⚖️ Supreme Court Clarifies Law on Specific Performance Decrees
In Habban Shah v. Sheruddin, the Supreme Court held that where a decree-holder fails to deposit the balance sale consideration within the stipulated time, the decree for specific performance may become inexecutable, resulting in rescission of the contract.
The Court further clarified that filing a separate application under Section 28 of the Specific Relief Act for rescission is not mandatory. Courts retain control over a decree for specific performance even after passing of the decree and may, in appropriate circumstances, treat the contract as rescinded for non-compliance.
📌 Key Highlights:
• Decree for specific performance is in the nature of a preliminary decree
• Court retains jurisdiction till execution of sale deed
• Section 28 relief is discretionary and equity-based
• Separate suit for such relief is barred under Section 28(4)
• Courts can treat the contract as rescinded even without a formal application
A significant ruling reinforcing equitable principles in execution proceedings and specific performance jurisprudence.
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