Specific Performance - Adverse Inference Cannot Be Drawn Against A Plaintiff Merely Because He Did Not Produce His Bank Passbook: Supreme Court

The Supreme Court observed that adverse inference cannot be drawn against a plaintiff in a suit for specific performance for not producing his passbook unless he was called upon to produce it.

In this case, the Trial Court decreeed the suit for specific performance. In appeal, the High Court set aside the decree mainly on the ground that the plaintiff was not ready and willing to perform his part of the contract. According to the high Court, the plaintiff did not prove that he had the cash and/or amount and/or sufficient funds/means to pay the balance sale consideration, as no passbook and/or bank accounts was produced.

In appeal, the plaintiff relied on the relied upon the decision in Indira Kaur and Ors. Vs. Sheo Lal Kapoor; (1988) 2 SCC 488 and Ramrati Kuer Vs. Dwarika Prasad Singh; (1967) 1 SCR 153. 

"In the case of Indira Kaur (supra) this Court after considering the observations made by this Court in the case of Ramrati Kuer (supra) has set aside the findings recorded by three courts below whereby an adverse inference had been drawn against the plaintiff therein for not producing the passbook and thereby holding that the plaintiff was not ready and willing to perform his part of the agreement. It is observed and held that unless the plaintiff was called upon to produce the passbook either by the defendant or, the Court orders him to do so, no adverse inference can be drawn", the bench of Justices M R Shah and B V Nagarathna observed.

Allowing the appeal, and restoring the Trial Court decree, the bench directed the plaintiff to pay to defendant a further sum of Rs. 10 lakhs. The same is to be deposited within a period of eight weeks from today and on such payment, defendant is directed to execute the sale deed in favour of the original plaintiff  within a period of two weeks therefrom, the court ordered.

Case details

Basavaraj vs Padmavathi | 2023 LiveLaw (SC) 17 | CA 8962-8963 OF 2022 | 5 Jan 2023 | Justices M R Shah and B V Nagarathna 

For Appellant(s) Nishanth Patil, AOR Mr. K Parameshwar, Adv. Mr. Nishanth Patil, Adv. Mr. Ayush P Shah, Adv. Ms. Sregurupriya, Adv.

For Respondent(s) Mr. Shailesh Madiyal, Adv. Mr. Vinayaka Pandit, Adv. Mr. Rajan Parmar, Adv. Mr. Akshay Kumar, Adv. Mr. Mrigank Prabhakar, AOR

Headnotes

Specific Relief Act, 1963 ; Section 16 - Unless the plaintiff was called upon to produce the passbook either by the defendant or, the Court orders him to do so, no adverse inference can be drawn - Referred to Indira Kaur vs. Sheo Lal Kapoor (1988) 2 SCC 488 and Ramrati Kuer vs. Dwarika Prasad Singh; (1967) 1 SCR 153. (Para 6 -7)

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