In Brief
The appellants (defendants) agreed in March 2007 to sell land to the respondents (plaintiffs) for Rs. 2+ crores. The plaintiffs paid an advance of Rs. 75 lakhs but failed to pay the balance by October 2007. The trial court dismissed the suit for specific performance, finding the plaintiffs lacked the necessary funds. The High Court reversed this, finding the plaintiffs ready and willing. The Supreme Court allowed the defendants' appeal, restoring the trial court's judgment. The Court held that mere momentary availability of partial funds without proof of continuous capacity to pay the entire balance consideration is insufficient. The plaintiffs' competing agreement with a third party regarding the same properties showed lack of bona fides. The defendants were directed to refund Rs. 75 lakhs with interest, subject to a charge on the property until recovery.
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