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2024 Supreme(SC) 571

SUPREME COURT OF INDIA
PAMIDIGHANTAM SRI NARASIMHA, ARAVIND KUMAR, JJ.
Pydi Ramana @ Ramulu – Appellants
Versus
Davarasety Manmadha Rao – Respondents
Civil Appeal No. 434 of 2013
Decided on : 10-07-2024

Advocates appeared:
For the Appellant(s) : Mr. Guntur Prabhakar, AOR Ms. Prerna Singh, Adv. Mr. Guntur Pramod Kumar, Adv.
For the Respondent(s): Mr. D. Bharat Kumar, Adv. Mr. Tadimalla Bhaskar Gowtham, Adv. Mr. Aman Shukla, Adv. Mr. Siddhartha Sinha, Adv. Mr. Bhoumik Nayyar, Adv. Ms. Yatika Gupta, Adv. Mr. M. Chandrakanth Reddy, Adv. Ms. Anu Priya Nisha Minz, Adv. Mr. Abhijit Sengupta, AOR

IMPORTANT POINTS
(1) Amendment brought to Specific Relief Act by Act 18 of 2018 is prospective in nature and cannot be applied to those transactions which took place prior to amendment.
(2) There is distinction between terms ‘readiness’ and ‘willingness’ – ‘Readiness’ is capacity of plaintiff to perform contract which includes his financial position to pay sale consideration – ‘Willingness’ is conduct of party.
(3) Suit for specific performance can be filed even on last date of limitation as prescribed under Article 54 of Limitation Act, 1963.

Headnote:

(A) Specific Relief Act, 1963 – Section 16(c) – Agreement to sell – Suit for Specific Performance – Amendment is prospective in nature and cannot be applied to those transactions which took place prior to amendment – Amendment brought to Specific Relief Act by Act 18 of 2018 would be inapplicable in instant case – Section 16(c) of Specific Relief Act mandates ‘readiness and willingness’ of plaintiff to be averred and proved and it is a condition precedent to obtain relief of specific performance – There is distinction between terms ‘readiness’ and ‘willingness’ – ‘Readiness’ is capacity of plaintiff to perform contract which includes his financial position to pay sale consideration – ‘Willingness’ is conduct of party – As per recital in agreements, defendant was required to get suit land surveyed and as such total consideration was agreed to be settled after such survey – No such measurement was carried out – Long unexplained delay in not taking any reasonable steps as is expected from a reasonable person is itself sufficient to disentitle plaintiff to equitable relief – Respondent-plaintiff has not produced any satisfactory evidence to prove his readiness and willingness. (Paras 11, 13, 14 and 15)

(B) Specific Relief Act, 1963 – Section 16(c) – Limitation Act, 1963 – Article 54 – Agreement to sell – Suit for Specific Performance – Suit for specific performance can be filed even on last date of limitation as prescribed under Article 54 of Limitation Act – However, steps taken by plaintiff from date of agreement till date of filing of suit will have to be explained in plaint and proved in evidence which is lacking in instant case – Long unexplained delay and silence on part of plaintiff in this regard while in witness box would not entitle plaintiff to decree of specific performance – It is for this precise reason, trial court has refused to grant equitable relief which has been reversed by appellate court without assigning proper and cogent reason – Judgment of Trial Court restored. (Paras 15 and 16)

Facts of the case:

Appellant who is original defendant before trial Court has preferred this appeal questioning correctness and legality of judgment dated 07.06.2011 whereunder second appeal filed by him in S.A No.1282 of 2008 came to be partly allowed, confirming order of appellate court passed in A.S. No.39 of 2004 which granted relief of specific performance in favour of plaintiff and directed respondent-plaintiff to pay additional sale consideration twice the sale consideration.

Findings of Court:

Impugned judgment of High Court and the First Appellate Court is liable to be set aside and accordingly, it is set aside. Consequently, judgment of the trial Court dated 19.01.2002 passed in O.S. No.226 of 1998 is restored. Appeal stands allowed with no order as to costs.

Result : Appeal allowed.

