Allahabad High CourtContract LawProperty and Real Estate Law

Specific performance of registered agreement to sell is mandatory post-2018 amendment to Specific Relief Act.

Tushar Agrawalv.Ganesh Prasad

Specific performance of registered agreement to sell is mandatory post-2018 amendment to Specific Relief Act.. Tushar Agrawal vs Ganesh Prasad. Allahabad High Court. LawLens
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In brief

The question

1. Whether the defendant executed a valid registered agreement to sell and received the earnest money consideration

The court held

The High Court dismissed the appeal and affirmed the Trial Court's decree, holding that the defendant failed to prove fraud or that the consideration was for business dealings

It also directed

The Court ordered the defendant to execute the sale deed within two months upon receipt of the balance ₹10 lakhs; failing which, the plaintiff may seek execution through the Court

The Court concluded that the relief was mandatory under the post-2018 legal framework and the plaintiff had satisfied all statutory requirements

01Facts

The plaintiff (respondent) filed a suit for specific performance based on a registered agreement to sell dated 30.12.2019 regarding a two-storeyed house

¶ 1-2

The total consideration was ₹30 lakhs, with ₹20 lakhs paid as earnest money via cheque

¶ 2-3

The defendant (appellant) denied executing the agreement, alleging it was a fraudulent document obtained by exploiting a business relationship involving silver trading

¶ 7-10

The defendant further claimed the earnest money was actually payment for business transactions/labour charges and that the property was undervalued

¶ 11, 23, 79

The Trial Court decreed the suit in favor of the plaintiff on 11.03.2025

¶ 1

02Issues

i.1. Whether the defendant executed a valid registered agreement to sell and received the earnest money consideration

¶ 40, 63

ii.2. Whether the plaintiff continuously remained ready and willing to perform his part of the contract as per Section 16(c) of the Specific Relief Act

¶ 40, 115

iii.3. Whether the relief of specific performance remains discretionary following the 2018 Amendment to the Specific Relief Act

¶ 40, 129

03Law Applied

The court applied Section 16(c) of the Specific Relief Act, 1963, which mandates the plaintiff to prove continuous readiness (financial capacity) and willingness (conduct)

¶ 59, 122

It relied on the amended Section 10 of the Specific Relief Act (w.e.f. 01.10.2018), noting that specific performance is now a mandatory rather than discretionary relief

¶ 54, 132

The court utilized the "best evidence rule" under Section 91 of the Evidence Act regarding written contracts

¶ 50

Presumption of validity for registered documents established in Prem Singh v. Birbal and Hemalatha v. Tukaram

¶ 55, 91, 93

Provisions in the judgment · 9 · Linked ones open on LawLens

Code of Civil Procedure, 1908 Section 96Section 35Section 100

Specific Relief Act, 1963 Section 10Section 11Section 14Section 16Section 20

Code of Criminal Procedure, 1973 Section 156

04Reasoning

The Court found the agreement was duly registered with the defendant’s digital photograph and thumb impression, creating a high presumption of genuineness that the defendant failed to rebut with cogent evidence

¶ 90-94

Regarding consideration, the Court noted the ₹20 lakh payment originated from the plaintiff’s personal savings account, not a firm account, contradicting the defendant's claim that it was a business transaction

¶ 98, 113

On readiness and willingness, the Court determined the plaintiff maintained a bank balance exceeding the required ₹10 lakh and sent timely legal notices

¶ 124, 119

Relying on Syed Dastagir v. T.R. Gopalakrishna Setty, the Court held that "readiness and willingness" must be judged in spirit and substance rather than through mechanical adherence to specific forms

¶ 116-117

The Court observed that since the agreement was dated post-2018, the mandatory enforcement rule under the amended Section 10 applied

¶ 131-133

05Holding

The High Court dismissed the appeal and affirmed the Trial Court's decree, holding that the defendant failed to prove fraud or that the consideration was for business dealings

¶ 140, 114, 135

The Court ordered the defendant to execute the sale deed within two months upon receipt of the balance ₹10 lakhs; failing which, the plaintiff may seek execution through the Court

¶ 141

The Court concluded that the relief was mandatory under the post-2018 legal framework and the plaintiff had satisfied all statutory requirements

¶ 133, 139
Allahabad High Court

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Tushar AgrawalvsGanesh Prasad

Allahabad High Court · July 06, 2026

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