JAGDISH SINGH Vs. NATTHU SINGH

PETITIONER:
JAGDISH SINGH

Vs.

RESPONDENT:
NATTHU SINGH

DATE OF JUDGMENT25/11/1991

BENCH:
VENKATACHALLIAH, M.N. (J)
BENCH:
VENKATACHALLIAH, M.N. (J)
AGRAWAL, S.C. (J)

CITATION:
1992 AIR 1604          1991 SCR  Supl. (2) 567
1992 SCC  (1) 647      1991 SCALE  (2)1363

ACT:
Specific   Relief   Act,  1963:     Section  21  (2),   (4)   &
(5)—Proviso.
Suit  for  specific     performance–Acquisition  of    suit
properties  during  the pendency  of  second  appeal–Effect
of–Nature of relief available to plaintiff–Power of  Court
to  grant  compensation–Held  where  the  contract  becomes
impossible    of    performance       for      no    fault      of
plaintiff—–Court  can  award     compensation  in  lieu     and
substitution  of specific performance–Measure of  compensa-
tions  by  the    standards  of Section  73  of  the  Contract
Act–Scope  of    the Proviso  explained–Distinction  between
Indian Law and English law discussed.
Code of Civil Procedure, 1908: Section 100
Second  Appeal–High Court–Power to  reappreciate    evi-
dence and disturb concurrent findings of fact—-Held  find-
ings  of fact vitiated by nonconsideration of relevant    evi-
dence can be reversed.
General Clauses Act, 1897: Section 27.
Suit for specific performance—Notice issued by  plain-
tiff–Refusal  to  accept by defendant-Notice  returned     un-
served—Held    notice    must  be  presumed  to     have    been
served–Averments in the Notices could be treated as part to
the plaint.

HEADNOTE:
By    an agreement dated 3.7.1973 the respondent sold     two
plots to the appellant for a consideration of Rs. 15,000. By
another     agreement, entered into between the parties on     the
same day, the appellant agreed to reconvey the said  proper-
ties to the respondent against payment of Rs. 15,000  within
two  years.  Within  the stipulated  period  the  respondent
(Plaintiff)  instituted     a  suit  for  specific     performance
alleging that despite offer of performance and tendering the
price, the Appellant (Defendant) refused reconveyance of the
properties.
The     Trial Court dismissed the suit by holding that     the
Respondent  was     not ready and willing to perform  the    con-
tract, and
568
that the time was essence of the reconveyance agreement. The
first Appellate Court dismissed the respondent’s appeal.
The     respondent preferred second appeal before the    High
Court. Relying upon the two notices issued by the Respondent
to  the appellant before filing of the suit which  contained
the  averments that he was willing and ready to perform     the
contract,  the High Court reversed the findings of  the     two
courts    below and allowed the appeal and held that  Respond-
ent-Plaintiff  was willing to perform the contract and    that
the Appellant was the party in breach. Accordingly it passed
a decree of specific performance of an agreement for sale of
land.
During  the pendency of the Second Appeal, suit  proper-
ties were acquired by the State for public purposes and     the
High  Court rejected the plea that after the land  has    been
acquired by the State corpus of the Land had ceased to exist
and no decree for specific performance can be granted.
In defendant’s appeal to this Court it was contended  on
his  behalf (1) that the High Court erred in  reappreciating
the evidence in second appeal and in disturbing the  concur-
rent  findings of fact that Respondent was not    willing     and
ready  to  perform  the contract; (2) that in  view  of     the
acquisition  of     the  suit-properties  the  contract  itself
became incapable of specific performance and to such a    case
the power to give compensation as an alternative to specific
performance did not extend.
