VidhiSangh

Supreme Court of India · 12/10/2022

P. DAIVASIGAMANI versus S. SAMBANDAN

[2022] 18 S.C.R. 199 · 2022 INSC 1070

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Summary

Under a 1989 agreement to sell agricultural land near Chennai, with six months fixed for completion, the purchaser paid earnest money. Within that time he served notices calling on the vendor to complete, and the vendor ignored or refused them. The purchaser sued for specific performance in 1993. The trial court decreed only a refund, because the balance had not been deposited and financial capacity had not been proved. The High Court decreed specific performance. The Supreme Court held that the suit was within time under Article 54 because time ran from the refusal. Mere delay within the limitation period is no bar in India. Readiness and willingness under pre-2018 Section 16(c) is judged in substance, and no deposit was required. The decree was upheld, with the purchaser to pay Rs. 1 crore more given the rise in land prices.

Issues

  1. Whether a suit for specific performance filed more than three years after the agreement was barred, where the vendor had refused performance after notices served within the contract period.
  2. Whether delay in filing a suit within limitation is by itself a ground to refuse specific performance.
  3. Whether the plaintiff had to prove ready funds or deposit the balance consideration in court to satisfy Section 16(c) of the Specific Relief Act as it stood before 2018.
  4. Whether, given the long lapse of time and the rise in land prices, the decree should be conditioned on a further payment.

Provisions considered

Held

Result

Appeal dismissed. The decree for specific performance was upheld on condition that the respondent deposit Rs. 1 crore in the trial court within eight weeks, over and above any amount already deposited. On that deposit, the appellant is to execute the sale deed and may withdraw the amount.

Judgment PDF: Supreme Court of India, [2022] 18 S.C.R. 199.