RATTAN LAL (SINCE DECEASED) THROUGH HIS LEGAL REPRESENTATIVES versus S.N. BHALLA & ORS.

RATTAN LAL (SINCE DECEASED) THROUGH HIS LEGAL REPRESENTATIVES versus S.N. BHALLA & ORS.

The agreement to sell was wrongly terminated as the vendors failed to make positive efforts to obtain sale permission and clearance certificates. The purchaser was always ready and willing to perform his part of the contract, and acceptance of earnest money under protest did not amount to abandonment. Vendors were...

Source-derived case information.

Parties
Appellant: Rattan Lal (Since Deceased) Through His Legal Representatives; Respondents: S.N. Bhalla & Ors.
Jurisdiction
India
Judgment Date
08 August 2012
Procedural Posture
Civil Appeal / Supreme Court Disposition of Appeal After High Court Dismissal
Outcome
Suit decreed; appeal disposed of; compensation awarded in costs
Legal Topics
Specific Performance, Agreement to Sell, Earnest Money, Sale Permission, Income Tax Clearance Certificate
Contract Law Property Law Specific Performance Agreement to Sell Earnest Money Sale Permission Income Tax Clearance Certificate

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Parties

Rattan Lal (Since Deceased) Through His Legal Representatives

Appellant

S.N. Bhalla & Ors.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Disposition of Appeal After High Court Dismissal

Legal Issues

  1. 1 Whether the agreement to sell dated 8th September, 1978 was rightly terminated
  2. 2 Whether the purchaser was ready and willing to perform his part of the contract
  3. 3 Whether the refund of earnest money amounted to abandonment of claim

Ratio Decidendi

The agreement to sell was wrongly terminated as the vendors failed to make positive efforts to obtain sale permission and clearance certificates. The purchaser was always ready and willing to perform his part of the contract, and acceptance of earnest money under protest did not amount to abandonment. Vendors were not entitled to determine the agreement under clause 9 in absence of material showing positive efforts.

Court Disposition

Suit decreed; appeal disposed of; compensation awarded in costs

Orders

  • Respondents directed to pay appellant costs for litigation throughout, assessed at Rs.25,00,000/- within one month of date.
  • If respondents fail to pay within aforesaid period, appellant entitled to execute decree for costs before trial court.