In Brief

A property purchaser sought specific performance of a 1997 sale agreement after paying 90% of the sale consideration of Rs. 40,20,000. The purchaser failed to pay the remaining 10% within the contractual three-month deadline and filed suit only in 2002—beyond the three-year limitation period from the fixed performance date. The Supreme Court held the suit barred by limitation under Article 54 of the Limitation Act. The Court also ruled that the 2018 amendment to the Specific Relief Act, which made specific performance mandatory, applies prospectively and not to pre-2018 transactions. On merits, the purchaser was not ready and willing to perform within the stipulated time and never had actual possession. However, exercising equitable jurisdiction, the Court directed repayment of the paid amount with 7.5% per annum interest.

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