In Brief
A plaintiff sought specific performance of an agreement to sell land dated 03.01.2004 and claimed earnest money paid. The defendant No.1 sold the property to defendant No.2 on 11.06.2004 (before the agreed sale date of 15.06.2004), and defendant No.2 obtained a registered deed and took possession. The lower courts granted specific performance. The Supreme Court held that the plaintiff failed to prove readiness and willingness to perform on the stipulated date, which is essential for specific performance. The Court set aside the decree for specific performance as the defendant No.2 is a bonafide purchaser in possession. However, to prevent injustice, defendant No.2 was ordered to pay Rs.3,50,000 (including earnest money) to the plaintiff as compensation for losing the property."
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