Published on: October 24, 2023 at 13:16 IST
Court: Supreme Court of India
Citation: HPA International V. Bhagwandas Fateh Chand Daswani (2004)
Honourable Supreme Court of India has held that Section 12(3) of the Specific Relief Act, 1963 can be invoked only where terms of contract permit segregation of rights and interests of parties in the property. It is submitted that such act would be requiring the court’s approval for performance of the agreement of sale. Two questions were posed by the court: (a) was the term “subject to the court’s approval” an essential term of the agreement? and (b) if it was essential, by whose default did it fail?
77. In our considered opinion, Section 12(3) of the Specific Relief Act can be invoked only where terms of contract permit segregation of rights and interests of parties in the property. The provision cannot be availed of when the terms of the contract specifically evince an intention contrary to segregating interest of the vendor having life interest and spes successionis of reversioners. Neither law nor equity is in favour of the vendee to grant specific performance of the contract.
Drafted By Abhijit Mishra