Modifying the decree of the High Court, this Court,
HELD:1.  Where  the findings by the Court of  facts     are
vitiated by non-consideration of relevant evidence or by  an
essentially erroneous approach to the matter, the High Court
is not precluded from recording proper findings. [572-H]
1.1     The notices issued by the respondent to the  appel-
lant containing the averments that he was ready and  willing
to  perform the contract which were not actually  served  on
the appellant because of his refusal to accept them must  be
presumed  to have been served as contemplated by Section  27
of  the     General Clauses Act..Therefore the High  Court     was
right  in  relying upon the averments in the  notices  which
could  be  treated as part to the  plaint.  Accordingly     the
finding     of the High Court that Respondent was    willing     and
ready to
569
perform     the contract and that it was the Appellant who     was
in breach is accordingly confirmed. [572 F-G, 578 H, 579-A]
2.    Section 21 of the Specific Relief Act, 1963  enables
the  Plaintiff    in a suit for specific performance  also  to
claim  compensation for its breach either in addition to  or
in  substitution  of, such performance.     However,  when     the
plaintiff by his option has made specific performance impos-
sible, Section 21 does not entitle him to seek damages. That
position  is common under the English and Indian Law  namely
under  Section of Lord Cairn’s Act, 1858 and Section  21  of
the Specific Relief Act, 1963. But under the Indian Law     the
explanation to sub-section (5) of Section 21 makes a specif-
ic departure  and the jurisdiction to award damages  remains
unaffected by the fact that without any fault of the  plain-
tiff,  the contract becomes incapable of  specific  perform-
ance. [574-D, 577, H-C]
Piarey  Lal     v. Hori Lal, [1977] 2 S.C.R.  915,  distin-
guished and held inapplicable.
Mohamad  Abdul  Jabbar & Ors. v. Lalmia &  Ors.,  A.I.R.
(34) 1947 Nagpur 254, disapproved.
Ardeshir  H.  Mama v. Flora Sessoon, A.I.R.     1928  Privy
Council 208, explained.
3.    However, so far as the proviso to sub-section (5) of
Section 21 is concerned, two positions must to kept  clearly
distinguished.    If  the amendment relates to the  relief  of
compensation in lieu of or in addition to specific  perform-
ance  where  the plaintiff has not abandoned his  relief  of
specific-performance  the Court will allow the amendment  at
any  stage of the proceeding. That is a claim for  compensa-
tion  failing under section 21 of the Specific    Relief    Act,
1963  and  the amendment is one under the  proviso  to    sub-
section (5). But different and less liberal standards  apply
if  what is sought by the amendment is the conversion  of  a
suit  for  specific  performance into one  for    damages     for
breach of contract in which case Section 73 of the  Contract
is  invoked. This amendment is under the discipline of    Rule
17, Order 6, C.P.C. The fact that sub-section (4), in  turn,
invokes Section 73 of the Indian Contract Act for the  prin-
ciples of quanlification and assessment of compensation does
not obliterate this distinction. [575 B-C]
570
3.1  In the instant case, assuming that the  Respondent
had  not  specifically sought for compensation    in  lieu  of
specific  performance  the amendment is permitted  in  order
that complete justice is done. [578-B]
3.2 The measure of the compensation is by the  standards
of  Section 73 of the Indian Contract Act. Here the  English
Rule in Bain v. Fothergill that the purchaser, on breach  of
the contract, cannot recover for the loss of his bargain  is
not applicable. [578-C]
Bain v. Fothergill, 1874 L.R. 7 House of Lords 158, held
inapplicable.
Pollock  & MuHa on Contract (10th edn.) p.663;  Nagardas
v. Ahmedkhan, (1895) 21 Bom. 175, referred to.
3.3 In the instant case, the quantum of the compensation
is ascertainable with reference to the determination of     the
market    value in the land acquisition proceedings. The    com-
pensation  awarded may safely be taken to be the measure  of
damages     subject, of course, to the deduction  therefrom  of
money value of the services, time and energy expended by the
appellant  in  pursuing the claims of compensation  and     the
expenditure incurred by him in the litigation culminating in
the award. [578-G]
4.     Accordingly there will be a decree awarding to     the
Respondent compensation in lieu and substitution of one     for
specific performance which but for the acquisition  Respond-
ent would have been entitled to; the quantum and the measure
of the compensation being the entire amount of    compensation
determined  for the acquisition of the    suit-properties     to-
gether with all the solatium, accrued interest and all other
payments  under the law authorising the acquisition  less  a
sum of rupees one lakh fifty thousand only which shall go to
the  Appellant towards his services, time and amounts  spent
in  pursuing  the  claims for compensation as  well  as     the
consideration stipulated for reconveyance. [579 E-F]

JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4916 of
1991
From the Judgment and Order dated 5.4.1991 of the  Alla-
habad High Court in Second Appeal No. 3395 of 1978.
