M/S Raj Land Corporation & 4 other(s) vs Ichchhapore Industrial Co Op Service Society Ltd., & 6 other(s)

Headnote AI-drafted · Reviewed and approved

The appellants (original plaintiffs) challenged the judgment and decree dated 22.02.2011 passed by the 6th Additional Senior Civil Judge, Surat in Special Civil Suit No. 285 of 2001, whereby their suit for specific performance of an agreement to sell dated 27.08.1993 was dismissed. The suit property comprised of lands bearing Revenue Survey Nos. 897, 898, 899, 912, 915, 916, 917 paiki, 918/2 etc. admeasuring 62142 sq. mtrs. situated at Ichhapore, Ta. Choryasi, agreed to be sold for a consideration of Rs.60,58,845/-, with Rs.6,05,885/- paid as advance. The trial court dismissed the suit on the grounds that the plaintiffs failed to establish readiness and willingness to perform the contract and that the suit was barred by limitation under Article 54 of the Limitation Act.

The central issues before the High Court were whether time was the essence of the contract, whether the plaintiffs had demonstrated readiness and willingness to perform, and whether the suit was within the period of limitation. The appellants contended that dereservation of the land was their obligation under the agreement, that time was not the essence of the contract as it involved immovable property, that the parties had mutually extended the period of performance, and that limitation commenced only from 09.06.2001 when the defendants passed a resolution refusing to perform their part of the contract. The respondents maintained that the agreement became unenforceable due to lapse of time and that the plaintiffs failed to complete the dereservation procedure by 31.10.1993 or even within the extended period.

The High Court examined the conditions of the agreement to sell, the documentary evidence including a letter dated 28.07.1997 (Ex. 147), and the oral evidence on record, in the context of the settled legal position that in contracts for immovable property, time is ordinarily not the essence of the contract, and considered the questions of limitation and readiness and willingness in light of the facts and evidence.

Catchwords: specific performance · agreement to sell · immovable property · time not essence of contract · dereservation of land · readiness and willingness · limitation · Article 54 Limitation Act · cooperative society · sale consideration · extension of time · resolution of refusal