M/S. GREATER ASHOKA AND LAND DEVELOPMENT COMPANY versus KANTI PRASAD JAIN (D) THROUGH LRS.

M/S. GREATER ASHOKA AND LAND DEVELOPMENT COMPANY versus KANTI PRASAD JAIN (D) THROUGH LRS.

Given the long delay of about sixty years, intervening statutory and developmental changes, and the unreasonableness of merely refunding earnest money after such period, the Court modified the High Court decree and awarded compensation of ₹50,00,000 to the respondent as full and final settlement instead of directing registration of the original sale deed.

Parties
Appellant: M/S. GREATER ASHOKA AND LAND DEVELOPMENT COMPANY; Respondent: KANTI PRASAD JAIN (D) THROUGH LRS.
Jurisdiction
India
Judgment Date
06 December 2023
Procedural Posture
Civil Appeal / Final Disposal by Supreme Court (appeal Disposed)
Outcome
Appeal disposed of; impugned judgment and decree of the High Court modified to award compensation instead of specific performance
Legal Topics
Allotment of Plot, Refund of Earnest Money, Alternative Relief/damages, Frustration of Contract, Interest
Specific Performance Contract Law Property Law Allotment of Plot Refund of Earnest Money Alternative Relief/damages Frustration of Contract Interest

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Parties

M/S. GREATER ASHOKA AND LAND DEVELOPMENT COMPANY

Appellant

KANTI PRASAD JAIN (D) THROUGH LRS.

Respondent

Procedural Posture

Civil Appeal / Final Disposal by Supreme Court (appeal Disposed)

Legal Issues

  1. 1 Whether refund of earnest money after sixty years is reasonable
  2. 2 Whether specific performance of allotment should be granted or substituted by damages
  3. 3 Whether the contract was frustrated by intervening statutory enactments and developments

Ratio Decidendi

Given the long delay of about sixty years, intervening statutory and developmental changes, and the unreasonableness of merely refunding earnest money after such period, the Court modified the High Court decree and awarded compensation of ₹50,00,000 to the respondent as full and final settlement instead of directing registration of the original sale deed.

Court Disposition

Appeal disposed of; impugned judgment and decree of the High Court modified to award compensation instead of specific performance

Orders

  • The impugned judgment and decree of the High Court is modified to the extent that instead of registration of the sale deed the appellant shall pay a total amount of ₹50,00,000 to the respondent as full and final settlement of the claim in the suit.
  • The amount shall be paid within a period of three months.