Manoj Swarup and Ms. Lalita Kohli for the Appellants.
571
B.S. Nagar for Goodwill Indeevar for the Respondent.
The Judgment of the Court was delivered by
VENKATACHALIAH,  J.     Special leave ‘is granted  and     the
appeal    taken-up for final hearing and disposed of  by    this
judgment. We have heard Sri Manoj Swamp, learned counsel for
the Appellant and Shri Goodwill Indeevar for the Respondent.
2.     Appellant  was     Defendant in a     suit  for  specific
performance. He seeks special leave to appeal to this  Court
from the judgment and order dated 5.4.1991 of the High Court
of Allahabad in Second Appeal No.3395 of 1978 decreeing,  in
reversal  of  the decrees of dismissal entered    by  the     two
courts below, specific performance of an agreement for    sale
of land..
3.  On 3.7.1973 Respondent-Natthu Singh sold Plot  No.195
measuring 5 bighas and 18 biswas and Plot No.196 measuring 9
bighas and 8 biswas of Gulistapur Village, Pargana Dadri  to
the appellant for a consideration of Rs. 15,000. On the very
day,  i.e.,  3.7.1973, another agreement  was  entered    into
between the parties whereunder Appellant agreed to  reconvey
the said properties to the Respondent against payment of Rs.
15,000/- within two years.
On 2.6.1975, well within the period of two years stipulated
for the performance of the agreement to re-sell,  Respondent
instituted  the suit for specific performance alleging    that
despite offer of performance and tendering the price, Appel-
lant,  with  the dishonest intention  of  appropriating     the
properties  to himself refused reconveyance.  The  Appellant
contested the suit principally on the ground that Respondent
was never ready and willing to perform the contract and that
Respondent himself was in breach.
4.    The  trial court framed the necessary  and  relevant
issues stemming from the pleadings and on its own  apprecia-
tion  of  the evidence on record came to  find    against     the
Respondent  that  he was ready and willing  to    perform     the
contract; and that the agreement, being one of reconveyance,
time was of its essence. The suit was accordingly dismissed.
Respondent’s first appeal before the learned IInd Additional
District Judge, Bulandshahar was also unsuccessful.
5.      However, in Respondent’s second appeal,  the    High
Court  reversed     the findings of the two  courts  below     and
allowing the appeal held that Respondent-Plaintiff was ready
and willing to perform the contract; that the Appellant     was
the  party  in breach; and that, therefore,  Respondent     was
entitled  to a decree. This decree is assailed in  this     ap-
peal.
572
6.    Sri Manoj Swarup appearing in support of the  appeal
urged two contentions; the first is that the High Court     was
in error in embarking upon a re-appraisal of the evidence in
a second-appeal to distrub concurrent findings of fact    that
Respondent  was-not  willing and ready to perform  the    con-
tract. The second contention is that contract itself  became
incapable  of specific performance in view of the fact    that
during the pendency of second appeal the State had initiated
proceedings  for compulsory acquisition of the    suit-proper-
ties and the subject-matter of the suit itself ceased to  be
available. Counsel says the power to give compensation as an
alternative to specific performance did not extend to a case
in  which  the    relief of specific  performance     had  itself
become impossible.
7.     On the first question, as to the readiness  of     the
Respondent  to perform his obligations, the High  Court     no-
ticed that on 30th January, 1974 even before institution  of
the suit Respondent and his brother had sold another proper-
ty  belonging  to them for a price of Rs.  30,000  and    that
Respondent had the necessary wherewithal to perform his part
of the bargain. The High Court held:
“…Thus,     the  plaintiff admittedly  had     re-
ceived  Rs.  15,000/- on 30.1. 1974  and    soon
thereafter the first notice was issued to     the
defendant     asking him to indicate a  date     for
executing the saledeed and also expressing his
readiness     and willingness. There is  no    evi-
dence on the record that between 30.1.1974 and
the  date of suit or thereafter the  plaintiff
had parted with this money.”
The     High Court also noticed that the two notices  dated
23.3. 1974 and 6.5. 1975 respectively issued by the Respond-
ent to the Appellant before the suit contained the averments
that  he was ready and willing to perform the contract.     The
notices were, no doubt, not actually served on the appellant
as  they had come back unserved upon the alleged refusal  by
the appellant to accept them. The High Court relied upon the
averments in the notices which could be treated as a part to
the plaint having been referred to and relied upon therein.
