Case Synopsis

Case: Subhash Aggarwal vs Mahender Pal Chhabra & Anr., 2026 INSC 11

Synopsis: The Supreme Court denied specific performance of a sale agreement due to the buyer's failure to prove financial readiness. However, ruling that simple forfeiture of earnest money would unjustly enrich the sellers as both parties were at fault, the Court used its extraordinary equitable power to direct the sellers to pay Rs. 3 Crores to the buyer as restitution, settling the 17-year-old dispute.

1. Heading of the Judgment

Case Name: Subhash Aggarwal vs Mahender Pal Chhabra & Anr.
Citation: 2026 INSC 11
Court: Supreme Court of India
Judges: Justice Vikram Nath and Justice Sandeep Mehta
Date: 5th January 2026

2. Related Laws and Sections

The judgment primarily deals with the principles governing the grant of specific performance under contract law.

• Specific Relief Act, 1963:
  Section 16(c): Mandates that a plaintiff seeking specific performance must aver and prove that he has performed or has always been ready and willing to perform the essential terms of the contract.

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