VidhiSangh

Supreme Court of India · 21/11/2024

MANJIT SINGH & ANR. versus DARSHANA DEVI & ORS.

[2024] 11 S.C.R. 876 · 2024 INSC 895

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Summary

The Supreme Court upheld the High Court's decree for specific performance against subsequent purchasers. Under Section 19(b) of the Specific Relief Act, a subsequent purchaser who claims to be a bona fide transferee for value without notice bears the burden of proving it. Good faith needs both honesty and due care, and a purchaser who makes no inquiry of a person in actual possession is fixed with constructive notice.

Issues

  1. Whether the subsequent purchasers (appellants) were bona fide transferees for value who had paid in good faith without notice of the prior agreement, so as to be protected under Section 19(b) of the Specific Relief Act, 1963.
  2. On whom the burden lies to prove good faith under Section 19(b), and what 'good faith' requires.

Provisions considered

Held

Result

Appeal dismissed; the plaintiff left free to execute the decree for specific performance; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2024] 11 S.C.R. 876.