Quick answer: If a seller backs out of a property deal, the buyer can file a suit for specific performance of the agreement to sell under Section 10 of the Specific Relief Act, 1963. Since 2018, courts must grant this relief as a rule. However, the buyer must prove continuous readiness and willingness and sue within three years.
Many property deals in Delhi NCR collapse after the buyer pays an advance. Prices rise, and the seller simply refuses to sign the sale deed. In such cases, a suit for specific performance of agreement to sell lets the buyer ask the court to force the sale. This guide explains the law, the steps and the latest Supreme Court rulings.
What Is Specific Performance of Agreement to Sell?
Specific performance is an order that compels a party to do what the contract promised. Here, the court directs the seller to execute and register the sale deed. If the seller still refuses, the court can execute the deed through its own officer.
An agreement to sell does not itself transfer title. Only a registered sale deed does that, as we explain in our guide on agreement to sell vs sale deed. Therefore, the suit is the buyer’s main tool to convert the agreement into ownership.
The Law After the 2018 Amendment
Before 2018, Section 20 gave courts wide discretion to refuse this relief. The Specific Relief (Amendment) Act, 2018 changed that position. Now Section 10 says courts shall enforce specific performance, subject only to the limits in Sections 11(2), 14 and 16.
Section 16(c) still matters most. The buyer must prove that they were always ready and willing to perform their part. In practice, this means proof of funds and of steps taken to complete the deal.
Limitation is also strict. Under Article 54 of the Limitation Act, 1963, the buyer has three years. Time runs from the date fixed for performance or, if no date is fixed, from when the buyer learns of the refusal.
How to File a Suit for Specific Performance: Steps
- Send a legal notice. Call upon the seller to execute the sale deed and state that you hold the balance price.
- Collect proof of readiness. Keep bank statements, loan sanction letters and payment receipts.
- Check for a cancellation letter. If the seller has terminated the agreement, also seek a declaration that the termination is invalid.
- File the suit. Approach the civil court with jurisdiction over the property and pay court fee on the sale price.
- Seek interim protection. Ask for an injunction against sale to third parties during the case.
- Deposit the balance. Pay the balance price into court within the time the decree fixes.
Delhi, UP and Haryana each apply their own court fee and pecuniary jurisdiction rules. So, a local check before filing saves time.
Key Supreme Court Rulings (2025–2026)
Sangita Sinha v. Bhawana Bhardwaj (2025 INSC 450): The Court held that a buyer must seek a declaration against a cancellation of the agreement. Otherwise, the suit fails. The buyer had also encashed the refund drafts and hidden the cancellation, which went against her.
Annamalai v. Vasanthi (2025): The Court confirmed that the 2018 amendment does not apply to suits or transactions before 1 October 2018. It also held that a seller who accepts extra money after the deadline waives the right to forfeit.
Dr. Amit Arya v. Kamlesh Kumari (2025): A short delay in depositing the balance did not defeat the decree. The real question is whether the buyer’s conduct shows a refusal to perform.
Muslimveetil Chalakkal Ahammed Haji v. Sakeena Beevi (2026 INSC 35): The Court accepted proof of payment to co-owners as evidence of readiness. It then granted a decree for the remaining share.
Our real estate dispute lawyers in Delhi NCR regularly use these rulings to frame pleadings from the first draft.
FAQs on Specific Performance of Agreement to Sell
Can a seller cancel an agreement to sell after taking an advance?
A seller may issue a cancellation, but the buyer can challenge it. The buyer should seek a declaration that the cancellation is invalid, along with specific performance.
What is the limitation period for a specific performance suit?
The buyer has three years under Article 54 of the Limitation Act. Time runs from the agreed date or from the seller’s refusal.
Is specific performance discretionary after 2018?
No, for contracts after 1 October 2018, courts must grant it unless a statutory bar applies. Older transactions still follow the earlier discretionary regime.
What does readiness and willingness mean?
It means the buyer had the money and the intent to complete the sale throughout. Bank records and timely notices usually prove it.
Can the buyer get a refund instead?
Yes. The buyer can claim a refund of the advance or compensation as alternative relief in the same suit.
Lex Pleaders advises homebuyers, investors, banks and NBFCs on property sale disputes, specific performance suits and title litigation as a law firm in Delhi NCR. Write to us at lexpleadersindia@gmail.com to discuss your matter.
Disclaimer: This article offers general information only and does not constitute legal advice.