Case Note & Summary
The plaintiff filed a suit for specific performance of an agreement for sale dated 10.11.1989 for 2/3rd share of lands owned by defendants 1 and 2, with earnest money of Rs. 50,000 paid and balance consideration of Rs. 3,10,490 to be paid at execution. The sale deed was to be executed on or before 30.04.1990. The Trial Court decreed the suit, holding that the plaintiff was present before the Sub-Registrar on 30.04.1990 but defendants 1 and 2 did not appear. During the pendency of the suit, defendants 1 and 2 sold the lands to defendants 4 to 7 by three sale deeds dated 16.01.1991. The first appeal by the defendants was dismissed, holding that defendants 4 to 7 were not bona fide purchasers. The High Court in second appeal set aside the concurrent findings, holding that the plaintiff failed to prove readiness and willingness. The Supreme Court dismissed the appeal, affirming the High Court's order. The Court held that the plaintiff's mere presence before the Sub-Registrar on 30.04.1990 was not conclusive evidence of readiness and willingness. The plaintiff failed to deposit the balance consideration within the two months granted by the Trial Court on 01.06.1994, and after expiry, filed an application for extension on frivolous grounds that the money would lie in the bank without interest. The Court found that this conduct demonstrated lack of readiness and willingness, and the extension of time under Section 28 of the Specific Relief Act did not automatically prove readiness. The Court also noted that the plaintiff did not respond to defendants' notices dated 28.05.1990 and 12.06.1990 requiring execution on 25.06.1990, and no evidence was led to rebut the presumption of service. The Court concluded that the High Court rightly interfered as the findings were perverse and unsustainable. The appeal was dismissed, but the Court directed defendants 1 and 2 to pay Rs. 1,00,000 to the plaintiff as an alternative relief, comprising earnest money and damages.
Headnote
A) Specific Relief Act - Readiness and Willingness - Section 16(c) - Continuous Obligation - The plaintiff must aver and prove continuous readiness and willingness to perform essential terms of the contract; mere presence before the Sub-Registrar on the stipulated date is not conclusive evidence of readiness and willingness, especially when the plaintiff failed to deposit the balance consideration within the time granted by the court and offered no explanation for the delay. (Paras 5-10) B) Specific Relief Act - Extension of Time - Section 28 - Conduct of Plaintiff - The grant of extension of time for deposit of balance consideration does not ipso facto demonstrate readiness and willingness; the plaintiff must plead sufficient and cogent grounds for seeking extension, and failure to do so, coupled with frivolous reasons, indicates lack of readiness and willingness. (Paras 8-10) C) Specific Relief Act - Discretionary Relief - Equitable Considerations - Specific performance is a discretionary and equitable remedy; the court must consider all attendant circumstances, including the conduct of the plaintiff, and if the plaintiff fails to show readiness and willingness, the relief may be denied. (Paras 7, 10-11)
Issue of Consideration
Whether the plaintiff was ready and willing to perform his obligations under the agreement for sale so as to be entitled to the discretionary relief of specific performance under Section 16(c) of the Specific Relief Act, 1963
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's order setting aside the concurrent decrees for specific performance. However, as an alternative relief, the Court directed defendants 1 and 2 to pay Rs. 1,00,000 to the plaintiff, comprising the earnest money of Rs. 50,000 and damages of Rs. 50,000.
Law Points
- Readiness and willingness must be continuous and proved throughout
- mere presence before Sub-Registrar is not conclusive
- failure to deposit balance consideration within court-granted time without explanation indicates lack of readiness
- extension of time does not automatically prove readiness
- equitable discretion under Section 16(c) Specific Relief Act
- 1963
