Case Note & Summary
The appellant/plaintiff filed a suit for specific performance of an agreement of sale dated 12.09.2007 and 20.09.2007 for suit schedule property. The defendant was the owner and offered to sell due to financial difficulties. The price was fixed at Rs.5,20,000 per acre. The plaintiff paid earnest money of Rs.1,00,000 on 12.09.2007 and further Rs.50,000 on 20.09.2007. The sale was to be completed within one year. The plaintiff was always ready and willing to perform but the defendant avoided execution. The plaintiff issued legal notice and filed suit. The trial court refused specific performance but granted refund of earnest money. The High Court allowed the appeal, holding that the plaintiff had proved readiness and willingness, and decreed specific performance.
Headnote
A) Specific Relief Act - Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree - The court held that the plaintiff had demonstrated readiness and willingness by depositing balance sale consideration and issuing notice - (Paras 10-15)
B) Contract Law - Agreement of Sale - Earnest Money - Refund - The trial court granted alternative relief of refund of earnest money but refused specific performance - The appellate court held that the plaintiff was entitled to specific performance as he was ready and willing to perform - (Paras 16-20)
Issue of Consideration
Whether the plaintiff is entitled to specific performance of the agreement of sale dated 12.09.2007 and 20.09.2007?
Final Decision
Appeal allowed. Judgment and decree of trial court set aside. Suit for specific performance decreed. Defendant directed to execute sale deed within three months on payment of balance consideration.
Law Points
- Specific performance
- Readiness and willingness
- Section 16(c) Specific Relief Act
- 1963
- Agreement of sale
- Earnest money
- Refund of earnest money
- Alternative relief
Case Details
2022 LawText (KAR) (04) 11
R.F.A.No.100220/2015 (SP)
H.T.Narendra Prasad, Rajendra Badamikar
G.R.Gurumath (Senior Counsel for Sanjay S.Katageri) for appellant; Anant Mandgi (Senior Counsel for Sangram S.Kulkarni & V.P.Kulkarni) for respondent
Shri Ravindra Shantinath Chougule
Shri Mahesh Arjunsa Kalpavruksha @ Mirajkar
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Nature of Litigation
Civil suit for specific performance of contract
Remedy Sought
Plaintiff sought specific performance of agreement of sale dated 12.09.2007 and 20.09.2007
Filing Reason
Defendant failed to execute sale deed despite plaintiff's readiness and willingness
Previous Decisions
Trial court rejected specific performance but granted alternative relief of refund of earnest money
Issues
Whether the plaintiff is entitled to specific performance of the agreement of sale?
Whether the plaintiff proved readiness and willingness to perform his part of the contract?
Submissions/Arguments
Plaintiff argued that he was always ready and willing to perform and had deposited balance consideration
Defendant contended that plaintiff was not ready and willing and that time was of essence
Ratio Decidendi
The plaintiff proved readiness and willingness by depositing balance sale consideration and issuing notice, satisfying Section 16(c) of Specific Relief Act, 1963. The trial court erred in refusing specific performance.
Judgment Excerpts
This appeal is filed by the appellant/plaintiff under Section 96 of CPC challenging the judgment and decree passed in O.S.No.100/2010 dated 01.08.2015...
The plaintiff has filed a suit for specific performance of contract dated 12.09.2007 and 20.09.2007...
Procedural History
Plaintiff filed O.S.No.100/2010 for specific performance. Trial court dismissed suit for specific performance but granted refund of earnest money on 01.08.2015. Plaintiff appealed under Section 96 CPC to High Court. High Court reserved judgment on 22.03.2022 and pronounced on 06.04.2022.
Acts & Sections
- Code of Civil Procedure, 1908 (CPC): Section 96
- Specific Relief Act, 1963: Section 16(c)
