Telangana HC Revives Property Sale Despite Nine-Year Payment Delay, Imposes 12 Per Cent Interest

The Telangana High Court has allowed a property buyer to complete the purchase of a property despite a delay of more than nine years in paying the balance sale consideration. However, the court has directed the buyer to pay the outstanding amount along with interest at 12 per cent per annum before the sale deed is executed.

Background Of The Dispute

The buyer had filed a suit in 2010 seeking specific performance of a property sale agreement. On December 29, 2011, the trial court had directed him to pay the remaining sale consideration of Rs 8.10 lakh to the seller within 15 days.

The buyer had not deposited the amount within the prescribed period. However, he continued to occupy the property. During the proceedings, the seller said that the buyer had been in possession of the property even though the sale deed was not executed.

After almost nine years, the buyer approached the court seeking permission to deposit the balance amount, thus completing the sale. The seller then opposed the request, arguing that the delay had been too long to condone.

The buyer claimed that the seller had, at one stage, mentioned that he would accept the remaining payment, but later, he had stopped all communication. He further told the court that personal commitments, including his daughter’s wedding and his retirement, had prevented him from pursuing the matter. The seller, however, denied these claims.

The High Court’s Ruling

The High Court observed that the seller had not challenged the original decree for specific performance. Since the decree has become final, the seller has not been entitled to oppose its implementation solely because the buyer had delayed depositing the balance amount.

The court also examined the legal provisions governing such cases. It held that though Section 5 of the Limitation Act was not applied to execution proceedings, a party in a specific performance case could seek an extension of time under Section 28 of the Specific Relief Act, 1963.

The court further observed that quoting the wrong legal provision while seeking relief should not, by itself, result in rejection of the application if the relief has otherwise been available under the law.

Accordingly, the High Court condoned the delay of 3,358 days and has permitted the buyer to deposit the remaining sum of Rs 8.10 lakh along with interest at 12 per cent per annum from the date of the original decree until the date of deposit. Once the payment is made in accordance with the court’s directions, the property sale will be considered completed.