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1988 Supreme(Ker) 209

Judges : PADMANABHAN
AYISSABI - Appellant
Versus
GOPALA KONAR - Respondent
Case No : S.A. No. 790 of 1982
Decided On : 06/09/1988
Advocates Appeared :
P.K. Balasubramanyan; T.H. Abdul Aziz; S.V. Balakrishna Iyer; K. Jayakumar; For Appellant T.R.G. Warrier; Sebastian Davis; For Respondent

The principle of continuous readiness and willingness is essential for equitable relief, and a party's conduct, including an election to sue for damages, can preclude them from claiming specific performance.

Headnote:

specific performance - breach of contract - Est. Al agreement - S.16(c) of the Specific Relief Act - equitable relief - continuous readiness and willingness - election to treat the contract as at an end - conduct of the plaintiff - unclean hands - reversal of decree granting specific performance

Fact of the Case:

The plaintiff sought specific performance of an agreement for the sale of land, which was initially dismissed by the trial court but decreed by the appellate court. The key question was whether the plaintiff, who repudiated the contract and claimed damages, could seek specific performance.

Finding of the Court:

The trial court found the plaintiff in breach of the terms and not ready and willing to perform, disentitling them from specific performance, damages, or return of the advance amount. The appellate court decreed the suit solely on the finding that the defendant was at breach, without considering the conduct of the plaintiff and their readiness and willingness.

Issues: The main issue was whether the plaintiff, after repudiating the contract and claiming damages, could seek specific performance. Additionally, the conduct of the plaintiff and the defendant's readiness and willingness were in question.

Ratio Decidendi: The court emphasized the principle of continuous readiness and willingness for equitable relief, as outlined in S.16(c) of the Specific Relief Act. It held that the plaintiff's election to sue for damages amounted to treating the contract as at an end, precluding them from claiming specific performance. The court also considered the conduct of the plaintiff and its relevance in granting equitable relief.

Final Decision: The decree granting specific performance was reversed, and the suit was dismissed in that respect. However, the plaintiff was entitled to the advance amount with interest, charged on the suit property for realization.

Judgment :-

1. Suit for specific performance of Ext. Al agreement for sale of 4 3/4 cents of land was dismissed by the trial court but decreed by the appellate court and defendant challenges the decree. The short but substantial question of law for consideration is whether the plaintiff who repudiated the contract and claimed damages could turn back and seek specific performance.

2. The finding of the trial court on the pleadings and evidence is that plaintiff was in breach of the terms and he was not ready and willing to perform his part of the contract and hence is disentitled not only from getting specific performance but also in getting damages or even return of the advance amount. The appellate court without considering the conduct of the plaintiff and its effect and without considering the readiness and willingness of the plaintiff, decreed the suit solely on the finding that the defendant was at breach.

3. Est. Al agreement is dated 4-4-1979. It was to sell the property for Rs. 958/- per cent within two months. Of course it could be said that time was not the essence of the contract. Oral evidence is not of much essence because what is there is only oath against oath and each party was blaming the other. The agreement provided that in case of breach by the defendant, plaintiff will be entitled to get back the advance amount of Rs. 1,000/- and another amount of Rs. 1,000/- by way of damages.

4. On 18-6-1979 plaintiff issued Ext. A2 notice alleging that defendant is guilty of breach of contract and hence the sale could not be taken in time. In Ext. A2 he therefore repudiated the contract and claimed advance amount and damages and informed that in case of failure he will file a suit for realisation of the amount. He never stated in the notice that he performed the conditions on his part or was or is ready and willing to perform his part or ready with funds and take the sale deed. Towards the close of the notice he also included a bald statement that he may also file a suit for specific performance. Defendant gave Ext A3 reply stating that she was ready and willing and plaintiff was at fault.

5. It spite of the vague reminder and warning in Ext. A2 that a suit for specific performance may also be filed, the main stand taken by the plaintiff therein is that the contract is repudiated on account of the attitude of the defendant and the plaintiff elected to sue for damages. That means the agreement is given a go by. Now the plaintiff admits the evidence of Pw.1 that be went and enquired on 16-6-1979 and defendant said that she is ready to execute the sale deed only if some damage incurred by her on account of the laches of the plaintiff is also made good. It was thereafter that Ext. A2 notice repudiating the contract was given and Ext. A3 reply was sent.

6. It is true that in the plaint and in the box plaintiff made a vague statement of readiness and willingness. Absolutely no such statement is there in Ext. A2 which is mainly a repudiation of the contract and election to sue for damages. Specific performance is an equitable and discretionary relief. It is necessary for the plaintiff not to allege but also to prove if traversed that he has performed all the conditions which under the contract he was bound to perform and that he has been ready and willing at all times from the time of the contract down to the date of suit to perform his part of the contract. This principle is set out successfully in S.16(c) of the Specific Relief Act and expanded by judicial decisions. In a suit for specific performance, the plaintiff is also bound to treat the contract as subsisting at all times. Continuous readiness and willingness from the date of contract to the time of hearing without any interruption is the requisite for the grant of the equitable remedy plaintiff must treat the contract as subsisting always. After repudiating the contract as was done in Ext. A2 and electing to sue for damages he cannot turn round and claim specific performanc




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