High Court of Karnataka Allows Appeal in Specific Performance Suit — Plaintiff Failed to Prove Readiness and Willingness. Continuous Readiness and Willingness Under Section 16(c) of Specific Relief Act, 1963 Must Be Pleaded and Proved; Absence of Pleading and Evidence of Financial Capacity Leads to Dismissal of Suit.

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

The appellant (defendant) appealed against the judgment and decree dated 27/03/2017 passed by the Senior Civil Judge and Principal J.M.F.C., K.G.F. in O.S.No.51/2014, which decreed the suit for specific performance of a contract for sale of immovable property. The respondent (plaintiff) had filed the suit alleging that the appellant agreed to sell a property for Rs. 3,50,000/- and received an advance of Rs. 1,00,000/- on 01/08/2011, with the balance to be paid within six months. The plaintiff claimed he was ready and willing to perform but the defendant failed to execute the sale deed. The trial court decreed the suit directing the defendant to execute the sale deed upon payment of the balance consideration. The defendant appealed. The High Court framed the issue of whether the plaintiff had proved his continuous readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The court examined the plaint and evidence and found that the plaintiff did not plead or prove his financial capacity to pay the balance amount. The plaintiff did not state in the plaint that he had the money ready or that he made any attempt to pay. The only evidence was his oral statement that he was ready, which was not corroborated by any bank statement or other proof. The court held that mere assertion of readiness is not enough; the plaintiff must show continuous readiness and willingness from the date of the contract till the decree. Since the plaintiff failed to discharge this burden, the suit was not maintainable. The High Court allowed the appeal, set aside the trial court's judgment and decree, and dismissed the suit with no order as to costs.

Headnote

A) Specific Relief Act - Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - The plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract from the date of the agreement till the date of decree. Mere filing of suit is not sufficient; the plaintiff must show financial capacity and steps taken to perform. In the absence of such pleading and evidence, the suit for specific performance is liable to be dismissed. (Paras 10-18)

B) Civil Procedure Code - Appeal - First Appeal - Section 96 CPC - The appellate court can re-appreciate evidence and interfere with findings of fact if the trial court has misappreciated evidence or applied wrong legal principles. (Para 9)

C) Evidence Act - Burden of Proof - Section 101 Evidence Act, 1872 - The plaintiff who seeks specific performance bears the burden to prove his readiness and willingness. The defendant need not prove the plaintiff's lack of readiness. (Paras 10-18)

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Issue of Consideration

Whether the plaintiff has proved his continuous readiness and willingness to perform his part of the contract as required under Section 16(c) of the Specific Relief Act, 1963, and whether the suit for specific performance is maintainable in the absence of such proof.

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Final Decision

The High Court allowed the appeal, set aside the judgment and decree dated 27/03/2017 passed by the Senior Civil Judge and Principal J.M.F.C., K.G.F. in O.S.No.51/2014, and dismissed the suit. No order as to costs.

Law Points

  • Specific performance
  • Readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • Burden of proof
  • Pleading and proof
  • Continuous readiness
  • Financial capacity
  • Time is not essence but readiness must be shown
  • Plaintiff must aver and prove readiness throughout
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Case Details

2023 LawText (KAR) (07) 50

Regular First Appeal No.1095 of 2017 (SP)

2023-07-06

Dr. Justice H.B.Prabhakara Sastry

Sri Vasanth V.Fernandes for Smt.Veena Kumari M. (for appellant), Sri T.Srinivasan (for respondent)

Sri S.Selvaraj

Sri K.Balchand

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Nature of Litigation

Regular First Appeal against a decree for specific performance of a contract for sale of immovable property.

Remedy Sought

The appellant (defendant) sought to set aside the judgment and decree dated 27/03/2017 passed by the trial court in O.S.No.51/2014, which decreed the suit for specific performance.

Filing Reason

The appellant contended that the trial court erred in decreeing the suit without proper proof of the plaintiff's readiness and willingness to perform the contract.

Previous Decisions

The trial court (Senior Civil Judge and Principal J.M.F.C., K.G.F.) decreed the suit in O.S.No.51/2014 on 27/03/2017, directing the defendant to execute the sale deed upon payment of the balance consideration.

Issues

Whether the plaintiff proved his continuous readiness and willingness to perform his part of the contract as required under Section 16(c) of the Specific Relief Act, 1963? Whether the suit for specific performance is maintainable in the absence of such proof?

Submissions/Arguments

Appellant argued that the plaintiff did not plead or prove his financial capacity to pay the balance consideration, and mere filing of the suit does not prove readiness and willingness. Respondent argued that he was always ready and willing to perform and that the defendant failed to execute the sale deed despite repeated requests.

Ratio Decidendi

For a decree of specific performance, the plaintiff must plead and prove continuous readiness and willingness to perform his part of the contract from the date of the agreement till the date of the decree. Mere assertion of readiness without pleading and proof of financial capacity is insufficient. The burden is on the plaintiff under Section 16(c) of the Specific Relief Act, 1963.

Judgment Excerpts

The plaintiff must plead and prove his continuous readiness and willingness to perform his part of the contract. Mere filing of the suit is not sufficient to prove readiness and willingness. The plaintiff has not pleaded his financial capacity to pay the balance consideration.

Procedural History

The respondent (plaintiff) filed O.S.No.51/2014 in the Court of Senior Civil Judge and Principal J.M.F.C., K.G.F. seeking specific performance of a contract for sale. The trial court decreed the suit on 27/03/2017. The appellant (defendant) filed Regular First Appeal No.1095 of 2017 before the High Court of Karnataka at Bengaluru, which was heard and reserved on 23-06-2023 and judgment pronounced on 06-07-2023.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Code of Civil Procedure, 1908: Section 96, Order XLI Rule 1
  • Indian Evidence Act, 1872: Section 101
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