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Parswanath Saha vs. Bandhana Modak (Das) & Anr.

Not available · 2024 INSC 1022Decided 20 Dec 2024
Not available
Justice J.B. Pardiwala · Justice R. Mahadevan

Background

The appellant had entered into a registered agreement to sell with one Prabha Ranjan Das for a property in Tripura, paying earnest money toward a total sale price of Rs. 17,50,000. Das died before executing the sale deed, and his widow and minor son (the respondents/his legal heirs) refused to honour the agreement. The appellant sued for specific performance and won at trial, but the Tripura High Court reversed that decree in the respondents' first appeal, prompting this appeal to the Supreme Court.

Decision Breakdown

The Supreme Court restored the trial court's decree, holding that the High Court had erred in setting it aside. The trial court had correctly found, and the High Court had not actually disturbed the finding, that the appellant/buyer was always ready and willing to perform his part of the contract, a key requirement for specific performance. The Court also noted the respondents had tried to seize the property only after Das's death despite having lived separately from him. Considering that the widow and her minor son would be left without adequate compensation otherwise, the Court modified the decree to raise the balance sale consideration payable by the appellant from Rs. 13,50,000 to Rs. 20,00,000, on which the respondents must execute the sale deed.

Lesson Learnt

Courts can enforce a valid, registered agreement to sell property even against the heirs of a deceased seller, provided the buyer has genuinely remained ready and willing to complete the purchase, and courts retain the flexibility to adjust the sale price to do fuller justice between the parties when ordering specific performance.

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

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