Smt. Katta Sujatha Reddy & Anr. Vs Siddamsetty Infra Projects Pvt. Ltd.& Ors. (Supreme Court of India)
The Supreme Court considered appeals arising from a suit for specific performance concerning agreements dated 26.03.1997 and 27.03.1997 for sale of land measuring Acs. 40.08 gts. The total agreed consideration was Rs.40,20,000/-, of which the purchaser had paid a substantial part. The balance amount of Rs.5,39,150/- was required to be paid within three months under Clause 3 of the agreements.
The trial Court had dismissed the suit. It found, among other things, that the purchaser had not made the complete payment, that a cheque for Rs.5,00,000/- issued by the purchaser had been dishonoured and that material evidence concerning the cheque had not been disclosed. The trial Court also held that the purchaser had not demonstrated readiness and willingness to perform the contract and that the suit was barred by limitation. According to the trial Court, Article 54 of the Limitation Act, 1963 applied from the date stipulated for performance, which fell in June 1997.
The High Court reversed the trial Court’s decision and partly allowed the purchaser’s appeal. It held that time was not the essence of the contract, that the purchaser was ready and willing to perform the contract, and that the purchaser had established bona fides by depositing the balance consideration in Court. It directed the vendors to register the property in favour of the purchaser to the extent of 90% of the total sale consideration and directed refund of the Rs.5,39,150/- deposited by the purchaser.
