2024 Supreme(Online)(GUJ) 22976
HIGH COURT OF GUJARAT
DEVAN M. DESAI, J
VIMALKUMAR VIPINCHANDRA BHATT – Appellant
Versus
AMISHBHAI JAYANTILAL SHAH – Respondent
FIRST APPEAL NO. 1335 of 2019
MR HARSHADRAY A DAVE(3461) for the Appellant(s) No. 1,2 MR DG SHUKLA(1998) for the Defendant(s) No. 1,2 MR HARSHEEL D SHUKLA(6158) for the Defendant(s) No. 1,2
The court upheld the trial court's decision granting specific performance, emphasizing the distinction between readiness and willingness in contract performance claims.
Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Specific performance of contract - Plaintiffs sought specific performance of a registered agreement to sell property, claiming readiness and willingness to perform their part of the contract - Defendants contended breach of contract due to non-payment of remaining sale consideration within stipulated time - Court found that plaintiffs demonstrated readiness and willingness to perform, and the trial court's discretion in granting relief was upheld. (Paras 1, 3.1, 6, 8)
(B) Specific Performance - Readiness and willingness - The distinction between readiness (financial capacity) and willingness (conduct) is crucial in specific performance claims - Plaintiffs need not produce documentary evidence of funds but must demonstrate intention to perform. (Paras 7, 8)
Facts of the case:
The plaintiffs filed a suit for specific performance of a registered agreement to sell property executed on 15.12.2006, with a total sale consideration of Rs.14,00,000/- and a part payment of Rs.1,00,000/- made. The defendants denied execution of the sale deed, claiming breach of contract due to non-payment of the remaining amount within six months.
Findings of Court:
The trial court partly allowed the suit, directing defendants to execute the sale deed upon plaintiffs depositing Rs.20,00,000/- within two months.
Issues: The main issues included whether the plaintiffs proved execution of the agreement, their readiness and willingness to perform, and if the suit was barred by limitation.
Ratio Decidendi: The court upheld the trial court's findings, emphasizing that the plaintiffs had shown readiness and willingness to perform their part of the contract, and the trial court's discretion in granting specific performance was not erroneous.
Result: Appeal dismissed.
| Table of Content |
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| 1. plaintiffs filed suit for specific performance (Para 4 , 5 , 6 , 7 , 8 , 9) |
| 2. appeal dismissed (Para 10 , 11 , 12 , 13) |
ORAL JUDGMENT
1. This appeal is filed by the original defendants under Section 96 of the Code of Civil Procedure , 1908 challenging the judgment and decree dated 08.01.2019 passed by the learned Civil Court, Vadodara in Special Civil Suit No.291 of 2007.
2. Heard learned advocate Mr. Harshadray A. Dave for the appellants-original defendants and learned advocate Mr. D.G Shukla with learned advocate Mr Harsheel D. Shukla for the respondents-original plaintiffs.
3. The brief facts of the case are as under:-
3.1. The respondents-plaintiffs filed suit for a relief of specific performance for the property bearing Revenue Survey No.202 and 206 of Plot B/23 and B/24 admeasuring about 273.74 square meters situated in village Narmadanagar Scheme Akota, Vadodara. A registered agreement to sell was executed between plaintiffs and defendants on 15.12.2006. One of the conditions of the registered agreement to sell was that the plaintiffs were to pay the remaining amount of sale consideration within a period of six months from the date of execution of the registered agreement to sell. The outer limit of the registered agreement to sell was 15.05.2007. The total sale consideration of the suit property in question was fixed at 14 lakhs and out which, plaintiffs paid Rs.1,00,000/- by way of cheque to the defendants at the time of execution of registered agreement to sell. Plaintiffs issued a legal notice dated 07.05.2007 and sought for specific performance of the registered agreement to sell. The said notice was replied to by the defendants vide reply dated 22.05.2007. Since defendants denied execution of the registered sale deed, plaintiffs filed a suit for specific performance of the registered agreement to sell together with a relief of permanent injunction. Defendants appeared and resisted the suit by filing Written Statement at Exhibit-12 and denied the relief for specific performance on the ground that the plaintiffs have committed breach of the terms and conditions of the registered agreement to sell by not paying the remaining amount of sale consideration within the period of six months as agreed.
3.2. The following issues were framed by the learned trial Court at Exhibit-45;
“(1) Whether the plaintiff proves that the agreement to sell of the suit property was executed by the defendants on 15.12.2007 and through Cheque being No.270771, Rs.1,00,000/- was paid by the plaintiff to the defendants as bana amount and total sale consideration of the suit property was agreed at Rs.14,00,000/-?
(2) Whether the plaintiff proves that, within six months from the date of execution of agreement to sell dated 15.05.2007, defendants agreed to execute the registered sale deed after paying the remaining amount of sale consideration?
(3) Whether the plaintiff proves the fact that, the plaintiffs were ready and willing to perform their part of the contract?
(4) Whether defendant No.1 and 2 prove that the suit property was agreed to be sold to the plaintiff at Rs.21,42,000/- and on the same day, the plaintiff paid Rs.41,000/- in cash to the defendants?
(5) Whether defendant No.1 and 2 prove the fact that plaintiff has failed to pay agreed consideration within the stipulated period?
(6) Whether the suit of plaintiff is barred by limitation?
(7) Whether the suit is barred by non-joinder and mis-joinder of parties?
(8) Whether plaintiff is entitled to the relief as claimed in the suit?
(9) What order? What decree?”
3.3 Plaintiff No.1 examined himself at Exhibit-74 and produced various documentary evidence. Defendant No.1 examined himself at Exhibit-92 and produced documentary evidence. After considering the evidence on record and after hearing the parties, the learned trial Court partly allowed the suit and directed defendants to execute a registered sale deed in favour of the plaintiffs. It was further directed to the plaintiffs to depo