IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Anil S.Kilor, J.
Prabhudayal – Appellant
Versus
Laxman Hiramnji Sawarkar – Respondent
Second Appeal No. 135 of 20 18
Decided On : 26-04-2022
Specific Performance - Property Dispute - Sec. 16(a), (b) and (c) of the Specific Relief Act, 1963 - The court held that the plaintiff failed to prove readiness and willingness to perform his part of the contract, leading to the dismissal of the suit for specific performance. The court also found discrepancies in the evidence presented by the plaintiff regarding the payments made and the possession of the property, leading to the rejection of the plaintiff's case.
Fact of the Case:
The plaintiff entered into an agreement to purchase a property from the defendant, paid a portion of the consideration amount, and took possession of the property. However, the defendant failed to execute the sale deed, leading to the plaintiff filing a suit for declaration, specific performance of contract, and injunction. The suit was dismissed by the trial court and the first appellate court, leading to the present appeal.
Finding of the Court:
The court found that the plaintiff failed to prove readiness and willingness to perform his part of the contract, and there were discrepancies in the evidence presented regarding payments and possession of the property. As a result, the court dismissed the appeal for specific performance.
Issues: The issues revolved around the plaintiff's readiness and willingness to perform the contract, the validity of the possession letter, the evidence of payments made, and the reliance on the agreement of sale.
Ratio Decidendi: The court's decision was based on the plaintiff's failure to prove readiness and willingness to perform the contract, discrepancies in the evidence presented, and the applicability of Sec. 16 of the Specific Relief Act, 1963.
Final Decision: The Second Appeal was dismissed, and the court upheld the dismissal of the suit for specific performance. No order as to costs was passed.
JUDGMENT
1. In this appeal a challenge is raised to the judgment and decree dtd. 16/09/2017 passed by the Ad-hoc District Judge-5, Nagpur, in Regular Civil Appeal No.333 of 2015 dismissing the appeal arising out of the judgment and decree dtd. 02/05/2015 passed by 3rd Joint Civil Judge Senior Division, Nagpur in Regular Civil Suit No. 3087 of 2012, dismissing the suit for declaration, Specific Performance of Contract and Injunction.
2. The brief facts of the present case are as follows: (The parties are referred to as per their status before the trial Court.)
3. It is the case of the plaintiff that the suit property was owned by defendant No.1 (The defendant No.1 died during pendency of the suit). The defendant No.1 wanted to sell the suit property and as such, since the plaintiff wanted to purchase the same to settle in Nagpur, they entered into an agreement to sell of the suit property for the total consideration of Rs.4,75,000.00, out of which the plaintiff paid Rs.2,00,000.00 to defendant No.1 on 06/05/2004. The possession was agreed to be delivered on payment of entire consideration amount.
4. It is submitted that the defendant No.1 had told the plaintiff to pay Rs.1,25,000.00, out of balance consideration amount, to Vinod Laxman Sawarkar since he was possessing some portion of the suit property. The plaintiff paid Rs.1,25,000.00 to Vinod on 08/09/2004. On 11/09/2004, the defendant No.1 acknowledged the receipt of entire consideration amount of Rs.4,75,000.00. Since execution of sale-deed would require compliance of some formalities, the defendant No.1 executed irrevocable power of attorney in favour of the plaintiff for that purpose. The possession of the suit property was delivered to the plaintiff. The plaintiff started paying the taxes as owner of the suit property.
5. It is submitted that the defendant No.1 tried to deprive the plaintiff from enjoyment of the suit property. Despite it was duty of the defendant to execute the sale-deed, defendant No.1 failed to do so. With these contentions, the plaintiff had filed the suit.
6. It is submitted that the original defendant No.1 filed written statement at Exh.25. He categorically denied all the contentions of the plaintiff except that the defendant had agreed to sell the suit property to the plaintiff for a total consideration of Rs.4,75,000.00 by accepting earnest money of Rs.2,00,000.00. According to the defendant, the balance consideration amount was to be paid within four months. On 08/06/2004, the defendant had sent a notice to the plaintiff to pay balance consideration amount. The plaintiff did not pay the same within stipulated time. Thus, the agreement stood cancelled in view of its terms.
7. The plaintiff's suit for declaration, specific performance of contract and permanent injunction came to be dismissed vide judgment and decree dtd. 02/05/2015, passed by the learned Joint Civil Judge Junior Division, Nagpur in Regular Civil Suit No. 3087 of 2012. The plaintiff therefore, carried an appeal vide Regular Civil Appeal No. 333 of 2015 before the learned Ad-hoc District-5, Nagpur, which came to be dismissed vide judgment and decree dtd. 16/09/2017, the same is assailed in the present appeal.
8. This Court, on 15/11/2021 framed the following substantial questions of law :
"I) Whether the courts below were justified to have dismissed the suit, though it is recorded that the agreement of sale executed by Defendant No.1 in favour of the plaintiff has been proved, so also that both the court have recorded a finding that there is no dispute about respect of an amount of Rs.2.00 Lakhs being paid by the plaintiff to the original Defendant No.1 and that the learned trial Court has also recorded that the plaintiff has made payment of Rs.1,25,000.00 to the son of Defendant No.1?
II) Whether the appellate Court was justified to have held that the possession letter at Exh.46 is not admissible in evidence in absence of its registration, though the said document is proved in cross
The main legal point established in the judgment is the requirement for the plaintiff to prove readiness and willingness to perform the contract, as well as the importance of presenting consistent an....
The main legal point established in the judgment is that the plaintiff's readiness and willingness to perform his part of the contract, as well as the fulfillment of the terms of the agreement for sa....
In a suit for specific performance, the plaintiff bears the burden of proving the valid execution of the sale agreement and must establish continuous readiness and willingness to perform their contra....
Specific performance of a contract for the sale of immovable property can be granted even if the final layout has not been sanctioned, provided the plaintiff has proven the existence of the agreement....
The plaintiff failed to establish the existence of a binding contract or prove payment of earnest money for specific performance, leading to the dismissal of his claims.
The court held that a plaintiff must prove readiness and willingness in specific performance claims, and doubts regarding the authenticity of an agreement can lead to dismissal.
Parties must continuously demonstrate readiness and willingness to perform a contract to successfully claim specific performance; defendants' denial of contract validity shifts the burden of proof on....
The plaintiff's failure to prove willingness to perform the contract led to the grant of the alternate relief of refund of the advance money.
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