IMPORTANT POINT
Agreement to Sell – Suit for specific performance based on bald and vague pleadings must necessarily be rejected – There is distinction between readiness to perform contract and willingness to perform contract.

JUDGMENT :

Vikram Nath, J.

1. Leave granted.

2. This appeal, by the defendant, assails the correctness of the judgment and order dated 17.12.2015 of the High Court of Karnataka in RFA No.362 of 2003, whereby the appeal of the appellant was dismissed and the judgment and decree of the Trial Court dated 22.10.2002 passed in O.S. No.2188 of 1983, decreeing the suit for specific performance was confirmed.

Brief facts:

3. Smt. Sasikala and K. Satyanarayana (original vendees) entered into an agreement to sell dated 24.05.1981 with Muni Venkata Reddy and his four sons (original vendors) for sale of Survey No.129, New No.220/01, Site No.14 situated at Kodihali Village, HAL, S.B. Area, Bangalore-17 measuring East to West 132 feet and North to South 40 feet total 5280 sq. feet (hereinafter referred to as the “property in dispute”). The total sale consideration was stated to be Rs.29,000/-, out of which, an advance of Rs.12,000/- was paid at the time of agreement to sell dated 24.05.1981. The balance amount was to be paid at the time of registration of the sale deed. The necessity for sale had arisen because of want of funds by the vendors. The stipulated period was fixed as three months, but as there were restrictions of registration of sale deeds with respect to similar revenue sites and survey numbers, as such, the sale deed would be executed immediately after the cancellation of the said Government Order. The agreement to sell also mentioned that possession of the site would be given that very day.

4. After expiry of three months from the date of agreement, when the plaintiffs did not come forward to get the sale deed executed, the defendant no.1 sent communication dated 23.09.1981 to the plaintiff stating that he has not come forward to solve the problem as the decision to sell was only because of his financial problems. The defendant extended the period of three months' time by another week from that day and if he did not get any information from their side, he would give the site to some other party. Thereafter, after waiting for two more months, legal notice was given through Advocate to the plaintiffs on 18.11.1981 stating that, as he had failed to get the sale deed executed within three months after payment of balance amount of Rs.17,000/-, defendant no.1 has forfeited his earnest money; the agreement dated 24.05.1981 has come to an end, and; as such, he had lost all interest and right over the said property and had also lost the earnest money because of its forfeiture. It was also stated that he was not in a position to pay the balance amount of the sale price.

5. A reply was given by the plaintiffs through their Advocate on 02.12.1981 stating that the plaintiffs had not only given Rs.12,000/- as advance money but had further given additional Rs.2,000/-, for which no receipt was issued. Thus, the total advance amount was Rs.14,000/-. It was also stated that as per the agreement, although the period mentioned was three months, but there was a further stipulation that as there was restriction for registering the sale deeds pertaining to similar revenue sites, as such, it was only after cancelling of such restrictions by the Government that the sale deed was to be registered. As such, the agreement would be alive till the Government lifts the ban on registering the sale deeds pertaining to similar revenue sites. It further mentioned that as soon as registration of documents is opened, they would get the sale deed registered. It was also stated that forfeiture of the amount was without any right and the agreement could not be treated as cancelled. It was also denied that plaintiffs did not have money to pay the balance sale price.

6. In response to the above reply, defendant no.1, through his counsel, again replied on 11.12.1981 denying the payment of additional amount of Rs.2,000/-. It further stated that the contract had been entered because of urgent need of money by the defendants and the price for sale had been lowered to Rs.29,00