In Brief
A dispute arose over a land sale agreement whereby the defendants agreed to sell agricultural land for Rs. 55 lakhs. The plaintiffs paid Rs. 50,000 as earnest money and Rs. 14.5 lakhs as advance but failed to complete the purchase by the agreed deadline of 30 October 1990. The trial and appellate courts found the plaintiffs lacked the balance funds and were not ready and willing to perform. The High Court partially decreed the suit for specific performance regarding the advance amount paid. The Supreme Court held that specific performance cannot be granted to a party not ready and willing to perform the entire contract. Since the plaintiffs failed to establish financial capacity and failed to meet contractual obligations within stipulated time, the earnest money was rightfully forfeited. The Court allowed the appeal, directing refund of the advance with 6% interest minus court costs."
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