Summary
A purchaser who paid only a small part of the price within the agreed six-month period, remained inactive for years and did not establish a later extension was not entitled to specific performance. The suit also could not compel a second sale while an earlier registered sale deed remained unchallenged.
Issues
- Whether the respondents were entitled to specific performance despite failing to pay or offer the balance price within the agreed six-month period and their prolonged inaction.
- Whether later alleged payments extended the time for performance or established readiness and willingness.
- Whether specific performance could be granted when a prior registered sale deed in favour of another defendant had not been challenged.
Provisions considered
- Section 16(c), Specific Relief Act, 1963The appellants relied on the requirement to plead and prove readiness and willingness. The Court found that the respondents had not tendered the balance within the agreed period or taken timely steps to obtain the sale deed; the alleged later payments did not establish an extension or an enforceable right to specific performance. (¶¶ 9, 24, 25, 26, 30)
Held
- A contractual time limit for completing a sale of immovable property cannot be treated as meaningless merely because time is not ordinarily expressed to be of the essence. In deciding specific performance, the Court must consider the agreed period and the parties’ conduct. Here, the purchasers did not offer the balance consideration within six months, took no timely steps to obtain the deed, and issued notice only after more than six and a half years. (¶¶ 24, 25, 29, 30)
- The alleged later payments did not establish that the time for performance had been extended: the post-period endorsements were not proved to bear the appellant’s thumb impression, and no willingness to pay the balance or timely demand for execution was shown. Even if later payments were assumed, the circumstances did not make specific performance available; any proved payments could instead support a claim for recovery with appropriate damages or interest. (¶¶ 26, 30)
- A suit seeking specific performance of an agreement to sell the property could not be maintained when a registered sale deed to another defendant had been executed before notice and suit, and the purchasers sought no relief to cancel that deed, including at either appellate stage. (¶¶ 27, 28)
Result
The appeal was allowed. The judgments of the High Court and First Appellate Court were set aside, and the Trial Court’s dismissal of the suit was restored. No order as to costs.