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Supreme Court of India 2023-12-06 partly_allowed

DEVELOPMENT COMPANY vs KANTI PRASAD JAIN (DECEASED)

Bench: 2 — Vikram Nath, Rajesh Bindal

In Brief

In 1963, a developer allotted a plot at ₹25 per square yard to the respondent. Due to intervening land legislation (1963 and 1971 Acts), development was delayed for decades. In 1982, the developer offered an alternative plot at ₹135 per square yard, but failed to provide details the respondent requested. After a 1986 suit for specific performance, the Trial Court granted it, but the lower court reversed that. The High Court restored the Trial Court's order. The Supreme Court modified this, rejecting both specific performance at the original rate and mere refund of earnest money. Instead, it awarded ₹50 lakh as full settlement, recognizing that after sixty years, monetary compensation better served justice than either enforcing the outdated contract or refunding only the original earnest money.

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Contract Law Real Property Specific Performance Damages Civil Procedure Limitation Administrative Law

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