Patna High Court

Agreement to sell signed by vendor alone followed by purchaser's acceptance constitutes a valid, enforceable contract.

Surendra Kumar vs Smt. Meena Devi

Patna High CourtJUDGMENT: July 10, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The plaintiff (appellant) entered into an unregistered agreement to sale dated 04.08.2019 with the defendant (respondent) for a triple-storied building in Patna for a total consideration of Rs. 15,00,000/-

Source reference: p. 1-2

the plaintiff paid an initial earnest money of Rs. 50,000/- and subsequent amounts totaling Rs. 3,50,000/-, which the defendant acknowledged via signatures and Thumb Impressions (L.T.I.) on the back of the agreement (Ext.-2 to Ext.-2/B)

Source reference: p. 2

Despite legal notices, the defendant refused to execute the sale deed, leading to a suit for specific performance. The suit proceeded ex-parte as the defendant failed to appear

Source reference: p. 2

The Trial Court dismissed the suit on the technical ground that the agreement was not signed by both parties at the specified place, thus lacking proof of a concluded contract

Source reference: p. 3-4
02

Issues

1. Whether the judgment and decree passed by the learned Trial Court is just, proper, and in accordance with law or requires interference

Source reference: para. 12

2. Whether an agreement to sale of immovable property is legally enforceable if signed only by the vendor and accepted by the purchaser

Source reference: para. 9, 17

3. Whether the plaintiff proved continuous readiness and willingness to perform his part of the contract under Section 16(c) of the Specific Relief Act

Source reference: para. 14, 21
03

Law Applied

Sections 2(e), 2(h), and 10 of the Indian Contract Act, 1872, which define agreements and contracts, noting that unless a specific law requires otherwise, even oral agreements to sell are valid

Source reference: para. 13, 17

Aloka Bose v. Parmatma Devi (2009) 2 SCC 582, which established that in India, an agreement to sale signed by the vendor alone and accepted by the purchaser is a valid, specifically enforceable contract

Source reference: para. 9, 17

Section 16(c) of the Specific Relief Act, 1963, which mandates that the plaintiff must plead and prove continuous readiness and willingness to perform essential terms of the contract

Source reference: para. 13-14
04

Reasoning

The High Court found that the Trial Court's dismissal was based on a "third case" not supported by law—the requirement that both parties must sign the document simultaneously

Source reference: para. 5, 24

The High Court observed that the essential ingredients of a contract under Section 10 of the Contract Act were present: a proposal, acceptance via payment of substantial consideration (Rs. 3,50,000/-), and acknowledgment of receipt by the defendant’s L.T.I./signatures (Ext.-2 to Ext.-2/B)

Source reference: para. 15-16

Applying Aloka Bose, the court held that the plaintiff's acceptance was proved through his conduct and payments, making the vendor's signature sufficient for enforceability

Source reference: para 17-18

The Court critiqued the Trial Court for failing to primary evaluate "readiness and willingness" under Section 16(c), despite the plaintiff issuing multiple legal notices and paying significant earnest money

Source reference: para. 20-23

The Trial Court’s focus on technical signatures was deemed a patent illegality that ignored recorded evidence of part-performance

Source reference: para. 25-27
05

Holding

The Court answered the issues in favor of the appellant, holding that the Trial Court’s reasoning was contrary to settled law

The appeal was allowed, and the judgment and decree dated 13.10.2022 were set aside. The High Court remanded the matter to the Trial Court for fresh adjudication on merits, directing the court to afford both parties an opportunity to adduce evidence and contest the matter

Source reference: para. 28
Patna High Court

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Surendra KumarvsSmt. Meena Devi

Patna High Court · July 10, 2026

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