IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Goutam Bhaduri, Deepak Kumar Tiwari, JJ.
Nitendra Kumar Awasthi S/o Late Heeralal Awasthi and ors. - Appellants
Versus
Kamal Kishore Chhabra S/o Hajarilal and ors. – Respondents
FA No.183 of 2017
Decided On : 05-07-2022
Specific Performance - Agreement for Sale of Land - Chhattisgarh Land Revenue Code, 1959 - Supreme Court's interpretation of time as essence of contract - Plaintiff's readiness and willingness to perform - Unjust enrichment - [SPECIFIC PERFORMANCE] - [AGREEMENT FOR SALE OF LAND] - [Chhattisgarh Land Revenue Code, 1959, Section 109, Specific Relief Act, 1963, Section 16(c)] - The court discussed the interpretation of time as the essence of the contract in the context of an agreement for the sale of land, citing relevant Supreme Court judgments. The plaintiff's readiness and willingness to perform the contract were evaluated, considering the surrounding circumstances and the plaintiff's conduct. The court also addressed the concept of unjust enrichment and ordered the defendant to pay the plaintiff an amount of Rs.2.00 lacs along with interest at the rate of 6% per annum from 3-10-2011.
Fact of the Case:
The plaintiff entered into an agreement with the original seller for the purchase of a plot of land. After the death of the seller, the legal heirs failed to execute the sale deed as per the agreement, leading to the plaintiff filing a suit for specific performance. The defendant denied the execution of the agreement and claimed for dismissal of the suit.
Finding of the Court:
The court found that the plaintiff failed to demonstrate readiness and willingness to perform the contract, especially regarding the encashment of a cheque and mutation of name in the revenue records. The court also addressed the concept of unjust enrichment and ordered the defendant to pay the plaintiff an amount of Rs.2.00 lacs along with interest at the rate of 6% per annum from 3-10-2011.
Issues: Interpretation of time as the essence of the contract, plaintiff's readiness and willingness to perform, unjust enrichment
Ratio Decidendi: The court emphasized the importance of demonstrating continuous readiness and willingness to perform the contract, considering the surrounding circumstances and the plaintiff's conduct. The court also applied the principle of unjust enrichment to order the defendant to pay the plaintiff an amount of Rs.2.00 lacs along with interest at the rate of 6% per annum from 3-10-2011.
Final Decision: The appeal was allowed, and the defendant was ordered to pay the plaintiff an amount of Rs.2.00 lacs along with interest at the rate of 6% per annum from 3-10-2011.
JUDGMENT :
Goutam Bhaduri, J.
1. Challenge in this appeal is to the judgment and decree dated 20-1-2017 passed by the Fifth Additional District Judge, Bilaspur, in civil suit No.354-A/2014 whereby the suit for specific performance was decreed in favour of the respondent/plaintiff.
2. The instant appeal is by the legal heirs of original seller namely; Late Heeralal Awasthi (died on 14-10-2012), who entered into an agreement for sale of a land to the plaintiff/respondent No.1.
3. The suit was filed by the plaintiff against the legal heirs of Heeralal Awasthi (since deceased). The suit having been decreed in favour of the plaintiff, the instant appeal is by the legal heirs of Heeralal. The plaintiff Kamal Kishore Chhabra filed a suit for specific performance of contract against the legal heirs of Heeralal, pleading, inter alia, that on 3-10-2011 the plaintiff entered into an agreement with Heeralal to purchase the plot bearing No.21 & 22/2 admeasuring 629 sq.ft. for a sale consideration of Rs.16,94,000/-. Late Heeralal wanted to sell the property and in lieu thereof part performance amount of Rs.2.00 lacs was received and thereafter an agreement was executed. Subsequently, Heeralal died on 14-10-2012 and the names of legal heirs of Heeralal were subsequently recorded in the nazul records in the year 2014. After the names of legal heirs were recorded, since sale deed was not being executed as per terms of the agreement, a legal notice was served through the counsel to get the sale deed registered, but eventually the sale deed having not been executed the suit for specific performance was filed. Plaintiff pleaded that he was ready and willing to perform his part of contract but because from initial stage Heeralal was not keeping well, as such, sale deed could not be executed. It was stated that since the legal heirs failed to execute the sale deed, the plaintiff raised a doubt that they wanted to usurp the amount of Rs.2.00 lacs, as such, the suit was filed.
4. The appellant/defendant herein denied the execution of agreement and it was further stated that Heeralal was not the sole and exclusive owner of the land, but the plaintiff wanted to get the sale deed executed in his name on the basis of a forged and fabricated agreement. The defendant claimed for dismissal of the suit.
5. The plaintiff examined himself as PW-1 and one Sadhuram Hirani as PW-2. No evidence was adduced on behalf of the defendant. Learned trial Court after evaluating the evidence, decreed the suit for specific performance in favour of the plaintiff.
6. (a) Mr. Manoj Paranjape, learned counsel appearing with Mr. Anushul Tiwari, learned counsel for the appellant would submit that as per the agreement dated 3-10-2011 (Ex.P/1) the time was the essence of contract and as per the agreement the sale deed was to be executed by 31-1-2012. The initial seller Heeralal, who entered into agreement for the alleged sale, died on 14-10-2012 and during the life time of Heeralal, it was nothing on record that what steps were taken by the plaintiff to show his readiness and willingness to perform the contract. Referring to contents of agreement (Ex.P/1), learned counsel would submit that at the time of initial agreement, an amount of Rs.2.00 lacs was paid by cash and an amount of Rs.4.00 lacs was handed over in the form of cheque, which got bounced, therefore, the initial agreement of sale itself was not acted upon.
(b) Learned counsel would further submit that no specific pleading has been made as per the provisions of Section 16(c) of the Specific Relief Act, 1963 (henceforth ‘the Act, 1963’) with regard to readiness and willingness to execute the sale deed. He would also submit that in respect of the averments that the cheque which was bounced on account of insufficiency of funds, no whisper has been made either in the pleadings or in the evidence. He would submit that there is nothing on record to show that all the efforts were done by the plaintiff to get the sale deed executed and
Ardeshir H. Mama v Flora Sassoon
Gomathinayagam Pillai v Palaniswami Nadar
Govind Prasad Chaturvedi v Hari Dutt Shastri
His Holiness Acharya Swami Ganesh Dassji v Sita Ram Thapar
India Council for Enviro-legal Action v Union of India and others
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.
Time as Essence of Contract - Plaintiff's Failure to Prove Readiness and Willingness - Unjust Enrichment
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.
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.
The plaintiff must convincingly demonstrate readiness and willingness to fulfill contractual obligations for specific 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....
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