Topic
An agreement of sale in Indian law is a contract for the transfer of property, governed by the Transfer of Property Act and stamp duty laws, and enforceable through specific performance if certain conditions are met.
Andhra Pradesh High Court affirms that the plaintiff’s continuous readiness to perform the contract shifts the burden of proof onto the defendant to disprove coercion or non-compliance. The ruling clarifies procedural compliance under the Specific Relief Act and protects the rights of subsequent purchasers in property disputes.
The Andhra Pradesh High Court ruled that a plaintiff’s delayed suit filing does not negate readiness and willingness under Section 16(c) of the Specific Relief Act, reinforcing that procedural delays alone cannot defeat a claim for specific performance. The Court also rejected belated additional evidence under Order 41 Rule 27 CPC, emphasizing strict compliance with appellate procedural rules in property disputes.
The Karnataka High Court ruled that a plaintiff's entitlement to specific performance under Section 10 of the Specific Relief Act is established by proving the agreement of sale and payment endorsements, even if the property was subsequently sold to others in a collusive manner. The Court emphasized that witness admissions and documentary evidence outweigh technical denials, setting a precedent for land dispute resolutions.
The Bombay High Court (Nagpur Bench) clarified that a contingent contract under Section 32 of the Transfer of Property Act does not automatically become void if permission for transfer is denied due to the plaintiff's fault. The ruling underscores that contractual obligations persist unless the contingency is legally impossible, not merely due to one party's failure to comply.
The Andhra Pradesh High Court has ruled that a document labeled as a sale agreement, but executed solely as security for a loan, does not create an enforceable contract of sale under Section 53-A of the Transfer of Property Act. Plaintiffs are restricted to a money decree with interest, not specific performance - a critical clarification for lenders and borrowers using conditional sale deeds as collateral.
The Karnataka High Court clarified that higher stamp duty under Article 5(e)(i) of the Karnataka Stamp Act is only applicable if the sale agreement expressly provides for delivery of possession. Mere prior physical possession does not suffice, protecting parties from unintended duty escalations in real estate transactions.
Karnataka High Court holds that a transferee with notice of a prior agreement of sale cannot claim bonafide purchaser status; readiness and willingness must be assessed holistically.
Bombay High Court holds that limitation for specific performance begins only upon breach of agreement, not the stipulated execution date, clarifying Article 54 of Limitation Act.