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Civil Property & InheritanceSupreme Court of India

R Lakshmikantham v. Devaraji

Civil Appeal · 2019 INSC 747Decided 10 Jul 2019
Civil Appeal No. 2420 of 2018
Justice Rohinton Fali Nariman · Justice Surya Kant

Background

The plaintiff and defendant entered into an agreement to sell a property for Rs. 3.65 lakh in 2002, with part payment made and the balance payable once the seller cleared a pre-existing mortgage. When the seller did not act on the mortgage, the plaintiff sent reminder letters and legal notices, which went unanswered, and eventually filed a suit for specific performance in 2005. The trial court and first appellate court both ruled in the plaintiff's favour, but the High Court reversed this, holding that time was of the essence and that the plaintiff was not "ready and willing" to perform his part of the bargain.

Decision Breakdown

The Supreme Court held that the High Court erred on multiple counts: time was not of the essence because the seller's own obligation (clearing the mortgage) had to be fulfilled first; the registered letters sent to the defendant's known address were validly proved as served once returned undelivered; and a short delay in filing a suit for specific performance (within the limitation period) cannot be held against a plaintiff in India, unlike in English equity law. Relying on earlier precedent (Mademsetty Satyanarayana v. G. Yelloji Rao), the Court restored the concurrent findings of the trial court and first appellate court and decreed specific performance in the plaintiff's favour.

Lesson Learnt

In India, so long as a suit for specific performance is filed within the statutory limitation period, delay alone cannot defeat the claim, unlike in English law, where equitable discretion can refuse relief purely for delay. A registered letter returned as "unclaimed" from the addressee's correct address is treated as validly served.

R Lakshmikantham v. Devaraji – Legal Case Shots | LegalAware