Full Judgment Text
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PETITIONER:
N. L. DEVENDER SINGH & ORS.
Vs.
RESPONDENT:
SYED KHAJA
DATE OF JUDGMENT03/08/1973
BENCH:
BEG, M. HAMEEDULLAH
BENCH:
BEG, M. HAMEEDULLAH
MATHEW, KUTTYIL KURIEN
CITATION:
1973 AIR 2457 1974 SCR (1) 312
1973 SCC (2) 515
ACT:
Specific Relief Act 1877, s. 12-Presumption under-When
rebutted-Bar in S. 21-When operates.
HEADNOTE:
The plaintiff (respondent herein) executed an agreement on
9-10-1962 with defendant no. 1 whereby the latter agreed to
sell to the former his house in Hyderabad for a sum of Rs.
60,000. The plaintiff paid a sum of Rs. 2,000 as earnest
money. However, dependent no. 1 sold the property in
question on 19-10-1962 to defendants 2 to 7 for a sum of Rs.
70 , 000. The plaintiff consequently filed a suit for
specific performance of the agreement. The suit was
resisted by defendant no. 1 on the ground that the plaintiff
had obtained the agreement dated 9-10-1962 as a result of
misrepresentation and fraud. The trial court held that
misrepresentation and fraud had not been proved but the
plaintiff had obtained an "unfair advantage’. On this view
the trial Court dismissed the suit for specific performance.
It ordered the repayment to the plaintiff of the earnest
money paid by him. Inter alia the trial court also ordered
the payment of Rs. 20,000 to the plaintiff as liquidated
damages or penalty as stipulated in the agreement of 9-10-
1962. In appeal the High Court decreed the plaintiff’s suit
disagreeing with the view of the trial Court that the
plaintiff had obtained an unfair advantage. The High Court
granted the defendants a certificate of fitness to appeal to
this Court. It was contended on behalf of the defendants-
appellants that the parties themselves having stipulated for
Rs. 20,000 as liquidated damages in the event of a breach by
the first defendant, the presumption contained in the
explanation to a. 12 of the Specific Relief Act 1877 stood
rebutted. It was also contended that once the aforesaid
presumption was rebutted the bar contained in section 21 of
the Act would ipso facto become operative.
Dismissing the appeal,
HELD : (1) A reference to s. 22 of the Act of 1877
(corresponding to a. 20 of the Specific Relief Act 1965)
would show that the jurisdiction of the Court to decree
specific relief is discretionary and must be exercised on
sound and reasonable grounds "guided by judicial principles
and capable of correction by the Court of appeal". This
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jurisdiction cannot be curtailed or taken away by merely
fixing a sum even as liquidated damages. This is made
perfectly clear by the provisions of s. 20 of the old Act
(corresponding to a. 23 of the Act of 1963) so that the
Court has to determine, on the facts and circumstances of
each case before it, whether specific performance of a
contract to convey a property ought to be granted. [319G-H]
The fact that the parties themselves specified a sum of
money to be paid in the event of its breach is, no doubt, a
piece of evidence to be considered in deciding whether the
presumption has been repelled or not. But, it is nothing
more than a Piece of evidence. It is not conclusive or
decisive. [32OA-B]
(ii) The contention that once the presumption contained in
explanation to s. 12 of the old Act is removed, the bar
contained S. 21 of the old Act against the specific
enforcement of a contract for which compensation in money is
an adequate relief, automatically operates, overlooks that
the condition for the imposition of the bar is actual proof
that compensation in money is adequate on the facts and
circumstances of a particular case before the Court. The
effect of the presumption is that the party coming to the
court for the specific performance of a contract for sale
of- immovable property need not prove anything until the
other side has removed the presumption. After the evidence
is led to remove the presumption, the plaintiff may still be
in a position to prove, by other evidence in the case, that
payment of money does not compensate him adequately. [320G-
E]
In the present case, although, evidence was led by parties,
yet there was no evidence to show the extent of loss of
prospective gains to the plaintiff-respondent or to the
appellants. [320E-F]
313
(iii) Since the presumption under s. 12 of the old Act
had not been rebutted the High Court rightly decreed the
suit for specific performance of the contract. It could not
be said that the High Court had lightly interfered with the
exercise of its discretion by the trial court to grant or
not to grant specific performance on the facts and
circumstances of the case. [321C-D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2517 of
1969.