8.     In  our opinion, the High Court was  right  in     its
view.  The notices must be presumed to have been  served  as
contemplated  by Section 27 of the General .Clauses Act.  As
to  the jurisdiction of the High Court to reappreciate    evi-
dence in a second appeal it is to be observed that where the
findings by the Court of facts is vitiated by non-considera-
tion  of  relevant evidence or by an  essentially  erroneous
approach to the matter, the High Court is not precluded from
recording proper findings. We find no substance in the first
contention.
573
9.     The second contention is, however, not without     its
interesting  aspects.  During  the pendency  of     the  second
appeal,     the  properties were acquired by the  State  for  a
public purpose. This is not disputed. It would appear that a
compensation  of Rs. 4 lakhs or thereabouts has been  deter-
mined.    That sum, along with the generous solatium  and     the
rates  of  interest provided by the statute would now  be  a
much larger amount. Before the High Court, Appellant  sought
to  rely  upon the decision of this Court in Piarey  Lal  v.
Hori  Lal,  [1977] 2 S.C.R. 915. That was a  case  where  in
proceedings of consolidation the subject-matter of an agree-
ment to sell was allotted to a person other than the vendor,
the relief of specific performance was held not to  survive.
The  High Court rightly held that pronouncement was  distin-
guishable and inapplicable to the present controversy.
As    to  the relief available to a  plaintiff  where     the
subject     matter was acquired during the pendency of  a    suit
for specific-performance the High Court said:
“…The learned counsel for the respondent has
vehemently urged that after the land has    been
acquired its corpus has ceased to exist and no
decree  for  specific performance can  now  be
granted.    In my opinion with  the     acquisition
of)the  land  plaintiffs    rights    do  not     get
extinguished in totality. The appellate  court
always  suitably    mould the relief  which     the
circumstances  of     the  case  may     require  or
permit. The power in this regard is ample     and
wide enough…
However, in the present case the property     has
not  been     totally lost. What happens  in     the
case  of    the  acquisition  is  that  for     the
property compensation payable in lieu there of
is substituted…”
The  High     Court    issued    these  consequential
directions:
“If  the    decree for specific  performance  of
contract    in  question is found  incapable  of
being  executed due to acquisition of  subject
land, the decree shall stand suitably  substi-
tuted by a decree for realisation of compensa-
tion payable in lieu thereof as may be or have
been determined under the relevant Act and the
plaintiff     shall have a right to recover    such
compensation together with solatium and inter-
est  due thereon. The plaintiff shall  have  a
right to recover it from the defendant if     the
defendant     has already realised these  amounts
and  in  that event’ ;the defendant  shall  be
further liable to pay interest at the rate
574
of  twelve per cent from the date of  realisa-
tion  by    him to the date of  payment  on     the
entire  amount  realised    in  respect  of     the
disputed land.”
We are afraid the approach of the High Court is  perhaps
somewhat  an over-simplification of an    otherwise  difficult
area of law as to the nature of relief available to a plain-
tiff  where  the  contract becomes  impossible    of  specific
performance  and  where there is no alternative     prayer     for
compensation  in lieu or substitution of  specific  perform-
ance.  While the solution that has commended itself  to     the
High Court might appear essentially just or equitable, there
are  certain problems both of procedure and of substance  in
the administration of the law of specific relief particular-
ly in the area of award of an alternative relief in lieu  or
substitute  of specific performance that require and  compel
consideration, especially in view of some pronouncements  of
the High Courts which have not perceived with precision, the
nice distinctions between this branch of the law as adminis-
tered in England and in India.
10.     Section 21 of the Specific Relief Act, 1963  corre-
sponding to Section 19 of 1877 Act enables the plaintiff  in
a  suit for specific performance also to claim    compensation
for its breach either in addition to or in substitution     of,
such  performance. Sub-sections (2), (4) and (5) of  Section
21 are material and they provide:
“(2).    If, in any such suit, the Court decides that specif-
ic performance ought not to be granted, but that there is  a
contract  between the parties which has been broken  by     the
defendant,  and that the plaintiff is entitled to  compensa-
tion  for that breach, it shall award his such    compensation
accordingly.
(3) [ Omitted as unnecessary.]
