Sunday 5 July 2015

Golden rules for interpretation of pleading



The trial Court in fact elaborately dealt with this aspect of the case by following the law laid down by the Hon'ble Apex Court in the cases of Kedar Lal Seal and another vs. Hari Lal Seal, reported in MANU/SC/0064/1951 : AIR 1952 SC 47 and Madan Gopal Kanodia vs. Mamraj Maniram and others, reported in MANU/SC/0042/1976 : AIR 1976 SC 461 when it held that the pleadings could not be interpreted in a pedantic and meticulous manner so as to defeat the genuine claims on trivial grounds. The trial Court followed the law laid down in the case of Kedarlal (supra) that the Court should be slow to throw out a claim on a mere technicality of pleadings when substance of things is there and no prejudice would be caused to the other side, however, clumsily or inartistically the plaint may be worded. The trial Court also placed its reliance upon the observations by the learned Single Judge of this Court in the case of Hariba Babu Babar and Anr. vs. Appasaheb Dadu Nagargoje, reported in MANU/MH/0687/2007: 2007 (5) Mh.L.J. 260 (para. 14), that forgathering the true spirit behind a plea, it should be read as a whole and to test whether the plaintiff has performed his obligation, one has to see the pith and substance of the plea. These findings of the trial Court have also been confirmed by first appellate Court. Findings of both these Courts are consistent with settled law of pleadings and requirements of Section 16(c) of the Act seen in the light of its explanation (ii). Thus, I see no reason to take a different view in the matter. Besides, these findings are based upon the appreciation of evidence available on record. They are not the result of non-consideration of any relevant evidence or consideration of any evidence not admissible in law. They, therefore, cannot be termed as perverse and as such leave no scope for this Court to make any interference with them. The argument of learned counsel for the appellant made in this behalf, therefore, cannot be accepted.


IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
SECOND APPEAL No.464 OF 2012
Shaligram s/o. Vitthalrao Sawant,

...VERSUS...
Ramesh s/o. Bhagwan Gawande,

CORAM :   S.B. SHUKRE, J.
  
DATE    :  28   NOVEMBER, 2013.
Citation; 2014(3) ALLMR235,2014(3)MhLj704

This   appeal   is   preferred   against   the   judgment   and 
decree   commonly   passed   in   Regular   Civil   Appeal   No.124   of 
2009   and   Regular   Civil   Appeal   No.125   of   2009   by   Ad­hoc 

District Judge­3, Washim on 11.4.2012 thereby dismissing the 
appeal   and   confirming   the   judgment   and   decree   passed   in 
Regular Civil Suit No.28 of 2000 on 2nd  September, 2009 by 
Civil Judge, Junior Division, Mangrulpir.  
2.
The   appellant   is   the   original   defendant   and   the 
respondent is the original plaintiff.  The respondent had filed a 

suit for specific performance of contract in respect of land  Gat 
No.73,   area   3.25   hectare,   situated   at   Chikhalgad,   Tq. 
Mangrulpir, District Washim (in short “suit land”) and in the 
alternative for refund of consideration amount of Rs.80,000/­. 
The   respondent   had   contended   that   on   27th  May,   1998,   the 
appellant being in need of money for solemnizing marriage of 
his   daughter,   agreed   to   sell   the   suit   land   to   him   for   a 
consideration of Rs.80,000/­.  He submitted that the appellant 
was in possession of the suit land since the year 1975 and it 
was   allotted   to   him   in   the   category   of   ‘ex­servicemen’.     He 
further submitted that on 27.5.1998 itself, he paid the entire 
consideration amount to the appellant and in lieu thereof the 
possession of the suit land was given to him by the appellant. 

