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Supreme Court of India

AZHAR SULTANAversusB. RAJAMANI & ORS.

Citation
2009 INSC 200
Decided
17 February 2009
Disposal
Disposed off

Holding

The plaintiff did not establish readiness and willingness and had notice of the subsequent sale, so specific performance could not be granted.

Summary

Azhar Sultana entered into a sale agreement with Ramesh Chand Khanna and paid an advance of Rs 30,000. While the agreement was pending, Khanna sold the same property to defendants 5 and 6 by a registered deed, after which the plaintiff filed a suit for specific performance of her original agreement. The Supreme Court examined whether the plaintiff was ready and willing to perform under Section 16(c) of the Specific Relief Act, whether the suit was barred by limitation, and whether the defendants were bona‑fide purchasers for value without notice under Section 19(b) of the Act and Section 3 of the Transfer of Property Act. The Court held that the plaintiff failed to prove continuous readiness and willingness, had constructive notice of the registered deed, and therefore could not claim specific performance; the decree was discretionary under Section 20. Consequently, the Court refused specific performance and, exercising its discretion, ordered the defendants to pay Rs 60,000 (including the advance) to the plaintiff. The appeal was dismissed.

Issues considered

  • Whether the plaintiff was ready and willing to perform her part of the contract under Section 16(c) of the Specific Relief Act.
  • Whether the suit for specific performance is barred by limitation.
  • Whether the defendants are bona‑fide purchasers for value without notice under Section 19(b) of the Specific Relief Act and Section 3 of the Transfer of Property Act.
  • Whether the court should exercise its discretionary jurisdiction under Section 20 of the Specific Relief Act to grant specific performance.

Legislation cited

Subjects

Specific performanceSubsequent purchaserBona fide purchaserReadiness and willingnessLimitation periodDiscretionary jurisdictionTransfer of Property ActSpecific Relief Act

Judgment

•                                     [2009] 2 S.C.R. 537


                                       AZHAR SULTANA                             A
                                              V.
                                    B. RAJAMANI & ORS.
                                Civil Appeal No.1077 of 2009
                                    FEBRUARY 17, 2009
                                                                                 B
                         (S.B. SINHA AND CYRIAC JOSEPH, JJ.)
                      Specific Relief Act, 1963:
            J
       ~               ss.16(c), 19(b) - Subsequent purchaser of land - Plea
                 for Specific Performance of the contract- Knowledge of earlier c
                 sale - Readiness and willingness to perform contract - Failure ~
                 to establish - Further, grant of decree of specific performance
                 of contract is discretionary - Conduct of both parties not good
                 - Interest of justice would be subserved if the Court refuses to
                 exercise discretionary jurisdiction and defendant directed to
                                                                                  0
....             pay Rs. 60, 0001- to plaintiff which would include advance paid
           J.,   by her - Transfer of Property Act, 1882.
                       In this appeal filed against the judgment of the High
                 Court, the subsequent purchasers arrayed at a later stage
                 in a suit for Specific Performance of contract, questioned E
                 the said judgment of the High Court.
                      Disposing of the appeal, the Court
                      HELD: 1. In view of the fact that approval was
                 required to be obtained from the competent authority, the F
                 plaintiff could not have proceeded on the assumption that
                 the suit could be filed within a period of three years from
                 the date of refusal on the part of the original defendant to
                 execute the said deed of sale in terms of the agreement.
                 [Para 14] [548-8, C]                                         G
 >-.                  2. Defendant Nos.5 and 6 were in possession of the
                 properties. The deed of sale was a registered one. Plaintiff,
                 therefore, must be deemed to have notice thereof in terms

                                              537                                H
    538      SUPREME COURT REPORTS                 [2009] 2 S.C.R.
                                                                                 ';