(4)  In determining the amount of any  compensation  awarded
under this section, the Court shall be guided by the princi-
ples  specified     in Section 73 of the Indian  Contract    Act,
1872, 9 of 1872.
(5)  No     compensation shall be awarded    under  this  section
unless    the plaintiff has claimed such compensation  in     his
plaint:
Provided  that where the plaintiff has not claimed any    such
compensation in the plaint, the Court shall, at any stage of
the proceeding, allow him to amend the plaint on such  terms
as may be just, for including a claim for such compensation.
Explanation-The circumstance that the contract has become
575
incapable  of  specific performance does  not  preclude     the
Court  from  exercising the jurisdiction conferred  by    this
section.”
(emphasis added)
So  far  as the proviso to sub-section     (5)  is  concerned,
two  positions    must be kept clearly distinguished.  If     the
amendment  relates to the relief of compensation in lieu  of
or  in addition to specific performance where the  plaintiff
has  not  abandoned his relief of  specific-performance     the
court will allow the amendment at any stage of the  proceed-
ing.  That is a claim for compensation failing under  Secion
21  of the Specific Relief Act, 1963  and the  amendment  is
one under the proviso to sub-section (5). But different     and
less liberal standards apply if what is sought by the amend-
ment  is the Conversion of a suit for  specific     performance
into  one for damages for breach of contract in     which    case
Section 73 of the Contract Act is invoked. This amendment is
under  the  discipline of Rule 17 Order 6, C.P.C.  The    fact
that  sub-section  (4), in turn, invokes Section 73  of     the
Indian Contract Act for the principles of quantification and
assessment of compensation does not obliterate this distinc-
tion.
The     provisions  of Section 21 seem to  resolve  certain
divergencies of judicial opinion in the High Courts on    some
aspects     of the jurisdiction to award of compensation.    Sub-
section (5) seeks to set at rest the divergence of  judicial
opinion between High Courts whether a specific claim in     the
plaint    is necessary to grant the compensation.     In  England
Lord Cairn’s (Chancery Amendment) Act, 1858 sought to confer
jurisdiction  upon  the Equity Courts to  award     damages  in
substitution  or in addition to specific  performance.    This
became    necessary  in view of the earlier dichotomy  in     the
jurisdiction  between  common law and Equity Courts  in     the
matter    of choice of the nature of remedies for     breach.  In
common law the remedy for breach of a contract was  damages.
The  Equity Court innovated the remedy of specific  perform-
ance because the remedy of damages was found to be an inade-
quate remedy. Lord Cairn’s Act, 1858 conferred    jurisdiction
upon  the Equity Courts to award damages also so  that    both
the reliefs could be administered by one court. Section 2 of
the Act provided:
“In  all cases in which the Court of  Chancery
has  jurisdiction to entertain an     application
for  specific  performance  of  any  covenant,
contract    or agreement it shall be lawful     for
the same Court if it shall think fit to  award
damages  to the party injured either in  addi-
tion  to or in substitution for such  specific
performance  and such damages may be  assessed
as the Court shall direct.”
576
This  is the historical background to the provisions  of
Section     21 of the Specific Relief Act, 1963 and its  prede-
cessor in Section 19 of the 1877 Act.
11. In Mohamad Abdul Jabbar & Others v. Lalmia  &Others.
A.I.R (34) 1947 Nagpur 254 specific performance of an agree-
ment  of  sale dated 16th January, 1934, was sought  by     the
institution  of     a suit on 15th January,  1937.     During     the
pendency  of the suit, on 20th April, 1937,  the  provincial
Government  started land acquisition proceedings  respecting
the  subject-matter of the suit and the same  was  acquired.
The High Court upheld the dismissal of the suit for specific
performance and referred an amendment for award of  damages.
On the obvious impermissibility of specific performance     the
Nagpur High Court said:
“We  accordingly conclude that  specific    per-
formance    is  now     impossible  and  we  cannot
decree it for “equity like nature does nothing
in vain.” We cannot hold the plaintiffs-appel-
lants entitled to the compensation money    into
which the property was converted because    they
had no right or interest in that property….”
