Gujarat High Court

Contract cannot be rescinded under Section 28 if non-deposit of decretal amount results from judgment-debtor's non-cooperation.

LEGAL HEIRS OF DECD. PURSHOTTAMBHAI MANJHIBHAI KUMBHANI vs JAGDISHBHAI DEVRAJBHAI DESAI

Gujarat High CourtJUDGMENT: July 06, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The respondent (plaintiff) obtained a decree for specific performance on 22.12.2017 regarding an Agreement to Sell (ATS) dated 18.10.2010.

Source reference: para. 3.1

The decree required the suit property to be measured first; the plaintiff was then to pay balance consideration based on the final area.

Source reference: para. 7.2

Although the defendant issued a letter in 2018 demanding payment, the plaintiff alleged non-cooperation by the defendants (who reside in Mumbai) in facilitating the measurement.

Source reference: para. 3.2, 7.5

The plaintiff filed for execution in 2022.

Source reference: para. 3.3

In early 2026, the defendants filed an application under Section 28 of the Specific Relief Act, 1963, seeking to rescind the contract due to the plaintiff's delay in depositing the decretal amount.

Source reference: para. 3.4

The Trial Court rejected the rescission but ordered the plaintiff to pay interest on the principal.

Source reference: para. 3.6

The defendants challenged this via a writ petition under Article 227.

Source reference: para. 1
02

Issues

1. Whether the contract/decree for specific performance was liable to be rescinded under Section 28 of the Specific Relief Act due to the delay in depositing the balance consideration.

Source reference: para. 4.1, 12

2. Whether the plaintiff exhibited a lack of readiness and willingness post-decree to perform his part of the contract.

Source reference: para. 7.6, 12.1
03

Law Applied

Section 28 of the Specific Relief Act, 1963, which allows for the rescission of a contract if a decree-holder fails to pay the purchase money within the period ordered by the court.

Source reference: para. 11

A decree for specific performance is in the nature of a preliminary decree, and the court retains jurisdiction until the sale deed is executed (Anand Narayan Shukla v. Jagat Dhari, 2024 INSC 463).

Source reference: para. 11

Rescission is an equitable power and should only be exercised if there is "willful negligence" or an intention not to complete the contract.

Source reference: para. 11, 12

Limits of supervisory jurisdiction under Article 227 of the Constitution of India (Surya Dev Rai v. Ram Chander Rai and M/s Garment Craft v. Prakash Chand Goel), emphasizing that it is correctional rather than appellate.

Source reference: para. 14.1, 14.2
04

Reasoning

The High Court observed that the decree specifically made payment conditional upon the measurement of the land.

Source reference: para. 7.2, 7.3

Since the defendants were residents of Mumbai and the land was in Amreli, their physical presence was necessary for measurement, which they failed to provide.

Source reference: para. 7.5, 7.6

The Court found no evidence of "willful negligence" by the plaintiff; rather, the plaintiff's act of filing an execution petition in 2022 demonstrated a continuous intent to perform the contract.

Source reference: para. 7.6, 8, 12.1

The delay was partially attributed to settlement talks initiated during execution proceedings.

Source reference: para. 7.7, 8

Following the principles in Anand Narayan Shukla, the court held that since the decree did not fix a strict time limit and the delay was not intentional, rescission was not warranted.

Source reference: para. 11, 12.1

The Trial Court's decision to balance equities by awarding 9% interest to the defendants was deemed a sufficient and reasonable exercise of discretion.

Source reference: para. 12.1
05

Holding

The High Court dismissed the petition, holding that the Executing Court did not commit any jurisdictional or patent error.

The court affirmed the rejection of the application for rescission under Section 28 of the Specific Relief Act.

Source reference: no citation

It directed the Executing Court to ensure the earliest execution of the sale deed.

Source reference: para. 15

Liberty was reserved for the petitioners to move an application regarding the specific period for which interest is calculated based on recent precedents.

Source reference: para. 16.1
Gujarat High Court

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LEGAL HEIRS OF DECD. PURSHOTTAMBHAI MANJHIBHAI KUMBHANIvsJAGDISHBHAI DEVRAJBHAI DESAI

Gujarat High Court · July 06, 2026

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