A   of Section 3 of the Transfer of Property Act. She, however,
                                                                     ..-~
    neither in her notice nor in her plaint raised any question
    with regard to the bona fide or otherwise of the transaction
    of sale entered into by and between Shri Khanna and the
    respondent Nos.5 and 6. Prior to execution of the said
B   deed of sale dated 30.10.1981, the suit filed by Khanna
    against Bahadur Hussain was dismissed by the appellate
    court by a judgment and decree dated 30.11.1978. There
    does not appear to be any reason as to why the plaintiff         -\
    cannot be said to have been not aware thereof. It was,                  ..
c   therefore, expected that not only the subsequent
    purchasers but also Bahadur Hussain be impleaded as
    parties in the suit. It is of some significance to notice that
    replication to the said written statement was filed wherefor
    no leave was obtain·ed. [Para 15] [ 548-0, E, F]
D       3. Indisputably again, although the written statem~nt
                                                                                 i-·
  was filed by Shri Khanna on 30.8.1983, defendant Nos.5              ;..
  and 6 were impleaded as parties only in the year 1987. It·
  is f~r the first time in the replication, the plaintiff alleged
  tha.t·there had been a collusion by and between Khanna
E and Bahadur Hussain. Bahadur Hussain, however, was.
  not imp leaded as a party. Replication was filed in 1991. ·
  Such a contention has been raised only in 1991 which
  was impermissible in law. [Para 16] [ 548-G, H; 549-A]
        4. It may be true that the name of the purchaser was         ·!'--
                                                                                 "'
F not' disclosed but then it was open to the plaintiff to ask -
  for other and better particulars of the said stateme.nts~ why
  she had to wait for a period of more than thr~e years for.
  impleading the subsequent purchasers as parties has not
  been explained. Even an application for injunction wa~.
G filed only in September 1985. According to her husband,
  she came to learn about the sale of property in the name
                                                                     ...
                                                                             ,-•
  of defendant No.5 only on 29.9.1986. Why an inquiry was
  not made in the Registration Office although the~, deed of
  sale was a registered one again defies anybody's
H comprehension. Readiness and willingness on the part
                               AZHAR SULTANA V. B. RAJAMANI & ORS.                  539

  ,... ...,
                       of the plaintiff, therefore, is required to be considered from A
                       the aforementioned backdrop of events. [Para 17] [549-8, C]
                             5. It was not necessary that the entire amount of
                       consideration should be kept ready and the plaintiff must
                       file proof in respect thereof. It may also be correct to
                       contend that only because the plaintiff who is a Muslim B
                       lady, did not examine herself and got examined on her
         f
    ~
                       behalf, her husband, the same by itself would lead to a
                       conclusion that she was not ready and willing to perform
                       her part of contract. [Para 20] [551-C]
                                                                                          c
                                 5.2 If the plaintiff has failed to establish that she had
                           all along been ready and willing to perform her part of
                           contract, it would not be necessary to enter into the
                           question as to whether the defendant Nos.5 and 6 were
  ..
._, ·'        I
                           bona fide subsequent purchasers for value without notice
                                                                                           D
                           or not. Furthermore, grant of decree for specific
                           performance of contract is discretionary. The contesting
                      ....
                           respondents herein are living in the property since 1981
                           in their own right. There is absolutely no reason as to why
                           they should be forced to vacate the said property at this
                           juncture. [Paras 21, 22] [551-D, E]                             E
~                            5.3 The plaintiff herself has taken a positive plea that
              ~
                       there had been a collusion between Khanna and Bahadur
                       Hussain. Such a case has neither been pleaded nor
                       proved. No issue in this behalf was framed. Even F
                       otherwise, the question of the defendant's discharging
                       the burden would arise provided the plaintiff is found to
                       be entitled to a decree for specific performance of
                       contract. [Para 23] (551-F, G]
   ~"""!                    6. The conduct of the respondent was not good but, G
                  ~
                       similarly, one cannot lose sight of the conduct of the
                       appellants as well. She had also not brought any evidence
                       to show that she did not have the notice of the said deed
                       of sale. Thus, the interest of justice would be subserved
                       if this Court refuses to exercise its discretionary H
    540       SUPREME COURT REPORTS                [2009] 2 S.C.R.


