Summary
The Supreme Court restored dismissal of a suit for specific performance because the purchaser failed to establish the financial capacity necessary for continuous readiness and willingness. His income, bank balance and business borrowing did not show an ability to pay or arrange the balance price. The vendors’ alleged failure to obtain vaguely described clearances did not overcome that defect. Failure to deposit the balance price as a condition of interim injunction was not itself decisive.
Issues
- Whether the purchaser proved continuous readiness and willingness to perform the sale agreement.
- Whether his financial evidence established ability to pay or arrange the balance consideration.
- Whether the vendors’ clearance obligations or non-deposit for interim relief changed the result.
Held
- Readiness concerns capacity, including the financial means to pay, while willingness is assessed from conduct and surrounding circumstances. The purchaser must establish readiness and willingness throughout the relevant period, from agreement to decree. (¶¶ 19, 20)
- Low income and bank balance showed inadequate funds. The loan from a cousin was for business, and no evidence showed capacity both to meet that liability and arrange the balance purchase price. The trial court’s conclusion against the purchaser was justified. (¶¶ 12, 21, 22)
- The Supreme Court agreed with the High Court to the limited extent that failure to deposit the balance consideration for an interim injunction was not to be held against the purchaser. Its decision rested on the broader financial evidence rather than that non-deposit alone. (¶¶ 8, 11, 15, 21, 22)
- The clause requiring unspecified no-objection and income-tax clearance certificates was vague as to their nature, purpose and issuing authorities. The Court did not determine the vendors’ allegation that the agreement had been antedated, and that issue was unnecessary to the result. (¶¶ 23, 24)
- On the overall facts the High Court wrongly reversed dismissal of the specific-performance suit. (¶ 25)
Result
Appeal allowed without costs. High Court judgment and decree set aside, restoring the trial court’s dismissal of the specific-performance suit.