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1975 Supreme(Cal) 296

High Court Of Calcutta
R. BHATTACHARYYA
MANICK LAL SEAL - Appellant
Versus
K.P.CHOWDHURY - Respondent
Second Appeal 2030  Of  1968
Decided On : 09/23/1975

Advocates Appeared:
A.PAL, CHANCHAL KUMAR SAHA, G.MITRA, J.M.DE, PARIMAL KUMAR DAS GUPTA, S.K.LAHRI

In a suit for specific performance of contract, the plaintiff must prove that he was always ready and willing to perform his part of the contract and that he has not abandoned the contract.

Headnote:

SPECIFIC PERFORMANCE OF CONTRACT - LIMITATION - DELAY - PREJUDICE - DISCRETION OF COURT - READINESS AND WILLINGNESS TO PERFORM CONTRACT - AMENDMENT OF PLAINT.

Fact of the Case:

Plaintiff filed a suit for specific performance of an agreement for execution of a lease for 21 years by the defendant. The trial court dismissed the suit, but on appeal, the Additional District Judge decreed the suit. The defendants appealed to the High Court.

Finding of the Court:

The High Court held that the suit was barred by limitation, the plaintiff was guilty of laches in not bringing the suit earlier, and the plaintiff had not pleaded or proved that he was always ready and willing to perform his part of the contract. The High Court also held that the trial court erred in not considering the fact that the plaintiff had abandoned his initial story of lease for 21 years.

Issues: 1. Whether the suit was barred by limitation? 2. Whether the plaintiff was guilty of laches in not bringing the suit earlier? 3. Whether the plaintiff had pleaded or proved that he was always ready and willing to perform his part of the contract?

Ratio Decidendi: 1. On the issue of limitation, the High Court held that the plaintiff had notice of the defendant's refusal to execute the lease in 1959, and the suit filed in 1961 was beyond the three-year limitation period prescribed by Article 113 of the Limitation Act, 1908. 2. On the issue of laches, the High Court held that the plaintiff's delay in filing the suit was unreasonable and that the defendant was prejudiced by the delay, as the defendant had obtained a decree for eviction against the plaintiff in the meantime. 3. On the issue of readiness and willingness to perform the contract, the High Court held that the plaintiff had not pleaded or proved that he was always ready and willing to perform his part of the contract, and that the plaintiff had abandoned his initial story of lease for 21 years.

Final Decision: The High Court allowed the appeal, set aside the judgment and decree of the lower appellate court, and restored the decision and decree of the trial court. The plaintiff's application for amendment of the plaint was also rejected.

R. BHATTACHARYA, J.

( 1 ) THE defendants are the appellants before this Court. The plaintiff's suit was dismissed in the Court of the Munsif but in appeal in the Court of the Additional District Judge, 24-Parganas, the plaintiff K. P. Chowdhury was successful and his suit was decreed.

( 2 ) THE plaintiff started the action against the two defendants, Maniklal Seal, the defendant No. 1 and his son Nemai Chand Seal, the defendant No. 2 for specific performance of an agreement for execution of a lease for 21 years by the defendant No. 2 in respect of the suit premises being a portion on the ground floor in the premises No. 2-B. Palit Street, Calcutta. To be very brief, the plaintiff's case in the plaint is that he was a sub-tenant under one Hemendra Nath Chowdhury, a tenant under the defendant No. 1, Manik and served a notice under Section 16 (2) of the West Bengal Premises Tenancy Act, 1956 upon Manik for being recorded as a direct tenant and that it was agreed by and between the parties that (i) the plaintiff would be a direct tenant under the defendant No. 2, (ii) the defendant No. 2 would execute a lease for 21 years relating to the suit premises with effect from 1st August, 1956 and (iii) the rent would be Rs. 125/-per month subject to enhancement of the same by Rs. 25/- every five years during the term of lease. The plaintiff also alleges in the plaint that in pursuance of the said agreement, he became a tenant from the 1st of August, 1956 on payment of Rs. 125/- per month. A draft of the lease was prepared and approved of by the defendant No. 2 with some additions and alterations and the same was returned to the plaintiff for finalising the same. According to the plaintiff, the deed was written on a stamp paper and sent to the defendant No. 2 for execution but the latter postponed the execution and registration on frivolous pretexts. The plaintiff asserts in his plaint that he has performed his part of the contract by payment of rent at the contractual rent of Rs. 125/- per month. The grievance of the plaintiff is that in spite of repeated requests, the defendant No. 2 failed to execute the lease but on the contrary the defendant No. 2 filed an ejectment suit against him and obtained a decree. The plaintiff filled an appeal but it was dismissed for non-payment of sufficient court-fees. The plaintiff started the present action after giving a letter to the defendant No. 2 on 25th August, 1961 for execution of the lease but the demand was unheeded. Briefly stated the case of the defendants is that there was a talk of lease but the proposal was abandoned as the plaintiff failed to pay Rupees 1000/- as selami. The plaintiff was, however, a monthly tenant at a rental of Rs 125/- according to English Calendar month from August, 1956. The defendant No. 2 filed a suit for eviction against the plaintiff for default in payment of rent and a decree was passed in Title Suit No. 15 of 1960. The plaintiff filed a petition under Sections 7 and 10 of the West Bengal Premises Tenancy Act for refund of excess rent and for fixation of standard rent before the Rent Controller. He also prayed for adjustment against rent paid in excess of Rs. 79/- in Title Suit No. 15 of 1960 in the Court of the 6th Munsif at Alipore. The contract for lease set up by the plaintiff has been denied the plaintiff's suit is described as frivolous meant to defeat the decree passed against him. Besides denying all material allegations of the plaint, the defendants have set up the ground of limitation. It has also been stated that the suit is barred by the principles of waiver, estoppel and acquiescence.

( 3 ) THE trial court found on evidence that the talk of lease continued till December, 1956. It was also held that the plaintiff was an ordinary monthly tenant in the suit premises when he began possessing the suit property in August, 1956. On the point of limitation it was held that on the evidence of the plaintiff, the repudiation of the contract was clear from D








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