Case Note & Summary
The dispute arose from a civil appeal concerning specific performance of a sale agreement executed on 13.03.2007 between the appellant and respondent No. 1. The appellant paid Rs. 3 lakhs as earnest money but faced non-execution of the sale deed by the respondent. After issuing a legal notice and filing a suit for specific performance in February 2008, the Trial Court ruled in favor of the appellant, confirming his readiness and willingness to perform the contract. The respondents appealed to the High Court, which overturned the Trial Court's decision, citing the appellant's failure to prove sufficient funds. The appellant contended that he had consistently shown readiness and willingness, supported by witness testimonies and evidence of earnest money payment. The Supreme Court found that the High Court erred in its assessment, emphasizing that no adverse inference could be drawn from the absence of bank statements unless specifically requested. The Court restored the Trial Court's decree, requiring the appellant to pay an additional Rs. 10 lakhs to the respondent to complete the transaction, thereby ensuring justice while allowing the original plaintiff to withdraw the previously deposited amount with interest. The appeals were allowed with directions for payment and execution of the sale deed.
Headnote
A) Contract Law - Specific Performance - Readiness and Willingness - Specific Performance of Agreement to Sell - Specific performance was sought by the appellant for an agreement to sell dated 13.03.2007. The High Court reversed the Trial Court's findings on readiness and willingness, which was held to be erroneous as the appellant had demonstrated his readiness through evidence and deposit of earnest money. The Supreme Court restored the Trial Court's decree and directed additional payment to ensure justice (Paras 6-8).
Issue of Consideration
Whether the appellant was ready and willing to perform his part of the contract for specific performance.
Final Decision
The Supreme Court quashed and set aside the High Court's judgment, restoring the Trial Court's decree for specific performance. The appellant was directed to pay an additional Rs. 10 lakhs to the respondent within eight weeks, after which the sale deed was to be executed.
Law Points
- Specific performance
- readiness and willingness
- legal notice
- earnest money
- appellate review
