In Brief
A buyer and seller agreed in November 2007 to sell a shop for Rs 26 lakhs; the buyer paid Rs 4 lakhs as earnest money with the balance due on 31 March 2008. When the sale deed was not executed, the buyer sued for specific performance. While the trial court dismissed the suit for failure to prove readiness and willingness to pay, the appellate courts reversed and granted the decree. The Supreme Court allowed the seller's appeal, holding that the buyer failed to prove capacity to pay the balance amount at the material time; mere oral claims of borrowing from friends without documentary proof were insufficient. The Court ordered return of the earnest money with interest but denied specific performance.
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