Plaintiffs Disentitled to Specific Performance Due to Misleading Conduct: Supreme Court

The Supreme Court of India, in a recent judgment, has reiterated the discretionary and equitable nature of specific performance under the Specific Relief Act, 1963. The apex court emphasized that a plaintiff’s conduct is a critical factor in granting specific performance, highlighting that plaintiffs must demonstrate honesty and integrity in their dealings.

The civil appeal involved a dispute over an agreement for the sale of a property in Chandigarh. The plaintiffs, including Major Gen. Darshan Singh, alleged that the property’s possession and price were adjusted after the original agreement. The defendant contested, claiming the property belonged to his Hindu Undivided Family (HUF) and denying possession transfer. The core issue was whether the plaintiffs were entitled to the equitable relief of specific performance given their conduct and the nature of the property as HUF.

Plaintiff’s Conduct and Suit Agreement: The Supreme Court noted discrepancies in the plaintiffs’ statements regarding possession and price, indicating a lack of honesty. The plaintiff’s failure to disclose the HUF status of the property in the plaint was highlighted as misleading.

Specific Performance as Equitable Relief: The Court affirmed that specific performance is granted based on the plaintiff’s conduct. The plaintiffs’ misleading claims and pursuit of full property rights, despite knowing its HUF status, rendered them unfit for this relief.

Modification of Trial Court’s Decree: The apex court modified the lower court’s decree to include interest on the awarded damages, demonstrating a balanced approach.

The Supreme Court partially allowed the appeal, affirming the denial of specific performance but modifying the decree to include interest on damages. The decision underscores the importance of truthful and forthright conduct in legal proceedings, especially in equitable remedies like specific performance.

Date of Decision: March 1, 2024.

Major Gen. Darshan Singh (D) By Lrs. & Anr. Vs. Brij Bhushan Chaudhary (D) by Lrs.