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  • provisions of S. 16(c) of the Specific Relief Act. Both the provisions
  • provision of S. 16(c) of the Specific Relief Act
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  • provisions of S. 16(c) of the Specific Relief Act. Both the provisions
  • provision of S. 16(c) of the Specific Relief Act
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The plaintiff and the defendant were members of a joint family and both sold certain property to one Deoram Shivram Tidke. From the sale consideration, the defendant persuaded the plaintiff to accept Rs. 7,000 less than the plaintiff's attributable share; correspondingly the defendant received Rs. 7,000 more. The plaintiff thereby gave Rs. 7,000 to the defendant. In consideration of that amount, the defendant entered into a written agreement dated 23-2-1973 to sell the suit property to the plaintiff for Rs. 7,000. The plaintiff was put in possession of the property, but the defendant refused to execute a regular sale deed or assist in transfer of the property in the revenue records.

Consequently, in 1976 the plaintiff filed Regular Civil Suit No. 296 of 1976 seeking specific performance of the agreement dated 23-2-1973 and also filed an application for an injunction restraining the defendant from interfering with his possession.

The defendant filed a written statement (Exh. 21) resisting the suit and ventilating various grievances, but did not deny the material averments that (i) the defendant had obtained Rs. 7,000 more and the plaintiff Rs. 7,000 less in the transaction with Deoram Shivram Tidke, (ii) the agreement of sale dated 22-3-1973 in favour of the plaintiff had been executed, and (iii) possession had been delivered to the plaintiff.

The trial Court, in view of the written statement which did not deny the plaintiff's relevant averments, decreed the plaintiff's suit for specific performance. On appeal the learned Assistant Judge accepted the trial Court's factual findings (including existence and validity of the agreement) but held that the plaint did not aver that the plaintiff was ready and willing to perform his part of the agreement; on that ground he set aside the decree for specific performance and ordered return of Rs. 7,000 by the defendant to the plaintiff.

The present appeal challenges the Assistant Judge's decision.

Legal Issues Presented

  1. Whether the omission in the plaint of an averment that the plaintiff was "ready and willing" to perform his part of the contract is fatal to a suit for specific performance where, as pleaded and not denied, the plaintiff has already performed his part (i.e., paid consideration and taken possession) and the only remaining act is execution of the sale deed by the defendant.
  2. Whether reliance on S. 16(c) of the Specific Relief Act and the Supreme Court decision in Ouseph Varghese v. Joseph Aley (1969) 2 SCC 539 was appropriate to dismiss a suit for specific performance in the factual circumstances of this case.

Arguments of the Parties

Appellant (Plaintiff)

  • Asserted that both parties sold property to Deoram Shivram Tidke and, as a result of arrangements between them, the plaintiff accepted Rs. 7,000 less while the defendant received Rs. 7,000 more.
  • Alleged that in consideration of Rs. 7,000 the defendant entered into an agreement (23-2-1973) to sell the suit property to the plaintiff and that the plaintiff was put in possession of the property.
  • Contended that the defendant refused to execute a regular sale deed or help in transfer to the plaintiff's name in revenue records, prompting the suit for specific performance and an injunction.
  • Maintained (implicitly by pleadings) that the plaintiff had already performed his part of the contract (payment/consideration and acceptance of possession), leaving only the defendant's obligation to execute the sale deed.

Respondent (Defendant)

  • Filed a written statement resisting the suit and raised various contentions and grievances (not further specified in the opinion).
  • Critically, the defendant did not deny the material averments in the plaint concerning the receipt of differing consideration, execution of the agreement of sale, and delivery of possession to the plaintiff.
  • In the first appellate Court, the defendant succeeded on the narrow contention that the plaint did not aver that the plaintiff was ready and willing to perform his obligations, and on that basis the learned Assistant Judge dismissed the suit for specific performance and ordered return of Rs. 7,000.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ouseph Varghese v. Joseph Aley, (1969) 2 SCC 539 Illustrated the necessity, in cases of executory contracts, of averring readiness and willingness to perform (linked with Forms 47 & 48 of the First Schedule of the CPC and with S.16(c) of the Specific Relief Act). The court held that reliance on this decision was misplaced here because that case concerned an executory contract where the plaintiff had yet to perform his part; by contrast, in the present case the plaintiff's performance was alleged as a fait accompli and was not denied, so the readiness-and-willingness averment was inapplicable.