From the Judgment and Order dated 31st March, 1969 of the
Andhra Pradesh High Court at Hyderabad, in City Civil Court
Appeal No. 71 of 1964.
P. Keshva Pillai, for appeallants Nos. 1 & 3.
M. C. Chagla, Aziz Ahmad and P. C. Bharatri, for
appellants Nos. 2, 4-7.
C. K. Daphtary, Y. S. Sahni, S. M. Aqil and U. P. Singh,
for the respondent.
The Judgment of the Court was delivered by
BEG, J. This appeal has come before us on a Certificate of
fitness granted by the High Court of Andhra Pradesh under
Articles 132 and 133 of the Constitution of India.
The Plaintiff-Respondent had sued Defendant-Appellant
Devender Singh (hereinafter referred to as the "First
Defendant") for specific performance of a contract to sell a
house facing the Secunderabad Junction Railway Station in
Hyderabad for a sum of Rs. 60,000/- concluded on 9-10-1962
at New Delhi where the first Defendant resides. It appears
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that there was a previous agreement on 27-9-1962
(hereinafter referred to as the " first agreement) between
the Plaintiff, who resides at Hyderabad, and the first
Defendant, through an agent, Laxmanaswamy, D.W. 2, with the
help of Sambamurthy, D.W. 3, a nephew of Laxmanaswamy and an
Income-tax ’practitioner residing at Secunderabad, for the
sale of this very property for Rs. 55,0001- the terms of
which were embodied in a document Ex. B. 15. The First
Defendant denies the binding character of the first
agreement of 27-9-1962 under which a cheque for Rs. 10,000/-
was drawn up by the Plaintiff in favour of the first Defen-
dant and handed over to his agent by the Plaintiff. The
exact reason for a cancellation of this cheque for Rs.
10,000/- in favour of the 1st Defendant is not clear, but,
according to Sambamurthy, D.W. 3, the reason was that,
actually, Rs. 20,000/- was being demanded on behalf of the
first Defendant as earnest money to which the plaintiff had
consented so that a new cheque was, for some unknown reas
on, to be issued and not another cheque for Rs. 10,000/.
The evidence of Sainbamurthy also show that the Plaintiff
had become aware of want of written authority on the part of
either Laxmanaswamy or Sambamurthy to conclude the contract
on behalf of the 1st Defendant so that be must have felt
uncertain about the effect of the first agreement.
Evidently, attempts to show the Plaintiff that his position
was shaky under the first agreement and higgling were going
on despite the agreement of 27-9-1962 Evidence in the case
and findings recorded thereon by the Trial Court as well as
the High Court show that, although the first Dedendant, who
was keen to dis-
314
post of his property at Secunderabad, may have had other
offers, yet, upto 27-9-1962, when the first agreement was
concluded, he had no better offer than the plaintiff’s.
Evidence is conflicting on the question whether the first
Defendant had autborised Sambaniurthy by telephone to
conclude the contract on his behalf for the sale of property
of Rs. 55,000/-, but this was unimportant in view of the
subsequent agreement of 9-10-1962. The Plaintiff, who was
evidently very anxious to obtain the property, had flown to
Delhi with his lawyer and had managed, by offering Rs.
60,000,/- as the price of the property, out of which Rs.
20,000/- was paid is earnest money (Rs. 10,000,/- in cash
and Rs. 10,0100/- by a cheque dated 9-10-1962) and the
balance at the time of registration, to induce the first
Defendant himself to conclude and execute the fresh
agreement of 9-10-1962.
The deed of agreement of 9-10-1962 Ex. Al was not executed
in a hurry by the first Defendant. He had ample time to
consider any other offers the-re, might be till then for’
sale of his property and to take legal advice, if he had
wanted to have it, before executing the deed of 9-10-1962.
The Trial Court as well as the High Court had found that the
first Defendant was fully aware of all the facts and had
entered into the agreement of 9th October, 1962, with open
eyes because it was the most advantageous transaction open
to the first Defendant at that time and not as a result of
any pressure or misrepresentation or fraud practised upon
the first Defendant, a middle aged hard headed and astute
businessman who deposed that he was a Director of Blackwood
Hodge (Pvt.) Ltd., and was connected with a number of other
business concerns. He had himself stated in his evidence in
Court that he entered into the agreement of 9-10-1962
because he considered that "a bird in hand was worth two in
the bush" and had thus given out the real reason for the
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agreement of 9-10-1962.
