AMICUS AI
Citation Codes
Neutral Citations
1997 INSC 31
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 28 of the Specific Relief Act, 1963
  • Section 5 of the Limitation Act
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Cites
Cited by
Citation Codes
Neutral Citations
1997 INSC 31
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 28 of the Specific Relief Act, 1963
  • Section 5 of the Limitation Act
Smart Summary

Factual and Procedural Background

The petitioner and the respondent executed an agreement dated 7-7-1977 for the sale of several parcels of agricultural land in Village Khode for a consideration of Rs 25,000. After the respondent failed to perform his contractual obligations, the petitioner instituted Civil Suit No. 9-A of 1978 before the Additional District Judge, Mandleshwar. On 18-11-1987 the trial court decreed specific performance, directing the respondent to refund Rs 15,000 (earnest money) and pay Rs 2,000 as contractually stipulated damages within three months, failing which a sale deed was to be executed.

Subsequently, during execution, the respondent moved applications to rescind the decree and for extension of time. By order dated 15-3-1996, the executing court allowed both applications and granted three additional days to deposit the decreed sums. The petitioner challenged that order in Civil Revision No. 394 of 1996, but on 4-10-1996 the Madhya Pradesh High Court affirmed the executing court’s decision and further directed the respondent to deposit an additional Rs 16,000 as compensation for loss of enjoyment of money.

The present special leave petition (SLP) was filed against the High Court’s order; the Supreme Court first condoned the delay in filing the SLP and then proceeded to decide it on merits.

Legal Issues Presented

  1. Whether, despite a delay of approximately 7½ years and the respondent’s inadequate explanation, the executing court and the High Court possessed and properly exercised the power to enlarge the time for complying with a decree of specific performance.
  2. Whether Section 28(1) of the Specific Relief Act, 1963 authorises a court to extend time and thereby prevents it from becoming functus officio after passing a decree for specific performance.
  3. Whether the High Court erred in treating the original decree as a “preliminary decree” and in augmenting the respondent’s liability by an additional Rs 16,000.

Arguments of the Parties

Petitioner's Arguments

  • The 7½-year delay in seeking extension of time was inordinate and unexplained; therefore, the executing court and the High Court committed an error of law in granting any extension.
  • The decree for specific performance was final, not preliminary; consequently, the High Court lacked authority to modify it by extending time or adding monetary obligations.
  • Civil courts have no inherent power to extend time once the period stipulated in a decree has expired.

Respondent's Arguments

The opinion does not contain a detailed account of the respondent’s legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court centred its analysis on Section 28(1) of the Specific Relief Act, 1963. The language of the provision expressly allows a judgment-debtor to apply in the same suit for rescission of the contract if the purchaser or lessee fails to pay the money or comply with other terms within the period allowed by the decree “or such further period as the court may allow.” From this wording, the Court drew three key conclusions:

  • The trial court does not become functus officio after passing a decree for specific performance; it retains jurisdiction until the sale deed is actually executed.
  • The power to rescind a contract inherently includes the discretion to enlarge the time for compliance with the decree, even where an earlier application for rescission has been rejected.
  • An application for extension of time under Section 28 is fundamentally different from an application for condonation of delay under Section 5 of the Limitation Act; therefore, the strict “every-day’s-delay” explanation is not required.

Applying these principles, the Court held that both the executing court and the High Court had lawfully exercised their discretion by extending time. The additional sum of Rs 16,000 awarded by the High Court was viewed as consistent with the parties’ contractual stipulation of Rs 2,000 damages for eight years of non-performance (effectively Rs 16,000), thereby compensating the petitioner for loss of use of money. Finding no legal infirmity, the Court declined to interfere with the High Court’s order.

Holding and Implications

The special leave petition is dismissed.

Immediate Effect: The High Court’s order stands affirmed. The respondent must deposit the decreed amounts—including the additional Rs 16,000—within the extended time already granted.

Broader Implications: The decision reiterates that courts retain post-decree jurisdiction under Section 28 of the Specific Relief Act to extend time for compliance with decrees of specific performance, and that such discretion is not constrained by the strict standards applicable to condonation of delay under the Limitation Act.

