Specific performance: Respondent-defendant agreed to sell the schedule property for total sale consideration of Rs.30 lacs and was paid earnest money of Rs.26000/- – At the time of agreement, there was a civil family dispute pending in respect of the schedule property against him – The condition in the agreement was that the defendant would settle the pending dispute within a period of six months and if the dispute is not settled within six months, the time for execution of sale deed would be extended by such time as mutually to be agreed upon by the parties – Appellant-plaintiff sent a notice stating that as per his information, dispute in the family stood settled and expressed his readiness to pay the balance of the consideration – Plaintiff later filed suit for specific performance – It was stated in the plaint that on demand made by defendant, a further sum of Rs.6.75 lacs was paid to him – However, no date of such payment was disclosed in the plaint – Trial court decreed the suit and directed the plaintiff to pay balance amount of Rs.29.74 lacs – Defendant filed appeal before High Court – High Court passed order of refund of Rs.7.01 lacs while declining the relief of specific performance of the agreement on the ground that the plaintiff has failed to prove that he was ready and willing to perform his part of the agreement – High Court further held that there was nothing to show that as to when and how payment of Rs. 6.75 lacs was made out of balance sale consideration – On appeal, held: High Court erred in law in granting a decree for payment of Rs.7.01 lacs more so when the High Court has returned a finding that the plaintiff was not ready and willing to execute the contract merely on the basis that original title deeds might have been handed over to the plaintiff when sum of Rs. 6.75 lacs was said to have been paid by the plaintiff – In the notice issued by plaintiff there was no assertion of handing over of the documents of the title or payment of Rs. 6.75 lacs – In fact, the plaintiff categorically stated in the notice, his readiness and willingness to pay the balance sale consideration amount of Rs. 29.74 lacs – There was no document to prove payment of Rs. 6.75 lacs, except the bald statement of the plaintiff – If payment of earnest money of Rs.26,000/- could be made by cheque, then the payment of Rs. 6.75 lacs in cash is beyond any comprehension – Therefore, the entire story of payment of Rs.
6.75 lacs at the time of handing over the title documents was wholly unbelievable – High Court erred in passing a decree for recovery of the said amount only on the basis of presumptions. Disposing of the appeals, the Court
HELD: 1.1 In the notice issued by plaintiff there was no assertion of handing over of the documents of the title or payment of Rs. 6,75,000/-. In fact, the categorical assertion in the notice served was that the Plaintiff was ready and willing to pay the balance sale consideration amount of Rs. 29,74,000/-. There was no document to prove payment of Rs. 6,75,000/-, except the bald statement of the Plaintiff. There was no any other evidence to prove that sum of Rs. 6,75,000/- was paid by the Plaintiff and on which date. The entire story of payment of Rs. 6,75,000/- at the time of handing over the title documents is wholly unbelievable. The Plaintiff has not asserted such fact in the plaint or in the notice served on 25.12.2006. The High Court erred in law in passing a decree for recovery of the said amount only on the basis of presumptions. The Plaintiff is not entitled to decree for relief of specific performance, in view of the finding recorded by the High Court itself that he was not ready and willing to perform his part of the contract. The appeal filed by the Plaintiff is dismissed whereas, that of the Defendant is allowed. Since the Plaintiff has admittedly paid a sum of Rs. 26,000/-, the Defendant is ordered to pay such amount to the Plaintiff to settle equities along with simple interest at the rate of 9 per cent per annum from the date of payment till the date of realisation. [Para 11-14][57-A-E]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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