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2026 Supreme(Cal) 184

IN THE HIGH COURT AT CALCUTTA 
SUGATO MAJUMDAR, J. 
Pawan Kr. Tebrewalla & Ors. – Appellant
Versus  
Mrs. Set suko sarkar – Respondent 
EOS 12 of 1999 
Decided On : 24-04-2026

Advocates Appeared:
For the Appellant : Mr. S. N. Mitra, Sr. Adv. Mr. Malay Kr. Ghosh, Sr. Adv. Mr. Biswanath Chatterjee, Adv. Mr. A.P. Agarawalla, Adv.
For the Respondent: Mr. Megnad Dutta, Adv. Mr. Anirban Pramanick, Adv. Mr. Punarbasu Nath, Adv. Ms. Bhagyasree Dey, Adv

A suit for specific performance is maintainable if filed within the statutory limitation period following notice of refusal, and readiness and willingness are established through the totality of the plaintiff's conduct and partial performance rather than the application of a rigid formula.

Headnote:(A) Limitation Act, 1963 - Article 54 - Specific performance of contract - Suit filed within three years of notice of refusal is maintainable. Limitation period begins when the plaintiff has notice of refusal to perform the agreement. (Paras 16-17)

(B) Indian Contract Act, 1872 - Sections 15 and 16 - Coercion and undue influence - Plea of lack of free consent due to coercion requires solid evidentiary support. An agreement is voidable and not void ab initio; failure to take legal steps to avoid the agreement within the limitation period renders it enforceable. (Paras 24-25)

(C) Specific Relief Act, 1963 - Section 16(c) - Readiness and willingness - A plaintiff must prove readiness and willingness to perform essential obligations, taking into account all attenuating circumstances including past conduct and partial performance. Rigid demonstration of liquid funds is not required if cumulative conduct establishes capacity. (Paras 35-37)

Facts of the case:
A suit was filed for specific performance of multiple agreements regarding property development and the transfer of shares in land. The defendants challenged the maintainability of the suit based on the law of limitation, alleged lack of free consent due to coercion and undue influence, non-registration of the agreements, and the plaintiffs' failure to exhibit readiness and willingness. One defendant reached a settlement during the proceedings, and a consent decree was passed, while the other defendant contested the suit.

Findings of Court:
The court ruled that the suit was within the limitation period, as it was brought forward shortly after the notice of refusal to perform the contracts. The court found that the defendants' claims of coercion were unsupported by evidence, particularly as the defendants failed to take any action to rescind or avoid the agreements for several years. The court further held that the agreements were not subject to mandatory registration at the time of their execution, and the plaintiffs' conduct, including the partial performance of duties and making payments, adequately established their readiness and willingness.

Issues: The central questions addressed were whether the suit was barred by the law of limitation, whether the agreements were executed under coercion and undue influence, whether non-registration invalidated the agreements, and whether the plaintiffs sufficiently demonstrated their readiness and willingness to fulfill contractual obligations.

Ratio Decidendi: The court determined that agreements for the sale of land, if not required to be registered under the law prevailing at the time of execution, remain valid. Specific performance is not barred if the plaintiff has consistently demonstrated readiness and willingness through actions rather than mere assertions. Vitiating factors like coercion must be proved with cogent evidence, and failure to timely seek avoidance of a contract waives such claims.

Result: Suit decreed in favor of plaintiffs; the court directed the valuation of the properties to conclude the transfer.

Judgment :

Sugato Majumdar, J.

This is a suit for specific performance of contract along with other prayers.

The suit was initially filed in this Court which was registered as Suit No. 137 of 1996 on 6th June, 1996. The plaint was returned by Order dated 30th August, 1996 for presenting the same before the appropriate Court. Therefore, the suit was presented and registered in the Court of Learned 8th Assistant District Judge at Alipore and was numbered as Title Suit No. 91 of 1996. Subsequently, on the basis of one ALP No. 36 of 1998, this Court, in terms of Order dated 18th February, 1999 transferred the matter to this Court in terms of Clause 13 of the Letters Patent 1865. The suit became renumbered as present.

PLAINT CASE:

a) The premises nos. 215 and 217 Netaji Subhas Chandra Bose Road, Tollygunge, Kolkata (hereinafter mentioned as the “said premises”) were owned by Shankar Lal Sarkar. The said premises are continuous to each other being amalgamated, covering a total area of 34 cottah of land with building. This is Schedule-A property.

b) The Plaintiffs carry on business jointly. The Plaintiffs are in control and management of Defendant No.3 and the Plaintiff Nos.1 and 2 are the directors thereof. The Plaintiffs through the Defendant No.3 carry on the business of real estate development.

c) The Defendant Nos.1 and 2 expressed their intention to develop the said premises which could be done only after shifting the tenants. Following several discussions it was orally agreed in the month of July 1987 between the Plaintiffs and the Defendant Nos.1 and 2 that the property would be developed. Various terms have been negotiated. On 5th August, 1987, the following agreements were executed:

i) The agreement for development and construction of building by the Defendant No.3 was executed by and between the Defendant Nos.1 and 2 on the one hand and the Defendant No.3 on the other providing therein payment of cost of construction at the specified rate.

ii) The agreement for sale of undivided 1/4th share of the Defendant Nos.1 and 2 in premises no. 217, Netaji Subhas Chandra Bose Road, Tollygunge, Calcutta by the Defendant Nos.1 and 2 in favour of the Plaintiff no. 1 was executed by the said parties showing consideration amount of Rs.5,98,5oo/-.

iii) The agreement for sale of undivided 1/4th share of the Defendant Nos.1 and 2 in premises no. 215, Netaji Subhas Chandra Bose Road, Tollygunge, Calcutta by the Defendant Nos.1 and 2 in favour of the Plaintiff No. 1 was executed by the said parties showing consideration amount of Rs.5,33,000/-.

iv) The agreement for sale of undivided 1/4th share in premises no.215, Netaji Subhas Chandra Bose Road, Tollygunge, Calcutta by the Defendant Nos.1 and 2 in favour of the Plaintiff No.2 was executed by the said parties showing consideration amount of Rs.5,33,000/-.

v) The agreement for sale of undivided 1/4th share in premises no.217, Netaji Subhas Chandra Bose Road, Tollygunge, Calcutta by the Defendant Nos.1 and 2 in favour of the Plaintiff No.2 was executed by the said parties showing consideration amount of Rs.5,98,500/-.

vi) The agreement for sale of undivided 1/4th share in premises no.215, Netaji Subhas Chandra Bose Road, Tollygunge, Calcutta by the Defendant Nos.1 and 2 in favour of the Plaintiff No.3 was executed by the said parties showing consideration amount of Rs.5,33,000/-.

vii) The agreement for sale of undivided 1/4th share in premises no.217, Netaji Subhas Chandra Bose Road, Tollygunge, Calcutta by the Defendant Nos.1 and 2 in favour of the Plaintiff No.4 was executed by the said parties showing consideration amount of Rs.5,98,500/-.

There were six agreements for sale and one agreement for development and construction. The six agreements for sale contained identical, terms and conditions, particulars of which are given in the plaint.

d) Pursuant to the said six agreements, the Plaintiff paid earnest money to the Defendant Nos.1 and 2 as follow:

a) Rs.7,000/- was paid by the Plaintiff No. 1 to each of

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