A   jurisdiction in terms of Section 20 of the Act, directing the
    defendant to pay a sum of Rs.60,000/- to the plaintiff which
    sum would include the amount of advance paid by her.
    [Para 24] [551-H; 552-A, B]
        Veerayee Ammal v. Seeni Ammal (2002) 1 SCC 134 and
8   Ram Awadh (Dead) by LRs. & Ors. v. Achhaibar Dubey & Anr.
    (2000) 2 sec 428 - relied on.
        Maharao Sahib Shri Bhim Singhji; Anantalakshmi               ·~
    Pathabi Ramasharma Yeturi & Ors.; J9dhan Real Estate
c   Development Co. (P) Ltd. & Anr.; Rajendra Garg Etc.;
    Shamshul Islam etc. v. Union of India & Anr. AIR 1981 SC 234
    - referred to.

                        Case Law Reference
          AIR 1981 SC 234         referred to        Para 8
D
          c2002) 1 sec 134        relied on          Para 18
          (2000) 2 sec 428        relied on          Para 19
         CIVILAPPELLATE JURISDICTION: Civil Appeal No. 1077
E   of 2009                                                               ,_
          From the final Judgement and Order dated 21.12.2004 of
    the High Court of Judicature of Andhra Pradesh at Hyderabad
    in City Civil Court Appeal No. 51 of 1993.

F         Uday U. Lalit, S. Udaya Kumar Sagar, Bina Madhavan,
    Vaibhav Mishra and H. Venugopal (for Mis. Lawyer's knit & Co.)
    with him for the Appellant.
          Ranjit Kumar, S. Madhusudhan Babu, V. Venkata Ramana,
    P. Prabhakar and P. Venkata Ramana (for Mukesh K. Giri), with
G   him for the Respondents.
          The Judgement of the Court was delivered by

          S.B. ·SINHA, J.
          1. Leave granted.
H
                               AZHAR SULTANA V. B. RAJAMANI & ORS.                  541
                                         [S.B. SINHA J.]
       ~     ...            2. Subsequent purchasers who were arrayed at a later A
                       stage in a suit for Specific Performance of Contract are before
                       us aggrieved by and dissatisfied with a judgment and order
                       dated 21.12.2004 passed by a learned Single Judge of the High
                       Court of Andhra Pradesh at Hyderabad allowing the appeal from
                       a judgment and order dated 21.7.1993 passed by the First B
                       Additional Judge, City Civil Court, Hyderabad in OS No.1436
             f         of 1981 dismissing the suit of the plaintiff-appellant herein.
       ...
                            3. The factual matrix involved herein is as under:
                             The property in question admittedly belonged to one          c
                       Ramesh Chand Khanna, the original defendant. An agreement
                       of sale was entered into by and between the appellant and the
                       said Ramesh Chand Khanna in terms whereof the suit land was
                       agreed to be sold at the rate of Rs.325/- per sq. yd. A sum of
_..,                   Rs.30,000/- was paid by way of advance.
             ,.                                                                           D
                             4. It now stands admitted that on or about 7.12.1981, an
                       application was filed in terms of Section 27 of the Urban Land
                       Ceiling and (Regulation) Act, 1970. The said application was
                       rejected.
                            It is also not in dispute that a suit was filed by one Bahadur E
                       Hussain against the original defendant. The said suit was
_,;.
                       decreed in favour of the said Shri Bahadur Hussain .
             .,,
                             5. Defendant Nos. 5 and 6 entered into a deed of sale
                       dated 31.10.1981 with the said Ramesh Chand Khanna (since F
                       deceased) for a land measuring 217 sq. yds. for a consideration
                       calculated at the rate of Rs.48,000/- per bigha wherefor
                       negotiation had to be entered into for settlement of the dispute


•--
                       by and between Ramesh Chand Khanna and the said Bahadur
                       Hussain. Only after execution of the deed of sale, a notice was
                                                                                        G
                   ~   issued by the appellant asking Shri Khanna to execute a deed
                       of sale in his favour.
                            The suit for specific performance was filed on or about
                       7.12.1981. As indicated hereinbefore, in the original suit the
                       defendant Nos.5 and 6 were not impleaded as parties. A written H
         542       SUPREME COURT REPORTS                    [2009] 2 S.C.R.