Court's Reasoning and Analysis

The appellate court's reasoning proceeded in the following steps, strictly reflecting the text of the opinion:

  1. The Assistant Judge below accepted the trial Court's factual findings regarding the existence and validity of the agreement dated 23-2-1973 and the plaintiff's possession, but nevertheless dismissed the suit for specific performance on the narrow ground that the plaint did not aver that the plaintiff was "ready and willing" to perform his part of the contract.
  2. The present court characterized that approach as "hypertechnical" and analyzed the nature of the contractual obligations: the plaintiff had already paid the consideration (having accepted Rs. 7,000 less) and had been put in possession. Thus, as between the parties, the plaintiff's performance was already complete (a fait accompli) and what remained executory was the defendant's act of executing the sale deed.
  3. The court examined Section 16(c) of the Specific Relief Act, which disallows enforcement of specific performance in favour of a person who "fails to aver and prove that he had 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 prevented or waived by the defendant." The court emphasized that the statutory averment requirement is designed for cases where the plaintiff has not already performed his part; where performance is already complete, the proper averment is of actual performance, not of readiness and willingness.
  4. Because the plaintiff had expressly averred performance in the plaint and the defendant had not denied that averment in the written statement, the plaintiff was relieved from the burden of proving performance. The court stressed that pleadings and proof must be read together: performance as a fait accompli obviates the need for pleading "readiness and willingness."
  5. The court considered the Assistant Judge's reliance on the Supreme Court's decision in Ouseph Varghese v. Joseph Aley and concluded that the authority was inapposite. That case involved an entirely executory contract where the plaintiff had not performed his part and therefore the averment of readiness and willingness (as required by Forms 47 and 48 of the First Schedule of the CPC and by S.16(c)) was indispensable. The present case, by contrast, was not executory as to the plaintiff.
  6. The court noted that ordinarily, if a plaintiff omitted a necessary averment of readiness and willingness in a case where such averment is required, the plaintiff should be given an opportunity to amend the plaint (so long as no prejudice would be caused to the defendant). However, this remedial course was unnecessary here because, on the pleaded and uncontroverted facts, nothing remained for the plaintiff to perform and hence there was no legal consequence to the omission.
  7. Accordingly, the court concluded that reliance on S.16(c) and the Varghese case to non-suit the plaintiff was misplaced; the Assistant Judge's dismissal on that ground was unsustainable.

Holding and Implications

Core Ruling: Appeal allowed; the decree passed by the lower appellate Court is set aside and the decree passed by the trial Court is restored.

Direct consequences:

  • The plaintiff's decree for specific performance as granted by the trial Court stands restored by this appellate Court.
  • The order of the lower appellate Court directing return of Rs. 7,000 by the defendant to the plaintiff is set aside.
  • There shall be no order as to costs.

Broader implications (as stated by the court):

  • The opinion underscores that S.16(c) of the Specific Relief Act and related pleading requirements (and cases applying them) apply to situations where the plaintiff has yet to perform his part of an executory contract. They do not apply where the plaintiff's performance has already been effected and is pleaded and left uncontroverted.
  • The court reaffirmed the equitable practice of permitting amendment of pleadings where a required averment is missing and no prejudice is caused, but observed that such amendment was unnecessary when the factual position shows that the plaintiff's performance is already complete.
  • No new legal principle was created; the decision turns on application of existing statutory provision and precedent to the particular facts and restores the trial Court's decree on that basis.
Appeal allowed.

This summary is limited to, and based exclusively upon, the information contained in the provided opinion.

    Trimbak Shankar Tidke v. Nivratti Shankar Tidke .

    1. This appeal has got to be allowed on the narrow ground that the view taken by the learned Assistant Judge, who has clearly accepted all the contentions of the plaintiff but, all the same, has dismissed the plaintiffs suit for specific performance, is a hypertechnical view.

    2. The facts are very simple. The plaintiff came before the Court contending that he himself and the defendant formed a joint family. Both of them had sold certain property to one Deoram Shivram Tidke. Out of the consideration to be received by both of them from Deoram Shivram Tidke, the defendant persuaded the plaintiff to take an amount less than what was receivable by him as per his share in the property. The plaintiff took Rs. 7000/- less and correspondingly the defendant took Rs. 7000/- more in that transaction. In this manner, therefore, the plaintiff had given Rs. 7000/- to the defendant. In consideration of this amount the defendant entered into an agreement with the plaintiff to sell the suit property to him for the said amount of Rs. 7000/-. The plaintiff was even put in possession of the property. The defendant, however, would not help the plaintiff in getting the property transferred to the name of the plaintiff in the revenue records and he was adamant in not executing the regular sale deed in his favour. Hence in the year 1976 the instant suit, namely Regular Civil Suit No. 296 of 1976, was filed by the plaintiff for specific performance of the said agreement dt. 23-2-1973.

    The plaintiff also filed an application for injunction restraining the defendant from interfering with his possession of the suit property.

