Summary
The vendor’s heirs challenged specific performance by characterising the sale agreement as loan security. The Court upheld the findings of execution, part-payment and readiness and willingness; stating marriage expenses as the sale’s purpose did not change the agreement’s character. It dismissed the appeal but, under Article 142, required the purchasers to pay an additional Rs.3,50,000, besides the Rs.50,000 balance with six-percent interest, before execution of the sale deed.
Issues
- Whether the agreement was a sale agreement or security for a loan.
- Whether specific performance should stand and what further payment was required to do complete justice.
Provisions considered
- Section 20, as applicable to this agreement, Specific Relief Act, 1963The Court found the grounds invoked under clauses (a) and (c) inapplicable on the established facts and upheld specific performance. (¶ 7)
- Article 142, Constitution of IndiaTo do complete justice, the Court required an additional payment to the vendors’ heirs while maintaining specific performance. (¶ 7)
Held
- The courts had consistently found execution of the sale agreement and payment of Rs.3,50,000 towards the price. The trial court’s contrary speculation that the document might secure a loan did not justify refusing specific performance on this record. (¶ 5-6)
- The document had to be read as a whole. Its reference to marriage expenses explained the reason for sale and did not convert it into loan security; the defendants had originally denied execution and payment rather than pleading a security transaction. (¶ 6)
- The purchasers’ readiness and willingness, including attendance before the Sub-Registrar with the balance, had been proved. The decree for specific performance was therefore upheld on these facts. (¶ 7)
- Under Article 142, the purchasers were directed to pay an additional Rs.3,50,000 over and above the Rs.50,000 balance. The six-percent interest direction applied to that Rs.50,000 from 11 February 2004 until actual payment; upon payment, the vendors’ heirs were to execute the sale deed. (¶ 7)
Result
Appeal dismissed without costs, subject to the additional-payment direction. The purchasers must pay Rs.3,50,000 extra plus the Rs.50,000 balance carrying six-percent interest from 11 February 2004 to actual payment, upon which the sale deed must be executed.