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Supreme Court of India

U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS.versusA. M. KRISHNAMURTHY

Citation
2022 INSC 714
Decided
12 July 2022
Disposal
Appeal(s) allowed

Holding

Specific performance cannot be granted unless the plaintiff proves continuous readiness and willingness, including financial capacity, to perform his contractual obligations; the plaintiff in this case failed to do so.

Summary

The appeal concerned a suit for specific performance of a sale agreement where the plaintiff had paid a small advance and was required to pay the balance by a stipulated date. The Supreme Court held that under Section 16(c) of the Specific Relief Act, 1963 the plaintiff must prove continuous readiness and willingness, including financial capacity, to perform his part of the contract; mere statements in the plaint or a later deposit of the balance after a seven‑year delay do not satisfy this requirement. The Court examined the plaintiff’s balance sheet, found he lacked sufficient funds at the relevant time, and noted that the delay and the steep rise in property values negated any equitable claim to specific performance. Consequently, the trial and High Court judgments granting specific performance were set aside. The appellant‑defendant was ordered to return the earnest money with interest.

Issues considered

  • Whether the plaintiff proved readiness and willingness to perform his part of the contract under Section 16(c) of the Specific Relief Act, 1963
  • Whether the delay in payment and lack of funds preclude the grant of specific performance
  • Whether the time‑limit stipulated in the agreement and the rise in property values affect the equitable discretion to grant specific performance
  • Whether the trial and appellate courts erred in granting specific performance despite the plaintiff’s failure to demonstrate readiness

Legislation cited

Subjects

specific performancereadiness and willingnessSpecific Relief ActSection 16(c)real estatetime of essenceequitable reliefbalance considerationappeal

Judgment

250                      [2022]REPORTS
               SUPREME COURT   13 S.C.R. 250               [2022] 13 S.C.R.


A        U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS.
                                         v.
                           A. M. KRISHNAMURTHY
                         (Civil Appeal No. 4703 of 2022)
B                                 JULY 12, 2022
           [INDIRA BANERJEE AND HRISHIKESH ROY, JJ.]
             Specific Relief Act, 1963 – s.16 (prior to amendment w.e.f
      1.10.2018) – Readiness and willingness to perform – Both
      ingredients necessary for the relief of specific performance – Suit
C
      for specific performance of an agreement for sale – Certain amount
      paid in advance, failure to pay balance within stipulated time –
      Grant of relief – Not justified – Held: There is a distinction between
      readiness and willingness to perform the contract and both
      ingredients are necessary for the relief of Specific Performance –
D     Plaintiff has to prove that all along and till the final decision of the
      suit, he was ready and willing to perform his part of the contract –
      Mere statement or averment in plaint of readiness and willingness
      would not suffice – In the present case, the respondent-plaintiff
      failed to prove his readiness to perform his part of contract from
      the date of execution of the agreement till date of decree, a condition
E
      precedent for grant of relief of specific performance – Respondent
      deposited the balance sale consideration in the court seven years
      after the date by which the sale had to be concluded – He did not
      have sufficient funds to discharge his part of contract – No evidence
      was adduced as to how he was in a position to pay or make
F     arrangements for payment of the balance sale consideration within
      time – Making subsequent deposit of balance consideration after
      lapse of seven years would not establish the respondent’s readiness
      to discharge his part of contract – Respondent was not entitled to
      the relief of specific performance as he was not ready with funds
      though may have been willing to perform his part of contract –
G
      Impugned judgment of High Court and the decree of Trial court set
      aside – Appellants-defendant to return the earnest money to the
      respondent with interest @ 7% p.a from the date of deposit of the
      same, till the date of refund.

H
                                        250
  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                         251
               A. M. KRISHNAMURTHY

       Suit – For specific performance of an agreement – Certain           A
amount paid in advance, balance to be paid within a stipulated
time – Held: In a suit for Specific Performance of an agreement, it
is for the Plaintiff to prove his readiness and willingness to perform
his obligations under the agreement – Where a certain amount has
been paid in advance and the balance is required to be paid within
                                                                           B
a stipulated time, it is for the Plaintiff to show that he was in a
position to pay the balance money – Plaintiff has to prove that he
has the money or has alternatively made necessary arrangements
to get the money.
      Suit – For specific performance– Continuous readiness and
willingness of plaintiff – Held: Even in a first appeal, the first         C
Appellate Court is duty bound to examine whether there was
continuous readiness and willingness on the part of the Plaintiff to
perform the contract.
      Allowing the appeal, the Court
                                                                           D
       HELD: 1.1 The primary question for determination is
whether the Respondent Plaintiff has proved his readiness and
willingness to perform his part of the contract or not? In a suit
for Specific Performance of an agreement, it is for the Plaintiff to
prove his readiness and willingness to perform his obligations
under the agreement. Where a certain amount has been paid in               E
advance and the balance is required to be paid within a stipulated
time, it is for the Plaintiff to show that he was in a position to pay
the balance money. The Plaintiff has to prove that he has the
money or has alternatively made necessary arrangements to get
the money. In this case, the Original Defendant/Appellants have            F
all along contended that the Plaintiff Respondent neither offered
to pay nor was in a position to pay the balance consideration of
Rs.15,00,000/-. [Paras 21, 22][260-F-H]
       1.2 Section 16 (c) of the Specific Relief Act, 1963 bars the
relief of specific performance of a contract in favour of a person,        G
who fails to aver and prove his readiness and willingness to
perform his part of contract. In view of Explanation (i) to clause
(c) of Section 16, it may not be essential for the plaintiff to actually
tender money to the defendant or to deposit money in Court,

                                                                           H
252            SUPREME COURT REPORTS                      [2022] 13 S.C.R.


