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Corporate Law

SC Denied Specific Performance for Lack of Financial Readiness

Case Law Details

TaxGuru Citation
2026 taxguru.in 10738
Case Name
U.N. Krishnamurthy (Since Deceased) Thr. Lrs. Vs A. M. Krishnamurthy (Supreme Court of India)
Date of Judgement/Order
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U.N. Krishnamurthy (Since Deceased) Thr. Lrs. Vs A. M. Krishnamurthy (Supreme Court of India)

The Supreme Court allowed the appeal against the Madras High Court judgment dated 30 October 2017, which had upheld the Trial Court decree dated 30 November 2010 granting specific performance of an alleged agreement for sale of the suit property. The Respondent Plaintiff claimed that U.N. Krishnamurthy had agreed on 11 November 2002 to sell the property for Rs.15,10,000/-, received Rs.10,001/- as advance, and agreed to execute the registered sale deed by 15 March 2003 upon payment of the balance consideration. The Plaintiff alleged that despite repeated requests and a legal notice dated 13 February 2003, the Defendant did not execute the sale deed. The Defendant denied the agreement, receipt of advance and existence of a concluded contract, and also contended that the Plaintiff was never ready and willing to perform his obligations. The Trial Court decreed specific performance after finding all issues in favour of the Plaintiff, including readiness and willingness. The High Court affirmed those findings.

Before the Supreme Court, the Appellants contended that the Courts below had failed to properly examine the Plaintiff’s continuous readiness and willingness under Section 16(c) of the Specific Relief Act, 1963, and submitted that the steep rise in real estate prices should also be considered while granting discretionary relief. The Respondent argued that readiness and willingness were factual issues and that the concurrent findings of the Courts below should not be disturbed.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,987

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