SECTION 28 SPECIFIC RELIEF ACT: SUPREME COURT CLARIFIES THAT SEPARATE APPLICATION IS NOT MANDATORY TO RESCIND CONTRACT FOR BUYER’S DEFAULT
The Supreme Court, in a significant judgment delivered on May 6, 2026, clarified the legal consequences of a decree-holder’s failure to comply with conditions imposed in a decree for specific performance under Section 28 of the Specific Relief Act, 1963. In HABBBAN SHAH v. SHERUDDIN, the Court held that when a buyer fails to deposit the balance sale consideration within the time stipulated by the decree, the decree becomes inexecutable and the contract stands rescinded. Importantly, the Court further clarified that a separate application by the judgment-debtor seeking rescission is not mandatory. The judgment was delivered by a Bench comprising Justice Pankaj Mithal and Justice S. V. N. Bhatti.
