In a suit for specific performance, the plaintiff must demonstrate readiness and willingness to perform obligations, including possessing sufficient means to meet financial commitments.

SANJAY KISHAN KAUL, J.

( 1 ) THE plaintiff has filed a suit for specific performance, permanent and mandatory injunction or in lieu thereof for recovery of damages. The dispute pertains to a Receipt-cum-Sale Agreement dated 12. 1. 2006 in respect of shop office on the first floor, Manish Plaza, Mayur Vihar-II, Delhi-110091. The receipt is for a sum of Rs. 2. 00 lakh as advance payment against a total consideration of the said shop of Rs. 38. 50, leaving a balance of Rs. 36. 50 lakh. The schedule for the balance amount is as under:

1. First installment of Rs. 5. 00 lakh by 20. 1. 2006. 2. Second installment of Rs. 16. 50 lakh by 28. 2. 2006. 3. Balance amount of Rs. 15. 00 lakh by 1. 4. 2006.

( 2 ) THE Receipt-cum-Sale Agreement has been signed by both the parties and is on the papers of M/s. Goel Associates, the brokers.

( 3 ) IT is the case of the plaintiff that the commitment for payment of the first installment of Rs. 5. 00 lakh was fulfilled by handing over cheques for the said amount to the brokers on 21. 1. 2006. The cheques were not encashed. The plaintiff has placed on record a communication dated 2. 3. 2006 addressed to the defendants informing them about the fact that though the plaintiff had paid a sum of Rs. 5. 00 lakh vide two cheques of Rs. 2. 00 lakh and Rs. 3. 00 lakh, the same had not been encashed. The letter further states that the second installment of rs. 16. 50 lakh was ready, requesting encashment of the two cheques issued earlier and expressing the readiness and willingness of the plaintiff to comply with the terms of the agreement.

( 4 ) THE aforesaid letter was replied by the defendants vide reply dated 13. 3. 2007. The grievance made in the letter was that there was failure to make the payment of Rs. 5. 00 lakh by 20. 1. 2006 and of Rs. 16. 50 lakh by 28. 2. 2006. The defendants denied the knowledge of any cheques of Rs. 5. 00 lakh sent to them. In view of the failure of the plaintiff to comply with the payment schedule, the Receipt-cum-Sale Agreement was cancelled and the advance of Rs. 2. 00 lakh forfeited.

( 5 ) THE next communication on record is of the legal notice dated 28. 3. 2006 sent through counsel by the plaintiff to the defendants reaffirming to what had been stated earlier and further stating that the cheques of Rs. 5. 00 lakh were handed over by the broker to the mother of defendant No. 2 in good faith and enclosed copies of the said cheques. The cheque for Rs. 3. 00 lakh has been issued by the wife of the plaintiff, Ms. Renu Goel and the cheque for Rs. 2. 00 lakh by Absolute securities Limited. In reply to the same through counsel vide letter dated 18. 4. 2006, the defendants denied the averments and finally repudiated the agreement.

( 6 ) IN the plaint, the plaintiff has relied upon the aforesaid documents and has also made an averment that the plaintiff had made full arrangement for payment of the amount and even visited the office of the Sub-Registrar for execution and registration of the Sale Deed, but it were the defendants, who failed to arrive for execution of the Deed failing which the suit was filed.

( 7 ) THE defendants filed the written statement contesting the suit and have pleaded that the plaintiff was unable to meet the financial commitment under the receipt-cum-Sale Agreement dated 12. 1. 2006 and thus the defendants have rightly repudiated the agreement.

( 8 ) LEARNED counsels for the parties have been heard on the question of interim relief. It may be noticed that the status quo order dated 19. 7. 2006 is continuing in favour of the plaintiff.

( 9 ) ON 18. 9. 2007, it was noticed during the course of hearing that the real dispute, in view of the aforesaid averments, was as to whether the plaintiff was possessed of the requisite funds to have complied with the terms and conditions of the Receipt-cum-Sale Agreement dated 12. 1. 2006.

( 10 ) IT is trite to say that in a suit for specific performance the plaintiff has to be ready and willing to perform it

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