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Basavantappa v. Irappa (D) By LRs. & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 14365 of 2015)Decided 11 Feb 2016
Civil Appeal No. 14365 of 2015
Justice Anil R. Dave · Justice Adarsh Kumar Goel

Background

The appellant had paid an amount to the respondents under an agreement to purchase a property. The appellant's suit for specific performance of that agreement was dismissed because the respondents were found not to hold valid title to the property.

Decision Breakdown

Since the sale could not go through for want of title, the Supreme Court held that the respondents must repay the amount they had received from the appellant. The Court directed repayment within two months from the date of the order, along with simple interest at 9% per annum. The appeal was allowed with no order as to costs.

Lesson Learnt

If a seller cannot pass good title and a sale agreement falls through, the buyer is entitled to get back the money paid, with interest: a seller cannot keep an advance payment while failing to deliver clear title.

Official source (sci.gov.in)View Judgment (PDF)

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