Case Note & Summary
The case involved a dispute over a property agreement between the appellant and the respondent. The appellant claimed that the respondent's brother, as his power of attorney, entered into an agreement to sell a 1/3 share of a property for Rs. 40,000, of which Rs. 5,000 was paid as advance. The appellant alleged that he was ready to perform his part of the contract, but the respondents failed to execute the sale deed. The trial court ruled in favor of the appellant, ordering specific performance. However, the High Court reversed this decision, leading to the present appeal. The Supreme Court noted that the High Court had not properly assessed the evidence regarding the power of attorney and the agreement. It emphasized that the discretion to grant specific performance is not arbitrary and must consider the conduct of the parties. The court ultimately allowed the appeal, affirming the trial court's decree but imposed a condition for the appellant to pay an additional Rs. 15,00,000 to the respondent before the sale deed is executed. The court reiterated that an increase in property value alone does not justify denying specific performance (Paras 1-40).
Headnote
A) Specific Relief - Specific Performance - Entitlement to Specific Performance - Specific Relief Act, 1963, Section 20 - The court held that the plaintiff was entitled to specific performance despite the increase in property value, provided he complied with the condition of paying an additional amount. The court emphasized that mere increase in price does not negate the right to specific performance if the agreement is valid and the plaintiff has shown readiness to perform (Paras 36-40).
Issue of Consideration
Whether the appellant is entitled to specific performance of the agreement to sell the property despite the increase in market price and the conduct of the parties.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and affirmed the trial court's decree for specific performance with the condition that the appellant pay an additional Rs. 15,00,000 to the respondent within three months.
Law Points
- Specific performance
- Power of attorney
- Discretionary relief
- Evidence Act
- Urban Land Ceiling Act
