VidhiSangh

Supreme Court of India · 12/07/2022

U.N. KRISHNAMURTHY (SINCE DECEASED) THR. LRS. versus A. M. KRISHNAMURTHY

[2022] 13 S.C.R. 250 · 2022 INSC 714

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Summary

A purchaser sued for specific performance of an agreement to buy a house in Hosur for Rs 15,10,000, of which Rs 10,001 was paid in advance, the sale deed to be registered by 15.03.2003. The vendor denied any concluded contract. The trial court decreed the suit, and the Madras High Court affirmed. The Supreme Court reversed. Under Section 16(c) of the Specific Relief Act the plaintiff must plead and prove continuous readiness and willingness from agreement to decree; readiness means financial capacity, willingness means conduct. He led no evidence of how he could pay or arrange the balance in time, his balance sheet of 31.03.2003 showed he lacked the funds, and depositing the balance in court seven years late did not establish readiness. Suing nearly three years after the breach, amid steeply rising property prices, also weighed against the discretionary relief.

Issues

  1. Whether the plaintiff proved continuous readiness and willingness under Section 16(c) of the Specific Relief Act, 1963 when he adduced no evidence of funds or arrangements to pay the balance consideration of Rs 15 lakh by the stipulated date and his balance sheet showed insufficient funds.
  2. Whether deposit of the balance consideration in court seven years after the stipulated date establishes readiness.
  3. Whether delay of nearly three years in filing the suit, and the steep rise in real-estate prices, are relevant to the discretionary relief of specific performance.

Provisions considered

Held

Result

Appeal allowed; the Madras High Court's judgment of 30.10.2017 and the trial court's decree set aside. The appellants to refund the earnest money within four weeks with interest at 7% per annum from the date of deposit; the plaintiff free to withdraw any balance consideration deposited in court. Parties to bear their own costs.

Judgment PDF: Supreme Court of India, [2022] 13 S.C.R. 250.