MP High Court: Specific Performance Denied in Land Sale Agreement; Court Stresses Time as Essence of the Contract

In a significant ruling, the High Court of Madhya Pradesh at Jabalpur has upheld the denial of specific performance in a contentious land sale agreement. The case, First Appeal No. 168 of 2017, witnessed a legal dispute between Mr. Kanhaiyalal Nankani, the appellant, and respondents Smt. Triveni Awasthi, Smt. Mukta Chourasiya, and Mr. Sanjay Shrivastava.

The legal issue at the heart of the case pertained to the timely execution of the sale agreement and the removal of encroachments from the property. According to the court’s judgment delivered by Hon’ble Shri Justice Arun Kumar Sharma, the appellant sought specific performance of the contract, but the court stressed the significance of adhering to the agreed time frame. The court stated, “Time was the essence of the contract,” and it noted the failure of the appellant to execute the sale deed within the stipulated period.

The dispute arose from a sale agreement entered on 26^th July 2007, involving House No. 369 and portions of House No. 341, with a total area of 7944 sq. Ft. The agreement required the removal of encroachments within six months, which did not occur, leading to a series of legal notices and counter-replies.

However, the court upheld the trial court’s decision to deny specific performance, citing that the suit was filed after the expiration of the limitation period. Additionally, the court emphasized the need for prompt action and adherence to contract terms, stating, “The decree for Specific Performance can be denied in case the suit is filed after the lapse of 2 – 3 years but before limitation.”

Date of Decision: 25-07-2023            

KANHAIYALAL NANKANI vs SMT. TRIVENI AWASTHI

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