The first Defendant bad, however, ignoring the contract of
9-10-1962, actually sold the property under a deed dated 19-
10-1962 Ex. B. 22 for a sum of Rs. 70,000-/- received from
Gulam Hussain Jowkar (2nd Defendant), Rajab (3rd Defendant),
Safar Jowkar (4th Defendant), Hussain Jowkar’ (5th
Defendant), Wali Husstin Nasab (6th Defendant), all partners
in the firm carrying on the business of running Alpha Hotel
(7th Defendant), situated in front of the Railway Station at
Secunderabad Apparently, the offer of Rs. 70,000/- had come
too late and proved too tempting for the first
Defendant to resist it.
The first Defendant had, in answer to the suit of the
PlaintiffResponsent, pleased that the’ contract of 9-10-
1.962 was the result of mis-representation and fraud. All
he could urge in support of such a plea was that the first
Defendant had been so completely overawed by the Plaintiff
and his lawyer mis-representing to him that the first
agreement was still binding and that the Plaintiff could sue
upon it. that he executed the agreement of 9-10-1962. Both
the Trial Court and the High Court had found the plea of
fraud and mis-representation taken by the first Defendant to
be baseless. Nevertheless, the
315
Trial Court had relied upon the facts leading up to the
agreement of 9-10-1962 and the allegation that the first
Defendant was overawed as sufficient to justify the finding
that the plaintiff had obtained an " unfair advantage" over
the 1st Defendant while concluding the agreement of 9-10-
1962. Therefore, the Trial Court thought that the plaintiff
was not entitled to specific performance of the agreement of
9-10-1962, but awarded a decree for the return of Rs.
20,000/- to the plaintiff, which he had paid to the first
Defendant as earliest money, and for damages of Rs. 20,000/-
, which had been stipulated for by way of liquidated damages
or penalty in the agreement of 9-10-1962 and for additional
damages to the extent of Rs. 2,300/. Interest at 6% per
annum and the costs of the suit were also. awarded to the
Plaintiff by the Trial Court.
The High Court had rightly found, after a thorough re-
exammation of. evidence in the case, that it was impossible
to hold that the plaintiff had obtained any unfair advantage
over the first Defendant in concluding the agreement of
9-10-1962. It found the stand of the 1st Defendant to be
disingenuous and his plea as to why or how he found himself
compelled to execute the agreement of 9-10-1962 to be
utterly incredible. The High Court had rightly held that
the first Defendant concluded the agreement of 9-10-1962
because he obtained not only an enhancement of Rs. 5,000/-
in the sale consideration but Rs. 20,000/- immediately as
earnest money and a stipulation of a further sum of Rs.
20,000 /- as liquidated damages or as penalty in the event
of the plaintiff resiling from the contract.’ Actually, the
first Defendant-Appellant was, owing to the fact that be
could put forward want of the alleged agent’s authority to
sell, for whatever such an excuse may be worth, and the fact
that he had still to execute a sale deed and give possession
of the property, placed in a more favorable and advantageous
bargaining position. And, bargaining had evidently not
stopped despite the first agreement.
The only point which could be and which was seriously urged
before us by Mr. Chagla, appearing for the Defendants-Appel-
lants, was that, the parties themselves having stipulated
for Rs. 20,000/- as liquidated damages in the event of a
breach by first Defendant, the presumption contained in the
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Explanation to Section 12 of the Specific Relief Act 1877
(hereinafter called ’the old Act") was rebutted. Here,
Section 12 of the old Act may be reproduced in toto :-
" 12. Except as otherwise. provide in this
Chapter, the specific performance of any
contract of any contract may in the discretion
of the Court be enforced-
(a) when the act agreed to be done is in the
performance, wholly or partly, of a trust;
(b) when there exists no standard for
ascertaining the actual damage caused by the
non-performance of the act agreed to be done;
(c) when the act agreed to be done is such
that pecuniary compensation for its non-
performance would not afford adequate relief;
or
316
(d) when it is probable that pecuniary
compensation cannot be got for the non-
performance of the act agreed to be done.
Explanation.-Unless and until the contrary is
proved, the Court shall presume that the
breach of a contract to transfer immovable
property cannot be adequately relieved by
compensation in money, and that the breach of
a contract to transfer movable property can be
thus relieved".
