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Dismissed
2026 INSC 651 • Supreme Court of India

Mohammed Khaleel v. Jayamma

“Readiness Must Be Proved for the Relevant Time, Not Years Later: Supreme Court Denies Specific Performance Where Funds and Promptness Were Missing”

23 June 2026Justice Prashant Kumar Mishra, Justice N.V. Anjaria
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TL;DR

The Supreme Court dismissed an appeal by the legal representatives of a purchaser who sought specific performance of a 1990 agreement to sell a vacant site in Mysore for Rs. 3,00,000/-. The Court upheld the Karnataka High Court's reversal of the Trial Court's decree, holding that the plaintiff failed to prove continuous readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The four Fixed Deposit Receipts of Rs. 70,000/- each, relied on as proof of funds, were dated between 1999 and 2001, years after the suit was filed on 20.12.1993, and so could not show financial capacity at the relevant time. The plaintiff had also remained passive about the ULCRA permission that both parties had to obtain, and filed the suit two years and nine months after the first notice, which reflected a lack of continuous readiness and promptness.

The Bottom Line

A buyer who wants a court to force a sale must show, with reliable evidence, that he had the money and the intent to complete the deal at the relevant time, and must come to court promptly. Here, the proof of funds was created years after the suit was filed, the buyer waited for the seller to obtain statutory permission instead of doing his own part, and the suit was filed after a long gap. The Supreme Court held that the equitable relief of specific performance was therefore rightly refused.

Case Timeline

The journey from FIR to Supreme Court verdict

event
20 Dec 1990

Agreement to Sell Executed

Agreement to sell a vacant site measuring 100 ft by 78 ft for Rs. 3,00,000/-; Rs. 25,000/- paid as earnest money, with the sale deed to be registered within four months.

event
15 Apr 1991

Plaintiff's First Notice

The plaintiff's notice calling on the defendant to perform was not served because of a wrong house number; it allegedly mentioned that the property was unmeasured and the road not formed.

event
26 Apr 1991

Defendant Rescinds the Agreement

The defendant's legal notice stated that the plaintiff had not obtained ULCRA permission and time had expired, and that she was rescinding the agreement and forfeiting the earnest money.

event
30 Apr 1991

Plaintiff Replies, Threatens Suit

The plaintiff admitted receiving the documents, said permission was not obtained since no approach road was made, and stated he would sue for specific performance.

event
30 Jul 1992

Further Notice by Plaintiff

The plaintiff alleged forcible possession by the defendant and said he was ready and willing to perform provided ULCRA permission was obtained; the defendant replied on 11.08.1992.

filing
20 Dec 1993

Suit for Specific Performance Filed

O.S. No. 432 of 1993 was filed before the Principal Civil Judge (Senior Division), Mysore, two years and nine months after the first notice.

judgment
31 Jan 2002

Trial Court Decrees the Suit

The Trial Court held that the plaintiff was ready and willing, time was not of the essence, and the defendant rescinded the contract without justifiable cause.

judgment
9 Dec 2009

High Court Reverses the Decree

In R.F.A. No. 418 of 2003, the Division Bench held that readiness and willingness were not proved and that the delay was critical, and dismissed the suit.

judgment
23 Jun 2026

Supreme Court Dismisses the Appeal

The Supreme Court upheld the High Court, holding that readiness and willingness were not proved and the plaintiff did not approach the Court promptly.

The Story

The original plaintiff, Mohammed Khaleel, and the defendant, Jayamma, entered into an agreement to sell on 20.12.1990 for a vacant site measuring 100 feet by 78 feet for a total consideration of Rs. 3,00,000/-. He paid Rs. 25,000/- as earnest money; the sale deed was to be registered within four months and the balance Rs. 2,75,000/- was to be paid before the Sub-Registrar. The defendant handed over the original title documents, including the original will deed, settlement deed, katha extract, encumbrance certificate and tax paid receipts. The plaintiff alleged that the defendant also agreed that her brothers and sisters would execute an interim agreement for an approach road from T. Narasipura Main Road up to the end of the schedule property. In her written statement, the defendant said an approach road already existed and that there was no other land to carve out a separate road.

On 15.04.1991 the plaintiff sent a notice calling on the defendant to perform; it was not served because of a wrong house number, and in it he allegedly admitted that the property had not been measured and the road not formed. On 26.04.1991 the defendant issued a legal notice stating that the plaintiff held the original documents, that he had failed to obtain permission under the Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA), that time had expired, and that she was rescinding the agreement and forfeiting the earnest money. The plaintiff replied on 30.04.1991 admitting receipt of the documents, stating that no approach road had been made and permission had therefore not been obtained, and that he would sue for specific performance. A further notice dated 30.07.1992 said the defendant had forcibly taken possession and that he was ready and willing, provided ULCRA permission was obtained. The defendant replied on 11.08.1992 that she did not own the adjoining lands where he wanted a road and that his subsequent conditions showed unwillingness to perform.