Judgement Key Points
  • The amendment to the Specific Relief Act by Act 18 of 2018 is prospective and does not apply to transactions that occurred before the amendment (!) .
  • There's a distinction between "readiness" and "willingness." "Readiness" refers to the plaintiff's capacity to fulfill the contract, including their financial ability to pay the sale consideration, while "willingness" pertains to the party's conduct (!) .
  • A suit for specific performance can be filed even on the last day of the limitation period as per Article 54 of the Limitation Act, 1963 (!) . However, the plaintiff must explain and prove the steps taken from the agreement date to the suit filing date, which was lacking in this case (!) .
  • The plaintiff did not produce satisfactory evidence to prove their readiness and willingness to perform the contract (!) .
  • The plaintiff's conduct, including a significant delay in issuing a legal notice and filing the suit, indicated a lack of continuous readiness and willingness (!) (!) (!) .
  • The trial court correctly refused to grant the equitable relief of specific performance due to the plaintiff's unexplained delay and inaction (!) .
  • The High Court and the First Appellate Court erred in granting the relief of specific performance without proper reasoning (!) (!) .
  • The judgment of the trial court is restored, and the appeal is allowed (!) .

JUDGMENT :

Aravind Kumar, J.

1. The appellant who is the original defendant before the trial Court has preferred this appeal questioning the correctness and legality of the judgment dated 07.06.2011 whereunder the second appeal filed by him in S.A No.1282 of 2008 came to be partly allowed, confirming the order of the appellate court passed in A.S. No.39 of 2004 which granted the relief of specific performance in favour of the plaintiff and directed the respondent-plaintiff to pay additional sale consideration namely twice the sale consideration.

2. We have heard the arguments of Shri B. Adinarayana Rao, learned Senior Counsel appearing for appellant and Shri D. Bharat Kumar, learned Counsel appearing for the respondent perused the records.

Brief Background

3. The respondent herein who was the plaintiff filed a suit for specific performance of the agreement dated 07.06.1993 by contending inter alia that appellant-defendant had agreed to sell the property measuring Ac.1.38 cents for a total consideration of Rs.705/- per cent as per the terms reduced by way of an agreement executed on the same day whereunder plaintiff claimed to have paid an advance amount of Rs.2,005/- and defendant agreed to execute sale deed in favour of the plaintiff within one year after getting the suit property surveyed. Further sum of Rs.17,000/- was paid by the plaintiff to the defendant on 23.06.1993. It is the case of the plaintiff that despite demand, the defendant postponed the execution of the sale deed and as such plaintiff got issued a legal notice on 30.05.1996 to the defendant for which no reply was received and as such suit for specific performance of the agreement of sale dated 07.06.1993 or in the alternate for the refund of the advance money paid with interest came to be filed.

4. Upon service of suit summons defendant appeared and filed his written statement and denied the averments made in the plaint in toto and further contended that the legal notice was duly replied. There was a total denial of sale transaction and it was also contended that one Varahanarsimhan @ Varam had taken signature of the defendants on blank stamp papers and plaintiff being closely related to the said person, had created an agreement of sale of suit schedule property in order to get illegal benefits. Hence, he prayed for dismissal of the suit.

5. The trial court on the basis of the pleadings of the parties framed four issues and after examining the pleadings and evaluating the oral and documentary evidence tendered by the parties, rejected the claim for specific performance and granted the alternate relief namely ordered for refund of the amount of Rs.37,436.80 with 24% interest per annum on the said amount from the date of suit filed to till date of realisation. Being aggrieved by the judgment and decree of the trial court namely refusal to decree for specific performance, the unsuccessful plaintiff filed an appeal against A.S. No.39 of 2004. The appellate court on reappreciation of pleadings and evidence reversed the findings of the trial court and decreed the suit in toto namely the relief of specific performance was granted in favour of plaintiff.

6. The defendant being aggrieved by the same filed second appeal S.A No.1282 of 2008 which came to be allowed by judgment dated 07.06.20211 in part namely the plaintiff was directed to pay additional sale consideration namely twice the sale consideration stipulated under the agreement of sale.

7. It is the contention of the learned Senior Counsel appearing for the appellant that trial court had rightly rejected the prayer for specific performance on appreciation of evidence which finding did not suffer from any infirmity whatsoever and as such the appellate court ought not to have interfered with the findings of the trial court. It is further contended that plaintiff had failed to lead any evidence or produce or tender proof that he was ready and willing to perform his part of the contract continuously.

7.1 It is also submitte

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