Summary
Applying the then-operative discretionary specific-performance regime, the Supreme Court upheld relief to purchasers found to have possessed the entire land for many years under the agreement. The earlier injunction decree supported their possession despite the later purchaser’s objection. Relief remained conditional on payment of consideration at the prevailing market value within six months of the Supreme Court judgment. The later purchaser’s appeal was dismissed. This records the historical section 20 framework applied in this case.
Issues
- Whether the purchasers had received possession of the entire agreed land.
- Whether discretionary specific performance should be upheld against the later purchaser.
- What consideration and time condition applied.
Provisions considered
- Former section 20, as applied in the judgment, Specific Relief Act, 1963The quoted provision made specific performance discretionary, requiring sound judicial reasoning. The Court applied that historical regime to the particular possession and transaction history. (¶¶ 10, 11, 15, 16)
Held
- Under the former section 20 framework, lawfulness alone did not compel a decree; discretion had to be sound, reasonable and judicial. Possible injury to a third party did not itself exclude relief but formed part of the factual assessment. (¶¶ 10, 11)
- The independent 1984 suit and 1987 injunction decree indicated possession of the entire property. On the peculiar record the Court accepted that the original purchasers had been put in possession, contrary to the narrower view taken by the courts below. (¶¶ 14, 15)
- The discussion of part performance required readiness and willingness and did not treat an agreement alone as conveying title. The Court ultimately upheld specific performance in light of the possession findings and long occupation in this case. (¶¶ 12, 13, 15, 16)
- The decree was subject to payment of sale consideration at the prevailing market value within six months from the Supreme Court judgment. The relief did not permit purchase solely at the old contractual figure without that condition. (¶ 16)
Result
Later purchaser’s appeal dismissed without costs; specific performance upheld subject to payment at prevailing market value within six months of judgment.