Appellate Courts Must Specify Time Limit for Balance Sale Consideration in Specific Performance Cases

Last Updated on March 4, 2025 by Athi Venkatesh

Appellate Courts Must Specify Time for Balance Sale Consideration

The Supreme Court ruled that appellate courts must specify the time limit for depositing the balance sale consideration in cases of specific performance involving the sale or lease of immovable property. If the appellate court fails to mention a time frame, the decree remains executable, provided there is no wilful negligence or abandonment of the contract.

The case involved a dispute where the trial court directed the appellant to deposit the balance sale consideration within two months. The first appellate court upheld the decree in 2015 but failed to specify a time limit. Due to the doctrine of merger, the trial court’s order lost effect, and the appellate court’s ruling took precedence. The appellant deposited the amount in 2019, four years later.

The High Court ruled that the decree was inexecutable due to the delay. However, the Supreme Court disagreed. It held that the delay in depositing the amount could not, by itself, be a reason to deny execution. Under Section 28 of the Specific Relief Act, 1963, the trial court has the discretion to grant more time, considering factors like good faith, reasons for the delay, and the impact on the judgment debtor.

The Court stated that when the appellate court does not specify a time frame, the decree holder must deposit the amount within a reasonable period. However, “reasonable time” does not mean depositing at the decree holder’s convenience.

Since the appellant had already deposited ₹4,87,000 in 2019, the Supreme Court ruled that the High Court should not have interfered with the execution. The Court ordered the respondents to receive 9% simple interest on the delayed amount and allowed the appeal.

Case Title: Ram Lal v. Jarnail Singh (Deceased) Through LRs & Ors.
Citation: 2025 LiveLaw (SC) 283