Refusing the amendment for the relief     for
payment of money the High Court held:
“We would not allow amendment also because  on
the facts found by the trial Court (with which
we  see  no reason, whatever,  to     differ)  we
would  have refused specific performance,     and
the  claim for damages on this  account  would
also have been negatived because damages could
have been awarded only if specific performance
could  rightly have been claimed. The  appeal,
therefore, fails and is dismissed with costs.”
.llm0
Support  for these conclusions was  sought
from  the     oft quoted, but  perhaps  a  little
misunderstood,  case  of Ardeshir H.  Mama  v.
Flora  Sassoon A.I.R. 1928 Privy Council    208.
The  passage in Sassoon’s case relied upon  by
the Nagpur High Court is this:
“In a series of decisions it was    consistently
held  that just as its power to  give  damages
additional  was to be exercised in a  suit  in
which the Court had granted specific  perform-
ance,  so     the  power to give  damages  as  an
alternative  to specific performance  did     not
extend  to a case in which the  plaintiff     had
debarred    himself from claiming that  form  of
relief, nor to a case in which that relief had
become impossible.
577
The  case     of 52 Bombay 597  fell     within     the
first category of cases described above  under
the  alternative relief of damages. This    case
fails within the second part where the  relief
of    specific    performance    has    become
impossible.”
(emphasis supplied)
The     second part of the observation of the    Nagpur    High
Court, with great respect to the learned Judges proceeds  on
a fallacy resulting from the non-perception of the  specific
departure  in  the  Indian law. In Lord     Cairn’s  Act.    1858
damages     could    not be awarded when the     contract  had,     for
whatever  reason, become incapable of specific    performance.
But  under the Indian law the explanation makes     a  specific
departure  and    the jurisdiction to  award  damages  remains
unaffected by the fact that without any fault of the  plain-
tiff,  the contract becomes incapable of  specific  perform-
ance.  Indeed,    Sassoon’s  case is not    susceptible  of     the
import attributed to it by the Nagpur High Court.  Sassoon’s
case  itself indicated the departure made in Indian  Law  by
the Explanation in Section 19 of the 1877 Act, which is     the
same  as the Explanation to Section 21 of the 1963 Act.     The
Judicial  Committee, no doubt, said that Section 19  of     the
1877  Act “embodies the same principle as Lord    Cairn’s     Act
and  does not, any more than did the English Statute  enable
the court in a specific performance suit to award ‘compensa-
tion  for  its breach’ where at the  hearing  the  plaintiff
debarred himself by his own action from asking for a specif-
ic decree”‘, But what was overlooked was this observation of
Lord Blanesburgh,
“except as the case provided for in the expla-
nation  us  10 which there  is  introduced  an
express  divergence from Lord Cairn’s  Act  as
expanded in England”
(emphasis supplied )
Indeed  the following illustration of     the
Explanation appended to Section 19 of Specific
Relief Act, 1877 makes the position clear”
“Of  the Explanation-A, a purchaser,  sues  B,
his  vendor,  for specific  performance  of  a
contract for the sale of a patent. Before     the
hearing  of the suit the patent  expires.     The
Court   may  award  A  compensation  for     the
non–performance of the contract, and may,  if
necessary, amend the plaint for that purpose
When  the  plaintiff  by his option     has  made  specific
performance  impossible, Section 21 does not entitle him  to
seek  damages. That position is common to both Section 2  of
Lord Cairn’s Act, 1858 and Section 21 of the Specific Relief
Act, 1963. But in Indian Law where the contract,
578
for  no fault of the plaintiff, becomes impossible  of    per-
formance  section 21 enables award of compensation  in    lieu
and substitution of specific performance.
We,     therefore, hold that the second contention  of     Sri
Manoj Swarup is not substantial either.
12.     Learned  counsel  were not specific  on  the  point
whether     the Respondent had actually asked for    compensation
in  lieu of specific performance. We may assume that it     was
not so specifically sought. In order that formality in    this
behalf be completed, we permit the amendment here and now so
that complete justice is done.