A     except when so directed by the Court, to prove readiness and
      willingness to perform the essential terms of a contract, which
      involves payment of money. However, explanation (ii) says the
      plaintiff must aver performance or readiness and willingness to
      perform the contract according to its true construction. To aver
      and prove readiness and willingness to perform an obligation to
B
      pay money, in terms of a contract, the plaintiff would have to make
      specific statements in the plaint and adduce evidence to show
      availability of funds to make payment in terms of the contract in
      time. In other words, the plaintiff would have to plead that the
      plaintiff had sufficient funds or was in a position to raise funds in
C     time to discharge his obligation under the contract. If the plaintiff
      does not have sufficient funds with him to discharge his obligations
      in terms of a contract, which requires payment of money, the
      plaintiff would have to specifically plead how the funds would be
      available to him. To cite an example, the plaintiff may aver and
      prove, by adducing evidence, an arrangement with a financier for
D
      disbursement of adequate funds for timely compliance with the
      terms and conditions of a contract involving payment of money.
      [Paras 24, 25][261-F-H; 262-A-C]
            1.3 In a suit for Specific Performance of a contract, the Court
      is required to pose unto itself the following questions, namely:-
E     (i) Whether there is a valid agreement of sale binding on both
      the vendor and the vendee and (ii) Whether the Plaintiff has all
      along been and still is ready and willing to perform his part of the
      contract as envisaged under Section 16(c) of the Specific Relief
      Act, 1963. There is a distinction between readiness and
F     willingness to perform the contract and both ingredients are
      necessary for the relief of Specific Performance. Even in a first
      appeal, the first Appellate Court is duty bound to examine whether
      there was continuous readiness and willingness on the part of
      the Plaintiff to perform the contract. [Paras 33-35][265-B-E]
G           1.4 In this case, the suit property is located in the industrial
      town of Hosur located about 30/40 kms. from Bengaluru. The
      Court is obliged to take judicial notice of the phenomenal rise in
      the price of real estate in Hosur. It was argued that the Plaintiff
      had only paid an insignificant amount of Rs.10,001/- as advance

H
 U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                      253
              A. M. KRISHNAMURTHY

when the consideration was Rs.15,10,000/-. Having paid an              A
insignificant amount the Plaintiff was not entitled to discretionary
equitable relief of Specific Performance. The fact that the suit
had been filed after three years, just before expiry of the period
of limitation, was also a ground to decline the Respondent Plaintiff
the equitable relief of Specific Performance for purchase of
                                                                       B
immovable property. The Respondent Plaintiff has relied upon
the notice dated 13.02.2003 and evidences of PW2 & PW3 to
prove that he was always ready and willing to perform his part of
the contract. Even though it may be true that the Respondent
Plaintiff had deposited the balance sale consideration in court on
06.04.2010, it cannot be ignored that such deposit was made by         C
him seven years after 15.3.2003, being the date by which the
sale had to be concluded. No evidence has been adduced on behalf
of the Respondent Plaintiff as to how the Respondent Plaintiff
was in a position to pay or make arrangements for payment of the
balance sale consideration within time. The Courts below also
                                                                       D
erred in not adjudicating upon this vital issue except to make a
sweeping observation that, given that the Respondent Plaintiff
was a businessman he had sources to arrange the balance funds.
Careful study of balance sheet dated 31.03.2003 of the
Respondent Plaintiff would demonstrate that he did not have
sufficient funds to discharge his part of contract. [Paras 38-40,      E
45][267-C-E; 268-E]
       1.5 For relief of specific performance, the Plaintiff has to
prove that all along and till the final decision of the suit, he was
ready and willing to perform his part of the contract. It is the
bounden duty of the Plaintiff to prove his readiness and               F
willingness by adducing evidence. This crucial facet has to be
determined by considering all circumstances including availability
of funds and mere statement or averment in plaint of readiness
and willingness, would not suffice. In this case, the Respondent
Plaintiff has failed to discharge his duty to prove his readiness as
well as willingness to perform his part of the contract, by adducing   G
cogent evidence. Acceptable evidence has not been placed on
record to prove his readiness and willingness. Further, it is clear
from the Respondent Plaintiff’s balance sheet that he did not have
sufficient funds to discharge his part of contract in March 2003.
Making subsequent deposit of balance consideration after lapse         H
254            SUPREME COURT REPORTS                      [2022] 13 S.C.R.


A     of seven years would not establish the Respondent Plaintiff’s
      readiness to discharge his part of contract. The Respondent
      Plaintiff has failed to prove his readiness to perform his part of
      contract from the date of execution of the agreement till date of
      decree, which is a condition precedent for grant of relief of specific
      performance. The Respondent Plaintiff was not entitled to the
B
      relief of specific performance. The Respondent Plaintiff may have
      been willing to perform his part of contract. It however appears
      that he was not ready with funds. He was possibly trying to buy
      time to discharge his part of contract. The Respondent Plaintiff
      was not entitled to the relief of specific performance. The Trial
C     Court and the High Court erred both in law and on facts in granting
      such relief. The impugned judgment of the High Court and the
      judgment and decree of Trial court are set aside. The Appellants
      shall return the earnest money to the Respondent Plaintiff, within
      4 weeks from today with interest at the rate of 7% per annum
      from the date of deposit of the same, till the date of refund. It will
D
      also be open to the Respondent Plaintiff to withdraw the deposit
      if any of the balance consideration in Court. [Paras 46-49, 51 and
      52][271-D-G; 272-B-C, G]
            Bhavyanath v. K. V. Balan (2020) 11 SCC 790 – held
            inapplicable.
E
            Man Kaur v. Hartar Singh Sangha (2010) 10 SCC 512
            : [2010] 12 SCR 515; In Pt. Prem Raj v. D.L.F. Housing
            and Construction (Private) Ltd. And Anr. AIR 1968 SC
            1355 : [1968] 3 SCR 648; N. P. Thirugnanam v.
            Dr. R. Jagan Mohan Rao and Ors (1995) 5 SCC 115 :
F           [1995] 2 Suppl. SCR 53; Umabai v. Nilkanth Dhondiba
            Chavan (2005) 6 SCC 243 : [2005] 3 SCR 521; K.S.
            Vidyanadam v. Vairavan (1997) 3 SCC 1 : [1997] 1
            SCR 993; His Holiness Acharya Swami Ganesh Dassji
            v. Sita Ram Thapar (1996) 4 SCC 526 : [1996] 2 Suppl.
G           SCR 111; Kalawati v. Rakesh Kumar (2018) 3 SCC
            658 : [2018] 1 SCR 482; Balraj Taneja v. Sunil Madan
            (1999) 8 SCC 396 : [1999] 2 Suppl. SCR 258; H.P.
            Pyarejan v. Dasappa (2006) 2 SCC 496 : [2006] 2
            SCR 120; Malluru Mallappa v. Kuruvathappa (2020)
            4 SCC 313; Saradamani Kandappan v. S. Rajalakshmi
H
  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                        255
               A. M. KRISHNAMURTHY