The terms of this agreement were also reduced into writing.  It 
was mentioned that the permission of revenue authorities was 
required for  transfer of the suit land to  the respondent  and, 
therefore,   it   was   agreed   that   necessary   permission   would   be 
obtained   in   one   near   from   the   date   of   execution   of   the 
agreement.  The respondent further submitted that permission 

was not obtained by the appellant and later on it was learnt by 
him that the land which was categorized as Class­II occupancy 
at   the   time   of   agreement   to   sell,   was   converted   into   Class­I 
occupancy   land,   did   not   require   any   permission   from   the 
Collector for transfer of the suit land as per the provisions of 
the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 
1961,   in   view   of   said   conversion.     The   respondent   further 
submitted that he issued notices on 27.12.1999 and 14.1.2000 
to the appellant calling upon him to execute the sale­deed, but 
to no effect.  Therefore, respondent filed a civil suit for specific 
performance of contract against the appellant in which he also 
claimed alternate relief of refund of earnest money, in case, the 
suit was not decreed in his favour.

The appellant contested the suit by filing his written 
3.
statement.  He admitted that the suit land was granted in the 
category   of   ‘ex­servicemen’   and   he   also   admitted   that   in   the 
year 1998  he was to perform  marriage  of his daughter.    He 
submitted that for the purpose of marriage of his daughter he 
was   in   need   of   money   of   Rs.10,000/­   and,   therefore,   he 

approached   the   respondent   with   a   request   to   lend   him   an 
amount   of   Rs.10,000/­.     He   submitted   that   respondent   did 
oblige him, but obtained from him a signed blank paper and 
also possession of the suit land, as a security for re­payment of 
loan.  Thus, the possession of the suit land was delivered to the 
respondent on 27th  May, 1998.   He further submitted that he 
repaid the loan amount on 15th  November, 1998 and at that 
time when he demanded possession of the suit land back from 
the respondent, the respondent avoided to deliver possession. 
According   to   him,   the   agreement   dated   27th  May,   1998   was 
sham and bogus.  He also submitted that without permission of 
the   Collector,   the   suit   land   could   not   be   transferred   and, 
therefore,   the   whole   transaction   was   void,   ab   initio.     Some 

other grounds were also taken by him for challenging the suit 
transaction.  On all these grounds, he urged that suit deserved 
to be dismissed with costs.   He also filed a counter­claim for 
recovery of possession of suit land.
4.
The trial Court found that the respondent had duly 
proved   the   execution   of   the   agreement   dated   27.5.1998   for 

sale   of   the   suit   land   by   appellant   to   the   respondent   for   a 
consideration   of   Rs.80,000/­   and   that   the   appellant   had 
received the entire amount of Rs.80,000/­ in lieu of which he 
had delivered possession of the suit land to the respondent and 
the respondent having performed his part of the contract, was 
entitled   to   a   decree   of   specific   performance   of   contract 
conditionally.   The appellant’s counter­claim for possession of 
the   suit   land,   however,   was   rejected.     Accordingly,   the   trial 
Court by its judgment and decree dated 2nd  September, 2009 
decreed   the   suit   and   dismissed   the   counter­claim   for 
possession.  The trial Court directed the appellant to apply for 
necessary   permission   for   transfer   of   the   suit   land   and   gave 
liberty to the respondent to apply for such a permission, if the 

appellant failed to apply for it within the time stipulated by the 
Court.     Two   separate   appeals   were   filed   against   the   said 
judgment and decree of the trial Court.   Regular Civil Appeal 
No.124 of 2009 was against the dismissal of counter­claim of 
the   appellant   and  Regular   Civil   Appeal   No.125   of  2009   was 
against   decree   for   specific   performance   of   contract.     The 

appellate Court confirmed the findings of facts recorded by the 
trial Court and dismissed both the appeals, thereby confirming 
the decree of the trial Court.
This appeal came to be admitted by this Court on 1st 
5.
October, 2012 upon the following substantial question of law :
“Whether   the   Courts   below   have   committed   an  
error in passing a decree for specific performance  
of   contract   in   the   absence   of   their   (sic­there)  
being a pleading of the readiness and willingness  
to   perform   the   part   of   the   contract   by   the  
respondent/plaintiff.”
6.
I have heard Mr.S.A.Marathe, learned counsel for the 
appellant   and   Mr.A.P.Tathod,   learned   counsel   for   the 
respondent.     With   their   assistance,   I   have   gone   through   the 

memo of appeal and record of the trial Court.
The substantial question of law relates to necessity of 
7.

