2025:CGHC:3146
HIGH COURT OF CHHATTISGARH AT BILASPUR
Rajani Dubey, Bibhu Datta Guru, JJ.
Smt. Renu Singh (Died And Deleted) Through LRs - Appellant
Vs.
Mahjabi Aajra Khanam D/o Late Abdul Haji Khan @ M. A. Khan
FA No. 345 of 2017
Decided On : 17-01-2025
Advocate Appeared :
For the Appellants : Mr. Parag Kotecha, Advocate
For the Respondent : Mr. Jameel Akhtar Lohani, Advocate
(A) Specific Relief Act, 1963 - Section 10 - Contract Law - The plaintiff sought specific performance of a contract for the sale of property, which was partly decreed by the trial court, awarding earnest money with interest instead of specific performance - The court found the plaintiff failed to prove readiness and willingness to perform the contract. (Paras 4, 11, 12, 16)
(B) Readiness and Willingness - The plaintiff must demonstrate both readiness (capacity to perform) and willingness (conduct) to enforce a contract for specific performance. (Paras 10, 11)
(C) Unjust Enrichment - The court discussed principles of unjust enrichment, emphasizing that retention of benefits without legal justification is impermissible. (Paras 15, 16)
Facts of the case:
The plaintiff entered into a sale agreement for property with the defendant, paying Rs.6.50 lacs as earnest money, but the defendant failed to execute the sale deed despite repeated requests. The trial court acknowledged the agreement but denied specific performance, ordering a refund instead.
Findings of Court:
The trial court found that the plaintiff did not prove her readiness and willingness to perform the contract, leading to a partial decree for the refund of earnest money with interest.
Issues: The main issues included whether the plaintiff was ready and willing to perform the contract and the validity of the agreement.
Ratio Decidendi: The court ruled that the plaintiff's failure to demonstrate readiness and willingness justified the trial court's decision to deny specific performance and order a refund instead.
Result: Appeal dismissed.
Judgment :
(Rajani Dubey, J.)
Challenge in this appeal is to the legality and validity of the judgment and decree dated 25.3.2017 passed by VI Additional District Judge, Bilaspur in Civil Suit No.25A/2013 whereby the suit filed by the appellant/plaintiff for specific performance of contract, declaration and permanent injunction has been partly decreed. (Parties shall hereinafter be referred to as per their description before the trial court.)
02. Case of the plaintiff, in brief, is that Nazul Sheet No.28, Plot No.71/6, area 436 sqft and adjacent Nazul Sheet No.28, Plot No.113/2, area 1519 sqft, on which a pacca house is constructed (hereinafter referred to as "suit property") is the self-acquired property of father of defendant namely Late M.A. Khan @ Abdul Haji Khan which was given to the defendant by her father through Will dated 5.3.2002 and based on that Will, the defendant got the suit property mutated in her name and acquired the ownership thereof. Since the plaintiff and the defendant were living in the same locality and they were duly acquainted with each other, the defendant being in need of money agreed to sell the suit property for Rs.10.50 lacs to the plaintiff. Thereafter, a sale deed dated 11.12.2006 was executed before the notary in presence of two witnesses and the defendant obtained Rs.6.50 lacs as advance from the plaintiff. As per the agreement, rest of the amount of Rs.4 lacs was to be paid to the defendant at the time of registry of the suit property. The sale deed was agreed to be registered within one year of the agreement. Despite the plaintiff's readiness and willingness to execute the registered sale deed when the defendant did not take any steps and kept on avoiding it, the plaintiff on 2.7.2008 sent a registered legal notice to the defendant. After receipt of the said notice, though the defendant again orally assured the plaintiff in presence of plaintiff's husband and others for execution of registry in her favour but later on evaded the same. The plaintiff then again sent a registered legal notice on 9.12.2009 to the defendant which was malafidely refused to be acknowledged by her. In fact, the defendant is trying to sell the suit property at higher rate to some other person and therefore, he is avoiding registry of sale deed in favour of the plaintiff. Hence this suit.
03. In her written statement, the defendant contended that the defendant never expressed her intention of selling the suit property as there was no such need and even otherwise she is not entitled to sell it all alone. No such agreement was ever executed with the plaintiff and the agreement in question is forged and fabricated. The defendant in reply to the legal notice has also stated that there is no such agreement between them and as such, no question of return of money etc. arises. Therefore, the present suit is liable to be dismissed with cost.
04. Based on the pleadings of the respective parties and the documents on record, the learned trial Court framed issues and after appreciation of oral and documentary evidence, partly decreed the suit of the plaintiff by the impugned judgment and decree holding that the plaintiff is entitled to receive Rs.6.50 lacs with interest @ 6% p.a. from the defendant. Hence this appeal.
05. Learned counsel for the appellant would submit that though the learned trial court acknowledged the validity and enforceability of the agreement between the parties and affirmed payment of Rs.6.50 lacs as earnest money by the plaintiff to the defendant and also there is evidence to show readiness and willingness on the part of the plaintiff to perform her part of contractual obligation, however, instead of decreeing the suit for specific performance, the learned trial Court directed the defendant to refund the earnest money with interest @ 6% p.a. only which is per se illegal and contrary to the material on record. The plaintiff sent two registered legal notices to the defendant dated 2.7.2008 and 9.12.2009 demandin



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.
In specific performance cases, the plaintiff must prove readiness and willingness, and without necessary permissions, the sale cannot be enforced, leading to recovery of amounts paid due to unjust en....
The court ruled that a written contract prevails over oral agreements, and unjust enrichment principles require the return of amounts paid towards part performance of a contract.
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 appellate court emphasized that specific performance requires proof of the plaintiff's readiness and willingness to perform the contract, which was not adequately addressed by the trial Court.
The plaintiff must prove readiness and willingness to perform contractual obligations for specific performance; failure to do so results in dismissal of the suit.
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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