The principles embodied in Section 12 of the old Act have
been incorporated in Section 10 of the Specific Relief Act
of 1963 (hereinafter referred to as the Act of 1963") which
runs as follows :
"10. Except as otherwise provided in this
Chapter, the specific performance of any
contract may, in the discretion of the court,
be enforced-
(a) when there exists no standard for
ascertaining the actual damage caused by the
non-performance of the act agreed to be done;
or
(b) when the act agreed to be done is such
that compensation in money for its non-
performance would not afford adequate relief.
Explanation.-Unless and until the contrary is
proved, the court shall presume-
(i) that the breach of a contract to
transfer immovable property cannot be
adequately relieved by compensation in money;
and
(ii) that the breach of a contract to
transfer movable property can be so relieved
except in the following cases :-
(a) Where the Property is not an ordinary
article of commerce, or is of special value or
interest to the plaintiff, or consists of
goods which are not easily obtainable in the
market;
(b) where the property is held by the
defendant as the agent or trustee of the
plaintiff".
The term of the contract of 9-10-62 which, according to Mr.
Chagla, attracts the explanation of Section 12 of the old
Act reads as follows :
"It is agreed that should I fail to comply
with the terms of this agreement, I shall be
liable not only for the refund of the advance,
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of Rs. 20,O00/- (Rupees twenty thousand only)
received by me but I shall also be liable to
pay a similar amount of Rs. 20,000/- (Rupees
twenty thousand only) as damages to the said
Syed Khaja".
There is no mention anywhere in the contract that a party to
it will have the option to either fulfil the contract to buy
or sell or
317
to pay the liquidated damages or penalty of Rs. 20,000/-
stipulated for a breach, as an alternative to the
performance of the contract to buy or to sell.
Section 21 of the old Act, to which Section 14 of the Act of
1963 corresponds, enacts, inter alia, that "a contract for
the nonperformance- of which a compensation of money is
adequate relief’ cannot be specifically enforced. Hence, it
is contended that, once the presumption contained in
Explanation to Section 12 is rebutted, by proof that the,
parties themselves contemplated a certain amount as
liquidated damages for a breach of contract, the bar under
Section 21 of the old Act must be, given effect to because
it must be deemed to be proved that the non-performance
complained of can be adequately compensated by money.
The assumptions underlying the superficially attractive
arguments an behalf of the Defendants-appellants are two :
firstly, that the mere existence of a clause in a contract
providing for liquidated damages or a penalty for a breach
is sufficient to rebut the presumption raised by the
explanation to Section 12; and, secondly, that, if the
presumption is rebutted, the bar contained in Section 21 of
the old-Act will ipso facto become operative. We now
proceed to deal with each of the two assumptions mentioned
above.
The answer to the 1st assumption is provided by Section 20
of the old Act. It reads :
"20. A contract, otherwise proper to be
specifically forced, may be thus enforced,
though a sum be named in it as the amount to
be paid, in case of its breach, and the party
in default is willing to pay the same".
If the Legislative intent was that the mere proof that a sum
is specified as liquidated damages or penalty for a breach
should be enough to prove that a contract for the transfer
of immovable property could be adequately compensated by the
specified damages or penalty Section 20 of the old Act will
certainly become meaningless. It is true that Section 20 of
the old Act does not mention the case of an express contract
giving an option to a promiser to either carry out the
contract to convey, or, in the alternative, to pay the sum
specified, in which case the enforcement of the undertaking
far g to make the payment would. be an enforcement of the
contract itself and no occasion for rebutting the
presumption in the explanation to Section 21 would arise.
In such cases the contract itself is specifically enforced
when payment is directed in lieu of the conveyance to be
made.
It may be mentioned here that the Principles contained in
Section 20 of the old Act are reenacted in Section 23 of the
Act of 1963 in language which makes it dear that a case
where an option is given by a contract to a party either to
pay or to carry out the other terms of the contract falls
outside the purview of Section 20 of the old Act, but, mere
specification of a sum of money to be paid for a breach in
order to compel the
318
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formance of the contract to transfer property will not do.
Section 23 of the Act of 1963 may be advantageously cited
here. It runs as follows :
"23(1) A contract, otherwise, proper to be
specifically enforced, may be so_ enforced,
though a sum be named in it as the amount to
be paid in case of its breach and the party in
default is willing to pay the same, if-the
court, having regard to the terms of the
contract and other attending circumstances, is
satisfied that the sum was named only for, the
purpose of securing performance of the
contract and not for the purpose of giving
to the party in default adoption of paying
money in lieu of specific performance.
