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Pydi Ramana @ Ramulu vs Davaraseti Manmadha Rao

Not available · 2024 INSC 507Decided 10 Jul 2024
Not available
Justice Pamidighantam Sri Narasimha · Justice Aravind Kumar

Background

The respondent (plaintiff) claimed that the appellant (defendant) had agreed in 1993 to sell him land for a fixed price per cent, and that he had paid substantial advance amounts, with the defendant to execute the sale deed within one year of the property being surveyed. No such survey or measurement was ever carried out. The plaintiff did not press the matter for about three years, then sent a legal notice in 1996, and filed the suit for specific performance only in 1997, right at the edge of the limitation period. The first appellate court and the High Court (in second appeal) had ruled substantially in the plaintiff's favour, including directing payment of enhanced consideration.

Decision Breakdown

The Supreme Court held that even though a suit for specific performance can technically be filed on the very last day of limitation, a plaintiff seeking this discretionary, equitable remedy must show that he remained ready and willing to perform his part of the bargain and took reasonable steps during the interim period: mere silence for years followed by a suit at the last moment is not enough. Because the plaintiff offered no explanation for his prolonged inaction between 1993 and 1997, the Court held he was not entitled to the equitable relief of specific performance. It set aside the High Court and first appellate court's judgments and restored the trial court's original decision (which had denied specific performance), allowing the defendant's appeal.

Lesson Learnt

Specific performance of a contract for sale of property is a discretionary remedy: simply filing suit within the limitation period is not enough; a buyer must actively demonstrate continuous readiness and willingness to perform the contract, and unexplained years of silence can defeat the claim even if the suit is technically on time.

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

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