High Court of Patna Dismisses Appeal for Specific Performance of Contract Due to Lack of Readiness and Willingness. Plaintiffs Failed to Establish Continuous Readiness to Pay Required Amount Under Section 16(c) of Specific Relief Act, 1963.

High Court: Patna High Court
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Case Note & Summary

The dispute arose from an appeal against a judgment and decree for specific performance of a contract. The plaintiffs, who were the respondents, claimed that the defendant had agreed to sell property for Rs. 1,50,001/- and executed an agreement for sale on 25.11.1985. They asserted that they paid an advance of Rs. 1,501/- and that the remaining consideration would include adjustments from mortgage deeds totaling Rs. 31,000/-. The defendant denied the agreement and the advance payment, asserting that he only executed one mortgage deed for Rs. 6,000/-. The trial court found in favor of the plaintiffs regarding the agreement and mortgage deeds but ruled that the plaintiffs owed Rs. 1,48,500/- after adjusting only the advance. The defendant appealed, arguing that the plaintiffs failed to demonstrate continuous readiness and willingness to perform their part of the contract as required by Section 16(c) of the Specific Relief Act. The plaintiffs contended that their payment of court fees on the total consideration indicated their readiness. The court analyzed the evidence and concluded that the plaintiffs did not prove their readiness to pay the full amount required. Consequently, the appeal was allowed, the trial court's decree was set aside, and the suit was dismissed, with each party bearing their own costs.

Headnote

A) Specific Relief - Specific Performance - Readiness and Willingness - Section 16(c) Specific Relief Act, 1963 - Plaintiffs failed to prove continuous readiness and willingness to perform their part of the contract as they only claimed readiness to pay Rs. 1,17,500/- instead of the required Rs. 1,48,500/-. The court held that the plaintiffs did not meet the statutory requirement for specific performance, leading to the dismissal of their suit (Paras 20-21).

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Issue of Consideration

Whether the plaintiffs' relief for specific performance of contract is barred by Section 16(c) of the Specific Relief Act and whether the court below rightly decided the point of readiness and willingness.

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Final Decision

The appeal was allowed, the trial court's decree was set aside, and the suit was dismissed. Each party was directed to bear their own costs.

Law Points

  • specific performance
  • readiness and willingness
  • Section 16(c) Specific Relief Act
  • agreement for sale
  • mortgage adjustment
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Case Details

First Appeal No.58 of 1992

2012-07-26

V. Nath

Mr. S.S.NAYER HUSSAIN, Mr. Md.Kamil Akhtar, Mr. Abbas Haider, Mr. MANOJ KUMAR AMBASTHA

Bhagwatia Devi, Jawahar Lal Gupta, Suraglal Gupta, Durga Lal Gupta, Raj Kumar Prasad Gupta, Daso Prasad Gupta, Lila Devi, Most Munni Devi, Anil Kumar @ Anu

Arjun Prasad Thathera, Ashok Kumar Tathera, Krishna Prasad Thathera, Ram Pati Devi

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Nature of Litigation

Appeal against a decree for specific performance of contract.

Remedy Sought

Defendant-appellant sought to overturn the decree for specific performance.

Filing Reason

Dispute over the execution of a sale deed and payment of consideration.

Previous Decisions

Trial court ruled in favor of plaintiffs regarding the agreement and mortgage deeds but required payment of Rs. 1,48,500/-.

Issues

Whether the plaintiffs' relief for specific performance of contract is barred by Section 16(c) of the Specific Relief Act Whether the learned court below rightly decided the point of readiness and willingness of the plaintiff

Submissions/Arguments

Defendant argued that plaintiffs failed to prove continuous readiness and willingness as required by Section 16(c). Plaintiffs contended that payment of court fees on total consideration indicated their readiness.

Ratio Decidendi

The plaintiffs failed to establish continuous readiness and willingness to perform their part of the contract as required by Section 16(c) of the Specific Relief Act, leading to the dismissal of their claim for specific performance.

Judgment Excerpts

The defendant has filed this appeal against the judgment and decree dated 29.02.1992 passed in T.S.No.26/86/50/91 by Sub Judge III, Nawada by which the decree for specific performance of contract has been passed in favour of the plaintiffs. The plaintiffs have claimed that after adjusting the advance amount of Rs.1501/- and the mortgage amount of Rs.31,000/-, the remaining consideration money of Rs.1,17,500/- only remained to be paid to the defendant.

Procedural History

The trial court ruled in favor of the plaintiffs, leading to the defendant's appeal against the decree for specific performance.

Acts & Sections

  • Specific Relief Act, 1963: Section 16
  • Code of Civil Procedure, 1908: Order 41 Rule 22
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