Case Note & Summary
The dispute arose from a suit filed by the respondents seeking specific performance of an agreement for sale dated 26.03.2007 concerning property owned by the appellants. The trial court partially decreed the suit, denying specific performance but awarding an alternative relief of Rs. 75 lakhs with interest. The plaintiffs appealed to the High Court, which set aside the trial court's judgment and directed the appellants to execute the sale deed. The appellants challenged this decision in the Supreme Court, arguing that the plaintiffs were not ready and willing to complete the transaction. The Supreme Court noted that the plaintiffs had paid an advance of Rs. 75 lakhs but failed to demonstrate continuous financial capacity to pay the remaining balance. The court emphasized that the plaintiffs' subsequent agreement with a third party indicated a lack of intention to pursue the original agreement. Ultimately, the Supreme Court restored the trial court's judgment, directing the appellants to refund the advance amount with interest, while creating a charge over the properties to ensure repayment.
Headnote
A) Contract Law - Specific Performance - Readiness and Willingness - Code of Civil Procedure, 1908, Section 96 - The court examined the plaintiffs' readiness and willingness to perform the contract, concluding that the plaintiffs failed to prove continuous financial capacity to complete the transaction. The trial court's decision to grant alternative relief was upheld, emphasizing the necessity of demonstrating readiness and willingness for specific performance (Paras 24-24).
Issue of Consideration
Whether the plaintiffs were ready and willing to perform their part of the contract for specific performance.
Final Decision
The Supreme Court set aside the High Court's judgment and restored the trial court's decision, directing the defendants to refund Rs. 75 lakhs with interest at 9% per annum within three months, failing which the interest would increase to 12%. A charge was created over the suit properties to ensure repayment.
Law Points
- specific performance
- readiness and willingness
- Civil Procedure Code
- 1908
- appeal
- decree
- interest
