SC: For specific performance its not necessary to produce ready money

The Hon’ble Supreme Court, on 7th February 2020, in the matter of C.S. VENKATESH v. A.S.C. MURTHY (D) BY LRS. & ORS. pronounced that in a suit for specific performance, it is not necessary for the plaintiff to produce ready money, but it is mandatory on his part to prove that he has the means to generate the consideration amount.

The Hon’ble Supreme Court observed that:

The real character of the transaction has to be ascertained from the provisions of the documents viewed in the light of surrounding circumstances. (Para 13)

The words ‘ready and willing’ imply that the plaintiff was prepared to carry out those parts of the contract to their logical end so far as they depend upon his performance. The continuous readiness and willingness on the part of the plaintiff is a condition precedent to grant the relief of performance. If the plaintiff fails to either aver or prove the same, he must fail. To adjudge whether the plaintiff is ready and willing to perform his part of contract, the court must take into consideration the conduct of the plaintiff prior, and subsequent to the filing of the suit along with other attending circumstances. The amount which he has to pay the defendant must be of necessity to be proved to be available. Right from the date of the execution of the contract till the date of decree, he must prove that he is ready and willing to perform his part of the contract. The court may infer from the facts and circumstances whether the plaintiff was ready and was always ready to perform his contract. (Para 15)

Mere plea that the plaintiff, in a suit for specific performance is ready to pay the consideration, without any material to substantiate this plea, cannot be accepted. It is not necessary for the plaintiff to produce ready money, but it is mandatory on his part to prove that he has the means to generate the consideration amount. (Para 20)

Copy of judgement:Judgement_07-Feb-2020

-Adv. Tushar Kaushik

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