Case Note & Summary
The dispute arose from a suit for specific performance of a sale agreement regarding a property executed on 16.03.1988, with an initial payment of Rs.15,000. A subsequent agreement was made on 20.06.1988, stipulating that the sale deed would be executed after the property was released from mortgage. The appellant redeemed the mortgage and notified the respondent on 27.07.1989, but the respondent disputed the redemption and failed to pay the balance consideration. The appellant canceled the agreement on 01.09.1989 and forfeited the earnest money. The respondent filed a suit for specific performance, which was decreed, but the appellant's appeals were dismissed. The appellant contended that the respondent did not demonstrate readiness and willingness to perform the agreement, and the respondent's power of attorney holder was not competent to testify about events prior to her appointment. The respondent argued that the appellant did not provide proper intimation regarding the mortgage redemption. The court found that the respondent failed to provide evidence of readiness and willingness, and the cancellation of the agreement was not challenged. The court held that the relief of specific performance was not warranted due to the respondent's lack of evidence and the discretionary nature of such relief. Consequently, the court set aside the lower court's orders and allowed the appeal.
Headnote
A) Contract Law - Specific Performance - Readiness and Willingness - Specific performance of contract is discretionary and requires the plaintiff to prove readiness and willingness to perform obligations - Specific Relief Act, 1963, Section 20 - The court held that the respondent failed to establish readiness and willingness to perform the agreement, particularly as he did not appear in the witness box to testify, leading to an adverse presumption against him (Paras 5-8).
Issue of Consideration
Whether the respondent established readiness and willingness to perform obligations under the agreement for sale.
Final Decision
The Supreme Court set aside the orders of the lower courts, allowing the appeal and ruling that the respondent did not establish readiness and willingness to perform the agreement.
Law Points
- specific performance
- readiness and willingness
- power of attorney
- cancellation of agreement
- intimation of redemption
