Case Note & Summary
The dispute arose from an agreement to sell land executed on 9.3.2010 for Rs. 32 lakhs, where the plaintiff paid Rs. 31,50,000. The sale deed was to be executed on 8.7.2010, but the defendant failed to do so, leading the plaintiff to file a suit for specific performance on 5.8.2010. Before the final decree, the land was acquired under the Land Acquisition Act, prompting the defendant to argue that he had no saleable interest. The trial court decreed specific performance, which was affirmed by the first appellate court. The defendant's second appeal to the High Court resulted in a modification, allowing the plaintiff to receive compensation instead of specific performance. The Supreme Court, while hearing the appeal, noted the concurrent findings of fact regarding the agreement's execution and the plaintiff's readiness to perform. It referenced previous judgments, particularly Jagdish Singh v. Natthu Singh, to conclude that the plaintiff was entitled to compensation due to the impossibility of performance without fault. The court modified the High Court's order, allowing the plaintiff to recover the compensation awarded under the Land Acquisition Act, minus certain deductions for expenses. The appeal was partly allowed, confirming the rest of the High Court's judgment.
Headnote
A) Specific Relief - Modification of Decree - Compensation in lieu of Specific Performance - Specific Relief Act, 1963, Section 21 - The High Court modified the decree for specific performance to award compensation due to land acquisition during the suit. The court held that the plaintiff was entitled to compensation under the Land Acquisition Act, as the contract became impossible without fault on the plaintiff's part (Paras 7-11).
Issue of Consideration
Whether the High Court was justified in modifying the decree for specific performance in light of the land acquisition.
Final Decision
The Supreme Court partly allowed the appeal, modifying the High Court's order to award the plaintiff the entire amount of compensation under the Land Acquisition Act, minus Rs. 3,00,000 for expenses and balance sale consideration.
Law Points
- Specific performance
- Land Acquisition
- Compensation
- Section 21 Specific Relief Act
- Section 73 Indian Contract Act
