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2023 Supreme(All) 1425

IN THE HIGH COURT OF ALLAHABAD
JASPREET SINGH, J.
Arjun Prasad And Others – Appellant
Versus
Ganesh Prasad And Others – Respondents
Second Appeal No. - 131 of 1993
Decided on : 05-07-2023

Advocates:
Advocate Appeared:
For the Appellant : S.N.Saxena, Adnan Ahmad, Arvind Kr. Sinha, K.P.Singh
For the Respondent: G.S.Nigam, Arvind Kumar Jauhari, D.P.Gupta, Madan Gopal Misra, O.P. Tiwari, P.L.Mishra, Shafat Ullah Khan, T.C.Gupta

Headnote:(A) Specific Relief Act, 1963 - Sections 10, 16 and 20 - Second appeal for specific performance of a contract - Trial Court refused decree citing inadequacy of consideration and perceived unfairness - Lower Appellate Court decreed specific performance - The court must assess readiness and willingness of the plaintiffs to perform the contract continuously - Mere delay or rise in property value is not sufficient to deny specific performance unless other unfair advantages exist - Court modifies decree requiring additional payment to ensure fairness in granting specific performance. (Paras 73, 74, and 75)

Facts of the case:
Plaintiffs sought specific performance of a contract dated 12.08.1983 to purchase land for Rs.12,500/-; only Rs.500/- was paid as earnest money - Appellants contended that the contract was void as vendor allegedly died before execution. (Paras 1, 4)

Findings of Court:
Both Courts confirmed agreement was executed; trial Court’s findings on readiness and timely action were deficient; Plaintiffs to pay adjusted amount of Rs.8,00,000/- for decree to be enforced. (Paras 70, 74, 75)

Issues: Whether trial Court misapplied legal principles regarding readiness and willingness, necessity of timely performance, and effect of property value escalation. (Paras 2, 18)

Ratio Decidendi: The court upheld that readiness and willingness are essential elements for a decree of specific performance and that mere time delays do not invalidate the contract unless an unfair advantage is demonstrated. (Paras 26, 69)

Result: Second appeal dismissed; decree modified to require additional payment from plaintiffs.

Table of Content
1. details of the suit and agreement for sale. (Para 1 , 4 , 5)
2. defendants' contest regarding execution of the agreement. (Para 6 , 11)
3. lower appellate court's findings and disagreement with the trial court. (Para 8 , 14 , 15)
4. plaintiffs' obligation to show readiness and willingness. (Para 10 , 12 , 13 , 20)
5. conditions under which specific performance may be granted. (Para 24 , 74)

JUDGMENT :

1. The instant second appeal has been preferred by the defendants-appellants emanating from a suit for specific performance of contract filed by the plaintiffs-respondents, wherein the trial Court by means of the judgment and decree dated 07.04.1992 refused the decree of specific performance which was assailed before the lower Appellate Court and the lower Appellate Court by means of its judgment and decree dated 02.12.1992 has set aside the decree of trial Court and has decreed the suit for specific performance, prompting the defendants-appellants to knock the doors of this Court under Section 100 CPC.

2. The instant second appeal was admitted by the Court on 24.03.1993 on the substantial question of law as formulated in the memo of appeal, Clause A, which reads as under:-

    A. Whether the learned court below have misread and misinterpreted documents on record which renders their findings, perverse, incorrect, illegal?

3. In order to appreciate the controversy involved in the second appeal, certain relevant facts relating to the suit are being noticed hereinafter.

4. Ganesh Prasad and Satish Kumar, both minors sons of Kanhaiya Lal, through their father and natural guardian, had instituted a suit for specific performance of contract dated 12.08.1983 in terms whereof the original vendor, namely, Sarju Prasad had agreed to sell the property in dispute bearing No.367 (New No.346), situate in Jawahar Nagar, District Unnao. In terms of the said agreement executed by Sarju Prasad, it was agreed that for a total sale consideration of Rs.12,500/-, Sarju Prasad would sell the property in dispute to the minor sons of Kanhaiya Lal for which a sum of Rs.500/- was paid by the plaintiffs to Sarju Prasad as earnest money and the remaining consideration was to be paid at the time of execution of the sale-deed. The agreement also contemplated that the sale-deed would be executed within a period of one month and the possession will be transferred to the plaintiffs at the time of execution of the sale-deed.

5. It was also pleaded that before the sale-deed could be executed, Sarju Prasad expired and he was survived by his wife and three children, who were impleaded as the defendants. It was aslo recorded in the plaint that the plaintiffs were ready and willing to perform their part of contract and they had requisite means of paying the remaining consideration. However, the defendants were evading to perform their obligation, as a result, the plaintiffs had sent a notice dated 12.08.1983 and despite the same, the defendants did not comply with their obligations which led the plaintiffs to institute the suit for specific performance before the Court of Civil Judge, Unnao which was registered as Regular Suit No.52/1986.

6. The said suit was contested by the defendants, who were the legal heirs of the original executant of the agreement Sarju Prasad and while denying the execution of the agreement, it was specifically stated that Sarju Prasad prior to his death was suffering from a respiratory disease due to which he had become very weak and was also not mentally alert. It was further pleaded that neither Sarju Prasad executed the agreement nor he had the authority to do so. Sarju Prasad did not even have the need to sell the property and as such it appears that the plaintiffs in order to usurp the property got the agreement executed through impersonation as Sarju Prasad had died on 23.09.1982 and as such the agreement which is dated 10.08.1983 could not have been executed by him. For the aforesaid reasons, it was pleaded that the suit for speci

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