IN THE HIGH COURT OF BOMBAY
(AURANGABAD BENCH)
G.R. Majithia S.G. Mutalik, JJ.
Sambhaji Laxmanrao Pawar.... Appellant.
Versus
Abdul Wahed s/o. Rahmatullah.... Respondent.
First Appeal No. 180 of 1986, decided on 7-6-1994.
Advocates appeared :
S.C. Bora, for the appellant.
A.B. Naik, for the respondent.
See Specific Relief Act, 1963-Section 10 and 20.
Sections 62 and 74.
See Specific Relief Act, 1963-Sections 10 and 20.
Section74.
See Specific Relief Act, 1963-Sections 10 and 20.
Sections 10 and 20-Civil Procedure Code, 1908, Order 8 Rules 3, 4 and 5-Interpretation of pleadings.
Fact-Denial of in evasive but not in specific-Said fact to be taken as admitted.
Sections 10 and 20-Contract Act, 1872, Sections 62 and 74-Contracl Renovation of-Shop-Contract for sale of.
Specific performance suit-New agreement modification of earlier one providing for price enhanced not be renovation of earlier agreement.
Sections 10 and 20-Contract Act, 1872, Section 74-Shop sale contract -Specific performance of-Whether damages not adequate relief ?
Held, Section 10 of the Specific Relief Act, 1963 deals with the cases in which specific performance of the contract can be enforced. The presumption arising under explanation, appended to the section, in case of contract for immovable property, always is that the damages are not adequate relief. This presumption is not rebutted merely by the fact that the parties had provided for recovering the damages by the buyer. A party to the contract may some time be entitled to damages nor only in lieu of but in addition to the contract of specific performance.
The effect of the presumption created by the Explanation is that in a suit to enforce a contract to transfer the property the Court will grant specific performance as a matter of course, provided of course, the vendee has been, upto the date of decree, ready and willing to perform his part of contract. The presumption arising under the Explanation, however, is not absolute but is rebuttable one and may be rebutted when it is found that the breach of contract can be adequately relieved by compensation in money. It would be noticed that in the Explanation, it is clearly mentioned that unless and until the contrary is established, the Court will presume that the breach of contsact to transfer immovable property cannot be adequately relieved by compensation in money and that being so, decree for specific performance of the agreement is the only relief which can be granted where the vendor has not brought anything on record to show that the vendee can be suitably compensated by way of liquidated damages.
In the instant case, the vendor has failed to rebut the presumption, and in fact no such foundation was laid down in the written statement or any proof at the trial. The vendee has been throughout willing to perform his part of the contract and in fact, agreed for the additional price demanded by the vendor to avoid breach of the agreement.
2. Abdul Wahed Rahmatullah - plaintiff respondent (hereafter referred to as the Vendee) filed a suit for specific performance of agreement to sell dated November 28, 1981 in respect of shop bearing Gram Panchayat No. 398, situated at Naigaon Bazar, District - Nanded against Sambhaji s/o Laxmanrao Pawar - defendant appellant (hereafter referred to as the Vendor) inter alia pleading that the vendor agreed to sell the shop for a consideration of Rs. 1,00,051/-; the sale price was to be paid in two instalments; Rs. 50,000/- was to be paid till January 15, 1982 and the remaining was to be paid at the time of registration of the sale deed, which was to be executed in May, 1982. Rs. 5,000/- was paid as earnest money. The shop was in possession of the tenant M/s. Vasundhara Seeds and it was to be got vacated. A writing dated March 30, 1982 was executed by the vendor stating that he would be paid an additional amount of Rs. 10,000 in case he failed to deliver vacant possession and the vendee would be entitled to recover damages in the sum of Rs. 10,000 if he failed to execute the sale deed. On the suggestion of the vendor, the vendee agreed to get the sale deed registered for a consideration of Rs. 49,000/-and the remaining sale price was to be paid otherwise. Cheque bearing No. AD/2 095443 drawn on State Bank of Hyderabad, Branch at Naigaon Bazar was drawn by the vendee in favour of the vendor. A stamp paper was purchased on April 12, 1982 and was given to the deed writer for drafting the sale deed. The sale deed was presented before the Sub-Registrar for registration but the vendor scored out his signature and left the Sub-Registrars office. A notice was sent to the vendor and in response thereto, the vendor informed the vendees counsel that he was ready and willing to perform his part of the contract. The vendee informed the vendors counsel that he will be available at the Sub-Registrars office on October 2, 1982 for getting the sale deed registered but the vendor did not turn up.
3. The vendor in the written statement, did not deny the execution of the agreement but inter alia pleaded that a binding contract had not come into existence between the parties and that the terms of the contract dated March 30, 1982 were vague and uncertain. The conduct of the vendee disentitles him to the equitable relief of specific performance. He also pleaded that he had made improvements on the suit property.
4. On the pleadings of the parties, the following issues were framed :
(1) Does plaintiff prove that the defendant agreed on 28th November, 1981 to sell the suit house for the consideration of Rs. 1,00,051/- to the plaintiff?
(2) Does he prove that firstly Rs. 50,000/- was to be paid until 15th January, 1982 and the remaining amount of Rs. 50,000/- was to be paid by the end of May 1982 at the time of registration of the sale deed?
(3) Does he prove that, that time the defendant was to vacate the tenant Vasundhara Seeds from the suit premises?
(4) Does he prove that he paid Rs. 5,000/- as earnest money at the time of agreement?
(5) Does he prove that defendant had changed his mind and got increased by Rs. 10,000/- on 30th March, 1982?
(6) Does he prove that thereafter the defendant had suggested to execute the sale deed in the name of somebody else?
(7) Does he prove that defendant further suggested that the consideration of Rs. 49,000/- only should be mentioned in the sale deed?
(8) Does he prove that the defendant had appeared in the Sub Registrars off
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