13. The measure of the compensation is by the  standards
of Section 73 of the Indian Contract. Here again the English
Rule in Bain v. Fothergill, (1874) L.R. 7 House of Lords 158
that  the  purchaser,  on breach of  the  ,contract,  cannot
recover,  for the loss of his bargain is not applicable.  In
Pollock     &  Mulla  on Contract (10th Edn.) the    law  on     the
matter is set out thus :
“Where, therefore, a purchaser of land  claims
damages  for  the     loss of  his  bargain,     the
question to be decided is whether the  damages
alleged to have been caused to him  ‘naturally
arose in the Usual course of things from    such
breach’;    and in an ordinary case it would  be
difficult to hold otherwise.” [p. 663]
Learned  Authors  adopt  the  following  observation  of
Farran C.J. in Nagardas v. Ahmedkhan, (1895) 21 Bom. 175 :
“The Legislature has not prescribed a  differ-
ent  measure  of damages in the case  of    con-
tracts  dealing with land from that laid    down
in the case of contracts relating to  commodi-
ties”
In the present case there is no difficulty in  assessing
the quantum of the compensation. That is ascertainable    with
reference  to the determination of the market value  in     the
land  acquisition proceedings. The compensation awarded     may
safely    be  taken to be the measure of damages    subject,  of
course,     to  the deduction therefrom of money value  of     the
services,  time     and  energy expended by  the  appellant  in
pursuing  the  claims of compensation  and  the     expenditure
incurred by him in the litigation culminating in the award.
14. We accordingly confirm the finding of the High Court
that  Respondent was willing and ready to perform  the    con-
tract and that it was the
579
Appellant  who was in breach. However, in  substitution  of
the  decree for     specific performance, we make a decree     for
compensation, equivalent to the amount of the land  acquisi-
tion  compensation awarded for the suit lands together    with
solatium  and  accrued interest, less a sum  of     Rs.1,50,000
(one  lakh fifty thousand only) which, by a rough and  ready
estimate, we quantify as the amount to be paid to the appel-
lant in respect of his services, time and money expended  in
pursuing the legal-claims for compensation.
15. We may here notice one other submission of Sri Manoj
Swarup. He found fault with the operative part of the  judg-
ment  of the High Court, Which, according to Sri Manoj    Swa-
rup, had not even provided for the payment to the  appellant
of Rs. 15,000 the stipulated consideration for reconveyance.
There is this apparent omission in the operative part of the
High Court’s judgment. But this is only a technicality.     The
operative  part     granting  relief should be  read  with     the
relevant  prayers in the plaint itself. But that is  not  of
any  practical significance here in as much as we have    also
taken  this  amount of Rs. 15,000 into account    in  somewhat
generously   quantifying  the  litigation-expenses  at     Rs.
1,50,000 as payable to the appellant out of the sums awarded
for  the  acquisition. Therefore, there is no need  for     Re-
spondent to pay the sum of Rs. 15,000 additionally.
16. In the result there will be a decree awarding 10 the
Respondent compensation in lieu and substitution of one     for
specific performance which but for the acquisition  Respond-
ent would have been entitled to the quantum and the  measure
of the compensation being take entire amount of compensation
determined  for take acquisition of the suit. properties  to
gather    with   all the solatium, accrued  interest  and     all
other payments     under the law authorising the    acquisition,
less  a sum of Rs. 1,50,000 (Rupees one lakh fifty  thousand
only) which shall go to the Appellant towards his  services,
time and amounts spent in pursuing the claims for  compensa-
tion  as well as the consideration stipulated for  reconvey-
ance  ….
The  sum of Rs.1,50,000 is allowed to be.. paid to     the
Appellant on his assurance that he has not received any part
of the compensation earlier. If any amount has been received
by the Appellant out of compensation awarded for the  acqui-
sition,     such  sums  shall go in reduction  of    the  sum  of
Rs.1,50,000, the difference being for the benefit of and  be
paid to the Respondent additionally.
This  order shall be sufficient authority for the    land
acquistion authorities or the Courts wherever the matter may
be pending for the apportionment and payment of the  compen-
sation for the acquisition of the suit
580
property  between  the Appellant and the Respondent  in     the
manner    indicated above. These directions shall, of  course,
not  affect  or prejudice the claim of other  claimants,  if
any,  whose  claims are to be determined in  the  said    land
acquistion  proceedings,  the assumption  implicit  in    this
apportionment  being. that there are no other  claimants  in
the land acquisition proceedings. If such apportionment     and
withdrawal  is    not possible, the decree in  terms  of    this
judgment shall be worked out in execution proceedings.
The decree under appeal is modified accordingly. No costs.
T.N.A.                          Decree
modified.
581

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