      (2011) 12 SCC 18 : [2011] 8 SCR 874; P.R. Deb and                   A
      Associates v. Sunanda Roy (1997) 3 SCC 1; Manjunath
      Anandappa v. Tammanasa (2003) 10 SCC 390 : [2003]
      2 SCR 1068; Azhar Sultana v. B. Rajamani (2009) 17
      SCC 27 : [2009] 2 SCR 537; Atma Ram v. Charanjit
      Singh (2020) 3 SCC 311 : [2020] 3 SCR 697 – relied
                                                                          B
      on.
      Ardeshir Mama v. Flora Sassoon 55 IA 300, at pg. 372
      : AIR 1928 PC 208; Cort v. Ambergate etc. and Rly. Co
      (1851) 117 ER 1229 – referred to.
                       Case Law Reference                                 C
[2010] 12 SCR 515                 relied on           Para 26
[1968] 3 SCR 648                  relied on           Para 27
[1995] 2 Suppl. SCR 53            relied on           Para 29
[2005] 3 SCR 521                  relied on           Para 31             D
[1997] 1 SCR 993                  relied on           Para 32
[1996] 2 Suppl. SCR 111           relied on           Para 34
[2018] 1 SCR 482                  relied on           Para 34
[1999] 2 Suppl. SCR 258           relied on           Para 35             E

[2006] 2 SCR 120                  relied on           Para 36
[2011] 8 SCR 874                  relied on           Para 39
[2003] 2 SCR 1068                 relied on           Para 40
                                                                          F
[2009] 2 SCR 537                  relied on           Para 40
[2020] 3 SCR 697                  relied on           Para 44
(2020) 11 SCC 790                 held inapplicable Para 50
      CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4703
of 2022.                                                                  G

      From the Judgment and Order dated 30.10.2017 of the High Court
of Judicature at Madras in Appeal Suit No. 262 of 2011.
      Krishnan Venugopal, Shashikiran Shetty, Sr. Advs., Mahesh Thakur,
Ms. Vipasha Singh, Advs. for the Appellants.
                                                                          H
256            SUPREME COURT REPORTS                          [2022] 13 S.C.R.


A           N. D. B. Raju, M. A. Chinnasamy, Ms. C. Rubavathi, Ch. Leela
      Sarveswar, T. Meikandan, P. Rajaram, V. Senthil Kumar, Advs. for the
      Respondent.
            The Judgment of the Court was delivered by
            INDIRA BANERJEE, J.
B
            Leave granted.
            2. Heard Mr. Krishnan Venugopal learned Senior Advocate
      appearing with Mr. Mahesh Thakur, AOR on behalf of Appellants and
      Mr. N.D.B Raju, learned Advocate appearing with Mr. M.A.
C     Chinnasamy, AOR on behalf of Respondent.
             3. This Appeal is against a final judgment and decree dated
      30th October 2017 passed by the High Court of Judicature at Madras,
      dismissing the Appeal Suit No. 262 of 2011 filed by the Appellants and
      confirming a judgment and order and decree dated 30th November 2010
D     passed by the Principal District Judge, Krishnagiri, hereinafter referred
      to as “the Trial Court” in Original Suit No. 30 of 2005 filed by the
      Respondent Plaintiff, for specific performance of an agreement for sale
      of the suit property.
            4. In the plaint, it is pleaded that the original Defendant U.N.
      Krishnamurthy’s father, U.R. Narasaiah had executed a will on or about
E
      9th May 1984, bequeathing the suit property to the original Defendant,
      U.N. Krishnamurthy (since deceased). After the death of his father,
      U.R. Narasaiah, on 25th April 1987, the original Defendant U. N.
      Krishnamurthy became the absolute owner of the suit property.
             5. It is the case of the Appellants that on 11th November 2002,
F
      while the original Defendant was getting the suit property whitewashed,
      a real estate agent Mr. N. Anjappa approached the original Defendant
      with an offer to arrange the sale of the suit property at a good price.
             6. As per the pleadings in the plaint, the original Defendant agreed
      to sell the suit property to the Respondent Plaintiff, in the presence of
G     Mr. N. Anjappa, Mr. S.A. Muralidharan and Mr. M. Murali Reddy. The
      terms and conditions of the agreement for sale of the suit property were
      recorded by the original Defendant U.N. Krishnamurthy in his own
      handwriting in a letter dated 11th November 2002 given by the original
      Defendant to the Respondent Plaintiff.
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  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                            257
      A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

       7. It is the case of the Respondent Plaintiff that the original        A
Defendant agreed to sell the suit property to the Respondent Plaintiff
for a consideration of Rs.15,10,000/-, out of which sum of Rs.10,001/-
was paid by the Respondent Plaintiff to the original Defendant in advance.
It was further agreed between the parties, that the Respondent Plaintiff
would get the sale deed registered on or before 15th March 2003, upon
                                                                              B
payment of the full sale consideration. The agreement was allegedly
witnessed by the real estate agent, Mr. N. Anjappa.
       8. According to the Respondent Plaintiff, the Respondent Plaintiff
approached the original Defendant with the balance consideration several
times and requested the original Defendant to execute the sale deed in
his favour, but the original Defendant kept postponing execution of the       C
sale deed on one pretext or the other.
       9. On or about 13th February 2003, the Respondent Plaintiff issued
a legal notice to the original Defendant through his lawyer stating that
the Respondent Plaintiff is ever ready and willing to perform his part of
the contract and called upon the original Defendant to execute the sale       D
deed in favour of Respondent Plaintiff after receiving the balance
consideration. By a letter dated 10th March 2003 sent in response to the
aforesaid legal notice, the original Defendant denied having entered into
any oral sale agreement for sale of the suit property.
       10. On 8th October 2005, the Respondent Plaintiff allegedly            E
approached the original Defendant with a request to receive the balance
consideration and to execute the sale deed in favour of the Respondent
Plaintiff. It is alleged that the original Defendant went back upon his
promise and refused to accede to the request made by the Respondent
Plaintiff.                                                                    F
       11. In the circumstances, on or about 17th October 2005, the
Respondent Plaintiff filed the suit. The original Defendant filed a written
statement denying the allegations in the plaint. In the written statement,
the original Defendant denied the execution of any agreement for sale
of the suit property for consideration of Rs.15,10,000/- as alleged.          G
      12. The original Defendant has categorically stated that he did
not agree to sell the suit property to the Respondent Plaintiff as alleged
and that he did not receive any advance on 11th November 2002 as
alleged or on any other date. It is the case of the Appellants that there
was no concluded contract to sell the suit property. In the written
                                                                              H
258            SUPREME COURT REPORTS                       [2022] 13 S.C.R.


