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2022 Supreme(Online)(Ker) 73111

IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. B. Suresh Kumar, C.S. Sudha, JJ
MUHAMMEDKUTTY – Appellant
Versus
DHANYA – Respondent
RFA NO. 62 OF 2014 | RFA NO. 138 OF 2014 | OS 507/2012



Advocates:
For the Appellants/Petitioners: T. Krishnan Unni (Sr.), T. Sivadasan, Vinod Ravindranath, Meena A., P.A. Sheeja
For the Respondents: B. Raghunathan, G. Gopalakrishna Pillai, V.M. Jacob, M. Salim, R. Srinath

Plaintiff must demonstrate readiness and willingness to perform their obligations for specific performance; failure to do so results in denial of relief.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Appellant sought specific performance of a sale agreement, claiming readiness and willingness to perform obligations - Court found that appellant did not establish readiness necessitating dismissal of appeal for specific performance while partially allowing the return of advance payment. (Paras 11, 12, 13, 16, 17)

(B) The court mandated that a plaintiff in specific performance actions must show readiness to pay the balance amount, evaluated through conduct and evidence. (Para 12)

(C) The character of advance money must be interpreted based on intention and surrounding circumstances, not merely as stated in the contract; thus, the defendants could not forfeit advance payment since the appellant’s payment constituted part of the sale consideration. (Paras 15, 16)

Facts of the case:
The plaintiff and defendants entered into a sale agreement for property, with the plaintiff failing to pay the balance consideration within the stipulated time. Although some obligations were unmet by the defendants, plaintiff’s failure resulted in denied specific performance.

Findings of Court:
The court upheld lower court's ruling that the plaintiff was not ready and willing to fulfill his contractual obligations.

Result: R.F.A.No.62 of 2014 is dismissed; R.F.A.No.138 of 2014 is allowed in part vacating the decree for costs.

Table of Content
1. introduction of the case and outline of parties. (Para 1 , 2 , 3)
2. decision on specific performance based on parties' readiness and willingness. (Para 6 , 10)
3. interpretation of contractual obligations under the specific relief act. (Para 12 , 13 , 14)
4. court's ruling on advance payment and costs. (Para 15 , 16 , 17)

JUDGMENT

P.B.Suresh Kumar, J.

These appeals arise from O.S.No.507 of 2012 on the files of the Sub Court, Karunagappally. The said suit was one for specific performance of an agreement for sale. R.F.A.No.62 of 2014 is by the plaintiff and R.F.A.No.138 of 2014 is by the defendants in the suit.

2. The first defendant owns an item of property in Sy. No.556/09 of Sooranad South Village and she is running an aided school therein. The second defendant is the mother and power of attorney holder of the first defendant. On 17.01.2009, the first defendant agreed to sell 91 cents out of the said property with the right to run the school to the plaintiff for a consideration of Rs.55 lakhs and received a sum of Rs.10 lakhs from him on that day by way of advance sale consideration. As per the terms of the agreement, the plaintiff ought to have purchased the land after paying the balance sale consideration on or before 30.04.2009. It is provided in the agreement that the first defendant will measure the property and prepare a sketch carving out the 91 cents of property and the school building to be transferred to the plaintiff for appending the same to the document to be executed in terms of the agreement. The suit was instituted alleging that though the plaintiff was ready and willing to pay the balance sale consideration and obtain sale deed in respect of the property covered by the agreement, the defendants refused to execute the document in respect of the property for one or other reason. The prayer in the suit, therefore, was for specific performance of the agreement for sale in respect of the plaint schedule property covered by the agreement. There was an alternative prayer in the suit for return of the advance sale consideration.

3. The second defendant filed a written statement on her behalf and also on behalf of the first defendant contending mainly that although the property was measured and a plan of the plaint schedule property was prepared with notice to the plaintiff on 25.02.2009, the plaintiff did not come forward with the balance sale consideration within the time stipulated or thereafter, and it is due to the said reason that the plaint schedule property could not be transferred to the plaintiff in terms of the agreement. The defendants therefore prayed for dismissal of the suit. As regards the alternative prayer, the stand taken by the defendants in the written statement was that insofar as the plaintiff did not pay the balance sale consideration within the time stipulated in the agreement, the advance sale consideration is liable to be forfeited and the plaintiff is therefore, not entitled to the alternative prayer as well.

4. The plaintiff gave evidence as PW1. Two other witnesses were also examined on the side of the plaintiff as PW2 and PW3. Exts.A1 to A14 were the documents proved on the side of the plaintiff. On the side of the defendants, the second defendant gave evidence as DW1. DW2 is a witness examined on the side of the defendants. Exts.B1 to B4 were the documents proved on the side of the defendants.

5. Among the documents proved on the side of the plaintiff, Ext.A1 is the agreement for sale, Ext.A4 is the lawyer notice caused to be issued by the plaintiff to the second defendant calling upon her to accept the balance sale consideration and transfer the plaint schedule property to the plaintiff and Ext.A5 is the reply notice caused to be sent by the second defendant to Ext.A4 lawyer notice. Among the documents proved on the side of the defendants, Ext.B2(a) is the sketch of the plaint schedule property allegedly prepared by DW2 at the instance of the second defendant in furtherance t

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