
Praveen Kumar
June 22, 2025 at 06:51 AM
*Sangita Sinha V. Bhawana Bhardwaj (2025 SC)*
1. S.16(c) SRA: In a suit for specific performance of a contract, the plaintiff must exhibit continuous ‘readiness’ and ‘willingness’ till the date of the decree.
2. 'Readiness' and 'Willingness' are not one but two separate elements. 'Readiness' means the capacity to perform the contract, which would include the financial position to pay the sale consideration. 'Willingness' refers to the intention to perform his part of the contract, which is inferred by scrutinising the conduct and attending circumstances.
3. In the present case, the plaintiff (buyer) demanded his earnest money back. The defendant (seller) sent Demand Draft with a letter stating that the Agreement stands terminated. The plaintiff got the earnest money encashed from the defendant (seller) after the institution of the suit. SC held that the readiness and willingness of the buyer to go ahead with the sale of the property at the time of the institution of the suit loses its relevance, if he is unable to establish that the readiness and willingness has *continued throughout the pendency of the suit.*
4. Moreover, the SC held that the Plaintiff suppressed material facts: termination of the agreement and encashment of Demand Drafts from the court which further disentitles him from the equitable and discretionary relief of specific performance (as before 2018 Amendment).
5. Lastly, the SC also held that since the Agreement stood cancelled even before the institution of the suit; the suit for specific performance of the Agreement is *not maintainable* without a prayer for declaration that the termination of agreement was bad in law. As, for specific performance, there must exist a subsisting contract between the parties.
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