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Subhash Aggarwal v. Mahender Pal Chhabra & Anr.

Not available · 2026 INSC 11Decided 5 Jan 2026
Not available
Justice Vikram Nath · Justice Sandeep Mehta

Background

A buyer who paid earnest money for a property sued for specific performance 17 years later, but never proved he had funds for the balance; the sellers, meanwhile, had also failed to complete required property conversions.

Decision Breakdown

The Supreme Court held forcing the sale was no longer equitable after so long, but letting the sellers simply keep the earnest money (given their own breach) would be unfair too, as a middle path, it ordered a lump-sum payment of ₹3 crore to the buyer instead.

Lesson Learnt

In long-delayed property disputes where both sides failed in their obligations, courts can fashion a fair monetary settlement instead of forcing a sale or simply forfeiting a deposit.

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

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