Karnataka High Court Dismisses Appeal Against Decree of Specific Performance of Sale Agreement. Court holds that plaintiff's readiness and willingness to perform is established by evidence of payment of balance sale consideration and execution of sale deed within time.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The present first appeal is filed by the defendant under Section 96 of the Code of Civil Procedure, 1908, challenging the judgment and decree dated 30.11.2015 passed in OS No.195/2012 by the Principal Senior Civil Judge at Kolar, whereunder the suit for specific performance filed by the plaintiff has been decreed with costs. The appellant-defendant, Mr. Mahaboob Munaver, entered into an agreement of sale dated 27.06.2005 with the respondent-plaintiff, Mr. Ashwathanarayana Guptha M S (since deceased, represented by legal representatives), agreeing to sell a property for a total consideration of Rs. 6,00,000/-. An advance of Rs. 1,00,000/- was paid, and the balance was to be paid within six months. The plaintiff alleged that he was ready and willing to perform his part but the defendant avoided execution of the sale deed. The defendant denied the agreement and contended that the plaintiff was not ready and willing. The trial court decreed the suit. The High Court framed issues regarding readiness and willingness, burden of proof, and whether time was the essence. The court analyzed the evidence, including the plaintiff's testimony and the attesting witness, and found that the plaintiff had deposited the balance amount and executed the sale deed within time. The court held that the plaintiff had proved his readiness and willingness, and time was not the essence of the contract. The appeal was dismissed, confirming the decree for specific performance.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Burden of Proof - The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the date of decree. The court held that the plaintiff's evidence of depositing balance sale consideration and executing sale deed within the stipulated time demonstrates readiness and willingness. (Paras 10-15)

B) Contract Act, 1872 - Section 55 - Time as Essence of Contract - For immovable property, time is not ordinarily the essence of the contract unless expressly stipulated. The agreement did not make time the essence, and the plaintiff's delay was not fatal. (Paras 16-18)

C) Evidence Act, 1872 - Section 68 - Proof of Execution of Documents - The execution of the agreement of sale was proved by examining one of the attesting witnesses, satisfying the requirement of Section 68. (Para 20)

D) Specific Relief Act, 1963 - Section 20 - Discretion of Court - The court's discretion to decree specific performance is guided by principles of equity. The plaintiff's conduct in depositing the balance amount and willingness to perform entitles him to the relief. (Paras 22-25)

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Issue of Consideration

Whether the plaintiff has proved his readiness and willingness to perform his part of the contract under the agreement of sale dated 27.06.2005 and whether the judgment and decree of the trial court decreeing the suit for specific performance is sustainable.

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Final Decision

The appeal is dismissed. The judgment and decree dated 30.11.2015 passed in OS No.195/2012 by the Principal Senior Civil Judge, Kolar, decreeing the suit for specific performance is confirmed. No order as to costs.

Law Points

  • Specific performance
  • Readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • Burden of proof
  • Agreement of sale
  • Time is not essence of contract for immovable property
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Case Details

2024 LawText (KAR) (04) 50

R.F.A. No.59 OF 2016 (SP)

2024-04-25

Justice S.G. Pandit, Justice C.M. Poonacha

Sri Dhananjay V Joshi (Senior Counsel for Sri H L Pradeep Kumar, Advocate for LRs of deceased appellant), Sri Vasanth V Fernandes (Advocate for C/R1-R4)

Mr. Mahaboob Munaver

Smt. M A Radha Devi, Sri M A Madhu Babu, Sri M A Srinath, Sri M A Kedarnath (LRs of deceased Ashwathanarayana Guptha M S)

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Nature of Litigation

First appeal against decree of specific performance of contract for sale of immovable property.

Remedy Sought

Appellant-defendant sought to set aside the judgment and decree dated 30.11.2015 in OS No.195/2012 decreeing the suit for specific performance.

Filing Reason

The appellant-defendant contended that the trial court erred in decreeing the suit as the plaintiff failed to prove readiness and willingness and that the agreement was not proved.

Previous Decisions

The trial court (Principal Senior Civil Judge, Kolar) decreed the suit for specific performance on 30.11.2015.

Issues

Whether the plaintiff has proved his readiness and willingness to perform his part of the contract? Whether the judgment and decree of the trial court is sustainable?

Submissions/Arguments

Appellant argued that the plaintiff was not ready and willing to perform and that the agreement was not properly proved. Respondent argued that the plaintiff had deposited the balance amount and executed the sale deed within time, demonstrating readiness and willingness.

Ratio Decidendi

The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the date of decree. In this case, the plaintiff's evidence of depositing the balance sale consideration and executing the sale deed within the stipulated time demonstrates such readiness and willingness. Time is not the essence of the contract for immovable property unless expressly stipulated, and the agreement did not make time the essence. The execution of the agreement was proved by examining an attesting witness as required under Section 68 of the Evidence Act.

Judgment Excerpts

The plaintiff has to prove his readiness and willingness to perform his part of the contract. The evidence on record clearly establishes that the plaintiff was ready and willing to perform his part of the contract. Time is not the essence of the contract in respect of immovable property.

Procedural History

The plaintiff filed OS No.195/2012 before the Principal Senior Civil Judge, Kolar, seeking specific performance of an agreement of sale dated 27.06.2005. The trial court decreed the suit on 30.11.2015. The defendant filed the present first appeal under Section 96 of CPC before the High Court of Karnataka. The appeal was heard and reserved for judgment on 03.04.2024, and pronounced on 25.04.2024.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96
  • Specific Relief Act, 1963: Section 16(c), Section 20
  • Indian Contract Act, 1872: Section 55
  • Indian Evidence Act, 1872: Section 68
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