Law:

Section:

(a) Specific Relief Act (I of 1877)--- ----Ss. 22 & 24(b)---Suit for specific performance of agreement in respect of immoveable property---Discretion of court to decree such a suit---Principles and scope---Time agreed between parties for payment of balance consideration as essence of the contract--- Failure to pay balance consideration within the time stipulated in the contract---Effect---Conduct of parties, relevance of---Sellers/defendants entered into an agreement to sell immovable property with the buyers/ plaintiffs---Buyers paid earnest money at the time of execution of agreement---Said agreement specifically stipulated that balance consideration had to be made by a specific date and if same was not done then earnest money would be forfeited and agreement would stand rescinded; that in case sellers resiled from the agreement then the buyers would have a right to seek specific performance of the agreement through a court of law; that in case there existed any legal hurdle/defect in performance of the agreement, then it would automatically stand cancelled---Buyers failed to pay balance consideration within the stipulated time, whereafter sellers sent them a notice wherein it was stated that agreement stood cancelled relying on the time stipulation clause---Buyers filed a suit for specific performance of contract against the sellers contending that deal could not be finalized and balance consideration could not be paid within time as another party had initiated litigation against sellers in respect of suit land and an interim injunction was granted to them---Suit was dismissed by civil court on the ground that time stipulated for paying balance consideration was essence of the agreement---High Court set aside of civil court and decreed the suit subject to deposit of remaining balance by the buyers before the civil court---Validity---Contents of the agreement revealed that it was specifically agreed and mentioned that the parties had entered into the agreement in proper health and full application of mind and had understood and accepted its terms---Stipulation regarding payment of balance sale consideration and consequences of its default were…

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