R. Kandasamy (Since Dead) & Ors. Vs T.R.K. Sarawathy & Anr. (Supreme Court of India)
The Supreme Court considered appeals arising from a suit for specific performance of an agreement dated 20.01.2005 for the sale of land with a tenanted building. Under the agreement, the buyer agreed to purchase the property for ₹2.3 crore, paying ₹10 lakh as advance, with the balance payable within four months. The agreement also required the sellers to have the tenants vacate the property and deliver vacant possession at the time of sale. The Trial Court dismissed the suit, holding that although the agreement was valid, the buyer had failed to establish readiness and willingness to perform her obligations. The High Court reversed that decision and granted a decree for specific performance, holding that time was not of the essence and that the buyer was entitled to the equitable relief.
Before the Supreme Court, the sellers contended that the buyer had failed to pay the balance consideration within the agreed period, lacked financial capacity, adopted inconsistent positions, and was not ready and willing to complete the transaction. They also argued that, after cancellation of the agreement, the buyer had not sought a declaration that the cancellation was invalid. The subsequent purchaser supported these submissions. The buyer argued that time was not of the essence, that the sellers themselves extended time and accepted payments after the stipulated period, and that the sellers failed to perform reciprocal obligations by not providing vacant possession and original title documents for inspection.
