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Supreme Court of India 2020-10-12 allowed

FERRODOUS ESTATES (PVT.) LTD vs P. GOPIRATHNAM (DEAD) & ORS

Bench: 2 — R.F. Nariman, Navin Sinha

In Brief

This case concerns a suit for specific performance of an agreement to sell land dated 12 June 1980, worth Rs 5.4 lakhs, which the vendor-defendants refused to execute. The Supreme Court held that an agreement requiring the vendor to obtain statutory permissions under the Tamil Nadu Urban Land Ceiling Act does not become void ab initio merely because such permission was not obtained; non-compliance constitutes breach, not invalidity. After the Urban Land Ceiling Act was repealed in 1999, it ceased to bar enforcement. Delay caused by court proceedings cannot defeat a purchaser who remained ready and willing throughout. The Court restored the Single Judge's decree for specific performance but imposed an additional payment condition of Rs 1.25 crore (as offered by the purchaser) to be paid within eight weeks, balancing the equities in light of the defendants' dishonest conduct and the extended litigation period.

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Specific Performance Real Property Law Urban Land Ceiling Act Statutory Interpretation Repeal and Revival Discretionary Relief Contract Law

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