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P. Shyamala vs. Gundlur Masthan

Civil Appeal · 2023 INSC 162Decided 24 Feb 2023
Civil Appeal Nos. 1363-1364 of 2023
M.R. Shah · C.T. Ravikumar

Background

In May 2012 the appellant's mother agreed to sell land to the respondent for Rs. 23 lakh and received Rs. 8 lakh as advance. The buyer sued for specific performance and in October 2013 obtained an ex-parte decree directing him to deposit the balance Rs. 15 lakh within two weeks. He did not do so. The seller died in January 2015 and her daughter (the appellant) was brought on record. Only after 853 days did the buyer apply to extend the time to deposit, claiming he had been hospitalised with jaundice for about two months and then confined at home with high blood pressure and diabetes. The trial court condoned the delay and extended time (with 18% interest), and rejected the daughter's application to rescind the agreement; the Telangana High Court upheld this in revision.

Decision Breakdown

The Supreme Court allowed the appeals. It held that the buyer's explanation could not justify a delay of 853 days: he neither deposited the money, nor called on the seller to execute the sale deed, nor applied for more time within a reasonable period. Citing V.S. Palanichamy Chettiar Firm, the Court reiterated that specific performance is an equitable, discretionary remedy and courts cannot extend time for payment as a matter of course; where the buyer offers no adequate explanation, equity requires that discretion not be exercised in his favour. It distinguished the Kishor Ghanshyamsa Paralikar case, where the delay was only five days on a small balance. The Court dismissed the buyer's extension application, allowed the daughter's application, and rescinded the agreement to sell, while directing her to refund the Rs. 8 lakh advance with 12% interest from May 2012 within six weeks (18% if late).

Lesson Learnt

Winning a decree for specific performance is not the end of the matter: the buyer must pay the balance price within the time the court sets, and a court can cancel the whole contract if the buyer sits on the decree for years without a convincing reason. Time limits in court orders must be taken seriously, and any request for an extension should be made promptly.

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

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