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2024 Supreme(P&H) 1399

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
PANKAJ JAIN, J.
Pushap Lata - Appellant
Versus
Varun Singla - Respondent
Regular Second Appeal No. 5382 of 2019
Decided On : 17-12-2024

Advocates Appeared:
For the Appellants : Aashish Chopra, Priyanka Kansal, Nitika Sharma
For the Respondent: Puneet Kumar Bansal

Delay in filing a suit for specific performance is insufficient to deny relief if the contract is within the statutory limitation period and the plaintiff demonstrates readiness and willingness to perform.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Indian Limitation Act, 1963 - Article 54 - Suit for specific performance of an agreement to sell land - Plaintiff paid substantial sums (Rs.14,00,000/-) as part of sale consideration but faced defendant's refusal to execute the sale deed on the agreed date - Delay noted but insufficient to deny relief as suit was filed within limitation period - Court confirmed plaintiff's readiness and willingness based on evidence. (Paras 8, 12, 20)

(B) Readiness and Willingness - The aspects of readiness and willingness of the plaintiff do not solely hinge on mere presence on the designated dates but require consideration of conduct and available funds. Mere delay is not a sufficient ground for denying specific performance if time is not made an essence of the contract. (Paras 11, 18)

Facts of the case:
The plaintiff entered an agreement to purchase land for Rs.20,60,000/- per acre and made payments totaling Rs.14,00,000/-, but the defendant failed to execute the sale deed. The plaintiff's legal notice demanded performance, but the defendant alleged repudiation of the contract.

Findings of Court:
The lower appellate court decreed specific performance despite the defendant's arguments regarding the plaintiff's readiness, supported by significant financial evidence reflective of the plaintiff's ability to fulfill the agreement.

Issues: The primary issues included whether the plaintiff's failure to challenge the agreement's cancellation barred the suit and whether the delay in filing the suit could prevent relief.

Ratio Decidendi: The court reasoned that the defendant's conduct rendered her cancellation ineffective, and that the plaintiff's readiness and willingness—demonstrated through substantial prior payments and evidence of funds—sufficiently established entitlement to specific performance.

Result: Appeal dismissed.

Table of Content
1. agreement for specific performance established. (Para 3 , 4)
2. trial court and appellate court findings on readiness and willingness. (Para 6 , 7)
3. arguments on defendant's alleged dishonesty. (Para 8 , 9)
4. issues of non-suit regarding agreement cancellation. (Para 11 , 12)
5. legal principles regarding delay in specific performance. (Para 13 , 14 , 15 , 16 , 17)
6. evidence supports plaintiff's readiness for specific performance. (Para 18 , 19)
7. appeal dismissed; main relief granted to plaintiff. (Para 20 , 21)

JUDGMENT :

PANKAJ JAIN, J.

1. Defendant is in second appeal.

2. For convenience, the parties hereinafter are referred to by their original position in the suit i.e. the appellant as the defendant and the respondent as the plaintiff.

3. Plaintiff filed suit for specific performance claiming that defendant agreed to sell land measuring 8 Kanals in his favour for a total sale consideration of Rs.20,60,000/- per acre. On 12th of May, 2009 when the agreement was executed, plaintiff paid defendant a sum of Rs.4,00,000/- as earnest money. Both the parties agreed to get the sale deed executed on or before 20th of November, 2009. It was further agreed that in case defendant fails to execute sale deed on receipt of balance sale consideration, plaintiff will have a right to get the sale deed executed through Court. It was further claimed that a sum of Rs.10,00,000/- was paid by the plaintiff to the defendant through 10 separate cheques dated 20.05.2009, 25.05.2009, 09.07.2009, 12.07.2009, 09.08.2009, 12.08.2009, 09.09.2009, 12.09.2009, 09.10.2009 and 12.10.2009 amounting to Rs.1,00,000/- each. Thus, the plaintiff paid a sum of Rs.14,00,000/- to the defendant. He always remained ready and willing to perform his part, still defendant failed to execute the sale deed in favour of the plaintiff as she did not turn up in the O/o Sub Registrar on 20th of November, 2009. Plaintiff served defendant with notice dated 30th of November, 2009 calling upon her to execute the sale deed on 15th of December, 2009. Plaintiff again went to the O/o Sub Registrar, Saha on 15th of December, 2009, but the defendant failed to turn up. On 18th of December, 2009, on the asking of the defendant, plaintiff purchased stamp- papers, but the defendant still failed to come present in the O/o Sub Registrar, Saha on 18th of December, 2009. Defendant in reply dated 6th of December, 2009 to legal notice dated 30th of November, 2009 though admitted receipt of Rs.14,00,000/-, yet has failed to perform her part. Thus, the plaintiff prayed for decree of specific performance.

4. Suit was resisted by the defendant by filing written statement. It was admitted that the agreement to sell was executed and Rs.4,00,000/- was received by the defendant. It was also admitted that the last date for execution and registration of sale deed was fixed as 20th of November, 2009. However, defendant claimed that the plaintiff never appeared before the Sub-Registrar on 20th of November, 2009 which led to forfeiture of the earnest money. Defendant claimed that she was always ready and willing to execute the sale deed on 20th of November, 2009 and appeared in the O/o Sub-Registrar, Saha and waited for plaintiff from 9.00 AM to 5.00 PM, but the plaintiff never turned up. It was also pleaded that the defendant rather approached Superintendent of Police for non-execution of sale deed. It was claimed that Rs.4,00,000/- have been received and the amount due is Rs.16,60,000/-. Plaintiff never paid Rs.10,00,000/- as claimed. It was further claimed that the plaintiff was short of funds and was having no money to perform his part.

5. On the basis of the pleadings, following issues were framed:

“1. Whether the plaintiff is entitled for specific performance of agreement to sell on the ground as prayed for? OPP

2. Whether the plaintiff has locus stand to file the present suit? OPP

3. Whether the suit plaintiff is not maintainable in the present form? OPD

4. Whether the plaintiff has not come t

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