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Civil Property & InheritanceSupreme Court of India

V.N.A.S. Chandran v. Mrs. S. Venila and Others

Civil Appeal · 2026 INSC 776Decided 31 Jul 2026
Civil Appeal Nos. 7825–7828 of 2013
Justice Prashant Kumar Mishra · Justice N.V. Anjaria

Background

In 2004, V.N.A.S. Chandran agreed to sell property in Ooty to Mrs. S. Venila for Rs. 2.25 crore, with her husband holding a Power of Attorney for the deal. Partial payments were made (some cheques bounced and were later covered in cash), and the sale was linked to a pending family partition case among the seller's children. After a payment dispute and delays, the seller revoked the Power of Attorney and terminated the agreement; the buyer's husband had separately agreed to resell the same property to a third party and had also filed a police complaint accusing the seller of cheating. The buyers sued for specific performance of the sale.

Decision Breakdown

The trial court had refused specific performance despite finding most facts in the buyers' favour, citing their lack of "clean hands." The High Court reversed this and ordered the sale to proceed. The Supreme Court restored the trial court's refusal, holding that: (1) the buyers had not shown continuous readiness and willingness to pay, since their cheques bounced for lack of funds and their eventual funding source was arranged only much later; (2) the husband's criminal complaint seeking money recovery, combined with inconsistent claims across different lawsuits about whether the deal had been assigned to a third party, showed the buyers were "blowing hot and cold" in bad faith; and (3) specific performance is a discretionary remedy, and after two decades, with the seller now elderly and the buyer's husband deceased, ordering the transfer would be inequitable. The buyers were allowed to withdraw the Rs. 1.4 crore they had deposited during litigation, with interest.

Lesson Learnt

A buyer seeking court-ordered enforcement of a property sale must show genuine, continuous readiness and ability to pay, not just at the last moment, and must stay consistent in the legal positions taken across different proceedings. Courts can and will refuse this remedy to a party who acts in bad faith or comes to court with unclean hands, even years into a genuine dispute.

V.N.A.S. Chandran v. Mrs. S. Venila and Others – Legal Case Shots | LegalAware