making any specific averment by the respondent in the plaint, 
as regards performance by him his part of the contract or his 
readiness   and   willingness   to   perform   remaining   part   of   the 
contract.  Learned counsel for the appellant has submitted that 
ig
in   view   of   mandatory   nature   of   the   provision   contained   in 
Section   16(c)   of   the   Specific   Relief   Act,   1963   (in   short,   ‘the 
Act’)   such   an   averment   was   necessary   and   since   it   was   not 
made in a specific manner by the appellant, the suit ought to 
have failed and it should not have been decreed by the trial 
Court and confirmed by the appellate Court.  Learned counsel 
for the respondent submits that although this is the mandatory 
requirement of law, this very requirement of law can be seen 
from the overall pleadings in the plaint to have been fulfilled in 
the instant matter and, therefore, there would be no reason for 
this   Court   to   interfere   with   the   decrees   passed   by   both   the 
Courts below.
8.
Section 16(c) of the Act is re­produced as under :

“16.  Personal   bars   to   relief.­  Specific 
performance of a contract cannot be enforced in 
favour of a person ­
          (a).................................
          (b).................................
         (c) who fails to aver and prove that he has  
performed or has always been ready and willing  
to   perform   the   essential   terms   of   the   contract  
which   are   to   be   performed   by   him,   other   than  
terms   the   performance   of   which   has   been  
prevented or waived by the defendant.

Explanation.­For the purposes of clause (c),­
          (i) where a contract involves the payment  
of  money,   it   is   not  essential   for   the  plaintiff   to  
actually tender to the defendant or to deposit in  
Court any money except when so directed by the  
Court;
          (ii) the plaintiff must aver performance of,  
or   readiness   and   willingness   to   perform,   the  
contract according to its true construction.”
9.
It is clear that the provision is very specific.   It lays 
down   a  rule   limiting   enforcement   of   specific   performance   of 
contract   in   two   situations.   Firstly,   it   states   that   specific 
performance   of   contract   cannot   be   enforced   in   favour   of   a 
person who fails to aver and prove that he has performed his 
part   of   the   contract   as   regards   essential   terms   thereof. 
Secondly,   it   also   prohibits   enforcement   of   the   specific 

performance in a situation where the plaintiff fails to aver and 
prove that he has been always ready and willing to perform the 
essential terms of the contract which are to be performed by 
him.   This provision also makes it clear that these averments 
must be made according to true construction of the contract.  It 
has been held to be mandatory in nature.   In the absence of 
any pleadings made on these lines and proved by the plaintiff, 
no specific performance of contract can be awarded.   This is 
the law well­settled now.
Now, it would have to be seen whether or not the 
10.
averments   made   by   the   respondent   were   according   to   true 
construction of the contract.  For its determination, it would be 
useful to refer to the essential terms of the agreement of sale, 
which has been duly proved by the respondent vide Exhibit­62. 
A   close   perusal   of   this   agreement   discloses   three   essential 
terms, namely : i) payment of consideration of Rs.80,000/­, ii) 
delivery   of   possession   of   the   suit   land,   and   iii)   obtaining   of 
permission for sale of the suit land from the Government.
11.
The first term, obviously, was to be performed by the 

respondent, he being the purchaser.   For fulfillment of other 
two   terms,   it   would   naturally   fall   upon   the   appellant   to 
perform   them,   he   being   the   owner   in   possession   of   the   suit 
land.     This  agreement   itself  indicated  that  the only  essential 
term which was required to be fulfilled by the respondent was 
performed   by   him   by   making   payment   of   full   consideration 

