High Court of Karnataka Dismisses Appeal for Specific Performance — Plaintiff Failed to Prove Readiness and Willingness and Suit Barred by Limitation. Agreement of Sale Dated 12.1.2000 Fixed Three Months for Execution; Suit Filed in 2003 Beyond Limitation Under Article 54 of Limitation Act, 1963.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The appellant, V.P. Venkatesh, filed a Regular First Appeal under Section 96 read with Order 41 Rule 1 and Section 151 of the Code of Civil Procedure, 1908, against the judgment and decree dated 8.6.2009 passed in O.S.No.15058/2003 by the XXVIII Additional City Civil Judge, Mayohall, Bangalore, dismissing his suit for specific performance of contract. The appellant was the plaintiff in the trial court, claiming that the respondent, G. Padmavathi, was the absolute owner of a property bearing No.10/6, 6th Main, Magadi Road Chord Road, Corporation Division No.29, Govindarajanagar, Bangalore. He alleged that the respondent needed money and offered to sell the property, and an agreement of sale was executed on 12.1.2000 for a total sale consideration of Rs.4,50,000/-. The appellant claimed to have paid Rs.4,00,000/- as advance on the date of the agreement, with the balance of Rs.50,000/- to be paid at the time of execution of the sale deed within three months. The appellant stated that he was ready with the balance amount, but the respondent did not complete the transaction. He issued a notice dated 8.5.2000, which the respondent refused. The appellant further claimed that the respondent requested him to wait for six months, and later again, and he waited until December 2002. The trial court dismissed the suit, and the appellant appealed. The High Court heard the counsel for both sides. The court noted that the agreement fixed three months for execution, i.e., by 12.4.2000. The suit was filed in 2003, beyond the three-year limitation period under Article 54 of the Limitation Act, 1963. The appellant failed to prove any extension of time or that he was ready and willing to perform his part. The court held that the appellant did not adduce sufficient evidence to show readiness and willingness, and the suit was barred by limitation. The appeal was dismissed 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 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 sufficient evidence to show that he was ready with the balance consideration and that the suit was filed beyond the period of limitation. (Paras 2-6)

B) Limitation - Suit for Specific Performance - Article 54 Limitation Act, 1963 - The period of limitation for a suit for specific performance is three years from the date fixed for performance, or if no such date is fixed, when the plaintiff has notice that performance is refused. The court found that the agreement fixed three months for execution, and the suit filed in 2003 was beyond limitation as the plaintiff did not prove any extension of time. (Paras 2-6)

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Issue of Consideration

Whether the plaintiff was ready and willing to perform his part of the contract and whether the suit for specific performance was barred by limitation.

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Final Decision

Appeal dismissed. No order as to costs.

Law Points

  • Specific performance
  • readiness and willingness
  • burden of proof
  • Section 16(c) Specific Relief Act
  • 1963
  • agreement of sale
  • advance consideration
  • limitation
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Case Details

2015 LawText (KAR) (03) 60

Regular First Appeal No.655 of 2009

2015-03-24

Justice Anand Byrareddy

Shri. T. Seshagiri Rao (for appellant), Shri. S.R. Sundar Rao (for respondent)

Sri. V.P. Venkatesh

Smt. G. Padmavathi

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Nature of Litigation

Civil suit for specific performance of contract

Remedy Sought

Appellant sought specific performance of agreement of sale dated 12.1.2000 and execution of sale deed

Filing Reason

Respondent failed to execute sale deed despite receiving advance consideration of Rs.4,00,000/-

Previous Decisions

Trial court dismissed the suit in O.S.No.15058/2003 on 8.6.2009

Issues

Whether the plaintiff was ready and willing to perform his part of the contract? Whether the suit for specific performance was barred by limitation?

Submissions/Arguments

Appellant argued that he was ready with balance consideration and respondent repeatedly sought time Respondent contended that the suit was barred by limitation and appellant failed to prove readiness and willingness

Ratio Decidendi

For a suit for specific performance, the plaintiff must prove continuous readiness and willingness to perform his part of the contract. The suit must be filed within the period of limitation as per Article 54 of the Limitation Act, 1963, which is three years from the date fixed for performance. Failure to prove extension of time or readiness results in dismissal.

Judgment Excerpts

Heard the learned Counsel for the appellant and the learned Counsel for the respondent. The appellant was the plaintiff before the trial court and had filed a suit for specific performance of contract. The defendant is also said to have received a sum of Rs.4,00,000/- on the date of the agreement as advance sale consideration. The remaining amount of Rs.50,000/- was to be paid at the time of execution of the sale deed, which was to be executed within three months from the date of the agreement. Therefore, the plaintiff was constrained to issue a notice dated 8.5.2000, calling upon the defendant to execute a registered sale deed and that the plaintiff was ready to pay the remaining amount of Rs.50,000/-.

Procedural History

The appellant filed O.S.No.15058/2003 before the XXVIII Additional City Civil Judge, Mayohall, Bangalore, seeking specific performance of an agreement of sale dated 12.1.2000. The trial court dismissed the suit on 8.6.2009. The appellant then filed Regular First Appeal No.655 of 2009 before the High Court of Karnataka at Bengaluru, which was heard and dismissed on 24.3.2015.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96, Order 41 Rule 1, Section 151
  • Specific Relief Act, 1963: Section 16(c)
  • Limitation Act, 1963: Article 54
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High Court High Court of Karnataka Dismisses Appeal for Specific Performance — Plaintiff Failed to Prove Readiness and Willingness and Suit Barred by Limitation. Agreement of Sale Dated 12.1.2000 Fixed Three Months for Execution; Suit Filed in 2003 Beyond Lim...
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