Topic

security for loan

1 articleLatest March 2026
Sale Agreement as Security for Loan Does Not Confer Right to Specific Performance | Madras High Court
Case Law Analysis
|Madras High Court

Sale Agreement as Security for Loan Does Not Confer Right to Specific Performance | Madras High Court

The Madras High Court held that a sale agreement executed merely as security for a loan cannot be enforced as a contract of sale under the Specific Relief Act. The plaintiff is entitled only to repayment of the advance with interest, not the execution of the sale. This ruling clarifies the distinction between a genuine sale agreement and one created as collateral for financial transactions.