                                                                              ....   ,
     A   statement was filed by Shri Khanna on or about 30.8.1983
         wherein he disclosed the factum of execution of the deed of
         sale dated 31.10.1981. The said defendants were impleaded
         as parties. One of the contentions raised by the said imp leaded
         defendants was that they were subsequent purchasers for value
     B   and without notice to the original agreement for sale entered
         into by and between the appellants and the said Shri Khanna.
                                                                               ~
             6. In view of the pleadirigs of the parties, the learned Trial          ~·

         Judge framed the following issues :

     c              "1)   Whether the plaintiff is entitled for specific
                          performance of agreement in respect of suit
                          schedule property?

                    2)    Whether the suit is barred by limitation?

                    3)    To what relief?                                                  r--
     D                                                                        •
               Additional issues were also framed, viz. :

-.                  1)    Whether the defendant No.6 is a bona fide
                          purchaser of the suit property for value without
                          notice of the suit agreement of sale in favour of
     E
                          the plaintiff?
                                                                                               ~


                    2)    Whether the suit agreement of sale is not                       .;.....
                          binding on the defendants including the             ,,
                          defendant Nos.5 an'd 6?"
     F         The learned trial Judge decreed the suit, interalia, opining
         that defendant Nos.5 and 6 had knowledge about the agr~ement
         of sale entered into by and between the plaintiff and Khanna
         and, thus, the provision of Section 19(b) of the Specific Relief


                                                                              . .1
         Act was not attracted.
     G
              Indisputably, before the learned Trial Judge, the plaintiff-
         appellant did not examine herself. On her behalf, her husband
         who was also the holder of a General Power of Attorney was
         examined.

     H         The learned Trial Judge held the agreement dated
                                    AZHAR SULTANA V. B. RAJAMANI & ORS.                543
                                              [S.B. SINHA J.]
        r- _,.
                          4.12.1978 to be enforceable. It was furthermore held that the A
                          suit was not barred by limitation. It was observed that although
                          grant of a decree for specific performance of a contract is
                          discretionary in nature but as the plaintiff had paid a substantial
                          amount, she should be held to be entitled thereto.
-\                             The defendant Nos.5 and 6 preferred an appeal B
                          thereagainst. By reason of the impugned judgment, as noticed
                I
            ~
                          hereinbefore, the High Court allowed the said appeal. The High
                          Court formulated the following points for its consideration in
                          terms of Order 41 Rule 31 of the Code of Civil Procedure, which
...                       are as under:                                                   c
                               "1)    Whether plaintiff is entitled to seek enforcement of
                                      specific performance of Ex.A 1, agreement of sale?

...             """
                               2)     Whether sixth defendant is bona fide purchaser of
                                      the suit schedule property having paid her D
                                      consideration in good faith and without notice of the
                                      original contract? And
                               3)     Whether the discretion of this Court ought not to be
                                      exercised in favour of the plaintiff for specific
                                      performance of Ex.A 1?"                              E
......-                         7. The Court in a suit for specific performance of contrqct
                 c.!
                          is required to pose unto itself the following questions, namely:
                               (1)    Whether the agreement of sale is valid and binding
                                      on both the vendor and the vendee; and                  F

                               (2)    Whether the plaintiff has all along been and still is
                                      ready and willing to perform his part of the contract
                                      as envisaged under Section 16(c) of the Specific
      ,J.
                                      Relief Act, 1963 (hereinafter referred to for the sake G
            ~
                      4               brevity as 'the Act').
                               8. It was, however, held that readiness and willingness on
                          the part of the plaintiff to perform her part of contract having been
                          conveyed in a telegraphic notice (Exhibit A3); it was obliQatory
                          on the part of the plaintiff-appellant to examine herself in the H
    544       SUPREME COURT REPORTS                   [2009] 2 S.C.R.


