Case Note & Summary
The dispute arose from two agreements to sell dated 2/11/1983 between Vijaya Srivastava and M/s Mirahul Enterprises, with Admiral R.R. Sood also involved. The High Court's Division Bench confirmed the execution of the agreements and the sale price of Rs. 2,64,000 for each flat, while the trial court found a higher price of Rs. 2,64,261 plus Rs. 1,71,000. To balance the equities, the Supreme Court decided that the plaintiffs should pay an additional amount to the respondent, given the time elapsed since the agreements. The court noted that Rs. 9 lakhs was deposited under interim orders and directed that Rs. 4 lakhs be deducted and paid to the respondent, with the remaining amount returned to the plaintiffs. Additionally, the court ruled that Mohd. Arshad, claiming to be a purchaser without notice, had no claim against Vijaya Srivastava and could seek remedies against the respondent. The court mandated the respondent to execute the sale deed within four months. The judgment was delivered on April 15, 2010.
Headnote
A) Contract Law - Specific Performance - Enforcement of Agreements to Sell - Specific Relief Act, 1963, Section 10 - The court upheld the validity of the agreements to sell dated 2/11/1983 and directed their specific performance while balancing equities by adjusting the sale price. The court ordered a deduction from the deposited amount to be paid to the respondent, ensuring fairness in the transaction (Paras 2-4).
Issue of Consideration
Whether the agreements to sell should be specifically enforced and how to balance equities between the parties.
Final Decision
The Supreme Court upheld the agreements to sell, ordered specific performance, and directed the respondent to execute the sale deed within four months. It also mandated a deduction from the deposited amount to be paid to the respondent, with the balance returned to the plaintiffs.
Law Points
- Specific performance
- agreements to sell
- balance of equities
- refund of sale consideration
