HABBAN SHAH versus SHERUDDIN

HABBAN SHAH versus SHERUDDIN

The decree of specific performance dated 31.10.2012, which conditioned execution of the sale deed on deposit of the balance sale consideration within three months, became inexecutable because the plaintiff-respondent failed to deposit the balance within the stipulated period and did not seek extension in time; consequently the contract stood rescinded under Section 28 of the Specific Relief Act and the execution objections were upheld, with directions for refund of earnest money with interest.

Parties
Defendant Appellant: Habban Shah; Plaintiff Respondent: Sheruddin
Jurisdiction
India
Judgment Date
06 May 2026
Procedural Posture
Civil Appeal / Final Judgment of Supreme Court
Outcome
Appeal allowed
Legal Topics
Specific Performance, Executability of Decree, Conditional Decree, Balance Sale Consideration, Readiness and Willingness, Equitable Relief, Section 28, Execution Proceedings, Rescission of Contract, Reciprocal Obligations, Equitable Jurisdiction, Limitation
Specific Relief Act, 1963 Code of Civil Procedure, 1908 Limitation Act, 1963 Specific Performance Executability of Decree Conditional Decree Balance Sale Consideration Readiness and Willingness +7 more

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Parties

Habban Shah

Defendant Appellant

Sheruddin

Plaintiff Respondent

Procedural Posture

Civil Appeal / Final Judgment of Supreme Court

Legal Issues

  1. 1 Whether a decree for specific performance directing execution of sale deed on deposit of balance sale consideration within three months becomes inexecutable for non-deposit within the stipulated time
  2. 2 Whether the court can treat the contract as rescinded for non-compliance of the condition when no application under Section 28 was moved by the judgment-debtor
  3. 3 Whether deposit of the balance after the stipulated period with permission of the court amounts to deemed extension or condonation of delay

Ratio Decidendi

The decree of specific performance dated 31.10.2012, which conditioned execution of the sale deed on deposit of the balance sale consideration within three months, became inexecutable because the plaintiff-respondent failed to deposit the balance within the stipulated period and did not seek extension in time; consequently the contract stood rescinded under Section 28 of the Specific Relief Act and the execution objections were upheld, with directions for refund of earnest money with interest.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment and order dated 24.03.2025 of the High Court in Civil Revision No.7232 of 2015 and order dated 07.09.2015 of the Executing Court are set aside
  • Objections of the defendant-appellant are upheld and the execution proceedings are directed to be closed