A     statement it is also pleaded that in any case, the Respondent Plaintiff
      was never ready or willing to perform his part of the contract.
            13. The Trial Court framed the following issues:-
            “1. Whether the oral agreement of sale in the 1st week of
            November, 2002 is true?
B
            2. Whether the alleged confirmation letter dated 11.11.2002
            is true and valid?
            3. Whether there is no concluded contract between the plaintiff
            and defendant is true?
C           4. Whether the plaintiff always ready and willing to perform
            his part of contract?
            5. Whether the plaintiff is entitled to get the relief of specific
            performance and possession?
            6. To what relief the plaintiff is entitled to?”
D
            14. The Respondent Plaintiff examined three witnesses and the
      original Defendant deposed as witness on his own behalf. By a judgment
      and order dated 30th November 2010, the Trial Court decreed the suit
      and directed the original Defendant to receive the balance sale
      consideration of Rs.15 lakhs and execute the sale deed in favour of the
E     Respondent Plaintiff.
            15. All the issues framed by the Trial Court were answered in
      favour of the Respondent Plaintiff. The Trial Court found that the
      Respondent Plaintiff was ready and willing to perform his part of the
      contract, and thus entitled to the relief of specific performance. The
F     relevant part of judgment of the Trial Court is set out hereinbelow:-
            “21. But I already discussed that the plaintiff is a businessman
            and he is having sufficient means to pay the amount to the
            defendant Rs.15,00,000/- also deposited into court. The
            amount has not shown in Ex. A4 to A6 is not the ground for
G           denying the prayer. The plaintiff is also ready and willing to
            perform his contract and in view of the above discussions,
            the plaintiff is entitled the relief of Specific performance and
            possession of schedule property. Accordingly, I answered the
            Issues Nos.4 and 5.”
H
  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                            259
      A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

      16. By the impugned judgment and order dated 30th October 2017,         A
the High Court upheld the judgment and decree passed by the Trial
Court, holding that the Respondent Plaintiff had always been ready and
wiling to perform his part of the contract. The relevant part of the
impugned judgment and order reads:-
      “18. The letter dated 11.11.2002 has been marked as Ex. A-              B
      1. In Ex. A1 period has been fixed for execution of a registered
      sale deed. The consistent case of the plaintiff is that despite
      of repeated demands, the defendant has not come forward to
      execute a sale deed in favour of the plaintiff and therefore, a
      legal notice has been issued. Ex.A2 is a copy of the legal
      notice dated 13.02.2003 and the same has also been received             C
      by the defendant. After receipt of the same he has given a
      false reply notice dated 10.03.2003. Since on the side of the
      plaintiff, necessary documentary and oral evidence have been
      let in, it is easily discernible that the plaintiff has always been
      ready and willing to perform his part of the contract.                  D
      Therefore, the fourth contention put forth on the side of the
      appellants/defendant[s] also goes out without merit.
      ...
      20. It has already been discussed in detail that the suit property
      is the absolute property of the defendant. From the evidence            E
      given by the defendant [D.W.1], the Court can very well come
      to conclusion that the entire transaction is based upon on
      oral sale agreement emerged between the plaintiff and
      defendant. Further, the plaintiff has shown his readiness and
      willingness to perform his part of the contract. Therefore,             F
      viewing from any angle, the contentions put forth on the side
      of the appellants /defendants[s] cannot be accepted.”
       17. Mr. Krishnan Venugopal, learned Senior Counsel appearing
on behalf of the Appellants argued that both the Trial Court and the High
Court committed an error on facts and also in law. According to him the       G
issue relating to “readiness and willingness” on the part of the Respondent
Plaintiff, had not been properly appreciated by the Courts below.
Emphasizing on Section 16(c) of the Specific Relief Act, 1963,
Mr. Venugopal submitted that the Respondent Plaintiff had not adduced
any evidence to demonstrate continuous “readiness and willingness”
                                                                              H
260             SUPREME COURT REPORTS                          [2022] 13 S.C.R.


A     which the Respondent Plaintiff was required to prove, regardless of any
      default by the original Defendant. Mr. Venugopal also argued that the
      Court should also take judicial notice of the steep rise in the price of real
      estate, before granting the discretionary relief of specific performance.
             18. Mr. N.D.B. Raju appearing on behalf of the Respondent
B     Plaintiff submitted that the issues framed by the Trial Court of whether
      there was a concluded contract between the Plaintiff and the Defendant,
      and whether the Plaintiff was always ready and willing to perform his
      part of the contract were factual issues determinable on evidence.
             19. Mr. Raju argued that this Court should not disturb the
C     concurrent factual findings of the Trial Court and the High Court of
      readiness and willingness of the Respondent Plaintiff to perform his part
      of the contract.
             20. Mr. Raju has emphatically argued that the Respondent Plaintiff
      was ever ready and willing to perform his part of the contract and that
D     the original Defendant had been delaying the execution of the sale deed.
      To prove readiness and willingness of the Respondent Plaintiff, Mr. Raju
      referred to the testimony of the Plaintiff’s witnesses, N. Anjappa (PW
      2) and S.A. Muralidharan (PW3) who have stated that the Respondent
      Plaintiff had on multiple occasions, before the cut-off date of 15.03.2003
      approached the original Defendant for execution of the sale deed, but
E     the original Defendant delayed the execution of the sale deed.
             21. It is well settled that, in a suit for Specific Performance of an
      agreement, it is for the Plaintiff to prove his readiness and willingness to
      perform his obligations under the agreement. Where a certain amount
      has been paid in advance and the balance is required to be paid within a
F     stipulated time, it is for the Plaintiff to show that he was in a position to
      pay the balance money. The Plaintiff has to prove that he has the money
      or has alternatively made necessary arrangements to get the money. In
      this case, the Original Defendant/Appellants have all along contended
      that the Plaintiff Respondent neither offered to pay nor was in a position
G     to pay the balance consideration of Rs.15,00,000/-.
             22. The primary question for determination is whether the
      Respondent Plaintiff has proved his readiness and willingness to perform
      his part of the contract or not?

