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  • Writer's pictureChambers of Daksha Kumar

Time for payment of sale consideration can be extended in a consent decree of specific performance

Updated: Aug 19, 2022

According to the Supreme Court, the time for payment can be extended in a consent decree of specific performance under section 28 of the Specific Relief Act, 1963.

Under this clause, one might request a court-ordered extension of time to pay the amount and receive payment relief.

The Supreme Court bench stated that the court that issues the order for specific performance retains entire control over the order even after it is issued. As a result, it has the authority to extend the payment deadline if an application is filed in court.

A compromise decree was issued in a case where the defendant sold the land to the plaintiff for a total of Rs. 8,78,500/-. The defendant received Rs. 7,31,000/- immediately, and the remaining sum of Rs. 1,47,500/- was promised to be paid in one month from the date of the compromise decree.

The plaintiff, on the other hand, did not pay the money on time and was five days late. The plaintiff requested that the money be deposited the same day in a trial court, which the court granted.

The plaintiff paid the money, and the sale deed was completed in his favour. Later, he filed a second application to request a payment extension. This was also permitted by the court.

The trial court, on the other hand, dismissed the defence's claim for a recession of the contract after three years. When the plaintiff appealed to the High Court, the order of the lower court was overturned. As a result, the plaintiff went to the Supreme Court.

The court noted that section 28 of the Special Relief Act of 1963 allows for the revocation of a contract for the sale or lease of immovable property. This provision grants the vendor or lesser party the power to rescind an immovable property contract.

However, if the seller fails to pay the agreed-upon sum within a certain time frame, the lease or contract might be declared in default.

In the present matter, the court stated that in a consent decree, the trial court can also grant a payment extension. As a result, the apex court upholds the trial court's decision and allows the plaintiff to deposit the remaining funds.

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