IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD
R.M. JOSHI, J
Keshav S/o Madhavrao Dhumal - Appellant
Versus
Dnyandeo S/o Shamrao Rajput - Respondent
SECOND APPEAL NO. 438 OF 1994
Decided On : 21-02-2025
(A) Code of Civil Procedure, 1908 - Section 100 - Specific Relief Act, 1963 - Section 20 - Appeal against decree of specific performance - Plaintiffs entered into an agreement to sell land with Defendant, paid earnest money, but Defendant failed to execute sale-deed despite removal of restrictions - Courts found notice of termination invalid - Time not being essence of contract, Plaintiffs entitled to specific performance. (Paras 1, 3, 5, 10, 18)
(B) Limitation - Suit filed within limitation period - Delay and laches not sufficient to deny specific performance - Courts must consider overall circumstances. (Paras 6, 11, 13)
(C) Concurrent findings - Courts below recorded concurrent findings of fact, not interfered with in second appeal. (Paras 18)
Facts of the case:
Plaintiffs claimed specific performance of a contract for sale of land, alleging Defendant's refusal to execute the sale-deed despite payment of earnest money and removal of restrictions on sale. Defendant contended that the agreement was repudiated and sought possession.
Findings of Court:
The Trial Court decreed specific performance, finding the notice of termination invalid and that time was not the essence of the contract.
Issues: Whether the suit was filed within limitation and whether the notice of termination was valid.
Ratio Decidendi: Time is not the essence of a contract for sale of immovable property unless expressly stated; mere delay does not bar specific performance if circumstances justify it.
Result: Appeal dismissed.
| Table of Content |
|---|
| 1. agreement of sale executed (Para 3) |
| 2. defendant's written statement (Para 4 , 5) |
| 3. defendant's contention on delay (Para 6) |
| 4. plaintiffs' support for judgment (Para 7) |
| 5. admission of appeal (Para 8) |
| 6. ownership of suit property (Para 9) |
| 7. time not essence of contract (Para 10 , 11) |
| 8. delay and laches (Para 12 , 13 , 14 , 15 , 16 , 17 , 19) |
| 9. appeal dismissed (Para 18) |
JUDGMENT :
1. Original Defendant in Regular Civil Suit No. 271/1977 has preferred this appeal under Section 100 of Code of Civil Procedure taking exception to the judgment and decree of specific performance of contract passed therein and confirmation thereof by First Appellate Court in Regular Civil Appeal No. 158/1985 by order dated 10.11.1981.
2. Parties are referred to as Plaintiffs and Defendant for the sake of convenience.
3. It is the case of the Plaintiffs that Defendant is the owner of the land bearing Survey No. 52 (New Survey No. 46) situated at Wagholi, Tq. Ausa. It is further averred that there was an agreement of sale executed between Plaintiffs and Defendant on 13.03.1964 whereby Defendant had agreed to sell land admeasuring 18 Acres 10 R from Survey No. 52 on payment of total consideration of Rs. 6,000/-. It is their further case that at the time of execution of agreement to sale, a sum of Rs. 5,500/- was paid to Defendant as earnest money. The balance consideration was to be paid at the time of execution of the sale-deed. Since at the relevant time, there was restriction for sale of the suit land without prior sanction from the competent authority under Hyderabad Tenancy and Agricultural Lands Act (for short ‘HTAL Act’), a condition was included in the agreement to sale that the sale-deed would be executed after obtaining permission from the competent authority. It is the case of the Plaintiffs that in the year 1965-1966, a condition of permission before effecting sale of the suit land was removed and hence the Plaintiffs time and again approached the Defendant with a request of accept balance consideration of Rs. 500/- and to execute sale-deed. It is alleged by the Plaintiffs that Defendant did not accept the balance consideration and failed to execute sale-deed. The suit came to be filed as Defendant finally refused to accept balance consideration and infact issued notice dated 17.11.1977 to the Plaintiffs revoking agreement to sale. In the plaint, it is claimed that notice of termination of issued by Defendant is not valid.
4. Defendant, by filing written statement, though accepted execution of agreement to sale however, it is denied that he has received amount of Rs. 5,500/- as alleged by Plaintiffs by way of earnest money. It is his specific case that he received only Rs. 2,500/- at the time of execution of the agreement. He further contends that affidavit was obtained by Plaintiffs from Defendant for submission to the competent authority for seeking permission for sale of the suit land. It is denied by Defendant that Plaintiffs have ever approached him with a request to accept balance consideration and on the contrary it is alleged that Defendant was time and again approached the Plaintiffs for payment of consideration, which they failed to concede. It is claimed that the agreement to sale is repudiated by notice dated 17.11.1977 and as such Plaintiffs are not entitled for any relief of specific performance. Counter claim is filed by the Defendant for seeking possession of the suit land.
5. Learned Trial Court framed issues at Exhibit 28. Plaintiffs and defendants led oral as well as documentary evidence. Learned Trial Court accepted the contention of Plaintiffs and decreed the suit by holding that the suit is filed within limitation so also the notice of termination of agreement to sale issued by Defendant is not valid. Being aggrieved by said judgment and decree, Defendant filed appeal being Regular Civil Appeal No. 158/1985 unsuccessfully. Hence, this appeal.
6. Learned counsel for Defendant submits that though technically it
Time is not the essence of a contract for sale of immovable property unless expressly stated; mere delay does not bar specific performance if circumstances justify it.
Time is not generally considered the essence of contracts for the sale of immovable property; however, specific circumstances may necessitate its strict enforcement. A valid agreement can only be mod....
Time is generally not considered essence in immovable property contracts; refusal to perform requires consideration of readiness alongside equitable claims for refund.
(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 plaintiff's failure to file the suit within the limitation period and to prove readiness and willingness to perform the contract resulted in dismissal of the specific performance claim.
Time is not automatically the essence of a contract unless expressly stated; the plaintiff's readiness and willingness to perform must be established.
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