IN THE HIGH COURT OF MADHYA PRADESH
Pranay Verma, J.
Virendra Pagare v. Dharmesh Jain
First Appeal No. 138 of 2002 (I); Decided on 20.11.2024*
(1) Specific Relief Act, 1963 -- S. 16(C) -- suit for specific performance of contract -- decreed -- agreement for sale of property -- suit filed just one day prior to expiry of limitation -- readiness and willingness to perform contract expressed to defendant only once -- plaintiff failed to prove continuous readiness and willingness -- decree not sustainable -- set aside -- suit dismissed -- however, plaintiff entitled for refund of amount of sale consideration with interest. [Paras 14 to 16]
(2) Specific Relief Act, 1963 -- S. 16(C) -- suit for specific performance of contract -- agreement for sale of property -- suit property sold to another person even before institution of suit -- subsequent purchaser entitled to raise plea of absence of readiness and willingness of plaintiff to perform contract. (2000) 2 SCC 428, (2009) 17 SCC 27 and (2018) 11 SCC 761 followed. (2007) 9 SCC 660 distinguished. AIR 1996 SC 2814 and AIR 2002 Mad. 131 referred to. [Para 13]
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JUDGMENT
1. This appeal under section 96 of the Code of Civil Procedure has been preferred by defendant No.2 being aggrieved by the judgment and decree dated 4.2.2002 passed in Civil Suit No.33-A/1997 by the Second Additional District Judge, Indore, whereby the claim of plaintiff/respondent No.1 for specific performance of contract dated 5.5.1998 has been decreed.
2. The claim of plaintiff is that defendant No.1 had entered into an agreement with him for sale of the suit property, which is a flat bearing number 301, for a consideration of Rs.3.50 lakhs on 5.5.1995. A written agreement was also executed between them on that day and entire sale consideration was also paid by plaintiff to defendant No.1 who had agreed that she would soon deliver possession of the suit flat to him and shall execute the requisite sale deed in his favour. She had also requested that even though there is an averment in the agreement that possession has been handed over to plaintiff, but she may be permitted to retain possession till she finds alternate accommodation for herself. The plaintiff accepted the said request but defendant No.1 did not deliver possession to her. On 15.10.1997 she assured the plaintiff that she would execute the sale deed in his favour within a week. After a week when plaintiff went to the flat she was met by defendant No.2 who stated that he is the owner thereof and is residing therein in that capacity. On inquiry defendant No.1 stated that she has given the suit flat to defendant No.2 for residence for some time. Plaintiff then asked defendant No.1 to execute the sale deed in his favour, but she refused to do so and defendant No.2 also refused to deliver possession of the suit flat to him.
3. On such contentions, on 4.5.1998 the plaintiff instituted an action for specific performance of contract dated 5.5.1995.
4. Defendant No.1 contested the claim by filing her written statement submitting that no agreement to sale was executed between plaintiff and her. No amount has ever been paid by plaintiff nor was any letter written by her to plaintiff on 15.10.1997. On 12.8.1997 she has sold the suit flat to defendant No.2 under a registered sale deed and has delivered possession of the same to him. The defendant No.2 also filed his written statement submitting that he is the owner of the suit flat by virtue of the sale deed executed in his favour by defendant No.1 and is in legal possession of the same.
5. Upon pleadings of the parties issues were framed by the trial Court and thereafter plaintiff and defendant No.2 led evidence in support of their respective contentions. Defendant No.1, however, did not lead any evidence. By the impugned judgment and decree, the trial Court has decreed plaintiff’s claim by holding that he has proved that an agreement to sale was executed between him and defendant No.1 on 5.5.1995 upon payment of a sum of Rs 3,50,000/- by him to her and that plaintiff has always been ready and willing to perform his part of the contract but defendant No.1 has not done so and has executed sale deed with respect to the suit flat in favour of defendant No.1 which is not binding upon him.
6. Learned senior counsel for defendant No.2 has submitted that the judgment and decree passed by the trial Court is wholly illegal and deserves to be set aside. By way of her evidence the plaintiff has totally failed to prove the factum of execution of the agreement dated 5.5.1995 between him and defendant No.1. There is no plea as regards readiness and willingness on part of plaintiff to perform his part of the contract neither has the same been proved by him by way of his evidence. The agreement was allegedly entered into on 5.5.1995 whereas the suit has been instituted on 4.5.1998 just one day prior to expiry of period of limitation. No notice was issued by plaintiff to the defendants prior to institution of the suit. The possession of the suit flat is with defendant No.2 and the averment of plaintiff that possession was delivered to h
The court emphasized the necessity for continuous proof of a party's readiness and willingness to perform contract obligations and that unregistered agreements impacting possession must be duly stamp....
Plaintiff's failure to prove continuous readiness and willingness to perform contract negates entitlement to specific performance under Specific Relief Act.
The central legal point established in the judgment is the requirement for the plaintiff to prove continuous readiness and willingness for specific performance, as well as the availability of the def....
Time is of the essence of a contract if the parties have agreed that it is or if the circumstances of the case show that it is.
In specific performance cases, the plaintiff must continuously demonstrate financial capacity and willingness to perform contractual obligations for relief, requiring substantial evidence rather than....
A plaintiff in a specific performance suit must prove continuous readiness and willingness to perform their contractual obligations throughout, as mandated by Section 16(c) of the Specific Relief Act....
Plaintiffs must prove continuous readiness and willingness to perform a contract for specific performance, supported by evidence of financial capacity.
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