amount.  It further indicated that second term, which was to be 
performed by appellant, was also performed by him then and 
there as it mentioned that possession was delivered.  So, what 
remained   to   be   performed   post   agreement   of   sale   was 
obtaining of permission from the Government and that was to 
be done by the appellant. 
12.
The pleadings in the plaint show that respondent had 
pleaded that on the day of execution of the agreement to sell 
i.e.  27th  May,  1998   itself,   he  had  made  payment  of  the  said 
consideration amount in its entirety.  This pleading has and for 
that matter the pleadings required to be made as per Section 
16(c) have to be interpreted in the light of explanation (ii) to 
Section 16(c).   Explanation (ii) lays down that the averment 

must be made according to true construction of the contract. 
According   to   Websters   Comprehensive   Dictionary   Deluxe 
Encyclopedic   Edition   (First   Indian   Reprint   2001)   the   word 
‘true’   has   been   assigned   the   meaning   as   faithful   to   fact   or 
reality;   not   false   or   erroneous.     In   concise   Oxford   English 
Dictionary, Twelfth Edition (Indian), ‘true’ is defined to mean, 

‘in   accordance   with   fact   or   reality.     It   is   clear   that   the 
expression   ‘true   construction’   used   in   the   explanation   (ii)   to 
Section   16(c)   means   construction   or   interpretation   which   is 
faithful to facts and realities emerging from the contract.  It is 
the   construction   which   is   not   based   upon   facts   or 
circumstances  extraneous  to the  contract.    Such construction 
must be made by reading the essential terms of the contract all 
together   and   not   in   piece­meal   manner,   in   accordance   with 
their   ordinary   and   natural   meaning.     One   of   the   facts   and 
realities of essential terms of the agreement (Exhibit­62) was 
that there was just one obligation on the part of respondent to 
fulfill   and   that   was   of   payment     of   full   amount   of 
consideration.     Therefore,   when   respondent   pleaded   he   paid 

full amount of consideration, in effect, he conveyed that he had 
performed his part of the contract.   It would then follow that 
the   requirement   of   first   part   of   Section   16(c)   was   complied 
with   and   necessity   of   fulfilling   second   part   requirement   of 
Section 16(c) relating to averment of readiness and willingness 
to perform those essential terms which were to be performed 

by  respondent   did  not  arise,  as  nothing  had remained   to be 
performed  by the respondent.    Whatever was required to be 
performed   was   for   the   appellant   only.     It   was   also   not 
appellant’s case that something had remained to be performed 
by   the   respondent.     His   defence   was   that   there   was   no 
agreement of sale and he had signed one blank stamp paper 
and   had   delivered   possession   to   secure   loan   and   interest 
thereon.   Both the Courts below have concurrently held that 
requirements of Section 16(c) as regards averments have been 
fulfilled by the respondent and rightly so.
13.
Learned   counsel   for   the   appellant   submits   that 
pleadings of respondent do not show use of the words that he 
had performed his part of the contract which he was required 

to perform under its terms.  True it is.  These specific words are 
missing from the plaint.  But that has not made any difference 
in the instant case.  Pleadings, sometimes, are poor in words or 
use  different  words.    But as long  as  they  convey  that  which 
must be conveyed under the law, they cannot be flayed and 
flogged   as   being   sapped   of   legal   requirements.     The   law 

relating   to   pleadings   is   clear.     It   is   the     substance   of   the 
pleadings and not the form that must be seen by the Courts, 
for, it is the substance only which matters and which is capable 
of conveying to the other side what is intended and meant by a 
party.  Wordings or phraseology of the pleadings might not be 
as desired or might be employed with all hues and colours of 
the language.  It is the beauty of any language whether English 
or Indian that it is capable of conveying same meaning in many 
different forms and words.   The requirement of Section 16(c) 
of the Specific Relief Act, 1963 is that by averments made, it 
should   be   conveyed   to   the   defendant   that   the   plaintiff   has 
performed essential terms of the contract or has always been 
ready   and   willing   to   perform   his   part   of   contract.     This 