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  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                             261
      A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

       23. Section 16 of the Specific Relief Act, 1963, as it stood at the     A
material time (prior to amendment with effect from 1.10.2018), inter
alia, provides:-
      “16. Personal bars to relief.—Specific performance of a
      contract cannot be enforced in favour of a person—
          (a) who would not be entitled to recover compensation for            B
          its breach; or
          (b) who has become incapable of performing, or violates
          any essential term of, the contract that on his part remains
          to be performed, or acts in fraud of the contract, or wilfully
          acts at variance with, or in subversion of, the relation             C
          intended to be established by the contract; or
          (c) who fails to aver and prove that he has performed or
          has always been ready and willing to perform the essential
          terms of the contract which are to be performed by him,
          other than terms the performance of which has been                   D
          prevented or waived by the defendant.
      Explanation. —For the purposes of clause (c), —
      (i) where a contract involves the payment of money, it is not
      essential for the plaintiff to actually tender to the defendant
                                                                               E
      or to deposit in court any money except when so directed by
      the court;
      (ii) the plaintiff must aver performance of, or readiness and
      willingness to perform, the contract according to its true
      construction.”
                                                                               F
       24. Section 16 (c) of the Specific Relief Act, 1963 bars the relief
of specific performance of a contract in favour of a person, who fails to
aver and prove his readiness and willingness to perform his part of
contract. In view of Explanation (i) to clause (c) of Section 16, it may
not be essential for the plaintiff to actually tender money to the defendant
or to deposit money in Court, except when so directed by the Court, to         G
prove readiness and willingness to perform the essential terms of a
contract, which involves payment of money. However, explanation (ii)
says the plaintiff must aver performance or readiness and willingness to
perform the contract according to its true construction.
                                                                               H
262               SUPREME COURT REPORTS                        [2022] 13 S.C.R.


A            25. To aver and prove readiness and willingness to perform an
      obligation to pay money, in terms of a contract, the plaintiff would have
      to make specific statements in the plaint and adduce evidence to show
      availability of funds to make payment in terms of the contract in time. In
      other words, the plaintiff would have to plead that the plaintiff had
      sufficient funds or was in a position to raise funds in time to discharge
B
      his obligation under the contract. If the plaintiff does not have sufficient
      funds with him to discharge his obligations in terms of a contract, which
      requires payment of money, the plaintiff would have to specifically plead
      how the funds would be available to him. To cite an example, the plaintiff
      may aver and prove, by adducing evidence, an arrangement with a
C     financier for disbursement of adequate funds for timely compliance with
      the terms and conditions of a contract involving payment of money.
               26. In Man Kaur v. Hartar Singh Sangha1, this Court held that:
               “40. …..A person who fails to aver and prove that he has
               performed or has always been ready and willing to perform
D              the essential terms of the contract which are to be performed
               by him (other than the terms the performance of which has
               been prevented or waived by the defendant) is barred from
               claiming specific performance. Therefore, even assuming that
               the defendant had committed breach, if the plaintiff fails to
E              aver in the plaint or prove that he was always ready and
               willing to perform the essential terms of contract which are
               required to be performed by him (other than the terms the
               performance of which has been prevented or waived by the
               plaintiff), there is a bar to specific performance in his favour.
               Therefore, the assumption of the respondent that readiness
F              and willingness on the part of the plaintiff is something which
               need not be proved, if the plaintiff is able to establish that the
               defendant refused to execute the sale deed and thereby
               committed breach, is not correct. Let us give an example. Take
               a case where there is a contract for sale for a consideration
G              of Rs. 10 lakhs and earnest money of Rs. 1 lakh was paid
               and the vendor wrongly refuses to execute the sale deed unless
               the purchaser is ready to pay Rs. 15 lakhs. In such a case
               there is a clear breach by the defendant. But in that case, if
               the plaintiff did not have the balance Rs. 9 lakhs (and the
      1
H         (2010) 10 SCC 512
    U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                          263
        A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

       money required for stamp duty and registration) or the capacity        A
       to arrange and pay such money, when the contract had to be
       performed, the plaintiff will not be entitled to specific
       performance, even if he proves breach by the defendant, as
       he was not “ready and willing” to perform his obligations.”
       27. In Pt. Prem Raj v. D.L.F. Housing and Construction                 B
(Private) Ltd. And Anr.2 cited by Mr. Venugopal, this Court speaking
through Ramaswamy J. held that “it is well-settled that in a suit for
specific performance the plaintiff should allege that he is ready
and willing to perform his part of the contract…..” and if the fact is
traversed, he is required to prove a continuous readiness and willingness
from the date of the contract to the time of the hearing, to perform the      C
contract on his part. For such conclusion the learned Judge relied upon
the opinion of Lord Blanesburgh, in Ardeshir Mama v. Flora Sassoon3.
       28. In D.L.F. Housing and Construction (Pvt.) Ltd. (supra), in
the absence of an averment on the part of the Plaintiff in the plaint, that
he was ready and willing to perform his part of the contract, it was held     D
that the Plaintiff had no cause of action so far as the relief for Specific
Performance was concerned. In this case, of course, there is an averment
in the plaint that the Respondent Plaintiff was all along ready and willing
to perform his obligations under the contract. The question is whether
the Respondent Plaintiff had proved his readiness and willingness to          E
perform his obligations under the contract.
       29. In N.P. Thirugnanam v. Dr. R. Jagan Mohan Rao and
Ors.4, this Court reiterated that Section 16(c) of the Specific Relief Act,
1963 envisages that the Plaintiff must plead and prove that he had
performed or has always been ready and willing to perform the essential       F
terms of the contract which were to be performed by him other than
those terms, the performance of which has been prevented or waived
by the Defendant. In N.P. Thirugnanam (supra) this Court said that
the continuous readiness and willingness on the part of the Plaintiff was
a condition precedent for grant of the relief of Specific Performance.
                                                                              G
       30. This Court, in effect, held that for determining whether the
Plaintiff was ready and willing to perform his part of the agreement it is

2
  AIR 1968 SC 1355
3
  55 IA 300, at pg. 372:AIR 1928 PC 208
4
  (1995) 5 SCC 115                                                            H
264                SUPREME COURT REPORTS                         [2022] 13 S.C.R.


