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Supreme Court of India 2022-04-11 allowed

P. Ramasubbamma vs V. Vijayalakshmi & Ors

Bench: 2 — M. R. Shah, B.V. Nagarathna

In Brief

A woman entered into an agreement to sell to purchase property for Rs. 29 lakhs, paying an advance of Rs. 26 lakhs. The original owner admitted executing the agreement and receiving the payment, but later failed to deliver the sale deed. Meanwhile, the owner's attorney holder fraudulently executed two sale deeds in favour of other parties using a power of attorney. The Trial Court granted decree for specific performance, finding the subsequent deeds were nominal and not binding on the original owner and agreement holder. The High Court reversed this, citing Section 20 of the Specific Relief Act (discretionary relief). The Supreme Court restored the Trial Court's decree, holding that when the vendor admits the agreement and substantial consideration, specific performance must be granted; subsequent sham deeds cannot defeat established rights under a prior agreement to sell.

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Specific Performance Property Law Contract Law Agreement to Sell Power of Attorney Subsequent Purchaser Fraud and Misuse Discretionary Relief

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