SANGITA SINHA versus BHAWANA BHARDWAJ AND ORS.

SANGITA SINHA versus BHAWANA BHARDWAJ AND ORS.

The Supreme Court held that the buyer's encashment of the demand drafts enclosed with the seller's cancellation letter constituted acceptance of repudiation and demonstrated lack of willingness to perform the agreement; because the seller had cancelled the agreement prior to institution of the suit and the plaintiff did not seek declaratory relief nor disclosed receipt and encashment of the refunds in the plaint, the agreement stood cancelled and the suit for specific performance was not maintainable; accordingly the decrees and sale deed were set aside and the buyer must be refunded the deposited balance consideration.

Parties
Appellant / Defendant No.3 (beneficiary Under Will): Sangita Sinha; Respondent No.1 / Buyer / Plaintiff: Bhawana Bhardwaj
Jurisdiction
India
Judgment Date
03 April 2025
Procedural Posture
Civil Appeal No. 4972 of 2025 / Judgment of the Supreme Court on Appeal From Patna High Court (f.a. No. 83 of 2018)
Outcome
Appeal allowed
Legal Topics
Specific Performance, Agreement to Sell, Readiness and Willingness to Perform, Cancellation/repudiation of Contract, Suppression of Material Facts, Locus Standi, Declaratory Relief
Specific Relief Contract Property Law Civil Procedure Specific Performance Agreement to Sell Readiness and Willingness to Perform Cancellation/repudiation of Contract +3 more

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Parties

Sangita Sinha

Appellant / Defendant No.3 (beneficiary Under Will)

Bhawana Bhardwaj

Respondent No.1 / Buyer / Plaintiff

Procedural Posture

Civil Appeal No. 4972 of 2025 / Judgment of the Supreme Court on Appeal From Patna High Court (f.a. No. 83 of 2018)

Legal Issues

  1. 1 Whether a suit for specific performance is maintainable where the buyer accepted refund of the majority of the earnest money/advance consideration during pendency of the suit
  2. 2 Whether encashment of demand drafts enclosed with a cancellation letter constitutes acceptance of repudiation and leads to termination/cancellation of the agreement to sell
  3. 3 Whether the plaintiff/buyer was continuously ready and willing to perform the agreement from execution till decree

Ratio Decidendi

The Supreme Court held that the buyer's encashment of the demand drafts enclosed with the seller's cancellation letter constituted acceptance of repudiation and demonstrated lack of willingness to perform the agreement; because the seller had cancelled the agreement prior to institution of the suit and the plaintiff did not seek declaratory relief nor disclosed receipt and encashment of the refunds in the plaint, the agreement stood cancelled and the suit for specific performance was not maintainable; accordingly the decrees and sale deed were set aside and the buyer must be refunded the deposited balance consideration.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment dated 27 April 2018 and decrees dated 10 May 2018 and 09 May 2024 are set aside
  • Sale deed executed in favour of Respondent No.1 is declared null and void