meaning   can   possibly   be   expressed   in   different   words   and 
forms.     Such   meaning   can   also   be   ascertained   from   the 
expressions   and   words   used   even   in   poorly   or   inartistically 
drafted   pleadings   by   looking   into   their   substance.     It   all 
depends   upon   what   words   and   expressions   have   been 
employed   in   pleadings   and   there   cannot   be   any   one   fits   all 

solution for determining which words or expressions in their 
cannotions and substance conform to requirements of Section 
16(c) and which do not.  It is for the Court to determine so in 
the facts and circumstances of each case before it. 
14. 
  In the instant case, the respondent pleaded that he 
had paid an amount of Rs.80,000/­ to the respondent on the 
very   day   of   execution   of   agreement   to   sell   and   that   the 
agreement to sell could not be executed on 27.5.1998 because 
the appellant was to obtain permission for sell of the suit land 
from   the   Government.     This   can   be   seen   from   pleadings 
appearing in paragraph 2 of the plaint and they are reproduced 
as under :­
“The plaintiff on the very day paid Rs.80,000/­ to  

15.
the defendant and the same fact is mentioned in  
the Isarpawati.  As the land Gat No.73 old Suvery  
No.16/1 was granted to him by the Government.  
The defendant agreed to apply for permission for  
the transaction from Government and therefore,  
the sale­deed was not executed on that date.”
Substance of these pleadings, in the light of essential 
terms of the contract, If I may repeat, is that respondent did his 

part of the contract and expected the appellant to perform his 
part of the contract so that sale­deed could be executed.  This 
was also understood well by the appellant, as the evidence on 
record shows, causing him no prejudice in his defence.
16.
The   trial   Court   in   fact   elaborately   dealt   with   this 
aspect   of   the   case   by   following   the   law   laid   down   by   the 
Hon’ble   Apex   Court   in   the   cases   of  Kedar   Lal   Seal   and 
another   vs. Hari Lal Seal, reported in  AIR 1952 SC 47  and 
Madan   Gopal   Kanodia   vs.   Mamraj   Maniram   and   others, 
reported in AIR 1976 SC 461 when it held that the pleadings 
could not be interpreted in a pedantic and meticulous manner 
so as to defeat the genuine claims on trivial grounds.  The trial 
Court   followed   the   law   laid   down   in   the   case   of   Kedarlal 

(supra) that the Court should be slow to throw out a claim on a 
mere   technicality   of   pleadings   when   substance   of   things   is 
there   and   no   prejudice   would   be   caused   to   the   other   side, 
however, clumsily or inartistically the plaint may be worded. 
The trial Court also placed its reliance upon the observations 
by the learned Single Judge of this Court in the case of Hariba 

Babu   Babar   and   anr.   vs.   Appasaheb   Dadu   Nagargoje, 
reported in 2007(5) Mh.L.J. 260 (para 14), that for gathering 
the true spirit behind a plea, it should be read as a whole and 
to test whether the plaintiff has performed his obligation, one 
has to see the pith and substance of the plea.  These findings of 
the   trial   Court   have   also   been   confirmed   by   first   appellate 
Court.     Findings   of   both   these   Courts   are   consistent   with 
settled law of pleadings and requirements of Section 16(c) of 
the Act seen in the light of its explanation (ii).  Thus, I see no 
reason to take a different view in the matter.   Besides, these 
findings are based upon the appreciation of evidence available 
on record.  They are not the result of non­consideration of any 
relevant   evidence   or   consideration   of   any   evidence   not 

