In Brief
Ferrodous Estates sued for specific performance of an agreement to purchase 8 grounds of property from P. Gopirathnam. The defendants resisted, arguing the property exceeded ceiling limits under the Tamil Nadu Urban Land (Ceiling & Regulation) Act, 1978. The Supreme Court held that while the Act prohibits holding land exceeding ceiling limits, the defendants' failure to obtain statutory clearance despite contractual obligation, combined with their dishonest pleas and material breach, did not bar specific performance. The Court decreed that the defendants must execute the sale deed within two months, allowing the purchaser to acquire the property at the purchaser's risk of post-acquisition statutory compliance.
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