Advocate Sushila
SUPREME COURT HOLDS WILLINGNESS IS A RELEVANT CONSIDERATION FOR A DECREE FOR SPECIFIC PERFORMANCE
Advocate Sushila Ram 16 Oct 2021

SUPREME COURT HOLDS WILLINGNESS IS A RELEVANT CONSIDERATION FOR A DECREE FOR SPECIFIC PERFORMANCE


A Two Judge Bench of the Hon’ble #SupremeCourt of India comprising of Justices M.R. Shah, and A.S. Bopanna passed a #Judgment dated 04-10-2021 in the case of K. Karuppuraj v. M. Ganesan, 2021 SCC OnLine SC 857 and held that for the purpose of passing a #decree for #specificperformance, readiness and willingness is a relevant #consideration and the same has to be established and proved.

In the present case, the Plaintiff and the Defendant entered into an agreement for sale (Agreement) of the property situated in Kaspa Coimbatore (Property). The Defendant agreed to sell the same for a sale consideration of Rs. 16.20 lakhs to the Plaintiff. At the time of execution of the Agreement, a part sale consideration of Rs.3,60,001/- was paid. There were certain conditions stipulated in the Agreement. One of the conditions was that the Defendant as the original owner was required to evict the tenants from the Property in question and thereafter to execute the Sale Deed on receipt of the full sale consideration.

Vide Notice dated 01-07-2006, the Plaintiff asked the Defendant to evict the tenants from the Property in question and further to execute the Sale Deed on receipt of the balance sale consideration. Thereafter, the Plaintiff filed a Suit before the Trial Court for specific performance of the contract. The Plaintiff averred that the Defendant did not evict the tenants and come forward to execute the sale deed. The Defendant contested the Suit by filing the Written Statement.

Before the Trial Court

The learned Trial Court framed the following issues:-

a)     Whether the Plaintiff is entitled for specific performance?

b)    Whether the Plaintiff was ready and willing to purchase the Property?

c)     To what relief?

The Trial Court on appreciation of the evidence observed that the Plaintiff was not at all willing to purchase the Property with the tenants. Accordingly, the Suit was dismissed and directed the Defendant to refund the advance amount of Rs.3,60,001/- with interest @ 18% p.a. from the date of Agreement till the date of realization, to be paid within a period of two months.

Before the High Court

Aggrieved, with the Judgment and Decree passed by the learned Trial Court dismissing the Suit for Specific Performance, an Appeal was filed by the Plaintiff before the High Court of Judicature at Madras (High Court). Vide Order dated 27-11-2017, the High Court without even considering the evidence on record and without even framing the points for determination, set aside the Judgment and Decree passed by the Trial Court and allowed the Appeal. Consequently, the High Court decreed the Suit for specific performance of the contract.


To read more, please visit the link below:


https://theindianlawyer.in/supreme-court-holds-willingness-is-a-relevant-consideration-for-a-decree-for-specific-performance/


#supremecourtofindia #consideration #specificperformance

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