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Issues: (i) whether the plaintiff had proved continuous readiness and willingness to perform his part of the contract and was entitled to specific performance; (ii) whether the plaintiff was entitled to refund of the advance amount with interest in the alternative.
Issue (i): whether the plaintiff had proved continuous readiness and willingness to perform his part of the contract and was entitled to specific performance.
Analysis: Specific performance is an equitable and discretionary remedy, and the plaintiff must plead and prove continuous readiness and willingness under Section 16 of the Specific Relief Act, 1963. The agreement required deposit of the balance consideration before instituting the suit, but the plaintiff did not make the deposit despite obtaining the challan, did not purchase the stamp papers, produced no reliable material to show financial capacity, and delayed taking effective steps until the end of the contractual period. The pleadings and conduct also disclosed suppression of material facts and an attempt to mislead the Court regarding the alleged deposit. On the totality of circumstances, the plaintiff failed to satisfy the statutory and equitable requirements for specific performance.
Conclusion: The issue is answered against the plaintiff and in favour of the defendants. The decree for specific performance was not sustainable.
Issue (ii): whether the plaintiff was entitled to refund of the advance amount with interest in the alternative.
Analysis: Although the plaintiff was not entitled to the principal relief, the admitted payment of advance and further consideration remained established on the record. Section 21 of the Specific Relief Act, 1963 permits compensation in appropriate cases, and the defendants did not successfully dispute the claim for interest as excessive. The Court therefore granted the alternative monetary relief on the facts proved.
Conclusion: The issue is answered in favour of the plaintiff. Refund of the advance amount with interest was awarded.
Final Conclusion: The decree for specific performance was set aside, but the plaintiff was granted the alternative relief of refund with interest, so the appeal succeeded in part.
Ratio Decidendi: A plaintiff seeking specific performance must strictly prove continuous readiness and willingness, comply with any contractual precondition for suit, and approach the Court with clean hands; failure to do so disentitles the plaintiff to the equitable relief, though a separate claim for refund or compensation may still be granted where the advance payment is admitted.
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