Case Note & Summary
The dispute arose from a property transaction involving a sale deed executed on 22.2.1971 between the plaintiff-Company and the defendants for an oil mill in Khurja, UP. The sale deed stipulated a total consideration of Rs.2 lakhs, with an initial payment of Rs.50,000/- and the balance to be paid in two instalments. The registration of the sale deed was delayed due to issues with the Income Tax Clearance Certificate (ITC), which was eventually restored but not communicated timely by the plaintiff. The defendants withheld payment citing the lack of a valid ITC and a pending suit questioning the sale's validity. The trial court dismissed the plaintiff's suit, finding no breach by the defendants, while the High Court reversed this decision, allowing the plaintiff's appeal. The Supreme Court found that the High Court failed to consider crucial factors, including the plaintiff's delay and conduct, which disentitled them to equitable relief. The Court ultimately allowed the appeal, set aside the High Court's judgment, and directed the defendants to pay an additional sum of Rs.40 lacs to the plaintiff, modifying the trial court's decree accordingly.
Headnote
A) Specific Relief - Cancellation of Sale Deed - Grounds for Cancellation - Specific Relief Act, 1963, Section 31 - The High Court allowed the appeal for cancellation of the sale deed based on the defendants' failure to pay the balance sale consideration. The Supreme Court held that the plaintiff's conduct and delay in filing the suit disentitled them to equitable relief (Paras 1-9).
Issue of Consideration
Whether the plaintiff was entitled to cancellation of the sale deed and recovery of possession based on the alleged breach of contract by the defendants.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the defendants to pay an additional sum of Rs.40 lacs to the plaintiff within six months, modifying the trial court's decree accordingly.
Law Points
- Specific Relief Act
- 1963
- Section 31
- Indian Registration Act
- 1908
- Section 47
- Contract Act
- 1872
- Section 39
- Property Act
- 1882
- Section 10