A   suit and as she did not examine herself, the legal requirements       f" --,

    envisaged under Section 16(c) of the Act cannot be said to have
    been complied with. It was furthermore held that as no evidence
    was adduced to establish that the amount of consideration which
    was required to be paid to the defendant w~s available with the
B   plaintiff, she was not ready and willing to perform her part of
    contract. It was observed that for the aforementioned purpose,                 J

    contents of the legal notice dated 16/20.11.1981 (Ex.A3) would         \
    not be decisive. Noticing that despite the fact that Section 27 of
    1976 Act was declared ultra vi res by this Court in Maharao Sahib
c   Shri Bhim Singhji; Anantalakshmi Pathabi Ramasharma Yeturi
    & Ors.; Jodhan Real Estate Develogment Co. (P} Ltd. & Anr.;
    Rajendra Garg Etc.; Shamshul Islam etc. v. Union of India &Anr.
    [AIR 1981 SC 234] it was opined that as the said provision was
    very much on statute book at the relevant time, the deed of sale
D   could not have been executed without obtaining such permission                 ;..
    and even on that score, the plaintiff appellant cannot derive any      "'
    advantage to establish that she had been ready and willing to
    perform her part of the contract.
          The learned Judge was of the opinion that as no leave
E   was obtained by the plaintiff-appellant in terms of Order VIII


                                                                                 -
    Rule 9 of the Code of Civil Procedure to file subsequent written
    statement wherein, inter alia, it was alleged that defendant Nos.5
    and 6 were subsequent purchasers with notice of the earlier
                                                                          ""·
    agreement, no cognizance thereof should have been taken and,
F   thus, the trial court must be said to have committed an error in
    considerin9 the same. It was furthermore opined that the trial
    Court cornmitted an error in concluding that there had been a
    collusion between the first defendant, 6tn defendant and Bahadur
    Hussain as would appear from the fact that neither PW1 nor
G   PW3 who examined themselves to support the case of the                      ~~,I
                                                                         >--
    pla.intiff made any statement in that behalf nor was there any
    pl@adin9 in the plaint to that effect.
         It was furthermore opined that as the said defendants were
H   in possession of the property which would amount to a notice
                                      AZHAR SULTANA V. B. RAJAMANI & ORS.                 545
                                                [S.S. SINHA J.]
              ...       ~
                            within the meaning of Section 3 of the Transfer of Property Act,     A
                            the plaintiff would be deemed to have knowledge thereabout.
                                  As regards the second point, the High Court opined that
                            having regard to Section 19(b) of the Act, the plaintiff could not
                            be granted specific performance of the contract as against the
                            said respondent who was a subsequent bona fide purchaser B
          ~                 for value and without notice in as muct;i as DW1 categorically
                    :I
                            stated that defendant No.1 had no knowledge of the said
              .
                            agreement for sale.
                                  So far as the third point which fell for determination of the  c
                            learned Judge of the High Court is concerned, it was held that
                                      th
                            as the 6 defendant had purchased the property as far back as
                            on 31.10.1981 and had been in possession enjoyment thereof


  -               ,.
                            for more than 30 years, it was not a case where the discretionary
                            jurisdiction in terms of Section 20 of the Act should be exercised
                            in her favour.
                                 10. Mr. Uday .U. Lalit, learned senior counsel appearing
                                                                                                D


                            on behalf of the appellant, in support of this appeal would urge :
                                 1)    It was not necessary for the plaintiff to examine herself
                                       as her husband who was her General Power of E

 ...                                   Attorney holder was examined and particularly having
                                       regard to Section 120 of the Indian Evidence Act.
                ...
                                 2)    For the purpose of establishing the plea of readiness
                                       and willingness on the part of the vendee, it was not F
  .                                    necessary to prove that she had enough liquid cash
                                       in her hand inasmuch as for the said purpose it would
                                       be sufficient to show that she could arrange such an
                                       amount for payment of consideration at the
......,
    -....           4
                                 3)
                                       appropriate stage .

                                       Collusion by and between Shri Khanna and
                                                                                             G-

                                       Defendant Nos.5 and 6 i$ evident from the fact that
                                       the deed of sale was executed three years ~ft~r the
                                       execution of the agreement for sale only for a sum of
                                       Rs.48,000/- although the amount of consideration          H
    546        SUPREME COURT REPORTS                    [2009) 2 S.C.R.

