IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Sharmila U. Deshmukh, J
Sharifa Dost Mohammed (Deleted) - Appellant
Versus
Ajit Developers Pvt. Ltd. - Respondent
FIRST APPEAL NO. 1841 OF 2024
Decided On : 21-02-2025
(A) Specific Relief Act, 1963 - Section 10 - Agreement of Sale - Specific performance of agreement dated 19th January, 1995 decreed by Trial Court - Defendants failed to file written statement, leading to suit proceeding without their defense - Plaintiff proved execution of agreement and payment of Rs. 4,75,000/- - Court held that Plaintiff was ready and willing to perform obligations under the agreement - Trial Court's reliance on documents not marked as exhibits was deemed acceptable as evidence was duly proved. (Paras 1, 4, 33, 44)
(B) Evidence Act, 1872 - Section 42 - Admissibility of documents - Court ruled that original bank statements and other documents could be read in evidence despite objections regarding their admissibility - Findings based on preponderance of probabilities and cumulative evidence. (Paras 30, 44)
Facts of the case:
The appeal was filed by the Original Defendants against the decree of specific performance of an agreement of sale executed by their deceased father. The Plaintiffs paid Rs. 4,75,000/- and claimed readiness to pay the balance amount. The Defendants did not file a written statement, and the Trial Court decreed the suit based on the evidence presented. (Paras 1, 4, 34)
Findings of Court:
The Trial Court found that the Plaintiff proved the execution of the agreement and the payment made, and that the Defendants failed to fulfill their obligations under the agreement. The judgment was based on the evidence presented, including communications between the parties. (Paras 33, 44)
Issues: The main issues were whether the documents relied upon were admissible in evidence and whether the Plaintiff was entitled to specific performance of the agreement. (Paras 13, 34)
Ratio Decidendi: The court held that the Plaintiff's evidence, including oral testimony and communications, sufficiently proved the execution of the agreement and the payment made, justifying the decree of specific performance. (Paras 44)
Result: First Appeal dismissed.
| Table of Content |
|---|
| 1. appeal against specific performance (Para 1) |
| 2. details of the agreement (Para 2) |
| 3. defendants' failure to respond (Para 3) |
| 4. trial court's findings (Para 4 , 5 , 6 , 7 , 8 , 9) |
| 5. defendants' objections (Para 10) |
| 6. plaintiffs' defense (Para 11 , 12) |
| 7. discussion on evidence (Para 13) |
| 8. proof of documents (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38) |
| 9. trial court's reliance on evidence (Para 39 , 40 , 41 , 42 , 43 , 44 , 45) |
| 10. outcome of the appeal (Para 46) |
JUDGMENT :
1. The present appeal has been preferred by the Original Defendants against the Judgment and Order dated 21st September, 2024 passed by the City Civil Court at Mumbai in S. C. Suit No. 6169 of 2005, decreeing the suit by granting the relief of specific performance of agreement of sale dated 19th January, 1995. For sake of convenience, the parties are referred to by their status before the Trial Court.
2. The suit came to be filed against the legal heirs of one Dost Muhammad Ata Muhammed, who was the executant of the Agreement of Sale dated 19th January 1995 by which the deceased Dost Muhammed had agreed to sell the suit property bearing Survey No. 42 Hissa No. 2 admeasuring about 1594 sqr. Mtrs. situated at village Vile Parle, Taluka Andheri, District Mumbai Suburban. The plaint pleaded that as per the Agreement for Sale, the agreed sale consideration was Rs. 8,51,000/- out of which a sum of Rs. 65,000/- was agreed to be paid on or before the execution of the agreement of sale, 25% of the total consideration as reduced by the amount already paid on the deceased obtaining the agreement from the tenants to provide alternate accommodation within 45 days from date of execution of the agreement, 35% of the total consideration reduced by the amounts already paid upon receipt of letter of intent, 40% of the total consideration reduced by the amount already paid on obtaining intimation of disapproval, 50% of the total consideration reduced by the amounts already paid on obtaining commencement certificate and the balance consideration in six quarterly installments. The plaint sets out various clauses of the agreement and pleads that out of total consideration of Rs. 8,51,000/-, the Plaintiffs paid Rs 4,40,000/- by cheques to the deceased which were encashed. The possession of the property was handed over by recording a letter of possession dated 19th January, 1995. The Plaintiffs entered into agreement with 44 tenants for providing permanent alternate accommodation of 225 sqr. ft. By separate agreement dated 20th January, 1995 styled as “Manager Agreement”, the Defendant No. 1 agreed to carry out certain acts. The proposal for implementing the Slum Rehabilitation scheme was submitted to the Slum Rehabilitation authorities and in the meantime the deceased expired in the year 2001. By communication dated 22nd August 2003, one Zuber Khan claimed interest in the properties. By letter dated 8th September, 2003 the advocate for Defendant No. 2 disputed the rights of Zuber Khan and confirmed the execution of agreement of sale with a request to send particulars of payment made to the deceased. By communication dated 22nd September, 2003 the Plaintiffs communicated their readiness and willingness to pay the balance amount. On 7th August, 2004 when the Plainti representative visited the suit property it was informed that the Defendant No. 2 was negotiating with the Tenants to vacate their structures. The Plaintiff sought interalia the relief of specific performance of the agreements dated 19th January, 1995 and 20th January, 1995.
3. The Defendants failed to file their written statement within the period of limitation and an Application for condonation of delay was filed which came to be rejected by the Trial Court. The order of rejection was challenged before the High Court which came to be dismissed. Resultantly, the suit proceeded without the written statement of the Defendants.
4.
The court affirmed that specific performance of an agreement can be granted when the plaintiff proves execution and readiness to perform, despite the defendant's failure to file a written statement.
Plaintiff failed to establish valid contract and continuous readiness for specific performance under Specific Relief Act.
The plaintiff must demonstrate both readiness and willingness to perform a contract for specific performance, including financial capacity, and agreements must be duly stamped to be enforceable.
The court upheld that an agreement to sell not duly stamped is inadmissible in evidence, and emphasized the necessity of proving continuous readiness and willingness for granting specific performance....
The appellate court must respect trial court findings unless clear errors exist, particularly regarding the existence and terms of contractual agreements and the parties' readiness to perform.
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....
A valid agreement for specific performance requires clear intent and consistent evidence of readiness and willingness from the plaintiff to execute the contract, which was not established in this cas....
Party praying for specific performance of a contract has to prove on record availability of balance sale consideration on date when it was required to be paid.
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