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Mohinder Kaur v. Sant Paul Singh

Civil Appeal · 2019 INSC 1105Decided 1 Oct 2019
Civil Appeal Nos. 2869-2870 of 2010
Justice Navin Sinha · Justice Indira Banerjee

Background

The parties entered an agreement for sale of a house in 1988 for Rs.1,50,000, with part payment made upfront. Since the property was mortgaged to the education department, a further agreement allowed 15 days after redemption of the mortgage for execution of the sale deed. After redeeming the mortgage, the seller (appellant) intimated the buyer (respondent) and demanded the balance payment, but the buyer disputed that redemption had occurred and did not pay. The seller then cancelled the agreement and forfeited the earnest money, prompting the buyer to sue for specific performance, which was decreed by the trial court and upheld by two appellate courts before reaching the Supreme Court.

Decision Breakdown

The Supreme Court allowed the appeal and set aside the orders of the courts below. It held that the buyer's mere dissatisfaction with the seller's intimation of mortgage redemption could not substitute for proof of the buyer's own readiness and willingness to perform his obligations under the contract: a mandatory requirement for specific performance. The Court noted the buyer had since migrated to America and acted only through a power-of-attorney holder who could not depose to facts within the buyer's personal knowledge, undermining the claim of readiness and willingness. Since specific performance is a discretionary remedy, the Court found the buyer had failed to establish entitlement to it.

Lesson Learnt

In a suit for specific performance of a sale agreement, the buyer must affirmatively prove their own continuous readiness and willingness to perform their contractual obligations (such as paying the balance price): simply disputing the seller's claims is not enough, and relying solely on a power-of-attorney holder's testimony for personal facts can be fatal to the claim.

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

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