                                                                            -~-..
A              on the basis of the agreement for sale dated
               4.12.1978 would have come to Rs.65,000/- and out
               of which a sum of Rs.35,000/- had already been paid.
          4)   Defendant Nos.5 and 6 prior to their purchase of the
               lands in suit having not made any enquiry nor having
B              issued any public notice, the onus of proof that they
               were bona 'fide purchasers for v·alue and without
               notice, was on them.
          5)   The approach to the entire case on the part of the
c              High Court was wrong as would appear from the fact
               that although the subsequent pleadings were held to
               be irrelevant, the statements made in paragraph 9
               thereof were relied upon by the High Court for the
               purpose of showing that the statements made in
               paragraphs 5 and 6 of the written statement had not
D              been adverted to and, thus, would be deemed· ·to              "'
               have been admitted, which even otherwise would
               amount to misreading and misinterpretation of para
               nine of the rejoinder.

E        11. Mr. Ranjit Kumar, learned senior counsel appearing
    on behalf of the respondent, on the other hand, urged:
                                                                                    ,/-
          1)   Keeping in view the peculiar facts and circumstances
               of this case, it Is not a fit case where this Court should    ..
               exercise its jurisdiction under Section 20 of the
F              Specific Relief Act and in particular the fact that the                t.
               respondent had been living in the premises since
               1981.
          2)   Reasons for payment of a lower amount of
                                                                                    JI
               consideration in respect of the suit premises must
G
               be considered as Shri Khanna had already lost his            ~
                                                                              ... "
               suit in respect of the property to Bahadur Hussain
               and it was only because of the· .intervention of the
               Sc:lid r13spondents, Shri Khanna could execute the
               (;lforementioned deed of sale.
H
                              AZHAR SULTANA V. B. RAJAMANI & ORS.                     547
                                        [S.S. SINHA J.]

                       3)       Since the agreement for sale dated 4.12 .1978 itself A
        ~- ·~
                                stipulates that in the event any defect in title is found,
                                the vendee was only entitled to obtain refund of the
                                entire amount of consideration, a decree for specific
                                performance of contract could not have been granted
                                to the appellant.                                          B
                       4)       Readiness and willingness on the part of a vendee
                                must be judged from the entire backdrop of events
             1
         ~
                                upon taking into consideration the fact that the plaintiff
                                did not issue any notice and/or filed any suit for a a
                                period of three years wherefrom it would be evident          c
                                that he was not at all material times ready and willing
                                to perform his part of contract.
                        12. Execution of the agreement and/or genuineness thereof
                  is not in question. Plaintiff indisputably in view of Section 16(c)
                                                                                        D
                  of the Specific Relief Act, 1963 was required to make requisite
             )(
                  averments that she had all along been and still is ready and
                  willing to perform her part of the contract and also establish the
                  same. Shri Khanna in his written statement took a specific
                  defence that as the property was in litigation, plaintiff developed
                  cold feet and did not evince any interest to complete the sale E


..-
 ·..,



             ~
                  transaction by paying the balance of sale consideration. Even
                  after selling the property, allegedly, the plaintiff's representative
                  was asked to take back the amount of Rs.30,000/-.

                       13. We would, at this stage, notice the averments made in             F
                  the said agreement for sale dated 4.12.1978 :

                       "(i)     That after obtaining the permission from Celing
                                Officer, I shall ex(~cute registration in favour of the
                                Purchaser within 2 months. It shall be my responsibility
                                to obtain the permission from the Ceiling Office.        G
                       (ii)     That the sale property is free of all private and public
                                charges and dues. If any detected, I shall be
                                responsible to clear the same. If any defect in title is
                                found, the entire advance money shall be returned.
                                                                                             H
                  SUPREME COURT REPORTS                  [2009] 2 S.C.R.


