In Brief
A purchaser sought specific performance of an agreement to sell dated 1978. The High Court had dismissed the suit, following Dadarao v. Ramrao, holding that the omission of the words "or to have sale deed registered under specific performance" from the agreement (though present in the authorization letter) barred specific performance. The Supreme Court allowed the appeal, holding that Dadarao was rendered per incuriam as it failed to consider Section 23 of the Specific Relief Act, 1963. The Court held that an unchanged earnest money amount with equal penalty in both documents indicated the sum was only to secure performance, not to give an option to pay instead. Specific performance was ordered, with the appellant paying Rs. 10 crores in settlement.
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