Mohammed Khaleel (D) Through LRs & Orsv.Jayamma

Delay and Lack of Financial Readiness Defeat Specific Performance .

Case Snapshot

Case Name: Mohammed Khaleel (D) Through LRs & Ors. v. Jayamma

Citation: 2026 INSC 651

Bench: Justice Prashant Kumar Mishra and Justice N.V. Anjaria

Date of Judgment: June 23, 2026

Area of Law: Contract Law, Specific Performance, Property Law

Judgment in Brief

The Supreme Court dismissed the appeal and upheld the High Court's decision to refuse the relief of specific performance of an agreement to sell. The Court reaffirmed that a plaintiff seeking specific performance must prove continuous readiness and willingness to perform their part of the contract from the date of the agreement until the passing of the decree. The Court held that producing Fixed Deposit Receipts (FDRs) created years after the filing of the suit cannot establish financial readiness at the relevant time. Additionally, the Court emphasized that although the suit was filed within the three-year limitation period, an unexplained delay of nearly three years in approaching the court after the defendant's refusal disentitles the plaintiff to the equitable and discretionary relief of specific performance.

Relevant Facts

• The parties entered into an agreement to sell on December 20, 1990, for a vacant site worth ₹3,00,000. The plaintiff paid ₹25,000 as earnest money. The balance of ₹2,75,000 was to be paid within four months at the time of registration.

• The defendant handed over original title documents to the plaintiff. The plaintiff insisted on an approach road and proper demarcation, which the defendant claimed already existed.

• The plaintiff issued a legal notice on April 15, 1991, which was not served. The

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