A         (iii)   That at the time of the registration, I shall hand over
                  the possession of the entire property to the purchaser.
                  The expenses of the Registration shall be borne by
                  the purchaser."
         14. Indisputably, Khanna filed an application for grant of
8   approval for sale of the premises in question. It was necessary,
    as only in 1981, the said provision was declared ultra vires. In
    view of the fact that approval was required to be obtained from
    the competent authority, the plaintiff could not have proceeded
    on the assumption that the suit could be filed within a period of
C   three years from the date of refusal on the part of the original
    defendant to execute the said deed of sale in terms of the
    agreement.
          15. Defendant Nos.5 and 6 were in possession of the
    properties. The deed of sale was a registered one. Plaintiff,
0
    therefore, must be deemed to have notice thereof in terms of
    Section 3 of the Transfer of Property Act. She, however, neither
    in her notice nor in her plaint raised any question with regard to
    the bona fide or otherwise of the transaction of sale entered
    into by and between Shri Khanna and the respondent Nos.5
E   and 6. Prior to execution of the said deed of sale dated
    30.10.1981, the suit filed by Khanna against Bahadur Hussain
    was dismissed by the appellate court by a judgment and decree
    dated 30.11.1978. There does not appear to be any reason as
    to why the plaintiff cannot be said to have been not aware thereof.
F   It was, therefore, expected that not only the subsequent
    purchasers but also Bahadur Hussain be impleaded as parties
    in the suit. It is of some significance to notice that replication to
    the said written statement was filed wherefor no leave was              ~-

    obtained.
G
           16. Indisputably again, although the written statement was
    filed by Shri Khanna on 30.8.1983, defendant Nos.5 and 6 were·
    impleaded as parties only in the year 1987. It is for the first time
    in the replication, the plaintiff alleged that there had been a
    collusion by and between Khanna and Bahadur Hussain.
H
                                AZHAR SULTANA V. B. RAJAMANI & ORS.                   549
~'
                                          [S.B. SINHA J.]

     .    ~
                        Bahadur Hussain, however, was not impleaded as a party. A
                        Replication was filed in 1991. Such a contention has been
                        raised only in 1991 which was impermissible in law.
                              17. It may be true that the name of the purchaser was not
                        disclosed but then it was open to the plaintiff to ask for other
                        and better particulars of the said statements. Why she had to 8
                        wait for a period of more than three years for impeading the
                        subsequent purchasers as parties has not been explained. Even
      .. 1'
-
                        an application for injunction was filed only in September 1985.
                        According to her husband, she came to learn about the sale of
                        property in the name of defendant No.5 only on 29.9.1986. Why       c
                        an inquiry was not made in the Registration Office although the
                        deed of sale was a registered one again defies anybody's
                        comprehension. Readiness and willingness on the ·part of the
                        plaintiff, therefore, is required to be considered from the
                        aforementioned backdrop of events.                               D
           ~
                               18. Section 16(c) of the Specific Relief Act, 1963 postulates
                        continuous readiness and willingness on the part of the plaintiff.
                        It is a condition precedent for obtaining a relief of grant of
                        specific performance of contract. The court, keeping in view
                        the fact that it exercises a discretionary jurisdiction, would be E
                        entitled to take into consideration as to whether the suit had
 '                      been filed within a reasonable time. What would be a
•/'                     reasonable time would, however, depend upon the facts and
               ~
                        circumstances of each case. No hard and fast law can be laid
                        down therefor.                                                       F

                              The conduct of the parties in this behalf would also assume
                        significance.
                             In Veerayee Ammal v. Seeni Ammal [(2002) 1 SCC 134] it
                        was observed :                                              G
     ~ .....
                   .j
                             "11. When, concededly, the time was· not of the essence
                             of the contract, the appellant-plaintiff was required to
                             approach the court of law within a reasonable time. A
                             Constitution Bench of this Hon'ble Court in Chand Rani v.
                                                                                            H
    550       SUPREME COURT REPORTS                    [2009] 2 S.C.R.


A         Kamal Rani held that in case of sale of immovable property
      · · there is no presumption as to time being of the essence
          of the contract. Even if it is not of the essence of contract,                         ._
          the court may infer that it is to be performed in a reasonable                         '
          time if the conditions are (1) from the express terms of the
B         contract; (i1) from the nature of the property; and (iii) from
          the surrounding circumstances, for example, the object of
          making the contract. For the purposes of granting relief,



c
          the reasonable time has to be ascertained from all the
          facts ·and circumstances of the case."                                 .          ·:



