Case Note & Summary
The dispute arose from an agreement to sell land between the plaintiff and defendants dated 07.08.2005, where the defendants agreed to sell the property for Rs. 8,750 per cent, with an advance payment of Rs. 10,000 by the plaintiff. The plaintiff sought specific performance after the defendants refused to execute the sale deed, claiming the plaintiff was not ready to pay the balance consideration. The trial court ruled in favor of the plaintiff, decreeing specific performance but enhanced the sale price to Rs. 11,000 per cent. The defendants appealed, and the High Court set aside the trial court's decree, citing Section 20 of the Specific Relief Act, stating the trial court had improperly exercised discretion. The Supreme Court found that the High Court failed to consider the trial court's findings regarding the execution of the agreement and the plaintiff's readiness to perform. The Supreme Court restored the trial court's decree for specific performance, directing the plaintiff to pay an additional Rs. 10,00,000 to the defendants, while also ordering the return of the amount deposited by the defendants under the High Court's order. The appeal was allowed without costs.
Headnote
A) Specific Relief - Specific Performance - Discretion of Court - Section 20 of Specific Relief Act, 1963 - The High Court erred in denying specific performance by applying Section 20 without considering the trial court's findings on readiness and willingness of the plaintiff. The trial court had rightly decreed specific performance, enhancing the sale consideration to balance equities, which the High Court unjustly set aside (Paras 6-8).
Issue of Consideration
Whether the High Court erred in reversing the decree of specific performance granted by the trial court.
Final Decision
The Supreme Court allowed the appeal, restored the trial court's decree for specific performance, and directed the plaintiff to pay an additional Rs. 10,00,000 to the defendants.
Law Points
- Specific performance
- agreement to sell
- readiness and willingness
- discretion of court
- Section 20 of Specific Relief Act