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    Sardar Mohar Singh Through Power Of Attorney Holder, Manjit Singh v. Mangilal Alias Mangtya .

    Order

    1. Delay condoned.

    2. This special leave petition arises from the judgment of the learned Single Judge of the Madhya Pradesh High Court, made on 4-10-1996 in Civil Revision No. 394 of 1996. The petitioner had entered into a contract with the respondent for sale of agricultural lands in Khasra Nos. 52, 61, 73, 74, 79, admeasuring 3-533, 0-166, 1-437, 0.384, 0.202 hectares and also an agreement to sell dated 7-7-1977 in respect of lands situated in Village Khode, for a consideration of Rs 25,000. The respondent failed to perform his part of the contract and, therefore, the petitioner filed a suit bearing Civil Suit No. 9-A of 1978 in the Court of ADJ, Mandleshwar. The trial court granted a decree for specific performance on 18-11-1987 directing the respondent to refund the earnest money of Rs 15,000 and also damages quantified in the sum of Rs 2000, as agreed in the contract, within a period of three months and in default to execute the sale deed. The respondent filed applications to rescind the decree in execution and he sought extension of time for compliance. The executing court by order dated 15-3-1996 allowed both the applications of the respondent and directed him to deposit the amount within three days from that date. In revision, the High Court, while upholding that order, has, in addition to the direction of the lower court, directed the respondent to deposit a further sum of Rs 16,000 to compensate the petitioner for loss of enjoyment of money. Thus, this special leave petition.

    3. Shri R.S Suri, the learned counsel for the petitioner, contended that in view of the inordinate delay of 7 1/2 years in making the application and in view of the finding given by the executing court that no proper explanation was given by the respondent for the delay, the execution court as well as the High Court committed an error of law in directing extension of time there being no proper explanation. The High Court also was wrong in its conclusion that the decree can be treated to be a preliminary decree and, therefore, the direction can be granted in the final decree. It is also contended that the court has no power to extend time. We do not find force in any of these contentions. It is seen that sub-section (1) of Section 28 of the Specific Relief Act, 1963 (for short “the Act”) gives right to the judgment-debtor to file an application to rescind the contract. It reads as under:

    “28. (1) Where in any suit a decree for specific performance of a contract for the sale or lease of immovable property has been made and the purchaser or lessee does not, within the period allowed by the decree or such further period as the court may allow, pay the purchase money or other sum which the court has ordered him to pay, the vendor or lessor may apply in the same suit in which the decree is made, to have the contract rescinded and on such application the court may, by order, rescind the contract either so far as regards the party in default or altogether, as the justice of the case may require.”

    4. From the language of sub-section (1) of Section 28, it could be seen that the court does not lose its jurisdiction after the grant of the decree for specific performance nor it becomes functus officio. The very fact that Section 28 itself gives power to grant order of rescission of the decree would indicate that till the sale deed is executed in execution of the decree, the trial court retains its power and jurisdiction to deal with the decree of specific performance. It would also be clear that the court has power to enlarge the time in favour of the judgment-debtor to pay the amount or to perform the conditions mentioned in the decree for specific performance, in spite of an application for rescission of the decree having been filed by the judgment-debtor and rejected. In other words, the court has the discretion to extend time for compliance of the conditional decree as mentioned in the decree for specific performance. It is true that the respondent has not given satisfactory explanation of every day's delay. It is not, unlike Section 5 of the Limitation Act, an application for condonation of delay. It is one for extension of time. Under these circumstances, the executing court as well as the High Court had exercised discretion and extended the time to comply with the conditional decree. Accordingly, we do not find any valid and justifiable reason to interfere with the order passed by the High Court confirming the order of the executing court when in particular, the High Court has further enhanced a sum of Rs 16,000 to compensate the petitioner for loss of enjoyment of the money. The said amount is given to the respondent in a sum of Rs 16,000 rightly for the reason that parties contracted for non-performance of the contract. They quantified the damages at Rs 2000 for 8 years. The Court has given Rs 16,000 obviously in terms of the contract.

    5. The special leave petition is dismissed.

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    Comments

    Sardar Mohar Singh Through Power Of Attorney Holder, Manjit Singh v. Mangilal Alias Mangtya .
    (Jan 15, 1997)