Supreme Court Restricts Property Specific Performance After Lapses

The Supreme Court of India has delivered a significant judgment clarifying the conditions under which a buyer can demand the specific performance of an agreement to sell. The court ruled that such performance can be legally denied if there is an excessive lapse of time between the agreement and the filing of the suit. This decision underscores that the relief of specific performance is discretionary and equitable, rather than an absolute right, and must be weighed against the conduct of the parties involved.

The bench emphasized that a plaintiff seeking specific performance must prove 'continuous readiness and willingness' to perform their part of the contract. This includes demonstrating the financial capacity to pay the remaining balance throughout the duration of the dispute. In a specific case involving a property in Ooty, the court restored a refund order instead of granting the property transfer, noting that the buyer failed to provide sufficient evidence of their ongoing financial readiness over several years of litigation.

This ruling provides critical clarity for property owners and buyers involved in long-standing legal battles. By establishing that time lapses and a lack of proven financial capability can invalidate a claim for specific performance, the court aims to prevent the misuse of old agreements to claim property after values have significantly appreciated. For the Indian real estate market, this signifies a push toward more disciplined contractual adherence and faster resolution of property-related disputes in civil courts.