SUPREME COURT OF INDIA
J.B. PARDIWALA, R. MAHADEVAN, JJ.
Ram Lal – Appellant
Versus
Jarnail Singh (Now Deceased) through its LRs. and Others – Respondents
Civil Appeal No. 3245 of 2025 [Petition for Special Leave to Appeal (C) No. 5638 of 2023]
Decided On : 25-02-2025
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ORDER :
1. Leave granted.
2. This appeal arises from the judgment and order passed by the High Court of Punjab and Haryana at Chandigarh dated 30-8-2022 in Civil Revision Application No. 3723/2019 by which the Revision Application filed by the respondents-herein (original defendants) came to be allowed thereby setting aside the order passed by the Executing Court directing the defendants to execute the sale deed in favour of the original plaintiffs decree holder on the plaintiffs depositing the balance sale consideration of Rs. 5,00,000/- within 15 days from 6-5-2019.
3. The controversy revolves around in a narrow compass.
4. The appellant before us is the original plaintiff. He instituted a suit for specific performance of contract based on an agreement of sale with the respondents-herein (original defendants)/judgment debtors. The suit came to be decreed in favour of appellant-plaintiff vide Judgment and order dated 20-1-2012. The operative part of the decree passed by the Trial Court reads thus:
And
Suit for permanent injunction restraining the defendant from alienating or creating any encumbrance over the same by creating mortgage with the above said bank or any other person in any manner value of the said for the purpose of jurisdiction Rs. 7,00,000/- value of the said for the purpose of Court fee Rs. 9176/-
This suit has come up for final disposal before me (K.K. Singla Additional Civil Judge (Senior Division) Bathinda) in the presence of Sh. Rajneesh Kumar Rana, counsel for plaintiff and Sh. Rajdeep Goyal counsel for defendant. It is ordered that suit filed by the plaintiff for possession by way of specific performance of agreement to sale dated 16.11.2006 is decreed with costs and defendant is directed to execute and registered the sale deed pertaining to 157/3225 share out of the property detailed in the head note of the plaint within 3 months on depositing the balance sale consideration by plaintiff within two months from today.”
5. The respondents-herein (original defendants) being dissatisfied with the grant of decree of specific performance challenged the same by filing First Appeal in the District Court. The appeal came to be dismissed vide Judgment and order dated 21-4-2015. The operative part of the order passed by the first appellate court reads thus:
So, from the above said discussion and findings, there is no merit in this appeal and hence, the same stands dismissed with costs. Lower court record along with copy of this Judgment be returned back. File be consigned to the record room. Decree should be prepared separately.”
6. The defendants thereafter did not deem fi
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The decree for specific performance remains executable despite delays in deposit of balance sale consideration, provided no rescission is sought by judgment debtors.
Failure to pay the balance sale consideration within the set time does not abandon the contract; the court retains discretion to extend payment timelines under Section 28 of the Specific Relief Act.
(1) Recession of contract – Moving of application under Section 28 of S.R. Act for rescinding contract for non-compliance of condition is not mandatory rather optional and immaterial – Court is not p....
The court affirmed that the executing court retains discretion to extend time for deposit of sale consideration under Section 28 of the Specific Relief Act, and the doctrine of merger applies to decr....
(1) Agreement to Sell – Suit for Specific Performance – Non-payment of balance sale consideration within time period fixed by Trial Court does not amount to abandonment of contract and consequent res....
(1) Rescission of contract – While granting relief of extension, it was open for Court to balance equities by putting decree holder to such terms as may adequately compensate judgment debtor for dela....
The executing court has the authority to extend time for deposit of balance consideration in specific performance cases, but such discretion must be exercised judiciously, taking into account the rea....
The court retains jurisdiction to extend time for performance of a decree, but such extensions must be justified and considered alongside applications for rescission to ensure fairness.
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