    3. By his written statement Exh. 21, the defendant resisted the suit. In the written statement the defendant raised various contentions for the purpose of ventilating his various grievances against the plaintiff; but the most astonishing fact is that the relevant averments made by the plaintiff in the plaint were nowhere denied by him in the written statement. The fact that in the transaction with Deoram Shivram Tidke the defendant had received a larger amount than was receivable by him and that the plaintiff had received a smaller amount than the one which should have been received by him to the extent of Rs. 7000/- was not denied. Further the fact that on 22-3-1973 he in fact executed the agreement of sale in favour of the plaintiff was not denied by the defendant. The fact that the possession of the suit property was in fact made over to the plaintiff was not denied by him. All the same he wanted the suit to be dismissed.

    4. On these pleadings appropriate issues were framed by the learned trial Judge and in view of the meaningless written statement filed by the defendant the trial Court had no other alternative but to decree the plaintiff's suit for specific performance.

    5. In appeal the learned Assistant Judge has accepted all the relevant findings of the trial Court. The existence and validity of the agreement dt. 23-2-1973 was accepted by him. The finding recorded by the learned trial Judge in connection with the existence and validity of the agreement was not disturbed by him. The learned Assistant Judge however took a very strange view viz. that in the plaint the plaintiff had not made a statement that he was ready and willing to perform his part of the agreement. On this ground the learned Assistant Judge held that the suit for specific performance filed by the plaintiff was not maintainable and on this ground he set aside the decree for specific performance and ordered, instead, the return of the amount of Rs. 7000/- by the defendant to the plaintiff.

    6. As stated above at the outset, this view is hypertechnical. Such a view should not be taken in any Court unless the Court is absolutely compelled to take, such a hypertechnical view. The point is that in the instant case there was nothing to be performed by the plaintiff at all. The entire amount of Rs. 7000/- which was the consideration for the sale deed is already lying in the coffers of the defendant. The possession of the land has already been made over by the defendant to the plaintiff. All that remains to be done is the execution of the sale deed by the defendant in favour of the plaintiff. So far as the plaintiff is concerned, it is an executed contract on his part; what remains executory is the part to be performed by the defendant. These are the facts averred in the plaint and not denied in the written statement at all. If this is the position, it beats understanding as to what is that part that the plaintiff is yet to perform. Pleadings are intended to reflect the substantive rights claimed by the parties. In the instant case every shade of the right of the plaintiff stands fully reflected in the plaint. None of the authorities referred by the learned Assistant Judge has any bearing on this state of facts. This is not a case where the plaintiff is yet to perform something towards the agreement the readiness and willingness to perform which has got to be reflected in the plaint. The plaintiff has stated in the plaint that he himself has done everything that he had to perform under the contract. If any part of the performance of the agreement had remained, then he would have been duty bound to state in the plaint that he was willing to perform that part of the agreement but no such position exists in the present case. I will go a step further and state that in case such statement is not made by the plaintiff when it is necessary to be made, the Court should normally give an opportunity to the plaintiff to amend the plaint for incorporating such averment in the plaint because by doing so the plaintiff does not change the nature of the case at all and normally no prejudice is caused to the defendant if the plaintiff is allowed to amend the plaint in such circumstances. If the plaintiff refused to amend the plaint even after such direction by the Court, the Court may be required to consider whether the plaintiff's suit for specific performance should be decreed or not in the absence of such necessary averment in the plaint; but all this discussion is academic so far as the present case is concerned. In the present case there remains nothing for the plaintiff to perform towards the contractual obligation. If this is so, failure on his part to express his willingness to perform his obligation is of no legal consequence.

    7. The provision of S. 16(c) of the Specific Relief Act no doubt appears to be of a peremptory character. Said cl. (c) of S. 16 of the Act read along with its operative part reads as follows:—

    “Specific performance of a contract cannot be enforced in favour of a person—

    (a) & (b) ………

    (c) who fails to aver and prove that he had 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 prevented or waived by the defendant.”

    Relying upon this provision and relying also upon the judgment of the Supreme Court in (1969) 2 SCC 539 the Appeal Court has held that the plaintiff's suit for specific performance has got to be dismissed.

    But what the learned Assistant Judge has failed to notice is that the averment of readiness and willingness is required to be made only in case in which the plaintiff has not already performed his part of the contract. In the case of performance on his part as fait accompli, averment has to be of his actual performance, not of his readiness and willingness for such performance.

    Coming to the question of proof contemplated by said Cl. (c), the plaintiff was relieved of the obligation even of “proving” his performance, because the fact that the plaintiff had even performed his part is something which was averred by the plaintiff in so many words in the plaint and was not as much as denied by the defendant even by one word in his written statement. It, thus, followed that no question arose of plaintiff's being required either to plead or prove his readiness and willingness in the instant case.

