VidhiSangh

Supreme Court of India · 20/01/2022

SHENBAGAM & ORS. versus KK RATHINAVEL

[2022] 1 S.C.R. 346 · 2022 INSC 75

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Summary

The purchaser failed to prove continuous readiness and willingness to complete the land sale. The courts below treated financial means as sufficient and misread the sellers’ obligation to convey an unencumbered title as requiring prior discharge of the mortgage before payment. The purchaser’s inactivity, delayed suit and lack of evidence of funds during the contractual period defeated specific performance. The Court also declined discretionary relief in the circumstances, directing refund of the advance with interest.

Issues

  1. Whether the purchaser proved readiness and willingness to perform the sale agreement.
  2. Whether the mortgage clause excused non-payment and specific performance remained equitable.

Provisions considered

Held

Result

Appeal allowed; specific-performance decree set aside; sellers to refund Rs35,000 with 6 per cent annual interest from filing of the specific-performance suit until payment.

Judgment PDF: Supreme Court of India, [2022] 1 S.C.R. 346.