LexVIJAY PRABHU versus S.T. LAJAPATHIE & ORS.
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[2025] 1 S.C.R. 718 : 2025 INSC 52 Vijay Prabhu v. S.T. Lajapathie & Ors. (Special Leave Petition (Civil) No. 25246 of 2023) 08 January 2025 [J.B. Pardiwala and R. Mahadevan, JJ.] Issue for Consideration Whether the High Court was justified in finding that the original plaintiff was not entitled to discretionary relief of specific performance under Section 12 of the Specific Relief Act; whether the relinquishment of claim to further performance of the remaining part of the contract can be made at any stage of litigation. Headnotes† Specific Relief Act 1963 – s.12 – Specific performance of part of contract – Petitioner/plaintiff instituted a suit seeking specific performance of agreement and delivery of possession of suit property; alternatively, he sought damages – Trial Court rejected prayer for specific performance – Directed refund of earnest money to plaintiff – In appeal, High Court held plaintiff could not claim specific performance under Section 12 – SLP dismissed – Plaintiff not ready and willing to perform his part of the contract – Cannot invoke Section 12(3) – Power to grant partial relief under Section 12(3) discretionary – To be exercised keeping in mind facts and circumstances of the case: Held: Petitioner/plaintiff instituted a suit seeking specific performance of the agreement to sell and for delivery of possession of the suit property, seeking damages with interest in the alternative – Trial Court rejected prayer for specific performance and directed refund of earnest money with interest – High Court held plaintiff could not invoke Section 12(3), Specific Relief Act, to claim specific performance of part of the agreement – SLP against impugned High Court order dismissed – It is not open to the High Court to direct specific performance of a part of contract except otherwise provided in sub-sections (2), (3) and (4) of Section 12 – Power of the court to grant partial relief, from the very language of Section 12(3) is discretionary, to be exercised keeping in view the facts and circumstances of each case and the rights and interests of the parties involved – Meaning of ‘unable to perform’ [2025] 1 S.C.R. 719 Vijay Prabhu v. S.T. Lajapathie & Ors. and ‘considerable part’ in Section 12(3) discussed – Section 12(3) can be invoked only where the terms of contract permit segregation of rights and interests of parties in the property – In view of the specific finding recorded by the courts below that the plaintiff was not ready and willing to perform his part of the contract and the plaintiff being in default – Plaintiff is not entitled to invoke Section 12(3) – Amount deposited in Trial Court as refund of earnest money to be refunded to the petitioner/plaintiff with the accumulated interest. [Paras 10, 11, 12, 13, 14 and 15] Claim for grant of benefit under Section 12(3) – Raised for the first time before High Court in first appeal – Held, relinquishment of claim to further performance of the remaining part of the contract and all rights to compensation can be made at any stage of litigation: Held: Claim for grant of benefit under Section 12(3) of the Act rightly not rejected by High Court on the simple ground that it was not made at the trial stage and had been made for the first time at the appellate stage – Relinquishment can be made at any stage of the litigation including the appellate stage – Claim cannot also be rejected on the short ground that it was not incorporated in the plaint or was not set forth in writing before the Trial Court. [Paras 18, 19, 20 and 21] Case Law Cited Jaswinder Kaur (Now Deceased) through her Legal Representatives and Others v. Gurmeet Singh and Others reported [2017] 5 SCR 430 : (2017) 12 SCC 810; Kalyanpur Lime Works v. State of Bihar reported [1954] 1 SCR 958 : AIR 1954 SC 165; Waryam Singh v. Gopi Chand, AIR 1930 Lah 34; Ram Niwas v. Smt. Omkari and Another, AIR 1983 All 310 – relied on. List of Acts Specific Relief Act, 1963. List of Keywords Suit for specific performance; Specific performance of part of contract; Section 12 of Specific Relief Act; Ready and willing; Partial relief; Discretionary power; Relinquishment of claim; Benefit under Section 12(3) of the Act; Stage of making claim. 720 [2025] 1 S.C.R. Supreme Court Reports Case Arising From EXTRAORDINARY APPELLATE JURISDICTION: Petition for Special Leave To Appeal (C) No. 25246 of 2023 From the Judgment and Order dated 24.03.2023 of the High Court of
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