In Brief
P. Daivasigamani agreed to sell 1 acre of land to S. Sambandan on 5 October 1989 for Rs. 6.5 lakh, with Sambandan paying Rs. 50,000 earnest money. After Daivasigamani refused to execute the sale deed, Sambandan filed suit in 1993 for specific performance. The trial court awarded only the earnest money with interest, but the High Court granted specific performance. Daivasigamani's appeal contended the suit was time-barred and that Sambandan failed to prove financial capacity. The Supreme Court held that delay in filing does not bar relief if within the limitation period; readiness and willingness must be assessed in substance, not form; deposit of balance consideration in court is not mandatory unless directed; and time is not the essence in immovable property sales. The Court upheld specific performance but directed Sambandan to pay an additional Rs. 1 crore within eight weeks to reflect the property's rise in value.
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