VidhiSangh

Supreme Court of India · 10/11/2025

K.S. MANJUNATH AND OTHERS versus MOORASAVIRAPPA @ MUTTANNA CHENNAPPA BATIL, SINCE DECEASED BY HIS LRS AND OTHER

[2025] 12 S.C.R. 43 · 2025 INSC 1298

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court upheld a decree for specific performance of a 2000 agreement to sell agricultural land in favour of the original vendees against subsequent purchasers. Because the agreement was not determinable in nature, the vendors' unilateral termination on grounds unrelated to any default by the vendees (a pending third-party suit with a status quo order and a vendor's death), without refunding the money, was invalid, and the vendees needed no declaration against it. The subsequent purchasers, who admittedly saw the termination notice yet made no inquiry, were not bona fide purchasers without notice under Section 19(b); the Court, however, required the vendees to pay the balance with 16% interest and an additional Rs. 5 crore.

Issues

  1. Whether a suit for specific performance is maintainable without a prayer for declaration that the vendors' termination of the agreement to sell was invalid.
  2. When unilateral termination of an agreement to sell is permissible, and whether the agreement in this case was in its nature determinable.
  3. Whether the subsequent purchasers were transferees for value in good faith without notice of the prior agreement under Section 19(b) of the Specific Relief Act, 1963.
  4. Whether the original vendees proved continuous readiness and willingness under Section 16(c).
  5. Whether the subsequent purchasers could reopen limitation, and whether the agreement was unenforceable because one joint vendee did not join in seeking specific performance.

Provisions considered

Held

Result

Appeals dismissed. The subsequent purchasers are to execute the sale deed and deliver vacant possession to the original vendees within six months, but only after the vendees pay the balance consideration of Rs. 18,83,001 with interest at 16% per annum from the date of the agreement and an additional Rs. 5,00,00,000 within six months; parties at liberty to approach the Court on default or difficulty.

Judgment PDF: Supreme Court of India, [2025] 12 S.C.R. 43.