The plaintiff filed O.S. No. 432 of 1993 before the Principal Civil Judge (Senior Division), Mysore, on 20.12.1993, seeking specific performance and possession, or alternatively Rs. 3,00,000/- as compensation. His son, PW-1, deposed and twenty-nine documents were exhibited, including four Fixed Deposit Receipts of Rs. 70,000/- each. The defendant led no oral evidence and did not enter the witness box. The Trial Court decreed the suit on 31.01.2002, holding that possession was delivered on 20.12.1990, time was not of the essence, the plaintiff was ready and willing, and the defendant had rescinded the contract without justifiable cause.

By judgment dated 09.12.2009 in R.F.A. No. 418 of 2003, a Division Bench of the High Court at Bangalore reversed the decree. It held that the plaintiff failed to aver and prove readiness and willingness, that his failure to submit an affidavit for ULCRA permission showed lack of willingness, and that though the suit was within limitation, the delay of two years and nine months was critical. The plaintiff's legal representatives appealed to the Supreme Court.

Legal Issues

Click each question to reveal the Supreme Court's answer

1Question

Whether the High Court was correct in concluding that the plaintiff failed to establish his readiness and willingness to perform his obligations under the agreement to sell?

Tap to reveal answer
1SC Answer

Yes. The Court held that the four FDRs relied on were dated 04.10.1999, 22.11.1999, 03.04.2001 and 23.08.2001, all created years after the suit was instituted on 20.12.1993, so they could not establish financial readiness from the date of the agreement till filing of the suit. There was no material to show that the balance consideration was available at the time of the agreement, within the four-month period or when the suit was filed. On ULCRA permission, which had to be obtained by both parties, the plaintiff remained passive and waited for the defendant to act.

Confirms that availability of funds must be proved with reference to the relevant time and by reliable evidence, and that both financial capacity (readiness) and conduct (willingness) must be shown.

2Question

Whether the delayed filing of the suit for specific performance undermines the plaintiff's readiness and willingness?

Tap to reveal answer
2SC Answer

Yes. Although the suit was within limitation, the Court held that conduct must be beyond reproach for equitable relief and the plaintiff must approach the Court promptly, not merely within limitation. Filing the suit two years and nine months after the first notice and the defendant's refusal reflected a lack of continuous readiness and willingness, which is a sine qua non for specific performance.

Reinforces that delay within the limitation period can still defeat a claim for discretionary equitable relief.

Arguments

The battle of arguments before the Supreme Court

Petitioner

Vihaan Kumar

1

Financial readiness was shown by four FDRs totalling Rs. 2,80,000/-

The appellants argued that the High Court wrongly noted only two FDRs of Rs. 70,000/- each. Ex.-29 reflected four FDRs of Rs. 70,000/- each dated 04.10.1999, 22.11.1999, 03.04.2001 and 23.08.2001, totalling Rs. 2,80,000/-, sufficient to pay the balance of Rs. 2,75,000/-.

Section 16(c), Specific Relief Act, 1963
2

Request for demarcation does not show unwillingness; ULCRA permission was the defendant's primary burden

A purchaser insisting on demarcation and measurement facilitates a valid conveyance, and the agreement obliged the defendant to do all acts needed to convey a perfect title. As transferor, the defendant had the primary obligation to initiate ULCRA permission, and the plaintiff, who undertook in his reply of 30.04.1991 to sign necessary documents, was always ready to cooperate; the defendant took no steps for nearly eighteen months.

3

Delay was not in issue and the suit was within limitation

No issue on delay was framed or argued before the Trial Court and it could not be raised for the first time in appeal; in any event the suit was filed within the limitation period.

Respondent

State of Haryana

1

No proof of funds for nine years; only Rs. 1,40,000/- in 1999

The respondent argued that from the agreement until the first FDR dated 04.10.1999, nothing was on record to show sufficient funds, and even in 1999 the plaintiff was ready with only Rs. 1,40,000/- and not Rs. 2,75,000/-.

2

ULCRA permission was a joint obligation which the plaintiff did not discharge

No permission under ULCRA was obtained by the plaintiff, and there was nothing to show that only one person was responsible for obtaining it. The first legal notice made performance conditional on construction of a road, indicating unwillingness, and the defendant rescinded by notice dated 26.04.1991.

3

Unexplained delay in filing the suit

The agreement required completion within four months, yet the suit was filed only on 20.12.1993 at the very end of the limitation period, which disentitles the plaintiff to specific performance.