          It was furthermore observed :
          "13. The_ word "reasonable" has in law prima facie meaning
          of reasonable in regard to those circumstances of which
          the person concerned is called upon to act reasonably                         ._·I __

          knows or ought to know as to what was reasonable. It may                          '
D                                                                                       1
          be unreasonable to give an exact definition of the word                  ,..:.
          "reasonable". The reason varies in its conclusion according        )          I

          to idiosyncrasy of the individual and the time and
          circumstances in which he thinks. The dictionary meaning·

E
          of the "reasonable time" is to be so much time as is
          necessary, under the circumstances, to do conveniently                    i
          what the contract or duty requires should be done in a                        r-
          particular case. In other words it means, as soon as
          circumstances permit. In P. Ramanatha Aiyar's The Law
                                                                                  ,,    ,.-

          Lexicon it is defined to mean:                                    ~        ·'
F                                                                                    .,__
          'A reasonable time, looking at all the circumstances of the               ,,
          case; a reasonable time under ordinary circumstances;                     .
                                                                                    ,,

          as soon as circumstances will permit; so much time as is
          necessary under the circumstances, conveniently to do
                                                                                    r
                                                                                    I

          what the contract requires should be done; some more
G
          protracted space than 'directly'; such length of time as                  f._
                                                                                   ~
          may fairly, and properly, and reasonably be allowed or           .,. .... t---
          required, having regard to the nature of the act or duty and
          to the attending circumstances; all these convey more or
          less the same idea.' "
                                                                                    f
                                                                                    i
H                                                                                   ~
                              AZHAR SULTANA V. 8. RAJAMANI & ORS.                      551
                                        [S.S. SINHA J.]

    <II     ..
                           19. It is also a well settled principle of law that not only the   A
                     original vendor but also ei subsequent purchaser would be
                     entitled to raise a contention that the plaintiff was not ready and
                     willing to perform his part of contract. [See Ram Awadh (Dead)
                     by LRs. & Ors. v. Achhaibar Dubey & Anr. [(2000) 2 SCC 428
                     para 6]                                                                  B
                           20. We are, however, in agreement with Mr. Lalit that for
          -,.
                     the aforementioned purpose it was not necessary that the entire
      ~
                     amount of consideration should be kept ready and the plaintiff
                     must file proof in respect thereof. It may also be correct to
                     contend that only because the plaintiff who is a Muslim lady, did        c
                     not examine herself and got examined on her behalf, her
                     husband, the same by itself would lead to a conclusion that she
                     was not ready and willing to perform her part of contract.

                          21. If the plaintiff has failed to establish that she had all
                                                                                        D
                     along been ready and willing to perform her part of contract, in
          J<
                     our opinion, it would not be necessary to enter into the question
                     as to whether the defendant Nos.5 and 6 were bona fide
                     subsequent purchasers for value without notice or not.
                           22. Furthermore, grant of decree for specific performance          E
                     of contract is discretionary. The contesting respondents herein
                     are living in the property since 1981 in their own right. There is
•                    absolutely no reason as to why they should be forced to vacate
                     the said property at this juncture.
           "
                           23. The plaintiff herself has taken a positive plea that there F
                     had been a coll11sion between Khanna and Bahadur Hussain.
                     Such a case has neither been pleaded nor proved. No issue in
                     this behalf was framed. Even otherwise, the question of the
                     defendant's discharging the burden would arise provided the
                     plaintiff is found to be entitled to a decree for specific G
*....,          ,J
                     performance of contract.

                           24. We, however, agree with Mr. Lalit that the conduct of
                     the respondent was not good but, similarly, we cannot lose sight
                     of the conduct of the appellants as well. She had also not brought H
     552       SUPREME COURT REPORTS                    [2009] 2 S.C.R.                ,.
                                                                                       t
A    any evidence to show that she did not have the notice of the
     said deed of sale.
           We, therefore, are of the opinion that interest of justice
     would be subserved if this Court refuses to exercise its
     discretionary jurisdiction in terms of Section 20 of the Act,
8    directing the defendant to pay a sum of Rs.60,000/- to the plaintiff
     which sum would include the amount of advance paid by her.
          25. The appeal is disposed of. In the facts and
     circumstances of this case, however, there shall be no order as
.c   to costs.



     G.N.                                         Appeal disposed of.




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