In Brief
A plaintiff sought specific performance of an agreement to sell land and compensation after the seller executed a sale deed to a third party. The trial court and lower appellate court decreed the suit for specific performance. The Supreme Court held that the plaintiff failed to prove readiness and willingness to perform as required for specific performance. The third party purchaser was protected as a bonafide purchaser. However, since the seller had received earnest money from the plaintiff and later benefited the third party through sale at a lower price, the Court awarded monetary compensation of Rs.3,50,000/- (inclusive of earnest money) instead of specific performance, to be paid within three months with 12% interest if delayed."
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