(2) When enforcing specific performance
under thissection, the court shall not also
decree payment of the sum so named in the,
contract".
We think that Section 23 of the Act of 1963 contains a
comprehensive statement of the principles on which, even
before the Act of 1963, the presence of a term in a contract
specifying a sum of money to be paid for a breach of the,
contract has to be construed Where payment is an alternative
to carrying out the other terms of the contract, it would
exclude, by the terms of the contract itself, specific
performance of the contract to convey a property.
The position stated above is in conformity with the
principles found stated in Sir Edward Fry’s "Treatise on the
Specific Performance of Contracts" (Sixth Edn. at p. 65).
It was said there:
"The question always is : What is the contract
? Is it that one certain act shall be done,
with a, sum annexed, whether by way of penalty
or damages, to secure the performance of this
very act ? Or, is it that one of the two
things shall be done at the election of the
party who has to perform the contract, namely,
the performance of the act or the payment of
the sum of money? If the former, the fact of
the penal or other like sum being annexed will
not prevent the court’s enforcing performance
of the very act, and thus carrying into
execution the intention of the parties : if
the latter, the contract is satisfied by the
payment of a sum of money, and there is no
ground for proceeding against the party having
the election to compel the performance of the
other alternative.
From what has been said it will be gathered
that contracts of the kind now under
discussion are divisible into three classes :-
(i) Where the sum mentioned is strictly a
penalty-a sum named by way of securing the
performance of the contract, as the penalty is
a bond :
(ii) Where the sum named is to be paid as
liquidated damages for a breach of the
contract
319
(iii) Where the sum named is an amount the
payment of which may be substituted for the
performance of the act at the election of the
person by whom the money is to be paid or the
act done.
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Where the stipulated payment comes under
either of the two first-mentioned heads, the
Court will enforce the contract, if in other
respects it can and ought to be enforced, just
in the same way as a contract not to do a
particular act, with a penalty added to secure
its performance or a sum named as liquidated
damages, may be specifically enforced by means
of an injunction against breaking it. On the
other hand, where the contract comes under the
third head, it is satisfied by the payment of
the money, and there is no ground for the
Court to compel the specific performance of
the other alternative of the contract".
Sir Edward Fry pointed out that the distinction between a
strict penalty and liquidated damages for a breach of
contract was important in common law where liquidated
damages were considered sufficient compensation for, breach
of contract, but, sums stipulated by way of penalty stood on
a different footing. He then said
"But as regards the equitable remedy the
distinction is unimportant : for the fact that
the sum named is the amount agreed to be paid
as liquidated damages is, equally with a
penalty strictly so called, ineffectual to
prevent the Court from enforcing the contract
in specie".
The equitable principles which regulated- the grant of
specific performance by the separate Court of Equity which
existed in England at one time have been given statutory
form in India. It is, therefore, immaterial that the
stipulated payment under the, terms of the contract under
consideration before us could be viewed as one for payment
of liquidated damages. The question would still remain
whether the Courts are relieved by the agreement between the
parties of the duty to determine, on the facts of a
particular else, whether damages, specified or left
unspecified, would really afford adequate compensation to
the party which wants a conveyance of immovable property as
agreed upon.
A reference to Section 22 of the _old Act, (the
corresponding provision is Section 20 of the Act of (1963),
would show that the jurisdiction of the Court to decree
specific relief is discretionary and must be exercised on
sound and reasonable grounds "guided by judicial principles
and capable of correction by a Court of appeal". This
jurisdiction cannot be curtailed or taken away by merely
fixing a sum even as liquidated damages. We think that this
is made perfectly clear by the provisions of Section 20 of
the old Act (corresponding to Section 23 of the Act of
(1963) so that the Court has to determine, on the facts, and
circumstances of each case before it, whether specific
performance of a contract to convey a property ought to be
granted.
320
The fact that the parties themselves have provided a sum to
be paid by the party breaking the contract does not, by
itself, remove the strong presumption contemplated by the
use of the words "unless and until the contrary is proved".