A     necessary for the Court to consider the conduct of the Plaintiff prior and
      subsequent to filing the suit for specific performance. The relevant part
      of the judgment is extracted hereinbelow:–
               “5. …Section 16(c) of the Act envisages that plaintiff must
               plead and prove that he had performed or has always been
B              ready and willing to perform the essential terms of the contract
               which are to be performed by him, other than those terms the
               performance of which has been prevented or waived by the
               defendant. The continuous readiness and willingness on the
               part of the plaintiff is a condition precedent to grant the relief
               of specific performance. This circumstance is material and
C              relevant and is required to be considered by the court while
               granting or refusing to grant the relief…”
             31. In Umabai v. Nilkanth Dhondiba Chavan5, this Court held
      that a finding as to whether the Plaintiffs were all along and still ready
      and willing to perform their part of the contract, was a mandatory
D     requirement under Section 16(c) of the Specific Relief Act. The Court
      would necessarily have to arrive at the finding that the Plaintiff all along
      were, and still are ready and also willing to perform their part of the
      contract, taking into account the entirety of the pleadings as also the
      evidence brought on record. To quote this Court:-
E              “So far there being a plea that they were ready and willing to
               perform their part of the contract is there in the pleading, we
               have no hesitation to conclude, that this by itself is not
               sufficient to hold that the appellants were ready and willing
               in terms of Section 16(c) of the Specific Relief Act. This requires
F              not only such plea but also proof of the same. Now examining
               the first of the two circumstances, how could mere filing of this
               suit, after exemption was granted be a circumstance about
               willingness or readiness of the plaintiff. This at the most could be
               the desire of the plaintiff to have this property. It may be for such
               a desire this suit was filed raising such a plea. But Section 16(c)
G              of the said Act makes it clear that mere plea is not sufficient, it
               has to be proved.”
             32. In K.S. Vidyanadam v. Vairavan6, Justice B.P. Jeevan Reddy
      said that grant of the relief of specific performance is discretionary and
      5
          (2005) 6 SCC 243
H     6
          (1997) 3 SCC 1
    U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                          265
        A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

the Court is not bound to grant it. This Court further held that though       A
time is not of essence to a contract relating to transfer of property, such
contracts need to be completed within a reasonable time period. Thus
the time element cannot be completely ignored.
      33. In a suit for Specific Performance of a contract, the Court is
required to pose unto itself the following questions, namely:-                B
       (i) Whether there is a valid agreement of sale binding on both
           the vendor and the vendee and
       (ii) Whether the Plaintiff has all along been and still is ready and
            willing to perform his part of the contract as envisaged under
            Section 16(c) of the Specific Relief Act, 1963.                   C

       34. There is a distinction between readiness and willingness to
perform the contract and both ingredients are necessary for the relief of
Specific Performance. In His Holiness Acharya Swami Ganesh Dassji
v. Sita Ram Thapar7 cited by Mr. Venugopal, this Court said that there
was a difference between readiness and willingness to perform a contract.     D
While readiness means the capacity of the Plaintiff to perform the
contract which would include his financial position, willingness relates to
the conduct of the Plaintiff. The same view was taken by this Court in
Kalawati v. Rakesh Kumar8.
      35. Even in a first appeal, the first Appellate Court is duty bound     E
to examine whether there was continuous readiness and willingness on
the part of the Plaintiff to perform the contract. This proposition finds
support from Balraj Taneja v. Sunil Madan9, and H.P. Pyarejan v.
Dasappa10 where this Court approved the views taken by the Privy
Council in Ardeshir Mama v. Flora Sassoon11.                                  F
      36. In Malluru Mallappa v. Kuruvathappa 12 , this Court
observed and held:-
       “13. It is a settled position of law that an appeal is a
       continuation of the proceedings of the original court.
       Ordinarily, the appellate jurisdiction involves a rehearing on         G
7
  (1996) 4 SCC 526
8
  (2018) 3 SCC 658
9
  (1999) 8 SCC 396
10
   (2006) 2 SCC 496
11
   AIR 1928 PC 208
12
   (2020) 4 SCC 313                                                           H
266      SUPREME COURT REPORTS                       [2022] 13 S.C.R.


A     law as well as on fact and is invoked by an aggrieved person.
      The first appeal is a valuable right of the appellant and therein
      all questions of fact and law decided by the trial court are
      open for reconsideration. Therefore, the first appellate court
      is required to address itself to all the issues and decide the
      case by giving reasons. The court of first appeal must record
B
      its findings only after dealing with all issues of law as well as
      fact and with the evidence, oral as well as documentary, led
      by the parties. The judgment of the first appellate court must
      display conscious application of mind and record findings
      supported by reasons on all issues and contentions [see :
C     Santosh Hazari v. Purushottam Tiwari [Santosh Hazari v.
      Purushottam Tiwari, (2001) 3 SCC 179] , Madhukar v.
      Sangram [Madhukar v. Sangram, (2001) 4 SCC 756], B.M.
      Narayana Gowda v. Shanthamma [B.M. Narayana
      Gowda v. Shanthamma, (2011) 15 SCC 476 : (2014) 2 SCC
      (Civ) 619], H.K.N. Swami v. Irshad Basith [H.K.N. Swami v.
D
      Irshad Basith, (2005) 10 SCC 243] and Sri Raja Lakshmi
      Dyeing Works v. Rangaswamy Chettiar [Sri Raja Lakshmi
      Dyeing Works v. Rangaswamy, (1980) 4 SCC 259]]
      14. A first appeal under Section 96 CPC is entirely different
      from a second appeal under Section 100. Section 100
E     expressly bars second appeal unless a question of law is
      involved in a case and the question of law so involved is
      substantial in nature.
                                 ***

F     18. It is clear from the above provisions and the decisions of
      this Court that the judgment of the first appellate court has to
      set out points for determination, record the decision thereon
      and give its own reasons. Even when the first appellate court
      affirms the judgment of the trial court, it is required to comply
      with the requirement of Order 41 Rule 31 and non-observance
G     of this requirement leads to infirmity in the judgment of the
      first appellate court. No doubt, when the appellate court
      agrees with the views of the trial court on evidence, it need
      not restate effect of evidence or reiterate reasons given by
      the trial court. Expression of a general agreement with the
H     reasons given by the trial court would ordinarily suffice.
     U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                         267
         A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

