IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Sandeep V. Marne, J.
Keshav Mansing Salunkhe - Appellant
Versus
Nitin Prabhakar Bhagawat - Respondent
Second Appeal No. 91 of 2022 With Interim Application No. 542 of 2022
Decided On : 12-02-2024
Specific Performance - Agreement for Sale - Indian Contract Act, 1872, Section 54 - Specific Relief Act - Section 16(c) - Time not the essence of contract in sale of immovable property - Plaintiff's readiness and willingness to perform contract - Judgment and Decree dated 30 November 2019 passed by ad hoc District Judge Satara in Regular Civil Appeal No. 111 of 2016 and Judgment and Decree dated 2 March 2016 passed by Second Joint Civil Judge, Senior Division in Special Civil Suit No.184 of 2014 - Plaintiff's Special Civil Suit No.184 of 2014 partly decreed by directing Defendant to execute sale deed of the suit property upon acceptance of amount of Rs. 3,25,000/- from the Plaintiff.
Fact of the Case:
Plaintiff filed Special Civil Suit No. 184 of 2014 for specific performance of Agreement for Sale dated 06 March 2012. Plaintiff claimed that Defendant failed to perform his part of the contract by not getting the plot measured and boundaries fixed, which was a pre-condition for execution of the sale deed. Trial Court dismissed the Suit holding that Plaintiff was not ready and willing to perform his part of the contract. First Appellate Court also held that Plaintiff failed to establish readiness and willingness. Plaintiff filed the present Second Appeal challenging the decisions of the Trial Court and the first Appellate Court.
Finding of the Court:
The evidence on record clearly proves readiness and willingness on the part of the Plaintiff to get the sale deed executed. Plaintiff's readiness and willingness to perform the contract was proved. The Trial and First Appellate Court had erred in dismissing Plaintiff's suit.
Issues: Proof of readiness and willingness on the part of Plaintiff to perform his part of the contract. Whether time was the essence of the contract.
Ratio Decidendi: Time is not the essence of contract in sale of immovable property. Plaintiff's readiness is always backed by willingness. Plaintiff must perform his part of the contract within a reasonable time. Plaintiff's readiness and willingness to perform the contract should be in spirit and substance and not in letter and form.
Final Decision: Plaintiff's Special Civil Suit No.184 of 2014 is partly decreed by directing Defendant to execute sale deed of the suit property upon acceptance of amount of Rs. 3,25,000/- from the Plaintiff.
JUDGMENT :
1. This Second Appeal is filed challenging Judgment and Decree dated 30 November 2019 passed by the Adhoc District Judge-1, Satara dismissing the Regular Civil Appeal No.111/2016 and confirming the Judgment and Decree dated 2 March 2016 passed by II Joint Civil Judge Senior Division, Satara in Special Civil Suit No.184 of 2014.
