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Indian Laws - Highlights / Catch Notes

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SC held that the buyer's conduct in encashing refund drafts ...


Buyer's Refund Encashment Signals Contract Breach, Bars Specific Performance Under Established Legal Principles

April 7, 2025

Case Laws     Indian Laws     SC

SC held that the buyer's conduct in encashing refund drafts demonstrated unwillingness to perform the agreement to sell. The seller's prior cancellation letter constituted a jurisdictional fact precluding specific performance. The buyer failed to establish readiness and willingness to execute the contract, thereby disentitling herself from the equitable relief. The court emphasized that absent a declaratory challenge to the agreement's termination, the specific performance suit remains non-maintainable. Consequently, the appellant's appeal was allowed, effectively preventing specific performance and upholding the seller's right to cancel the agreement based on the buyer's unequivocal actions.

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