Court mandates execution of sale deed, dismisses appeal questioning validity of registered agreement
In a significant ruling, the Allahabad High Court has dismissed the appeal filed by Tushar Agrawal against the decree of specific performance of a registered agreement to sell, dated December 30, 2019, in favor of Ganesh Prasad. The judgment, delivered by Justice Sandeep Jain on July 6, 2026, confirmed the trial court's order directing Agrawal to execute the sale deed for his residential property, after receiving the balance consideration of Rs. 10 lakhs, within two months.
The dispute arose over a two-storeyed building in Sant Ravidas Nagar, which Agrawal had agreed to sell to Prasad for Rs. 30 lakhs. According to the agreement, Prasad paid Rs. 20 lakhs as earnest money through a cheque, a transaction Agrawal later contested, alleging fraud and claiming the property was valued at Rs. 2 crores. However, the High Court found no merit in Agrawal's claims of fraud or inadequate consideration.
Justice Jain highlighted that the registered agreement carried a presumption of validity, which Agrawal failed to rebut with cogent evidence. The court also noted that Prasad had consistently demonstrated readiness and willingness to perform his part of the contract, maintaining a bank balance sufficient to cover the remaining payment.
The judgment emphasized the amendments to the Specific Relief Act, 1963, effective from October 1, 2018, which make relief of specific performance mandatory rather than discretionary. The court rejected Agrawal's plea for hardship, observing that the defendant was aware of the property's residential and business use at the time of the agreement.
The decision reinforces the judiciary's stance on upholding registered agreements and ensuring parties fulfill their contractual obligations. Agrawal's appeal was found lacking in merit, resulting in costs being awarded throughout the proceedings.
Bottom line:-
Specific Relief Act - Relief of specific performance is no longer discretionary following the amendment to the Specific Relief Act, 1963 w.e.f. 1.10.2018. Registered documents carry a presumption of validity unless rebutted by cogent evidence.
Statutory provision(s): Specific Relief Act, 1963 Sections 10, 16, 20; Evidence Act, 1872 Section 91; Civil Procedure Code, 1908 Section 96
Tushar Agrawal v. Ganesh Prasad, (Allahabad) : Law Finder Doc id # 2935722
