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2025 Supreme(Kar) 420

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S.G. Pandit, T.M.Nadaf, JJ.
Sri V.K. Ramegowda, S/o Late Kalegowda Since Deceased By His Lr’s And Ors. - Appellants
Versus
Sri T Shankara, S/o Sri Chikkathimmegowda And Ors. - Respondents
Regular First Appeal No.2084 of 2010 (MON)
Decided On : 11-06-2025

Advocates:
Advocate Appeared:
For the Appellant : Sri. Rajesh Mahale, Sr. Adv. A/W, Sri Parikshith Maliye, Adv. For Sri G Narayana Rao, Adv.
For the Respondent: Sri Gopala Gowda H.K., Adv.

The plaintiff must demonstrate continuous readiness and willingness, including financial capacity, to qualify for specific performance under Section 16(c) of the Specific Relief Act.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Specific Relief Act, 1963 - Suit for specific performance of contract - Plaintiff's appeal against refusal of specific performance and direction for refund of earnest money with interest - The trial court found the plaintiff failed to prove readiness and willingness to perform his contractual obligations (Paras 10 to 26).

(B) Specific performance - Elements - Readiness refers to financial capacity, while willingness pertains to intention, both of which must be established for relief under Section 16(c) of the Specific Relief Act (Paras 21-24).

Facts of the case:
Dispute arose from a sale agreement executed by the defendant, wherein the plaintiff made an advance payment but sought specific performance, which was denied due to lack of evidence on plaintiff's financial capacity and readiness to complete the transaction (Paras 3-5, 17-25).

Findings of Court:
The appellate court affirmed the trial court's decision, citing insufficient evidence to demonstrate the plaintiff's financial readiness and willingness, which are prerequisites for a specific performance claim (Paras 15-26).

Issues: 1) Whether the plaintiff proved execution of the sale agreement and payment. 2) Whether the plaintiff was ready and willing to perform the contract. 3) Whether to interfere with the trial court's judgment.

Ratio Decidendi: The court held that the plaintiff's failure to establish continual readiness and willingness for specific performance, alongside unfounded claims of financial ability, justified the trial court's refusal of his request (Paras 19-26).

Result: Appeal dismissed.

Table of Content
1. the plaintiff entered into a sale agreement but failed to secure all necessary signatures. (Para 1 , 2 , 6)
2. sale agreement execution and performance obligations. (Para 3 , 4 , 5)
3. the court emphasized the need for proof of financial capacity for specific performance. (Para 9 , 11)
4. plaintiff's arguments against trial court decision. (Para 12 , 13 , 14)
5. readiness and willingness criteria for specific performance. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 24)
6. legal interpretation of readiness and willingness. (Para 23)
7. conclusion of dismissal of the appeal. (Para 26)

JUDGMENT :

S.G. PANDIT, J.

This first appeal by the plaintiff under Section 96 of the Code sof Civil Procedure, 1908 is directed against the judgment and decree dated 15.09.2010 in O.S.No.92/2008 on the file of Additional Senior Civil Judge at Ramanagara (for short, ‘Trial Court’), by which, the Trial Court directed refund of Rs.5,00,000/- with interest at 12% p.a., refusing the relief of specific performance of contract against the respondents/defendants.

2. Parties would be referred to as they stand before the Trial Court. Appellant herein was the plaintiff and respondents herein were defendants before the Trial Court.

3. Brief facts of the case are that, defendant No.1 is the absolute owner of the agricultural lands i.e., suit schedule properties and in the month of February 2006, defendant No.1 approached the plaintiff with a proposal to sell the suit schedule properties on his behalf as well as on behalf of defendant Nos.2 to 4. Accordingly, it is stated that the plaintiff and defendants entered into sale agreement dated 27.02.2006 for a sale consideration of Rs.36,00,000/-, out of which, plaintiff paid to defendants an amount of Rs.5,00,000/- through cheque bearing No.597750/- drawn on Canara Bank, Chamarajapet Branch, Bengaluru dated 24.02.2006, which was realized by defendant No.1. It is further stated that the agreement of sale dated 27.02.2006 was signed by plaintiff and defendant No.1 and the agreement was not signed by defendant Nos.2 to 4. The plaint averments would further indicate that the plaintiff in the month of April 2006 requested defendant No.1 to produce the original documents pertaining to the suit schedule properties so as to get the sale deed registered. But, the defendants replied that the original sale deeds in respect of the suit schedule properties have been lost and requested him to proceed further on the basis of certified copies. As such, the plaintiff got published paper publication in ‘Ee Sanje’ Kannada daily newspaper on 25.06.2006, his intention to purchase the properties and with regard to loss of title deeds by the defendants. Further, it is stated that a legal notice came to be issued by defendant Nos.2 to 4 dated 05.08.2006, informing the plaintiff not to purchase the suit schedule properties from defendant No.1 since they have interest in the suit schedule properties.

4. The plaint averments would also state that the suit schedule properties were acquired by defendant No.1 in his individual capacity, out of his self-earnings and it is not the joint family properties as indicated by defendant Nos.2 to 4 in their legal notice. At that juncture, plaintiff is said to have asked defendant No.1 to get the signatures of defendant Nos.2 to 4 and defendant No.1 expressed his inability to get the signatures of defendant Nos.2 to 4 on the sale agreement. It is stated that the plaintiff has not committed any breach of terms and conditions of the sale agreement and plaintiff was always ready and willing to comply with all the terms and conditions of the sale agreement.

5. Plaintiff further stated that he got issued legal notice on 10.08.2006 by Registered Post Acknowledgement Due to defendant Nos.1 to 4 to perform their part of obligation under the sale agreement dated 27.02.2006, as the plaintiff is ready and willing to perform is part of contract. The said notice returned un-served with postal endorsement tha

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