1. ‘A’ entered into an agreement of sale of his property with ‘B’. ‘B’ paid sufficient money for the total sale consideration and agreed to pay the balance amount within one month. When ‘B’ is ready for payment of the balance and get the property registered. ‘A’. because of the appreciation of the property, refused to execute the sale-deed of the owner of ‘B’. What is the reuse available to the aggrieved party ‘R. Under the provisions of C.P.C.

Doctrine of Resjudicata

Facts of the Case

  • A agreed to sell his immovable property to B under a written agreement of sale.
  • B paid a substantial portion of the sale consideration at the time of the agreement.
  • B committed to pay the remaining balance within one month.
  • B made arrangements and showed readiness to pay the remaining balance and requested A to execute the sale deed.
  • Due to an increase in the property’s market value, A refused to proceed with the registration and sale deed execution.
  • B, being ready and willing to perform his part of the contract, sought legal recourse to enforce the agreement.

Issues in the Case

  • Whether A’s refusal to execute the sale deed after accepting partial payment constitutes a breach of contract.
  • Whether B, who is ready and willing to perform his contractual obligation, can enforce the sale agreement.
  • Whether B is entitled to seek specific performance under the Civil Procedure Code and related provisions.
  • What remedy is legally available to B under Indian civil law when the seller backs out without just cause.

Principles Associated with It

  • Section 9 of the Civil Procedure Code permits a person to file a civil suit for the enforcement of legal rights.
  • Specific Relief Act, 1963, particularly Section 10, allows for specific performance of a contract involving immovable property.
  • Courts treat contracts involving the sale of immovable property as unique and not adequately compensable by monetary damages.
  • A party that is always ready and willing to perform its part of the agreement can enforce specific performance under Section 16(c) of the Specific Relief Act.
  • Time is not generally considered the essence of contracts involving the sale of immovable property unless explicitly stated.

Judgement

  • B can institute a civil suit under Section 9 of CPC for specific performance of the contract.
  • The court may direct A to execute the sale deed in favour of B upon B depositing the balance amount in court.
  • If A still refuses, the court can appoint an officer to execute the sale deed on behalf of A under Order XX Rule 12 of the CPC.
  • The court may also grant an injunction preventing A from selling the property to anyone else during the pendency of the suit.
  • Courts, in similar cases like K.S. Vidyanadam v. Vairavan and Surya Narain Upadhyay v. Ram Roop Pandey, have ruled in favour of the buyer when readiness and willingness were proven.

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