01Facts
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/-
pp. 1-2the 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)
p. 2Despite 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
p. 2The 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
pp. 3-402Issues
i.1. Whether the judgment and decree passed by the learned Trial Court is just, proper, and in accordance with law or requires interference
¶ 12ii.2. Whether an agreement to sale of immovable property is legally enforceable if signed only by the vendor and accepted by the purchaser
¶ 9, 17iii.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
¶ 14, 2103Law 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
¶ 13, 17Aloka 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
¶ 9, 17Section 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
¶ 13-14Provisions in the judgment · 4 · Linked ones open on LawLens
Indian Contract Act, 1872 Section 2Section 10
Specific Relief Act, 1963 Section 16Section 20
04Reasoning
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
¶ 5, 24The 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)
¶ 15-16Applying 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
¶ 17-18The 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
¶ 20-23The Trial Court’s focus on technical signatures was deemed a patent illegality that ignored recorded evidence of part-performance
¶ 25-2705Holding
The Court answered the issues in favor of the appellant, holding that the Trial Court’s reasoning was contrary to settled law
¶ 27The 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
¶ 28Original Court PDF
Surendra KumarvsSmt. Meena Devi
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