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K. Prakash v. B.R. Sampath Kumar

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 9047 of 2014)Decided 22 Sept 2014
Civil Appeal No. 9047 of 2014
Justice M.Y. Eqbal · Justice Pinaki Chandra Ghose

Background

A house owner agreed to sell a Bangalore property for ₹16.10 lakh, treating earlier mortgage payments and other amounts as part of the advance. The buyer sued after the owner refused to complete the sale. The trial court ordered the sale, but the High Court accepted the owner's claim that the agreement was signed under pressure and dismissed the suit.

Decision Breakdown

The Court allowed the buyer's appeal and restored the order requiring a registered sale deed, with an increased total price of ₹25 lakh less the amount already paid. The owner's admissions and later written demand for the balance supported a genuine agreement; the High Court's contrary conclusions were unjustified. The buyer had established the requirements for specific performance, and appellate discretion had to follow evidence and legal principles. An increase in property prices did not by itself justify refusing enforcement. To balance the parties' interests after ten years, the Court adjusted the price and required execution within three months.

Lesson Learnt

A seller's later change of mind or rising property prices does not by itself defeat a proved sale agreement. A buyer seeking enforcement must establish continued readiness and willingness, and the court may impose conditions to balance the parties' interests.

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

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