In a suit for Specific Performance, mere plea of the Plaintiff that he’s ready to pay the consideration, without any material cannot be accepted.

The Supreme Court in the case of C.S. Venkatesh vs. A.S.C. Murthy (Civil Appeal No. 8425 of 2009) on 07.02.2020 opined that mere plea that the plaintiff 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.

Facts :
The plaintiff filed a suit for Specific performance of the agreement of Reconveyance as the plaintiff had taken financial assistance from the defendant by executing a deed of mortgage. As the Plaintiff failed to pay the interest on the sum agreed, the Defendant asked the Plaintiff to execute a nominal sale deed in order to ensure prompt payment of interest. Sale deed was executed by the Plaintiff and the defendant was put in possession of the property without having to pay rent and after 5 years the plaintiff demanded the defendants to execute a reconveyance deed.
The Trial Court dismissed the suit by holding that the sale deed executed by the plaintiff was not nominal and that the plaintiff had failed to prove that he was ready and willing to perform the contract for reconveyance. The plaintiff filed appeal challenging the judgment of trial court, the High Court held that the sale deed executed by the plaintiff in favour of the defendants was security for the loan advanced by the defendants and directed Defendants to execute a deed of reconveyance in respect of the schedule property in favour of the plaintiff. The Defendants approached the Apex Court challenging the High Court judgment.

Issue:
Whether the plaintiff was ready and willing to perform his part of the contract under the Reconveyance deed?

Ratio:
The Supreme Court has observed that it is mandatory on the part of the Plaintiff in a Specific Performance Suit to prove that he has the means to generate the consideration amount. 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. 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.
Taking note of the evidence on record, the bench said that there is absolutely no evidence to show that the plaintiff has the means to make arrangements for payment of consideration under the reconveyance agreement. Restoring the Trial Court judgment, the Court said mere plea that he 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.