Case Note & Summary
The dispute arose from an agreement for the sale of Flat No. 71 in the building 'Divya Prabha' between the appellant and the respondents. The appellant entered into the agreement in 1966, with a consideration of Rs. 60,000, and was to receive possession by June 30, 1969. However, the construction was halted due to lease termination by the Bombay Municipal Corporation. The appellant filed a suit for specific performance in 1969, but the trial court denied relief due to the incomplete status of the building. The appellant's appeal was dismissed in 1987, leading her to approach the Supreme Court. The Supreme Court noted that the building had been sold to another party and that the BMC had regained the right to grant leases. During the proceedings, the respondents offered compensation instead of specific performance, but the appellant sought to enforce the original agreement. The court emphasized that specific performance is generally favored in real estate contracts and that the appellant had consistently shown readiness to fulfill her obligations. The court found that the requirement for the appellant to pay an additional Rs. 40 lakhs was unreasonable and could frustrate her ability to complete the purchase. Ultimately, the court ruled in favor of the appellant, granting specific performance of the agreement under the original terms, subject to certain conditions. No costs were awarded.
Headnote
A) Specific Relief - Discretion of Court - Specific Performance - Specific Relief Act, 1963, Section 20 - The court held that the relief of specific performance is discretionary and should be exercised based on equitable considerations. The appellant was found ready and willing to perform her part of the agreement, and the court ruled that requiring her to pay an additional sum would frustrate the agreement itself (Paras 1-6).
Issue of Consideration
Whether the appellant is entitled to specific performance of the sale agreement despite the requirement to pay an additional sum.
Final Decision
The Supreme Court granted specific performance of the sale agreement for Flat No. 71, subject to the terms outlined in the judgment, and ruled that the appellant should not be required to pay the additional sum of Rs. 40 lakhs.
Law Points
- Specific performance
- discretion of court
- equitable relief
- escalation of prices
- readiness and willingness to perform
- breach of contract
