IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
GOUTAM BHADURI, RADHAKISHAN AGRAWAL, JJ.
Ashish Gupta S/o Ramchandra Gupta – Appellant
Versus
Smt. Kshama Devi Khetan W/o Jitendra Kumar Khetan – Respondents
FA No.380 of 2017(Arising out of judgment and decree dated 4-5-2017 passed by the First Additional District Judge, Durg, in civil suit No.41-A/2009)
Decided on : 08-08-2022
Specific Performance - Agreement for Sale of Land - 8-2-2007 - Khasra No.179, Village Basin, PH No.11, R.I. Circle Durg-1, Tahsil & District Durg - Sections 16(c), 92 of the Specific Relief Act, 1963 - Time as Essence of Contract - Unjust Enrichment - [Kadupugotla Varalakshmi v Vudagiri Venkata Rao & Others, 2021 SCC OnLine SC 365], [Silvey and Others v Arun Varghese and Another, (2008) 11 SCC 45], [A. Kanthamani v Nasreen Ahmed, (2017) 4 SCC 654], [Narinderjit Singh v North Star Estate Promoters Limited, (2012) 5 SCC 712], [Rathnavathi and Another v Kavita Ganashamdas, (2015) 5 SCC 223], [Govind Prasad Chaturvedi v Hari Dutt Shastri, (1977) 2 SCC 539], [Gomathinayagam Pillai v Palaniswami Nadar, AIR 1967 SC 868], [India Council for Enviro-legal Action v Union of India and others, (2011) 8 SCC 161]
Fact of the Case:
Plaintiff/Appellant filed suit for specific performance of an agreement for sale of land. Defendant/Respondent denied existence of agreement and plaintiff's readiness and willingness to perform. Court found plaintiff failed to prove readiness and willingness and dismissed the suit.
Finding of the Court:
Court found plaintiff failed to prove readiness and willingness to perform the agreement. Time was held to be the essence of the contract and plaintiff's extension of terms was not agreed upon by the parties. Defendant was directed to pay the earnest money to the plaintiff along with interest.
Issues: Plaintiff's readiness and willingness to perform the agreement, time as essence of contract, unjust enrichment, restitution of earnest money.
Ratio Decidendi: Plaintiff failed to prove readiness and willingness. Time was held to be the essence of the contract and plaintiff's extension of terms was not agreed upon by the parties. Defendant was directed to pay the earnest money to the plaintiff along with interest.
Final Decision: Appeal was disposed of with the direction for the defendant to pay the earnest money to the plaintiff along with interest.
JUDGMENT :
Goutam Bhaduri, J.
1. Challenge in this appeal is to the judgment and decree dated 4-5-2017 passed by the First Additional District Judge, Durg, in civil suit No.41-A/2009 whereby the suit for specific performance brought by the plaintiff/appellant was dismissed.
2. The facts, in brief, as pleaded by the plaintiff/appellant, are that the defendant No.1 owns land bearing khasra No.179 area 1.95 hectares situated at village Basin, PH No.11, R.I. Circle Durg-1, Tahsil & District Durg. The said land was agreed to be sold for a sum of Rs.10.00 lacs and on 16-1-2007 an amount of Rs.1,51,000/- was paid as an earnest money. Thereafter, an agreement was executed on 8-2-2007 in presence of the witnesses wherein it was agreed that the remaining amount of sale consideration would be paid at the time of execution of sale deed. The plaintiff pleaded that at the time of agreement, the defendant agreed to get the land demarcated and would show the original title deed i.e. land papers before the actual sale. The plaintiff further pleaded that he was always ready and willing to perform his part of contract by paying the rest part of sale consideration and to get the sale deed executed, but the defendant never agreed to it. The plaintiff also pleaded that subsequently he came to know that despite receiving Rs.1,51,000/- as an earnest money the defendant wanted to sale the land to someone else as such public notice was made in the newspaper on 15-10-2007 followed by a registered notice on 16-10-2007 to get the sale deed registered, but eventually the defendant failed, therefore, the suit was filed.
3. The case of the defendant No.1/respondent No.1 was that the agreement was executed with one Anil Gupta whereas the suit was filed by one Ashish Gupta and therefore, the service of notice to the defendant on behalf of Ashish Gupta was of no consequence. It was further pleaded that by putting whitener over the agreement name of the purchaser was changed as Ashish Gupta. On 14-9-2007 the defendant had sent a notice to Anil Gupta to get the sale deed registered but eventually the sale deed was not executed. Under the circumstances, the plaintiff herein i.e. Ashish Gupta is not entitled for decree of specific performance.
4. Learned Court below framed primarily six issues and found that the plaintiff has failed to prove his readiness and willingness and execute the sale deed and eventually dismissed the suit. Hence, this appeal.
5. (a) Mr. B.P. Singh, learned counsel appearing with Mr. Sudhansu Kumar Singh, learned counsel for the appellant, would submit that the conduct of the parties in the likewise cases would be of utmost important. He would further submit that the contents of the notice (Ex.P/2) would show that the defendant was called upon to execute his part of agreement, but he did not do so and the plaintiff was ready and willing to perform his part of contract. He would also submit that in the written statement before the Court entire execution of the agreement was denied, therefore, the defendant could not have taken the pleading that the plaintiff is not ready and willing to perform his part of contract. He would place reliance upon the decision rendered by the Supreme Court in Kadupugotla Varalakshmi v Vudagiri Venkata Rao & Others, 2021 SCC OnLine SC 365.
(b) Learned counsel for the appellant would next submit that on the one hand the defendant denied existence of agreement, but on the other hand the trial Court proved that the agreement was executed on 8-2-2007, therefore, it would be a contrary finding. Referring to the notice, he would submit that the contents of the same would demonstrate the fact that the plaintiff was ready and willing to execute his part of contract. Further referring to the decision of the Supreme Court in the matter of Silvey and Others v Arun Varghese and Another, (2008) 11 SCC 45 he would submit that when the false plea has been taken by the defendant about non-execution of the agreement then conduct of the p
Govind Prasad Chaturvedi v Hari Dutt Shastri
Gomathinayagam Pillai v Palaniswami Nadar
India Council for Enviro-legal Action v Union of India and others
Narinderjit Singh v North Star Estate Promoters Limited
Time as Essence of Contract - Plaintiff's Failure to Prove Readiness and Willingness - Unjust Enrichment
The plaintiff's continuous readiness and willingness to perform the contract, as well as the concept of unjust enrichment, were central legal principles established in the judgment.
The main legal point established in the judgment is that time was not the essence of the contract, and the conduct of the parties indicated an extension of time for performance.
The main legal point established in the judgment is that the plaintiff's failure to obtain necessary documents and contradictory actions led to the dismissal of the specific performance claim. Additi....
A plaintiff seeking specific performance must prove both readiness and willingness to perform the contract, failing which the court may order a refund of earnest money instead.
Point of Law : As per proviso to Section 55(5)(b) Transfer of Property Act, the buyer is at liberty to retain out of the purchase-money the amount of any encumbrance on the property existing as on th....
Time is generally not considered essence in immovable property contracts; refusal to perform requires consideration of readiness alongside equitable claims for refund.
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