       37. In H.P. Pyarejan v. Dasappa (supra), Justice Arijit Pasayat        A
speaking for this Court reversed the judgment of the High Court holding
that High Court did not provide reasoning for its conclusion that Plaintiff
was ready and willing to perform his part of contract. To arrive at such
conclusion the Court had relied upon Cort v. Ambergate etc. and Rly.
Co13 where Lord Campbell observed that in common sense, the meaning
                                                                              B
of such an averment of readiness and willingness must be that the non-
completion of contract was not the fault of the Plaintiff.
       38. In this case, we cannot overlook the fact that the suit property
is located in the industrial town of Hosur located about 30/40 kms. from
Bengaluru. The Court is obliged to take judicial notice of the phenomenal
rise in the price of real estate in Hosur. The proposition finds support      C
from case reported in K.S. Vidyanadam v. Vairavan (supra). To quote
this Court “we cannot be oblivious to reality – and the reality is
constant and continuous rise in the values of urban properties -
fuelled by large scale migration of people from rural areas to urban
centres and by inflation.”                                                    D
       39. Mr. Venugopal argued that the Plaintiff had only paid an
insignificant amount of Rs.10,001/- as advance when the consideration
was Rs.15,10,000/-. Having paid an insignificant amount the Plaintiff
was not entitled to discretionary equitable relief of Specific Performance,
as observed by this Court in Saradamani Kandappan v. S.                       E
Rajalakshmi14. The relevant paragraph of the judgment of this Court is
set out hereinbelow:-
          “37. The reality arising from this economic change cannot
          continue to be ignored in deciding cases relating to specific
          performance. The steep increase in prices is a circumstance         F
          which makes it inequitable to grant the relief of specific
          performance where the purchaser does not take steps to
          complete the sale within the agreed period, and the vendor
          has not been responsible for any delay or non-performance.
          A purchaser can no longer take shelter under the principle
          that time is not of essence in performance of contracts relating    G
          to immovable property, to cover his delays, laches, breaches
          and “non-readiness”. The precedents from an era, when high
          inflation was unknown, holding that time is not of the essence
13
     (1851) 117 ER 1229
14
     (2011) 12 SCC 18                                                         H
268             SUPREME COURT REPORTS                          [2022] 13 S.C.R.


A            of the contract in regard to immovable properties, may no
             longer apply, not because the principle laid down therein is
             unsound or erroneous, but the circumstances that existed when
             the said principle was evolved, no longer exist. In these days
             of galloping increases in prices of immovable properties, to
             hold that a vendor who took an earnest money of say about
B
             10% of the sale price and agreed for three months or four
             months as the period for performance, did not intend that
             time should be the essence, will be a cruel joke on him, and
             will result in injustice. Adding to the misery is the delay in
             disposal of cases relating to specific performance, as suits
C            and appeals therefrom routinely take two to three decades to
             attain finality. As a result, an owner agreeing to sell a property
             for rupees one lakh and receiving rupees ten thousand as
             advance may be required to execute a sale deed a quarter
             century later by receiving the remaining rupees ninety
             thousand, when the property value has risen to a crore of
D
             rupees.”
             40. As argued by Mr. Venugopal, the fact that the suit had been
      filed after three years, just before expiry of the period of limitation, was
      also a ground to decline the Respondent Plaintiff the equitable relief of
      Specific Performance for purchase of immovable property.
E     Mr. Venugopal’s argument finds support from the judgments of this Court
      in P.R. Deb and Associates v. Sunanda Roy15; K.S. Vidyanadam v.
      Vairavan16; Manjunath Anandappa v. Tammanasa17, Azhar Sultana
      v. B. Rajamani18; Saradamani Kandappan v. S. Rajalakshmi19.
             41. In K.S. Vidyanadam v. Vairavan (supra) this Court held:
F
                “10. It has been consistently held by the courts in India,
                following certain early English decisions, that in the case
                of agreement of sale relating to immovable property, time
                is not of the essence of the contract unless specifically
                provided to that effect. The period of limitation prescribed
G               by the Limitation Act for filing a suit is three years. From

      15
         (1996) 4 SCC 423
      16
         (1997) 3 SCC 1
      17
         (2003) 10 SCC 390
      18
         (2009) 17 SCC 27
      19
H        (2011) 12 SCC 18
U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                        269
    A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

      these two circumstances, it does not follow that any and          A
      every suit for specific performance of the agreement (which
      does not provide specifically that time is of the essence of
      the contract) should be decreed provided it is filed within
      the period of limitation notwithstanding the time-limits
      stipulated in the agreement for doing one or the other thing
                                                                        B
      by one or the other party. That would amount to saying
      that the time-limits prescribed by the parties in the agreement
      have no significance or value and that they mean nothing.
      Would it be reasonable to say that because time is not made
      the essence of the contract, the time-limit(s) specified in
      the agreement have no relevance and can be ignored with           C
      impunity? It would also mean denying the discretion vested
      in the court by both Sections 10 and 20. As held by a
      Constitution Bench of this Court in Chand Rani v. Kamal
      Rani [(1993) 1 SCC 519] : (SCC p. 528, para 25)
      “… it is clear that in the case of sale of immovable property     D
      there is no presumption as to time being the essence of the
      contract. Even if it is not of the essence of the contract,
      the Court may infer that it is to be performed in a reasonable
      time if the conditions are (evident?): (1) from the express
      terms of the contract; (2) from the nature of the property;
      and (3) from the surrounding circumstances, for example,          E
      the object of making the contract.”
   In other words, the court should look at all the relevant
   circumstances including the time-limit(s) specified in the
   agreement and determine whether its discretion to grant
   specific performance should be exercised...”                         F

   42. In Azhar Sultana v. B. Rajamani (supra) this Court held:-
   “28. …The court, keeping in view the fact that it exercises a
   discretionary jurisdiction, would be entitled to take into
   consideration as to whether the suit had been filed within a         G
   reasonable time. What would be a reasonable time would,
   however, depend upon the facts and circumstances of each
   case. No hard-and-fast law can be laid down therefor. The
   conduct of the parties in this behalf would also assume
   significance.
                                                                        H
                              ***
270                SUPREME COURT REPORTS                       [2022] 13 S.C.R.