admissible   in   law.     They,   therefore,   cannot   be   termed   as 
perverse and as such leave no scope for this Court to make any 
interference with them.   The argument of learned counsel for 
the   appellant   made   in   this   behalf,   therefore,   cannot   be 
accepted.
Learned   counsel   for   the   appellant   has   forcefully 
17.
argued that question of absence of specific pleadings as regards 
performance of part of contract by the appellant ought to have 
been examined by both the Courts below in the context of the 
defence taken by the appellant.   He submitted that it was the 
case   of   the   appellant   that   the   sale   transaction   was   nominal, 
having been entered into between the parties only as a security 
for repayment of loan of Rs.10,000/­ and that the respondent 
had   filed   a   case   before   the   Assistant   Registrar,   Co­operative 
Societies seeking a declaration that the real transaction of the 
agreement to sell was of security of loan.  He submits that with 
this defence, it became obvious that the appellant was avoiding 
to perform his part of contract and, therefore, it was necessary 
for the respondent to have further pleaded that the appellant 

had failed to perform his part of contract.  Learned counsel for 
under Section 16(c) of the Act.   
18.
the   respondent   submits   that   there   is   no   such   requirement 
Perusal of Section 16(c) of the Act will amply show 
that it does not lay down any rule that the plaintiff should also 
make an averment in words that there is a failure on the part 

of   the   defendant   to   perform   essential   terms   of   the   contract. 
Such   a   pleading   can   be   gathered   from   the   facts   and 
circumstances of the case and when it cannot be, there would 
be   no   cause   of   action   to   file   the   suit.     In   the   present   suit 
general   pleadings   of   the   respondent   and   conduct   of   the 
appellant did show that appellant was not ready and willing to 
perform his part of the contract.  Besides, the appellant also did 
not  prove  that   there  was  no cause  of  action  to  file   the  suit. 
Therefore,   I   find   no   merit   in   the   said   argument   of   learned 
counsel for the appellant.
19.
Learned counsel for the appellant has also referred to 
me cases of Raj Kishore (dead) by L.Rs. vs. Prem Singh and 
others, reported in AIR 2011 SC 382 and Bal Krishna & Anr. 

vs.  Bhagwan   Das   (dead)   by  L.Rs.   &   Ors.,  reported   in  AIR 
2008 SC 1786  to strengthen his argument that in a suit for 
specific performance, averment as to readiness and willingness 
is   mandatory.     In   fact,   I   have   already   held   that   this   is   the 
settled  principle   of  law  and  it   is  mandatory   in   nature.     But, 
here the question involved is not so much about the absence of 

necessary averment, but is about the form of averment which is 
already present in the plaint.  In the said case of Raj Kishore, as 
per the terms of the agreement, plaintiff was required to repay 
an amount Rs.6,000/­ borrowed by him from the defendant to 
get the land in question transferred back to him.  It was in this 
background   of   the   agreement   that   it   was   found   that   the 
averment as regards readiness and willingness to perform part 
of   the   contract   was   necessary   on   the   part   of   the   plaintiff 
therein,   as   something   had   remained   to   be   done.     In   the 
aforesaid case of  Bal Krishna  also, some part of the contract 
had remained to be performed by the plaintiff.   Therefore, in 
that   case,   it   became   necessary   for   the   plaintiff   to   make   a 
specific   averment   in   the   plaint   as   regards   readiness   and 

willingness   to   perform   the   contract.     These   facts   clearly 
distinguish   themselves   from   the   facts   of   the   instant   case, 
wherein   nothing   had   remained   to   be   performed   by   the 
respondent.     Therefore,   in   my   respectful   submissions,   both 
these cases would not help the appellant in any manner.
In the circumstances, I find that the respondent had 
20.
sufficiently pleaded in the plaint that he had performed his part 
of   contract   and   the   Courts   below   cannot   be   said   to   have 
committed   an   error   in   passing   a   decree   for   specific 
performance of contract in the absence of pleading of readiness 
and   willingness   to   perform   the   part   of   the   contract   by   the 
respondent/plaintiff.   The   substantial   question   of   law   is 
answered accordingly.  There is no substance in the appeal and 
it must fail.
21.
In view of above, appeal stands dismissed with costs.

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