Bombay High Court Dismisses Second Appeal in Specific Performance Suit — Agreement Not Barred by Limitation and Not Void for Uncertainty. Court upholds concurrent findings that the agreement dated 11.12.1980 was valid and enforceable, and the suit filed in 1994 was within limitation as the cause of action was continuing.

High Court: Bombay High Court Bench: GOA In Favour of Prosecution
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Case Note & Summary

The appellant, Maria Fatima @ Silo Silva Coelho, was the defendant in a suit for specific performance filed by the respondent, Vaman Narayan Kundaikar (since deceased, represented by legal representatives), in Special Civil Suit No. 147/1994 before the Civil Judge Senior Division, Panaji. The respondent claimed that the appellant agreed to sell a house property to him for Rs.60,000/- by an agreement dated 11.12.1980, and an addendum/declaration dated 12.12.1980. The respondent was a tenant in possession of part of the house. The appellant failed to execute the sale deed despite receipt of consideration, leading to the suit. The Trial Court decreed the suit in favor of the respondent, ordering specific performance. The appellant's first appeal was dismissed by the District Court. The appellant then filed a second appeal in the High Court, which was admitted on three substantial questions of law: (1) whether the suit was barred by limitation; (2) whether the agreement was void for uncertainty under Section 29 of the Indian Contract Act, 1872; and (3) whether the Trial Court was justified in exercising discretion to order specific performance. The High Court, after hearing arguments, held that the suit was not barred by limitation as the cause of action was continuing and the defendant did not repudiate the agreement. The agreement was not uncertain as it contained essential terms. The Trial Court's discretion was justified as the plaintiff was ready and willing to perform. The appeal was dismissed with no order as to costs.

Headnote

A) Limitation - Specific Performance - Suit Barred by Limitation - The suit for specific performance filed in 1994 based on an agreement dated 11.12.1980 was not barred by limitation as the cause of action was continuing and the plaintiff was in possession as a tenant, and the defendant did not repudiate the agreement until the suit was filed. (Paras 2-10)

B) Contract Law - Uncertainty - Section 29 Indian Contract Act, 1872 - Agreement Not Void for Uncertainty - The agreement dated 11.12.1980 contained essential terms including the property description, consideration of Rs.60,000/-, and the parties, and was not uncertain. The addendum/declaration dated 12.12.1980 clarified any ambiguity. (Paras 2-10)

C) Specific Relief - Discretion - Specific Performance - Trial Court's Discretion Justified - The Trial Court's discretion to order specific performance was justified as the plaintiff was ready and willing to perform, the defendant failed to execute the sale deed despite receipt of consideration, and no hardship was shown. (Paras 2-10)

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Issue of Consideration

Whether the suit for specific performance of the agreement dated 11.12.1980 was barred by limitation; whether the agreement was void for uncertainty under Section 29 of the Indian Contract Act, 1872; whether the Trial Court was justified in exercising discretion to order specific performance.

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Final Decision

The High Court dismissed the second appeal, upholding the concurrent findings of the courts below. The suit was not barred by limitation, the agreement was not void for uncertainty, and the Trial Court's discretion to order specific performance was justified. No order as to costs.

Law Points

  • Limitation for specific performance
  • Section 29 Indian Contract Act 1872 uncertainty
  • discretion to grant specific performance
  • concurrent findings of fact
  • substantial question of law
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Case Details

2017 LawText (BOM) (04) 83

Second Appeal No. 72 of 2013

2017-04-28

F. M. Reis

Mr. Nigel Da Costa Frias for appellant; Mr. S. S. Kantak, Senior Advocate with Mr. P. Talaulikar and Ms. Aleesha Dos Reis Falcao for respondents

Maria Fatima @ Silo Silva Coelho

Shri Vaman Narayan Kundaikar (since deceased) through his legal representatives Smt. Savita @ Shubhalaxmi V. Kundaikar, Kum. Daksha V. Kundaikar, Kum. Kirtitha V. Kundaikar, Shri Devendra V. Kundaikar

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Nature of Litigation

Second appeal against concurrent findings in a suit for specific performance of an agreement to sell immovable property.

Remedy Sought

Appellant sought to set aside the decree for specific performance and dismissal of the suit.

Filing Reason

Appellant challenged the concurrent findings of the Trial Court and First Appellate Court decreeing specific performance of the agreement dated 11.12.1980.

Previous Decisions

Trial Court decreed the suit for specific performance; First Appellate Court dismissed the appeal.

Issues

Whether the suit for specific performance was barred by limitation? Whether the agreement dated 11.12.1980 was void for uncertainty under Section 29 of the Indian Contract Act, 1872? Whether the Trial Court was justified in exercising discretion to order specific performance?

Submissions/Arguments

Appellant argued that the suit was barred by limitation as the agreement was from 1980 and suit filed in 1994. Appellant argued that the agreement was uncertain as it did not specify the property description adequately. Respondents argued that the cause of action was continuing and the agreement was clear and enforceable.

Ratio Decidendi

The suit for specific performance is not barred by limitation when the cause of action is continuing and the defendant has not repudiated the agreement. An agreement is not void for uncertainty under Section 29 of the Indian Contract Act, 1872 if the essential terms are ascertainable. The discretion to grant specific performance is justified when the plaintiff is ready and willing to perform and no hardship is shown.

Judgment Excerpts

The above appeal came to be admitted by an order dated 7th April, 2015 on the following substantial questions of law. Whether the suit of the respondents for specific performance of the agreement dated 11.12.1980 was barred by limitation ? Whether the agreement dated 11.12.1980 was unenforceable and void, its essential terms being uncertain as provided under Section 29 of the Indian Contract Act, 1872 ? Whether under the facts and circumstances of the case the Trial Court was justified in exercising its discretion and ordering specific performance of the contract ?

Procedural History

The respondents filed Special Civil Suit No. 147/1994 for specific performance of an agreement dated 11.12.1980. The Trial Court decreed the suit. The appellant's first appeal was dismissed. The appellant then filed Second Appeal No. 72 of 2013 in the High Court of Bombay at Goa, which was admitted on 7th April, 2015 on three substantial questions of law. The High Court heard the appeal and dismissed it on 28th April, 2017.

Acts & Sections

  • Indian Contract Act, 1872: Section 29
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High Court Bombay High Court Dismisses Second Appeal in Specific Performance Suit — Agreement Not Barred by Limitation and Not Void for Uncertainty. Court upholds concurrent findings that the agreement dated 11.12.1980 was valid and enforceable, and the suit ...