Summary of this article
Delay in legal notice alone not decisive, says SC.
Buyer's overall conduct matters in property sale disputes.
Suit filed within limitation period strengthens buyer's case.
The Supreme Court has ruled that a delay in sending a legal notice to a property seller cannot, by itself, be treated as evidence that a buyer was not ready and willing to complete a property deal. The judgment could be significant for homebuyers involved in disputes over property sale agreements.
A Bench of Justice Sanjay Karol and Justice Vipul M. Pancholi delivered the ruling in a case concerning the enforcement of an agreement to sell a property.
Dispute Over Property Sale
The case arose from an agreement signed in March 2010 for the sale of a property valued at Rs 9.3 lakh. The buyer paid Rs 9 lakh upfront as earnest money, while the remaining Rs 30,000 was to be paid at the time of execution of the sale deed within four months.
The buyer stated that he was still interested in the sale, and that he contacted the seller after the agreed-upon time. He alleged the seller had first asked for more time and eventually more money than what was decided as the purchase price. The seller allegedly threatened the buyer with transferring ownership to someone else when the buyer refused.
The buyer then sent a legal notice to the seller demanding that the seller accept the balance amount and complete the sale deed in February 2011. He later filed a civil lawsuit to enforce the agreement, but did not get any response.
High Court Order Set Aside
The trial court found in favour of the buyer, and the first appellate court upheld the decision. The Madras High Court, however, reversed this ruling, stating that the buyer's delay in giving a legal notice within the contractual notice period indicated his lack of readiness and unwillingness to carry out the contract.
The buyer challenged this decision before the Supreme Court.
Supreme Court's View
Setting aside the High Court's judgment, the Supreme Court observed that the buyer had already paid nearly 97 per cent of the sale consideration and had taken steps to complete the transaction. The court said readiness and willingness must be assessed by examining the overall conduct of the parties and the circumstances of the case.
The Bench also noted that the seller did not respond to the legal notice or deny the agreement at that stage.
The court further pointed out that the buyer had filed the suit within the legally prescribed limitation period. Therefore, a delay in issuing a legal notice could not, on its own, be used to deny relief.