    The fallacy in the learned judge's reasoning stemed from the fact that he overlooked the first part of cl. (c) of S. 16 which deals with pleadings and proof and failed to notice that as performance as fait accompli was established, question of pleading and proving “readiness and willingness” did not arise. Reliance on said S. 16(c) for non-suiting the plaintiff was, therefore, quite misplaced.

    8. Reliance on the judgment of the Supreme Court in the case of Ouseph Varghese v. Joseph Aley (1969) 2 SCC 539 is simiarly misplaced. That was not a case where nothing remained to be performed by the plaintiff before he called upon the defendant to execute the sale deed. The facts of the case were as follows:—

    The plaintiff sold certain property to defendant 1, who was the husband of defendant 2, in or about the year 1921 for a certain amount. His contention in the suit was that there was a contemporaneous oral agreement between himself and defendant 1 for reconveyance of the said property to the plaintiff for the same price. Defendant 1 died immediately after the suit. His wife, defendant 2, filed a written statement and denied the alleged contemporaneous oral agreement between the plaintiff and deceased defendant 1. However, she contended that out of the said properties, property Item No. 1 (minus one acre therefrom) was agreed to be sold by defendant 1, some time before his death, to the plaintiff for the sum of Rs. 11,500/-.

    The trial Court decreed the suit as prayed for by the plaintiff; but the High Court, in appeal, did not accept the plaintiff's plea as regards the existence of the contemporaneous oral agreement. All the same, the High Court granted the decree in favour of the plaintiff for specific performance for the said property Item No. 1 (minus one acre) with a direction to the plaintiff to pay Rs. 11,500/- for the same.

    In appeal to the Supreme Court, the Supreme Court agreed with the High Court's view relating to the contemporaneous oral agreement and held that the same was not satisfactorily proved by the plaintiff. But so far as the other agreement set up by the defendant was concerned, the Supreme Court held that the plaintiff had not asked for specific performance of that agreement at all. The plaintiff had not amended his plaint and had not expressed his readiness and willingness to perform his part of the contract pleaded by the defendant. In this view of the matter, the Supreme Court held that the mandatory requirement of Forms 47 and 48 of the First Schedule in the CPC disentitles the plaintiff for a claim to the decree for specific performance. The provisions of Forms 47 and 48 of the First Sch. in the CPC are, more or less, similar as the provisions of S. 16(c) of the Specific Relief Act. Both the provisions ordain that an averment relating to his readiness and willingness to perform his part of the contract has got to find a place in the plaintiff's plaint itself.

    Even a casual glance at the judgment of the Supreme Court is enough to reveal that the contract that the Supreme Court was dealing with was entirely an executory contract. The plaintiff had yet to perform his part of the obligation. Hence there did not arise any question of his pleading and proving his “performance” as a fait accompli; but there did arise the question as to whether he was himself willing to perform his part of the agreement or not and that is the reason why it was held that the averment to that effect in the plaint was indispensable having regard to the provisions of Forms 47 and 48 of the First Sch. in the CPC. The basic difference in the present case in comparison with the Varghese case is that in the instant case the agreement of sale is wholly an executed agreement so far as the plaintiff is concerned. It is in no way an executory contract. The principle of law applicable to an executory contract cannot, therefore, be applied to the present type of contract at all.

    9. If there was anything yet to be performed by the plaintiff under the agreement and if there existed unimpeachable evidence of the plaintiff's readiness and willingness to perform his part of the contract, I would have directed the plaintiff to amend the plaint and to incorporate therein the averment relating to his readiness and willingness to perform his part of the contract. I would have done so because in the case such as the present one in which plaintiff has done and has been doing everything on his part vis-a-vis the contract, a Court of equity should not allow his suit to be defeated if the Court was satisfied that the shortcoming in his pleadings had not in any way prejudiced the defendant. In such cases the Courts have not only the power but even the duty to direct such amendment. But, to my mind, this is meaningless in the instant case, because once it becomes ah admitted fact that the plaintiff has done everything that was required to be done by him under the contract, securing assurance from him that he was ready and willing to perform his part of the contract was an exercise in futility, apart from being an exercise in irrationality not ordained by the statute.

    10. The appeal is, therefore, allowed. The decree passed by the lower appellate Court is set aside and the one passed by the trial Court is restored. There shall be no order as to costs.

    Appeal allowed.
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    Comments

    Trimbak Shankar Tidke v. Nivratti Shankar Tidke .
    (Jun 20, 1984)