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Head Note

The Code of Civil Procedure, 1908  - Section 3 , Section 35 , Section 35-B , The Specific Relief Act, 1963  - Section 20

Breach of agreement to sell property by sellers - Litigation continued for 34 years from trial Court to Supreme Court - Sellers directed to cost of 25 lakhs to purchaser - Agreement to sell property - Breach of contract by the sellers - Suit for specific performance by purchaser - Agreement to sell was executed 34 years back - Value of the property must have sky-rocketed during the period - Suit decreed in favour of purchaser but instead of decreeing the suit for specific performance of the Agreement directions issued to sellers to pay 25 lakhs as Costs of litigation.

The Specific Relief Act, 1963  - Section 16

Agreement to sell property - Breach of agreement - Sellers refunding the earnest to purchaser - The purchaser accepting the refund under protest and without prejudice to his rights - Cannot be held that purchaser was no longer interested in completing the sale transaction and gave up his claim under the Agreement or that he was not ready and willing to perform his part of the contract.

The Specific Relief Act, 1963  - Section 16

Agreement to sell property - Breach of agreement by sellers - Performing the agreement - Suit for specific performance filed by purchaser one day before expiry of limitation - This does not show that purchaser was not ready and willing to complete the sale transaction.

The Specific Relief Act, 1963  - Section 16

Ready and willing to perform contract - Agreement to sell property - Agreement stipulated that seller will apply to Authority for permission to sell, but if no permission was granted within six months, the seller will have option to determine the agreement - In terms agreement sellers applied to authority for permission to sell but permission not granted as affidavit filed for the purpose was defective - No positive efforts by sellers for procuring the sale permission - In such a case sellers not entitled to exercise option and determine the agreement - Purchaser entitled to file suit for specific performance.

Topic(s)-Breach of Agreement to Sell Property by Sellers , Ready and Willing to Perform Contract , Agreement to Sell Property

Important Decision(s)- 

• Agreement stipulated that seller will apply to Authority for permission to sell, but if no permission was granted.
• Purchaser entitled to file suit for specific performance.