IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR
M.S. JAWALKAR, J.
Shri Gangadhar s/o Shamrao Khekare – Appellant
Versus
Shri Bhagwan S/o Narayan Kalamkar – Respondent
Second Appeal No. 507 of 2013
Decided on : 10-10-2022
Civil Appeal -Decree for specific performance of Agreement - Contract - Readiness and willingness - Whether by virtue of acquisition of the suit property by the Central Government under the provisions of the Coal Bearing Areas (Acquisition and Development) Act, 1957, the decree passed for specific performance of contract becomes unexecutable- Held - plaintiff shall have a right to recover it from the defendants, if the defendants have already realized this amount and in that event, the defendants shall be further liable to pay interest at the rate of 12% from the date of realization by him to the date of payment on the entire amount realized in respect of the disputed land. The Hon'ble Apex Court in the said matter in substitution of the decree for specific performance make a decree for compensation equivalent to the amount of land acquisition, compensation awarded for the suit land together with solatium and accrued interest less the sum of Rs.1,50,000/- which by a rough and ready estimate quantified by the Hon'ble Apex Court as the amount to be paid to the appellants in respect of his services, time and money expended in pursuing the legal claims for compensation. However, in view of the fact that I have answered substantial question No.(iii) in the negative. The decree granted for specific performance will not survive. Though, the judgment and decree is not executable in view of the acquisition, however, on merits also, the judgment and decree is not sustainable. As such, the judgment and decree passed by the learned Trial Court has to be confirmed - Appeal allowed
JUDGMENT :
Heard learned Counsel for the appellants and learned Counsel for the respondent.
2. Present appeal is filed by the appellants challenging the judgment and decree dated 26/02/2009 passed by the District Judge-4, Nagpur in Regular Civil Appeal No.329/1999 by that allowed the said appeal preferred by the plaintiff/respondent. The respondent challenged the judgment and decree dated 07/04/1999 passed by the learned Joint Civil Judge, Junior Division, Ramtek in Regular Civil Suit No.99/1989. This Court vide order dated 28/09/2016 framed following substantial question of law.
“Whether by virtue of acquisition of the suit property by the Central Government under the provisions of the Coal Bearing Areas (Acquisition and Development) Act, 1957, the decree passed for specific performance of contract becomes unexecutable?”
3. After hearing both the parties and at their request, additional substantial questions of law framed by me as follows:
i) Whether time was the essence of contract?
ii) Whether plaintiff was ready and willing to perform his part of contract?
iii) Whether respondent is entitled for amount of compensation in lieu of specific performance of contract?
4. The brief facts as per plaint can be summarized as under:
For the sake of convenience, parties are referred as per their original status. The suit property is a field bearing survey No.33 admeasuring 2.83 hecteres of village Singori, Tah. Parsheoni, District Nagpur. It belongs to defendants. On 21/03/1986, the defendants entered into an agreement of sale, the suit property to the plaintiff for consideration of Rs.17,000/-. The plaintiff paid Rs.6,500/- to the defendants towards earnest money. Accordingly, the defendants executed written agreement on 21/03/1986. The defendants agreed to execute the sale-deed of the suit property upon receiving the balance of consideration of Rs.10,500/- before the Sub Registrar. He also agreed to sale the suit field free from all the encumbrances. It was contention of the plaintiff that though plaintiff was ready and willing to perform his part of contract but defendants avoided to execute the sale-deed. Ultimately, on 25/02/1989, the plaintiff issued notice to the defendants to execute the sale-deed. As defendants failed to execute the sale-deed, plaintiff filed suit for specific performance of contract and for the possession of the suit property. In alternative, the plaintiff claimed refund of earnest money with interest at the rate of 18% per annum.
5. Defendants filed their written statements. It is contention of the defendants that the plaintiff used to advance loan and they were needed Rs.3,000/- for which plaintiff insisted for execution of agreement of sale by way of security. Therefore, the defendant nos.1 to 4 executed an agreement of sale of the suit field. The said agreement was not to be acted upon. It is further contention that defendants have repaid amount of Rs.1000/- with interest only amount of Rs.2000/- was left to be paid.
6. The learned Joint Civil Judge, Junior Division after considering the evidence on record and after hearing the parties, decreed the suit with costs and directed the refund of amount of Rs.6,500/- along with 8% interest per annum. Claim of specific performance came to be dismissed.
7. Being aggrieved by the judgment dismissing the suit for specific performance, plaintiff challenged the same by filing in Regular Civil Appeal No.329/1999. The said appeal came to be allowed and relief of specific performance was granted. The plaintiff was directed to pay Rs.10,500/- within one month. From the date of deposit of the amount by plaintiff, in case, failure of defendant to execute and register the sale-deed, plaintiff was granted liberty to get it executed and registered by the appointment of Commissioner. This order is under challenge in this second appeal.
8. The learned Counsel for appellants submits that the learned Appellate Court has not framed any issues of readiness and willingness or whether time is
Banarsi and others Vs. Ram Phal reported in AIR 2003 SC 1989
Chand Rani v. Kamal Rani [1993 (1) SCC 519]
Gomathinayagam Pillai and others Vs. Palaniswami Nagar reported in AIR 1967 SC 868
Jagdish Singh Vs. Nattju Singh reported in AIR 1992 SC 1604
Man Kaur (D) Thr. LRs. Vs. Hartar Singh Sangha reported in (2010) 10 SCC 512
R. Lakshmikantham Vs. Devaraji reported in (2019) 8 SCC 62
Saurav Jain and Anr. Vs. M/s. A.B.P. Design and Anr. Reported in AIR 2021 SC 3673
Saradamani Kandappan Vs. S. Rajalakshmi and others reported in (2011) 12 SCC 18
SupremeToday
Time is of the essence of a contract if the parties have agreed that it is or if the circumstances of the case show that it is.
To secure a decree for specific performance, plaintiffs must demonstrate continuous readiness and willingness, supported by credible evidence, amidst a contract that specifies actionable terms.
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