Key Points on Specific Performance

• In a suit for specific performance, the plaintiff must allege and prove continuous readiness and willingness to perform their part of the contract from the date of the contract, determined from the entirety of facts, circumstances, intention, and conduct. (!) [1000493800007][1000493800011] (!) (!)

• Readiness refers to financial capacity, while willingness relates to the plaintiff's conduct in seeking performance; both must be demonstrated continuously.[1000493800008][1000493800009] (!)

• Proof of readiness and willingness includes pleadings in the plaint, part-payments of consideration, bank statements showing financial capacity (e.g., fixed deposits, savings balances), and absence of demand by defendants for further payment without response. (!) (!)

• Withdrawal of a small deposit in a no-lien account does not negate readiness and willingness if followed by further advances and subsequent agreement execution. (!)

Key Points on Contract Nature

• A contract requiring settlement of a bank loan and handover of title deeds is not contingent under Sections 31 and 32 of the Indian Contract Act if capable of performance; such requirements are incidental covenants, not impossible events. (!) (!) (!) (!) (!) (!)

• Subsequent agreement for sale supersedes earlier MoU terms; vendors undertake to discharge loans and hand over title deeds within specified time, with purchaser to provide further advances if demanded. (!) (!) (!)

• No demand by vendors for further advances to settle loan defeats claim of impossibility; plaintiff demonstrated financial ability via deposits. (!) (!)

Key Points on Marshalling (Section 56, Transfer of Property Act)

• Subsequent purchaser (or specific performance decree holder) entitled to marshalling, requiring mortgagee to satisfy debt from unsold properties first, without prejudice to mortgagee rights. (!) (!) (!) (!)

• Plea of marshalling, as a pure question of law arising from specific performance decree, can be raised in appeal despite not being specifically pleaded in trial court, especially when plaint seeks broader relief including loan discharge. (!) (!) (!) (!)

• Civil court not barred from applying marshalling despite special recovery laws for banks; directs bank to exhaust other properties first, resorting to suit property only if shortfall. (!) (!)

• No prejudice to bank if other valuable properties available; bank accepted direction without appeal. (!) (!) (!)

Procedural and Other Points

• Division Bench may hear connected writ petition with statutory appeals under Articles 226/227 if parties and subject matter overlap. (!) (!) (!)

• Costs awardable to successful plaintiff paying substantial court fee, even if partial relief granted. (!) (!)

• Supreme Court under Article 136 need not interfere with concurrent findings if no substantial injustice, even post-leave grant. (!) (!) (!)