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Sughar Singh v. Hari Singh (Dead) Through LRs. & Ors.

Civil Appeal · 2021 INSC 672Decided 26 Oct 2021
Civil Appeal No. 5110 of 2021
Justice M.R. Shah · Justice Aniruddha Bose

Background

In 1976, a landowner agreed to sell his land to the plaintiff for Rs. 56,000, receiving Rs. 40,000 as part payment over time while extending the sale-deed deadline twice. Despite this, the landowner later sold the same land to other buyers (defendants) in 1984. The plaintiff sued for specific performance and won at trial, but the High Court, in a second appeal, reversed the decree and denied specific performance.

Decision Breakdown

The Supreme Court restored the trial court's decree, holding that the agreement to sell, the part payment, and the plaintiff's continued readiness and willingness to perform his obligations were all clearly established on the evidence. It found that the subsequent buyers had knowledge of the earlier agreement to sell and could not defeat the plaintiff's rights by purchasing the land "surreptitiously," and that the High Court had wrongly declined specific performance without cogent reasons. The appeal was allowed, specific performance decreed, and the defendants directed to execute the sale deed and hand over possession within four weeks.

Lesson Learnt

A later buyer who knowingly purchases property that is already subject to a valid, part-paid agreement to sell cannot defeat the earlier buyer's right to specific performance: buyers must check for existing agreements before purchasing land.

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

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