2. Briefly stated, facts of the case, as captured from the plaint, are that Defendant- Nitin Prabhakar Bhagwat is the owner of the Plot bearing No. 18 admeasuring 4658 sq.mtrs out of Survey No.25/1B situated at Village Kasbe Bai, Taluka Wai, District Satara (the suit property). Defendant decided to sell the suit property, Plaintiff approached the Defendant and in February 2012, discussion and negotiations took place between them and they agreed to execute Agreement for Sale. Plaintiff claims that it was agreed that the Sale deed was to be executed after carrying out the measurement and fixation of the boundaries by the Defendant, within 3 months from the date of execution of the Agreement for Sale. The Agreement for Sale was executed on 6 March 2012 and total consideration for the sale transaction was fixed at Rs.7,00,000/-. The Agreement for Sale was registered in the office of Sub-Registrar on 7 March 2012 and Plaintiff paid to the Defendant amount of Rs.6,00,000/- towards earnest money. The balance consideration of Rs.1,00,000/- was to be paid at the time of execution of the Sale Deed. It is Plaintiff’s contention that he was always ready and willing to pay the balance consideration and to execute the sale deed provided Defendant got the plot measured and boundaries fixed. Plaintiff has stated in the plaint that he inquired through Mr. Jagtap and through telephonic conversations with the Defendant about execution of the Sale Deed. The Defendant sent Notice dated 24 April 2013 through his Advocate conveying that the sale transaction between them stood cancelled. The Plaintiff replied to the Notice on 6 May 2013 stating that Defendant himself has committed breach by not compiling with the conditions agreed and that the said Notice is illegal. The Plaintiff also called upon the Defendant to get the suit property measured and demarcated, to remain present in the office of Registrar, Wai at 10:30 a.m. on 20 May 2013 and accept the balance consideration for completion of sale transaction. That Defendant paid no heed to the reply and that Plaintiff remained present in the office of Sub-Registrar from 10:30 a.m. to 6:00 p.m. in the office of Sub-Registrar, Wai on 20 May 2013. Plaintiff again sent Notice dated 10 September 2013 to the Defendant to remain present in the office of Sub-Registrar on 25 September 2013 at 10:30 a.m. and to execute the Sale deed by accepting the balance consideration, only if the Defendant has got the plot measured and its boundaries fixed. The said Notice was returned unserved with remark “Address Insufficient.” Thereafter the Plaintiff came to know that Defendant was trying to create third party interests in the property. Plaintiff published public notice in the newspaper ‘Sakal’ on 26 September 2013.
3. Aggrieved by Defendant’s refusal to perform his part of contract, the Plaintiff instituted Special Civil Suit No. 184 of 2014 for specific performance of Agreement for Sale dated 06 March 2012 registered on 7 March 2022. The Plaintiff also prayed in his plaint that Defendant be directed to get the plot measured and boundaries fixed and execute Sale deed by accepting balance consideration and not to create third party interest. Despite service of summons Defendant did not appear to defend the suit. The Plaintiff did not pray for refund of earnest money, compensation or damages for breach of contract. The Trial Court by its judgment and decree dated 2 March 2016 dismissed the Suit holding that Plaintiff was not ready and willing to perform his part of the contract and is therefore not entitled to relief of specific performance of the Agreement for Sale.
4. Aggrieved by the de
Chand Rani v. Kamal Rani. 1993 1 SCC 519 : 1993 AIR(SCW) 1371
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Kolli Satyanarayana (Dead) By Lrs. v. Valuripalli Kesava Rao Chowdary (Dead) Thr. Lrs. and Others.
Sayed Dastagir v/s. T.R. Gopalakrishna Setty (1999) 6 SCC 337 (AIR 1999 SC 3029)
Smt. Chand Rani (Dead) By Lrs. v. Smt. Kamal Rani (Dead) By Lrs.
Sukhbir Singh v/s. Brijpal Singh (1997) 2 SCC 200 : (AIR 1996 SC 2510)
The Plaintiff must prove continuous readiness and willingness to perform a contract for specific performance, and time can be made of the essence through express terms or circumstances.
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.
In specific performance cases, plaintiffs must prove readiness and willingness to perform the contract, and time is often deemed essential unless explicitly stated otherwise.
The plaintiff was always ready and willing to perform her part of the contract, and the defendants failed to prove that the plaintiff lacked the financial capacity to pay the balance sale considerati....
(1) Specific performance of agreement of sale –Alternative plea of refund of earnest amount and damage could not be bar to claiming decree for specific Performance of contract.(2) Specific performanc....
The main legal point established in the judgment is that the Plaintiff consistently demonstrated readiness and willingness to fulfill his contractual obligations, while the Defendants evaded their re....
The plaintiffs must prove their readiness and willingness to perform their part of the contract in order to be entitled to the relief of specific performance.
(1) Specific performance – Ordinary rule is that specific performance should be granted – It ought to be denied only when equitable considerations point to its refusal and circumstances show that dam....
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