2017 Supreme(Cal) 720
IN THE HIGH COURT OF CALCUTTA
JYOTIRMAY BHATTACHARYA, SHIVAKANT PRASAD, JJ.
Sankar Chandra Saha - Appellant
Versus
Badal Krishna Pal & Ors. - Respondents
F.A. 14 of 2017
Decided On : 18-07-2017
For the Appellant :Mr. Amal Krishna Saha and Mr. Sankar Biswas, Advocates.
For the Respondents:Mr. Shivoprosad Ghosh, Advocate.
A unilateral contract can mature into a concluded contract capable of enforcement through a suit for specific performance, and the plaintiff's readiness and willingness to perform his part of the contract, along with the defendants' failure to fulfill their obligations, justified the decree for specific performance of the contract.
Headnote:
Specific Performance - Unilateral Contract - Transfer of Property Act 1882 - Section 91 - [SPECIFIC PERFORMANCE] - [UNILATERAL CONTRACT] - [Transfer of Property Act 1882, Section 91]
Fact of the Case:
The plaintiff filed a suit for specific performance of a unilateral contract executed by the defendants, where the defendants agreed to transfer the suit property to the plaintiff for a consideration of Rs. 35 lakhs. The defendants failed to comply with the terms of the contract by not redeeming the mortgage and obtaining the clearing certificate from the bank and the permission from the Municipal authority. The plaintiff alleged that he was ready and willing to perform his part of the contract, but the defendants refused to accept the balance consideration money and execute a deed of conveyance in his favor.
Finding of the Court:
The court found that the unilateral contract matured into a concluded contract capable of enforcement through a suit for specific performance. The court held that the defendants failed to fulfill their part of the contract and that the plaintiff was ready and willing to perform his part. The court also dismissed the appeal and approved the findings of the trial court with modifications to the decree.
Issues: The issues involved the enforceability of a unilateral contract, the readiness and willingness of the plaintiff to perform the contract, and the failure of the defendants to fulfill their obligations under the contract.
Ratio Decidendi: The court held that a unilateral contract can mature into a concluded contract capable of enforcement through a suit for specific performance. The court also emphasized that the plaintiff's readiness and willingness to perform his part of the contract, along with the defendants' failure to fulfill their obligations, justified the decree for specific performance of the contract.
Final Decision: The appeal was dismissed, and the findings of the trial court were approved with modifications to the decree.
JYOTIRMAY BHATTACHARYA, J.
1. The first appeal is directed against the judgment and decree dated 30th March, 2016 passed by the learned Civil Judge, Senior Division, 1st Court Barasat in Title Suit No. 144 of 2004 at the instance of defendant no.1/appellant. By the said decree, the suit was decreed on contest against the defendant no.1 and ex parte decree against the defendant nos. 2 to 5 without costs. It was declared that the plaintiff was entitled to have the alleged contract specifically enforced against the defendants subject to condition that the defendants redeem the mortgage, if any and obtain a valid discharge within ninety days from the date of the decree after which the plaintiff shall be depositing the balance consideration money of twenty nine lakhs (Rs. 29,00,000/-) to the credit of the defendant within next sixty days from the date of such redemption of mortgage and obtaining valid discharge. The defendants were directed to execute and register a sale deed in plaintiff's favour at the expenses of the plaintiff within three months from the date of the deposit of the above amount by the plaintiff, with a rider that in default of such deposit by the plaintiff within the time fixed for him, the suit shall be dismissed without costs against the defendants.
2. If the defendants fail to execute or register the document within the time fixed for him, the plaintiff shall be at liberty to execute and register the same through the Court. It was further declared that the plaintiff is also entitled to possession of the suit property through Court, if prayed for. It was further directed that the defendant is also entitled to withdraw the deposited amount after execution and registration of the deed. The defendants were restrained by an order of injunction to create any third party interest in respect of the suit property.
3. The legality of the said judgment and/or decree passed in the said suit for specific performance of Contract filed by the plaintiff, is challenged by the defendant in this First Appeal.
4. Let us now consider the merit of the instant appeal in the facts of the instant case. For proper appreciation of the merit of this appeal, we feel it necessary to give the short background of this case which we accordingly do hereunder.
Admittedly, the plaintiff has filed the suit for specific performance of a unilateral contract executed by the defendants whereby the defendants agreed to transfer the suit property in favour of the plaintiff for a consideration of Rs. 35 lakhs. The suit property was mortgaged with the Allahabad Bank, Madhyamgram Branch, Barasat for securing repayment of the loan taken by the defendants from the said bank. In the agreement it was provided that the defendants will redeem the said mortgage from the bank out of the earnest money to be paid by the plaintiff and will obtain a clearance certificate from the bank as well as from the local municipal authority for transfer of the suit property by the defendants in favour of the plaintiff.
5. It was also provided in the said agreement that the formalities which are required to be fulfilled by the defendants for transferring the suit property will be completed by the defendants within two months from the date of execution of the agreement and immediately after obtaining such clearance certificate from the bank as well as from the Municipal Authority, the defendants will execute and register appropriate deed of conveyance in favour of the plaintiff for conveying their right title and interest in respect of the suit property free from all encumbrances. It is stated by the plaintiff that in terms of the said agreement for sale which was executed by the defendants on 1st January, 2004, the plaintiff paid a sum of Rs. 5 lacs to the defendants on account of earnest money and agreed to pay the balance consideration money at the time of execution of the sale deed. It was further alleged by the plaintiff that subsequently on demand made by the defendant