refuse specific performance was properly exercised as the plaintiffs failed to show continuous readiness and willingness. The appellate court will not interfere with the trial court's discretion unless it is perverse or based on wrong principles.

Judgment Excerpts

The burden to prove readiness and willingness is continuous from the date of the contract to the date of the decree. The court has discretion to refuse specific performance even if the plaintiff is ready and willing, if the conduct of the plaintiff or other circumstances make it inequitable to grant the decree.

Procedural History

The appellants filed L.C. Suit No. 1234 of 1990 in the City Civil Court, Bombay, seeking specific performance of an agreement to sell dated 01/10/1985. The trial court dismissed the suit on 30/06/2016. The appellants filed First Appeal No.797 of 2016 and First Appeal No.798 of 2016 in the High Court of Judicature at Bombay challenging the dismissal. The High Court heard the appeals and dismissed them.

Acts & Sections

  • Specific Relief Act, 1963: Section 20
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