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[Specific Performance] Plaintiff Has To Prove That He Has Means To Generate Consideration Amount: SC [Read Judgment]

Ashok Kini
8 Feb 2020 7:19 AM GMT
[Specific Performance] Plaintiff Has To Prove That He Has Means To Generate Consideration Amount: SC [Read Judgment]
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"Mere plea that he is ready to pay the consideration, without any material to substantiate this plea, cannot be accepted."

The Supreme Court has observed that it is mandatory on the part of the plaintiff in a Specific Performance Suit to prove that he has the means to generate the consideration amount. The bench of Justices Abdul Nazeer and Deepak Gupta was considering an appeal arising out of a specific performance suit. The Trial Court had dismissed the suit by holding that the plaintiff had failed to...

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The Supreme Court has observed that it is mandatory on the part of the plaintiff in a Specific Performance Suit to prove that he has the means to generate the consideration amount.

The bench of Justices Abdul Nazeer and Deepak Gupta was considering an appeal arising out of a specific performance suit. The Trial Court had dismissed the suit by holding that the plaintiff had failed to prove that he was ready and willing to perform the contract. The High Court allowed the appeal and the defendants approached the Apex Court challenging the High Court judgment.

The issue before the Apex Court was whether the plaintiff was ready and willing to perform his part of the contract. The bench reiterated the concept of 'readiness and willingness' as follows:

"The words 'ready and willing' imply that the plaintiff was prepared to carry out those parts of the contract to their logical end so far as they depend upon his performance. The continuous readiness and willingness on the part of the plaintiff is a condition precedent to grant the relief of performance. If the plaintiff fails to either aver or prove the same, he must fail. To adjudge whether the plaintiff is ready and willing to perform his part of contract, the court must take into consideration the conduct of the plaintiff prior, and subsequent to the filing of the suit along with other attending circumstances. The amount which he has to pay the defendant must be of necessity to be proved to be available. Right from the date of the execution of the contract till the date of decree, he must prove that he is ready and willing to perform his part of the contract. The court may infer from the facts and circumstances whether the plaintiff was ready and was always ready to perform his contract. "

Taking note of the evidence on record, the bench said that there is absolutely no evidence to show that the plaintiff has the means to make arrangements for payment of consideration under the re conveyance agreement. Restoring the Trial Court judgment, it said:

Mere plea that he is ready to pay the consideration, without any material to substantiate this plea, cannot be accepted. It is not necessary for the plaintiff to produce ready money, but it is mandatory on his part to prove that he has the means to generate the consideration amount.
Case name: C.S. VENKATESH vs. A.S.C. MURTHY (D)
Case no.: CIVIL APPEAL NO. 8425 OF 2009
Coram: Justices Abdul Nazeer and Deepak Gupta
Counsel: Adv S.N. Bhat for Appellant and Adv Sanya Kumar for Respondent

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