Court's Analysis

How the Court reasoned its decision

The Court framed the single question as whether the High Court rightly concluded that readiness and willingness were not established and whether delayed filing undermined them. It began with the statutory mandate: Section 16(c) of the Specific Relief Act, 1963 (as it stood before the amendment of 01.10.2018) required the plaintiff to aver and prove continuous readiness and willingness. Readiness refers to financial capacity, while willingness reflects conduct and intention; both must be seen cumulatively. It relied on N.P. Thirugnanam, Ganesh Dassji, Umabai and Man Kaur to restate that continuous readiness and willingness is a condition precedent, to be judged by the plaintiff's conduct before and after filing of the suit and the surrounding circumstances. Applying this, the Court found that the four FDRs post-dated the suit by several years and therefore could not show financial capacity during the relevant period. Though physical deposit of the consideration in court is not necessary, reliable and acceptable evidence of funds at the relevant time is. On ULCRA, the record showed permission was to be obtained by both parties, yet PW-1 admitted that the plaintiff did not furnish the necessary affidavit or forms; he remained passive. On delay, the Court stressed that equitable relief demands conduct beyond reproach and promptness beyond mere compliance with limitation, referring to the extract in Rajesh Kumar v. Anand Kumar of K.S. Vidyanadam v. Vairavan, Azhar Sultana, Saradamani Kandappan and Atma Ram. The plaintiff had issued notice on 15.04.1991, received a categorical refusal, and filed suit only on 20.12.1993. The Court concluded that the plaintiff failed both limbs and was not entitled to the discretionary relief.

The term 'readiness' refers to the financial capacity, and the term 'willingness' reflects the conduct and intention of the party seeking the relief to perform the contract.

Para 30

States the two-part test that both conditions cumulatively have to be seen for specific performance.

they must nevertheless have to place reliable and acceptable evidence on record to show that they possessed sufficient funds to complete the transaction at the relevant time.

Para 36

Even without depositing money in court, the plaintiff must prove availability of funds through reliable evidence.

the availability of funds must be proved with reference to the relevant point of time and not by relying upon financial documents generated long after the filing of the suit.

Para 37

Explains why FDRs created years after the suit could not help the plaintiff.

the conduct of the party claiming it must be beyond reproach.

Para 40

Sets the standard for a plaintiff seeking the equitable relief of specific performance, including approaching the Court with diligence.

reflects lack of continuous readiness and willingness to perform his part of the contract, which is a sine qua non for the grant of relief of specific performance.

Para 42

The Court's conclusion on the plaintiff's conduct, including the delay of two years and nine months in filing suit.

Dismissed

The Verdict

Relief Granted

No relief was granted to the legal representatives of the original plaintiff, and the suit for specific performance stands dismissed, as held by the High Court.

Directions Issued

  • The appeal against the High Court judgment dated 09.12.2009 in R.F.A. No. 418 of 2003 is dismissed
  • Specific performance of the agreement to sell dated 20.12.1990 is not granted as the appellants failed to demonstrate readiness and willingness and failed to approach the Court with promptitude

Key Legal Principles Established

1

Specific performance is an equitable and discretionary remedy; a valid agreement of sale does not entitle the plaintiff to the relief automatically.

2

Under Section 16(c) of the Specific Relief Act, 1963 (as it stood before 01.10.2018), the plaintiff must aver and prove continuous readiness and willingness to perform his part of the contract.

3

Readiness refers to financial capacity and willingness refers to conduct and intention; both must be shown cumulatively.

4

Availability of funds must be proved by reliable evidence for the relevant point of time, not by financial documents generated long after the suit was filed.

5

Where a statutory permission such as ULCRA clearance has to be obtained by both parties, a purchaser who remains passive and waits for the seller to act may fail to prove willingness.

6

A plaintiff seeking equitable relief must approach the Court promptly, not merely within the limitation period; unexplained delay can defeat the claim.

Key Takeaways

What different people should know from this case

  • If you want a court to order the sale of a property under an agreement, you must be able to show that you had the money ready when it mattered, not just later.
  • Keep proof of your funds, such as bank statements or deposits, from the time of the agreement until the suit is filed; deposits made years after filing may not count.
  • If a government permission is needed for the sale and both parties have to apply, do your share instead of waiting for the other side.
  • If the other side refuses to perform, act quickly: filing near the end of the limitation period can weaken your case for specific performance.
  • Specific performance is a discretionary remedy, so courts look at your overall conduct, not just whether a valid agreement existed.

Frequently Asked Questions

The Supreme Court dismissed the appeal and upheld the High Court's refusal of specific performance of a 1990 agreement to sell a vacant site in Mysore. It held that the plaintiff did not prove continuous readiness and willingness and did not approach the Court promptly.
The Court explained that readiness refers to the financial capacity of the plaintiff, while willingness reflects his conduct and intention to perform the contract. Both conditions must be seen cumulatively to make out a case for specific performance.
The four FDRs of Rs. 70,000/- each were dated 04.10.1999, 22.11.1999, 03.04.2001 and 23.08.2001, all years after the suit was filed on 20.12.1993. The Court held that availability of funds must be proved for the relevant time, from the agreement to the filing of the suit, and not by documents generated long after.
Yes. The Court held that for equitable relief like specific performance a plaintiff must approach the Court promptly and not merely within limitation. Here the suit was filed two years and nine months after the first notice, which showed lack of continuous readiness and willingness.
Yes. The record showed that the permission was to be obtained by both parties, but the plaintiff did not furnish the necessary affidavit or forms and instead waited for the defendant to act. The Court held this conduct established a failure to prove continuous readiness and willingness.

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