Case Note & Summary
The appellant, an architect, filed three suits for specific performance of agreements to sell immovable property against Gustavo Pinto and Lucio Miranda. The suits were dismissed by the trial court on the ground that the plaintiff failed to prove the agreements. The plaintiff appealed. The High Court considered whether the plaintiff could be granted alternative relief of refund of earnest money with damages under Section 22 of the Specific Relief Act, 1963, even if the agreements were not proved. The court held that Section 22 permits the court to grant alternative relief at any stage of the proceedings, and the failure to prove the agreement does not bar the claim for refund of earnest money if the payment is established. The court found that the plaintiff had paid earnest money to the defendants, and therefore, the defendants were liable to refund the same with interest. The appeals were allowed in part, and the defendants were directed to refund the earnest money with interest at 6% per annum from the date of payment till realization.
Headnote
A) Specific Relief Act - Alternative Relief - Section 22 - Plaintiff failing to prove agreement to sell is not disentitled to claim refund of earnest money as alternative relief - Court can grant damages in lieu of specific performance even if agreement is not proved, provided there is evidence of payment - Held that Section 22 allows court to grant alternative relief at any stage, and failure to prove agreement does not bar claim for refund (Paras 15-20). B) Evidence Act - Burden of Proof - Agreement to Sell - Plaintiff must prove execution of agreement and terms - In absence of credible evidence, specific performance cannot be granted - However, if payment of earnest money is established, refund may be ordered (Paras 10-14).
Issue of Consideration
Whether the plaintiff is entitled to specific performance of an agreement to sell immovable property, and if not, whether alternative relief of refund of earnest money with damages can be granted under Section 22 of the Specific Relief Act, 1963.
Final Decision
Appeals are partly allowed. The judgments and decrees of the trial court are set aside. The defendants are directed to refund the earnest money with interest at 6% per annum from the date of payment till realization. The plaintiff is not entitled to specific performance.
Law Points
- Specific Relief Act
- 1963
- Section 22
- alternative relief
- damages in lieu of specific performance
- refund of earnest money
- burden of proof
- agreement to sell
- readiness and willingness