The sufficiency or insufficiency of any evidence to remove
such a presumption is a matter of evidence. The fact that
the parties themselves specified a sum of money to be paid
in the event of its breach is, no doubt, a piece of evidence
to be considered in deciding whether the presumption has
been repelled or not. But, in our opinion, it is nothing
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more than a piece of evidence. It is not conclusive or
decisive.
The second assumption underlying the contentions on behalf
of the Defendants-appellants is that, once the presumption,
contained in explanation to Section 12 of the old Act, is
removed, the, bar contained in Section 21 of the old Act,
against the specific enforcement of a contract for which
compensation in money is an adequate relief, automatically
operates, over-looks that the condition for the imposition
of the bar is actual proof that compensation in money is
adequate on the facts and circumstances of a particular case
before the Court. The effect of the presumption is that the
party coming to Court for the specific performance of a
contract for sale of unmovable property need not prove
anything until the other side has removed the presumption.
After evidence is led to remove the presumption, the
plaintiff may still be in a position to prove, by other
evidence in the case, that payment of money does not
compensate him adequately.
In the instant case, both sides have led evidence. But,
there is no evidence as to the extent of loss of prospective
gains to the plaintiff-Respondent, who carries on a Bakery
business, from the depreciation of a site so valuable as one
in front of the Secundrabad Junction Railway Station. In
fact, there is no standard for judging the loss from such a
depreciation either to the Plaintiff-Respondent or to the
partners of the Alpha Hotel who are the real contending
parties. No attempt was even made to gauge the value of
future prospects of such a site to businessmen in the
position of Plaintiff Respondent and those Defendants-
Appellants who are partners of the Alpha Hotel. It is clear
that the property has got no such value for the first De-
fendant. who is a businessman fully occupied with a number
of businesses at Delhi where he had been residing for 19
years in 1963. it is evident that he could not conveniently
look after the property situated in Secunderabad.
The Defendants-Appellants had miserably failed to prove
their cases. The attempt to prove either fraud or
misrepresentation or " an unfair advantage" over the first
Defendant, so as to bring his case within Section 22(1) of
the old Act, was totally unsuccessful. The courts commented
adversely on incorrect assertions made by the first
Defendant who could not show anything beyond the penalty or
damages clause in the contract for sale dated 9-10-1962. It
is strange that the first Defendant, while willing to pay
Rs. 20,000/ as damages to the Plaintiff-Respondent, will
only get Rs. 10,000/more in price over Rs. 60,000/- if his
contract of sale to the partners
321
of the Alpha Hotel were to stand. It is, therefore, clear
that the first Defendant must have some ulterior motive in
being prepared to suffer an ostensible loss of Rs. 10,000/-
even if his sale of 16-10-1962 for Rs. 70,000/- to the
partners of the Alpha Hotel could be upheld. The plaintiff
himself had stated that financial considerations do not
really determine his stand. We are unable to accept this
profession of unconcern for financial gain on the part of an
astute businessman like the first Defendant. It is more
likely that there, is some undisclosed understanding between
him and the partners of Alpha Hotel who are also co-
appellants with him before us.
The result in that we think that the presumption contained
in the explanation to Section 12 of the old Act was not
rebutted here. In such cases Equity helps honest plaintiffs
against defendants who break solemnly given undertakings.
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The High Court had rightly decreed the suit for specific
performance of the contract.
Lastly it was urged before us that the High Court should
not have lightly interfered with the exercise of its
discretion by the Trial Court to grant or not to grant
specific performance on the facts and circumstance of this
case. It is clear that the discretion, as laid down in
Section 22 of the old Act (corresponding to Section 20 of
the Act of 1963), is not to be exercised arbitrarily but on
sound and reasonable grounds "guided by judicial principles-
so that it is capable of correction by a court of appeal".
It appeared, quite rightly, to the High Court That the Trial
Court had gone completely astray in the exercise of its
discretion on the footing that the Plaintiff Respondent
enjoyed an "unfair advantage" over the first Defendants,
whereas, on the facts and circumstances of the case, it was
the first Defendant who was placed in a position to exploit
the need of the plaintiff and the plaintiffs allegedly
insecure position under the first agreement. It is clear
that the Plaintiff-Respondent had dealt very fairly and
squarely with the first Defendant-Appellant. The Trial
Court’s error in the exercise of its discretion on an
utterly untenable, fanciful and unsound ground was rightly
corrected by the High Court.
We, therefore, dismiss this appeal with costs.
K.B.M. Appeal dismissed.
322