A               35. We, therefore, are of the opinion that interest of justice
                would be subserved if this Court refuses to exercise its
                discretionary jurisdiction in terms of Section 20 of the Act,
                directing the defendant to pay a sum of Rs. 60,000 to the
                plaintiff which sum would include the amount of advance paid
                by her.”
B
             43. In Saradamani Kandappan (supra) this Court reiterated that
      (i) while exercising discretion in suits for Specific Performance, the Courts
      should bear in mind that when the parties prescribed a time for taking
      certain steps or for completion of the transaction, that must have some
      significance and therefore time/period prescribed cannot be ignored; (ii)
C     the Courts will apply greater scrutiny and strictness when considering
      whether purchaser was ready and willing to perform his part of the
      contract and (iii) every suit for Specific Performance need not be decreed
      merely because it is filed within the period of limitation, by ignoring time
      limits stipulated in the agreement. The courts will also frown upon suits
D     which are not filed immediately after the breach/refusal. The fact that
      limitation is three years does not mean that a purchaser can wait for one
      or two years to file a suit and obtain Specific Performance. The three
      year period is intended to assist the purchaser in special cases, as for
      example where the major part of the consideration has been paid to the
      vendor and possession has been delivered in part performance, where
E     equity shifts in favour of the purchaser.
            44. In Atma Ram v. Charanjit Singh 20 Justice V.
      Ramasubramanian speaking for this Court made the following pertinent
      observation:-

F               “9... No explanation was forthcoming from the petitioner for
                the long delay of three years, in filing the suit (on 13.10.1999)
                after issuing a legal notice on 12.11.1996. The conduct of a
                plaintiff is very crucial in a suit for specific performance. A
                person who issues a legal notice on 12.11.1996 claiming
                readiness and willingness, but who institutes a suit only on
G               13.10.1999 and that too only with a prayer for a mandatory
                injunction carrying a fixed court fee relatable only to the
                said relief, will not be entitled to the discretionary relief of
                specific performance.”

      20
H          (2020) 3 SCC 311
  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                               271
      A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

       45. The Respondent Plaintiff has relied upon the notice dated             A
13.02.2003 and evidences of PW2 & PW3 to prove that he was always
ready and willing to perform his part of the contract. Even though it may
be true that the Respondent Plaintiff had deposited the balance sale
consideration in court on 06.04.2010, it cannot be ignored that such deposit
was made by him seven years after 15.3.2003, being the date by which
                                                                                 B
the sale had to be concluded. No evidence has been adduced on behalf
of the Respondent Plaintiff as to how the Respondent Plaintiff was in a
position to pay or make arrangements for payment of the balance sale
consideration within time. The Courts below also erred in not adjudicating
upon this vital issue except to make a sweeping observation that, given
that the Respondent Plaintiff was a businessman he had sources to                C
arrange the balance funds. Careful study of balance sheet dated
31.03.2003 of the Respondent Plaintiff would demonstrate that he did
not have sufficient funds to discharge his part of contract.
        46. It is settled law that for relief of specific performance, the
Plaintiff has to prove that all along and till the final decision of the suit,   D
he was ready and willing to perform his part of the contract. It is the
bounden duty of the Plaintiff to prove his readiness and willingness by
adducing evidence. This crucial facet has to be determined by considering
all circumstances including availability of funds and mere statement or
averment in plaint of readiness and willingness, would not suffice.
                                                                                 E
        47. In this case, the Respondent Plaintiff has failed to discharge
his duty to prove his readiness as well as willingness to perform his part
of the contract, by adducing cogent evidence. Acceptable evidence has
not been placed on record to prove his readiness and willingness. Further,
it is clear from the Respondent Plaintiff’s balance sheet that he did not
have sufficient funds to discharge his part of contract in March 2003.           F
Making subsequent deposit of balance consideration after lapse of seven
years would not establish the Respondent Plaintiff’s readiness to
discharge his part of contract. Reliance may be placed on Umabai v.
Nilkanth Dhondiba Chavan (supra) where this Court speaking through
Justice SB Sinha held that deposit of amount in court is not enough to           G
arrive at conclusion that Plaintiff was ready and willing to perform his
part of contract. Deposit in court would not establish Plaintiff’s readiness
and willingness within meaning of section 16(c) of Specific Relief Act.
The relevant part of the judgment is reproduced below: -

                                                                                 H
272                SUPREME COURT REPORTS                       [2022] 13 S.C.R.


A               “45. …Deposit of any amount in the court at the appellate
                stage by the plaintiffs by itself would not establish their
                readiness and willingness to perform their part of the contract
                within the meaning of Section 16(c) of the Specific Relief
                Act…”
B            48. It is, therefore, patently clear that the Respondent Plaintiff
      has failed to prove his readiness to perform his part of contract from the
      date of execution of the agreement till date of decree, which is a condition
      precedent for grant of relief of specific performance. This Court finds
      that the Respondent Plaintiff was not entitled to the relief of specific
      performance.
C
             49. The Respondent Plaintiff may have been willing to perform
      his part of contract. It however appears that he was not ready with
      funds. He was possibly trying to buy time to discharge his part of contract.
             50. In Bhavyanath v. K.V. Balan21 cited by Mr. Raju to contend
D     that the Respondent Plaintiff was entitled to relief of specific performance
      and the courts had rightly granted such relief, the Plaintiff had filed the
      suit for specific performance three days after the last day for execution
      of the sale deed. In this case however, the Respondent Plaintiff waited
      for nearly 3 years and filed the suit for specific performance just before
      expiry of the limitation period. Furthermore, in Bhavyanath v. K.V. Balan
E     (supra) the Plaintiff had adduced cogent evidence to prove his readiness
      and willingness to discharge his part of the contract and to prove that he
      had sufficient funds to discharge his obligation. No such evidence has
      been adduced by the Respondent Plaintiff in this case either to show his
      readiness or to prove that sufficient funds were available with him to
F     enable him to discharge his part of contract. Therefore, Bhavyanath v.
      K.V. Balan (supra) is of no assistance to the Respondent Plaintiff.
             51. In view of foregoing, this Court is of the considered opinion
      that the Respondent Plaintiff was not entitled to the relief of specific
      performance. The Trial Court and the High Court erred both in law and
G     on facts in granting such relief.
            52. The appeal is accordingly allowed. The impugned judgment
      of the High Court and the judgment and decree of Trial court are
      accordingly set aside. The Appellants shall return the earnest money to

      21
H          (2020) 11 SCC 790
  U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. v.                           273
      A. M. KRISHNAMURTHY [INDIRA BANERJEE, J.]

the Respondent Plaintiff, within 4 weeks from today with interest at the     A
rate of 7% per annum from the date of deposit of the same, till the date
of refund. It will also be open to the Respondent Plaintiff to withdraw
the deposit if any of the balance consideration in Court. Parties to bear
their own costs.
                                                                             B
Divya Pandey                                               Appeal allowed.
(Assisted by : Deepak Panwar, LCRA)




                                                                             C




                                                                             D




                                                                             E




                                                                             F




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                                                                             H


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