VidhiSangh

Supreme Court of India · 21/11/2024

R. KANDASAMY (SINCE DEAD) & ORS. versus T.R.K. SARAWATHY & ANR.

[2024] 11 S.C.R. 1099 · 2024 INSC 884

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Summary

The Supreme Court set aside a High Court decree for specific performance and restored the trial court's dismissal of the suit. Although time was not of the essence, because the clause requiring the sellers to evict the tenants qualified the four-month payment clause, the buyer was not ready and willing to perform. The Court also explained how I.S. Sikandar and A. Kanthamani bear on a suit with no prayer to declare the cancellation invalid, and held that appellate courts may examine a missing jurisdictional fact even where no issue was framed.

Issues

  1. Whether time was of the essence of the agreement for sale, given a four-month payment clause and a clause obliging the sellers to evict tenants and deliver vacant possession at the time of sale.
  2. Whether the buyer proved continuous readiness and willingness to perform her part of the agreement and was entitled to the discretionary relief of specific performance.
  3. Whether a suit for specific performance is maintainable without a prayer declaring the vendor's cancellation of the agreement bad, and whether a higher court may examine that point when the trial court framed no issue on it.

Provisions considered

Held

Result

Appeals allowed; the High Court's first appellate judgment and decree set aside and the trial court's dismissal of the suit restored; the sellers to return the advance of Rs. 25 lakh within a month if not already returned, and any deposit made by the buyer under court orders to be returned with accrued interest.

Judgment PDF: Supreme Court of India, [2024] 11 S.C.R. 1099.