In Brief
G.T. Girish agreed to buy a public housing site from the original allottee for Rs.50,000, with the sale to be completed after the allottee obtained a final deed from the Bangalore Development Authority. The allottee could not transfer the site for 10 years under statutory rules. When the allottee later refused to sell, Girish sued for specific performance. The High Court ordered the sale, but the Supreme Court reversed, finding the agreement illegal under Section 23 of the Indian Contract Act. The Court held that enforcing the agreement would violate statutory housing scheme objectives and prevent mandatory construction of a residential building. However, to prevent unjust enrichment, the Court awarded Rs.20 lakhs compensation instead of specific performance.
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