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R. Shama Naik vs. G. Srinivasiah

Not available · 2024 INSC 927Decided 28 Nov 2024
Not available
Justice J.B. Pardiwala · Justice R. Mahadevan

Background

The petitioner had entered into an agreement in 2005 to purchase property for Rs. 30 lakh, paying Rs. 12.5 lakh as earnest money, and later filed a suit for specific performance (or alternatively, refund of the earnest money) when the seller refused to complete the sale. The trial court decreed specific performance in the buyer's favour, but the Karnataka High Court reversed this on appeal, holding that the buyer had failed to prove he was always "ready and willing" to perform his part of the contract: a mandatory legal requirement under the Specific Relief Act.

Decision Breakdown

The Supreme Court reaffirmed that a plaintiff seeking specific performance must not only plead but also prove, through oral and documentary evidence, that he had the financial capacity (readiness) and genuine intent (willingness) to perform the contract throughout. It held that "readiness" and "willingness" are distinct but both essential ingredients. Since the High Court's finding that the buyer failed to establish this was a factual finding not shown to be perverse, the Supreme Court declined to interfere and dismissed the petition.

Lesson Learnt

Simply having a valid sale agreement is not enough to win a specific performance case: a buyer must actively prove, with real evidence of funds and continuous willingness, that they were ready and able to complete the purchase at all relevant times.

Official source (sci.gov.in)View Judgment (PDF)

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