A suit for specific performance cannot be dismissed on the sole ground of delay or laches

In A.R. MADANA GOPAL  vs M/S RAMNATH PUBLICATIONS PVT. LTD., appeals are filed against the judgment of the Division Bench of the Madras High Court by which a decree for specific performance passed by the learned Single Judge was reversed.

While reversing the decision of the Division Bench, the Apex court held that :-

1) A suit for specific performance cannot be dismissed on the sole ground of delay or laches. However, an exception to this rule is where an immovable property is to be sold within a certain period, time being of the essence, and it is not found that owing to some default on the part of the plaintiff, the sale could not take place within the stipulated time. Once a suit for specific performance has been filed, any delay as a result of the Court process cannot be put against the plaintiff as a matter of law in decreeing specific performance. However, it is within the discretion of the Court, regard being had to the facts of each case, as to whether some additional amount ought or ought not to be paid by the plaintiff once a decree of specific performance is passed in its favour even at the appellate stage.

2) Escalation of prices cannot be the sole ground to deny specific performance. 

3) Mere fixation of time within which the contract was to be performed does not make the stipulation as to time being of the essence of the contract.