VidhiSangh

Supreme Court of India · 18/01/2022

G.T. GIRISH versus Y. SUBBA RAJU (D) BY LRS AND ANOTHER

[2022] 8 S.C.R. 991 · 2022 INSC 51

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

Summary

An allottee agreed to sell a public residential site on terms inconsistent with her statutory obligation to build and retain it during the lease period. The Court held that the particular bargain defeated the statutory allotment scheme and was unenforceable under Section 23 of the Contract Act, notwithstanding that an agreement to sell ordinarily transfers no title. It rejected the High Court’s specific-performance decree and its unpleaded sham-sale finding. In place of the trial court’s refund decree, it awarded the plaintiff’s heirs Rs20 lakh on the case’s peculiar equities.

Issues

  1. Whether the site-sale agreement defeated the statutory allotment rules and was enforceable.
  2. Whether lis pendens or the subsequent purchaser’s alleged want of good faith supported specific performance.
  3. What monetary relief should follow refusal of enforcement.

Provisions considered

Held

Result

Appeals allowed; specific-performance decree set aside; appellants to pay Rs20 lakh within three months, with 8 per cent annual interest after that period if unpaid; respective costs borne.

Judgment PDF: Supreme Court of India, [2022] 8 S.C.R. 991.