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2025 Supreme(Chh) 534

HIGH COURT OF CHHATTISGARH AT BILASPUR
Rajani Dubey, Sachin Singh Rajput, JJ.
Padam Jain, S/o Shri Gyanmal Jain - Petitioner
Versus
Hemrai (Died) Through Legal Heirs – Respondent  
FA No. 262 of 2018
Decided On : 17-07-2025

Advocates Appeared:
For the Petitioner: Mr. BP Sharma with Mr. ML Saket, Mr. KN
Singh, Advocate
For the Respondent:Mr. Abhishek Vaishnav, Advocate, Mr. Devesh G. Kela, Panel Lawyer

Specific performance requires all parties' consent in an agreement; plaintiffs must prove readiness and willingness to fulfill contractual obligations.

Headnote:(A) Specific Relief Act, 1963 - Sections 12 and 16 - Specific performance of contract - Plaintiffs claimed specific performance of a land sale agreement which was dismissed by the trial court - Agreement was not signed by all necessary parties, thus deemed void - Plaintiffs failed to prove readiness and willingness to perform contractual obligations - Court directed refund of advance amount received by defendants. (Paras 6, 20, 22)

(B) Legal principles - Specific performance is a discretionary remedy; a plaintiff must prove readiness and willingness to perform the contract - An agreement that lacks signatures of all parties is void ab initio. (Paras 19, 21)

Facts of the case:
Plaintiffs entered into a sale agreement for land but defendants did not execute it as it lacked necessary signatures, claimed fraudulent conduct from the plaintiffs regarding funds. (Paras 2-4)

Findings of Court:
The learned trial court correctly found the absence of consent from defendants and held that the plaintiffs did not fulfill their obligations under the contract. (Paras 15-16)

Issues: Whether the agreement was valid in light of missing signatures of necessary parties, and if the plaintiffs were ready and willing to perform their contractual duties. (Paras 11-12)

Ratio Decidendi: The court found that an agreement with missing signatures is void; plaintiffs’ lack of payment within agreed time reflected a failure of readiness and willingness. (Paras 10, 19)

Result: Appeal allowed in part; defendants ordered to refund Rs.10 lacs to plaintiffs with interest.

Table of Content
1. background of property agreement and plaintiffs' claims. (Para 1)
2. court's review of trial proceedings. (Para 10)
3. importance of readiness and willingness in specific performance. (Para 11 , 12 , 13)
4. court's reasoning on performance terms. (Para 14 , 15)
5. legal framework for specific performance claims. (Para 18 , 20)
6. final decision on refund and interest. (Para 21)
7. conclusion and order of the court. (Para 22)

JUDGMENT :

Rajani Dubey, J.

Challenge in this appeal is to the legality and validity of the judgment and decree dated 2nd February, 2018 passed in Civil Suit No.62-A/2015 whereby the suit filed by the petitioners/plaintiffs for specific performance of contract has been dismissed. For the sake of convenience, parties shall hereinafter be referred to as per their description before the trial Court.

02. Briefly stated, case of the plaintiffs is that there is a land situated at Village-Pulgaon, PHN 18/25, Khasra No.193/1, area 1.676 hectare in the joint ownership of defendants No. 1 to 5. Defendants No. 1 to 3 on behalf of their sisters defendants No. 4 & 5 entered into an agreement with the plaintiffs for sale of the aforesaid land on 30.9.2014 @ Rs.38 lacs per acre and as an advance, Rs.2 lac cash and one post-dated cheque of Rs.3 lacs of Syndicate Bank, Branch-Durg was received. On the date of execution of the agreement, it was agreed between the parties that Rs.20 lacs shall be paid by 10.11.2014 and after receiving rest of the amount of sale consideration within six months from the date of execution of agreement i.e. 30.9.2014, registered sale deed shall be executed either in the name of the plaintiffs or any other persons at the instance of the plaintiffs. Later on, after taking back those post-dated cheques, defendants No.1 to 3 were given cash of Rs.1.60 lacs and 1.40 lacs. As per agreement, Rs.20 lacs was to be paid by 10.11.2014 and hence being in need of money when on 3.11.2014 defendant No.3 demanded Rs.5 lacs cash from the plaintiffs out of the aforesaid amount of Rs.20 lacs, the plaintiffs gave RTGS Cheque No.249516 of Rs.5 lacs of Syndicate Bank, Durg. The plaintiffs deposited Rs.20 lacs in Syndicate Bank, Durg and informed defendants No. 1 to 3 orally but they replied that since as of now they are not in need of money, so they will inform them whenever needed.

The plaintiffs requested defendants No. 1 to 3 for taking Rs.15 lacs but they did not agree, on which a registered notice along with three cheques, each of Rs.5 lacs, was sent on 27.11.2014 by the plaintiffs to them and after receipt of the said notice on 28.11.2014, defendants No. 1 to 3 on behalf of their sisters defendants No. 4 & 5 on 6.12.2014 sent a notice through an advocate which was replied by the plaintiffs. The defendants are refusing to execute sale deed in favour of the plaintiffs whereas they have always been ready and willing to perform their part of contractual obligations. Hence this suit.

03. Respondents No. 1 to 3 in their written statement contended that the suit property is the joint Hindu property of defendants No. 1 to 5 and as such, they have equal right and share over the suit property. However, the agreement based on which the present suit is filed, is incomplete, illegal and void because it does not bear signatures of all the defendants and has not been executed by the defendants. There is no written or oral consent of defendants No. 4 and 5. The plaintiffs fraudulently obtained signature of defendants No. 1 to 3 on the first and last page of the agreement by taking advantage of their illiteracy and ignorance. Defendant No.3 never demanded Rs.5 lacs from the plaintiffs and in fact, it is plaintiff No.1 who out of his own free will deposited Rs.5 lacs in District Central Cooperative Bank, Durg without intimation to defendant No.3 whereas defendants No. 1, 2, 4 & 5 had not given any oral or written consent for the same to the plaintiffs. No such agreement was ever executed by the defendants in favour of the

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