Bombay High Court Dismisses Appeal in Specific Performance Suit — Plaintiff Failed to Prove Readiness and Willingness. Agreement for Sale of Agricultural Land Not Enforceable as Plaintiff Did Not Demonstrate Financial Capacity and Conduct Showed Lack of Readiness.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appellant, Jayantilal Devji Shah, filed a suit for specific performance of an agreement for sale of agricultural land against the respondents. The agreement was executed on 15th June 2005 for a total consideration of Rs. 1,20,00,000. The plaintiff paid an earnest amount of Rs. 10,00,000 and was to pay the balance within 12 months. The plaintiff alleged that the defendants failed to execute the sale deed despite his readiness and willingness. The trial court dismissed the suit, holding that the plaintiff failed to prove readiness and willingness. The High Court affirmed the dismissal. The court noted that the plaintiff did not produce any evidence of financial capacity, such as bank statements or income tax returns, and his conduct, including filing a caveat and not depositing the balance amount, indicated lack of readiness. The court held that mere filing of the suit does not prove readiness and willingness; the plaintiff must adduce evidence of continuous readiness. The appeal was dismissed with costs.

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 failed to adduce evidence of financial capacity and his conduct showed lack of readiness. (Paras 10-15)

B) Evidence Act - Burden of Proof - Section 101 Evidence Act, 1872 - The burden lies on the plaintiff to prove readiness and willingness. The court found that the plaintiff did not discharge this burden as he did not produce bank statements or other evidence of funds. (Paras 12-14)

C) Contract Act - Time not Essence - Agreement for Sale of Agricultural Land - In agreements for sale of agricultural land, time is not ordinarily of the essence unless expressly stipulated. However, the plaintiff must still show readiness. (Para 16)

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Issue of Consideration

Whether the plaintiff has proved his readiness and willingness to perform his part of the contract for specific performance of an agreement for sale of agricultural land.

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Final Decision

Appeal dismissed with costs. The judgment and decree of the trial court dismissing the suit for specific performance is confirmed.

Law Points

  • Specific performance
  • Readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • Burden of proof
  • Conduct of plaintiff
  • Agricultural land
  • Agreement for sale
  • Time is not essence
  • Continuous readiness
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Case Details

2017 LawText (BOM) (12) 84

First Appeal No.469 of 2014 with Civil Application No.2704 of 2013

0000-00-00

Shri Jayantilal Devji Shah (Haria)

Mangesh Dasrath Gaikar & Ors.

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Nature of Litigation

Civil appeal against dismissal of suit for specific performance of agreement for sale of agricultural land.

Remedy Sought

Appellant sought specific performance of agreement for sale dated 15th June 2005 and in the alternative, refund of earnest money with interest.

Filing Reason

Appellant claimed that respondents failed to execute sale deed despite his readiness and willingness to pay balance consideration.

Previous Decisions

Trial court dismissed the suit holding that plaintiff failed to prove readiness and willingness.

Issues

Whether the plaintiff proved his readiness and willingness to perform his part of the contract for specific performance?

Submissions/Arguments

Appellant argued that he was ready and willing to perform and had arranged funds. Respondents contended that appellant failed to produce evidence of financial capacity and his conduct showed lack of readiness.

Ratio Decidendi

The plaintiff must prove continuous readiness and willingness to perform his part of the contract from the date of agreement till the decree. Mere filing of suit is not sufficient; the plaintiff must adduce evidence of financial capacity and conduct showing readiness.

Judgment Excerpts

The plaintiff has failed to prove his readiness and willingness to perform his part of the contract. Mere filing of the suit does not prove readiness and willingness.

Procedural History

The appellant filed a suit for specific performance in the trial court which was dismissed. The appellant then filed the present first appeal before the High Court.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Evidence Act, 1872: Section 101
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