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Legal Review and Analysis of Jaspal Singh vs Ashwani Kumar 2026 INSC 700
Earnest Money Clause Does Not Bar Specific Performance; High Court Cannot Reappreciate Evidence in Second Appeal
Case Snapshot
Case Name: Jaspal Singh v. Ashwani Kumar
Citation: 2026 INSC 700
Bench: Justice Alok Aradhe
Date of Judgment: July 14, 2026
Area of Law: Specific Performance, Civil Procedure, Contract Law
Judgment in Brief
The Supreme Court allowed the appeal and restored the decree of specific performance granted by the First Appellate Court. The Court held that the High Court erred in declining specific performance on the ground that the Agreement to Sell did not contain an express clause enabling enforcement through court. Under Section 23 of the Specific Relief Act, 1963, the mere naming of a sum payable in the event of breach does not bar specific performance unless the contract gives the defaulting party an option to pay money in lieu of performance. The Court also held that the High Court exceeded its jurisdiction under Section 100 of the CPC by reappreciating evidence and disturbing concurrent findings of fact without recording any finding of perversity. The judgment reaffirms the limited scope of second appeal and the principles governing specific performance.
Relevant Facts
The appellant (plaintiff) entered into an Agreement to Sell dated June 22, 2003, with the respondent (defendant) for purchase of land admeasuring 12 mallas for ₹12,50,000. An earnest money of ₹9,00,000 was paid.
The Agreement stipulated June 22, 2004, as the date for execution of the Sale Deed, with a clause stating that if the Sale Deed could not be executed for any reason, the respondent would refund the earnest money.
The date for execution was extended twice by mutual consent—first to July 22, 2004, and then to January 22, 2005. A further sum of ₹60,000 was paid.
The appellant appeared before the Sub-Registrar on January 20, 2005, and January 24, 2005, but the respondent did not attend.
The appellant filed a suit for specific performance, with an alternative prayer for recovery of ₹19.20 lakh.
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