Lack of clear intent to conclude the deal works against potential flat buyer: Hight Court

financialexpress.com:

The recent order of the Bombay High Court emphasises that granting a decree for specific performance is a discretionary decision that considers numerous factors, including the equitable principles of The Specific Relief Act.

In this case, Smt. Neena Paresh Shah, and Paresh Ramesh Shah (Shah), residents of USA, decided to purchase a flat in Mumbai. To facilitate the sale, they executed a power of attorney in favour of Smt. Shah’s brother appointing him as their constituted attorney. A Memorandum of Understanding (MoU) was executed between Shah and Vilasben Vinod Chandra Dhruva (Vilasben), the original defendant, outlining the purchase terms including payment of earnest money. Completion of sale was agreed to be on or before May 31, 2005, conditional upon Vilasben obtaining necessary certificates from the Housing Society (Society) and ensuring vacant possession of the flat.

Shah claimed that they had decided for a housing loan and were ready and willing to pay the remaining consideration and complete the sale within the agreed timeframe, but Vilasben, failed to obtain the certificates from the Housing Society and fulfil her obligations. As a result, Parties mutually agreed to extend the timeline for completing the sale until October 31, 2005.

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Shah claimed that they provided necessary documents and repeatedly urged Vilasben to complete the sale, but she consistently avoided finalizing the transaction. Shah sent a letter expressing their readiness to pay and demanding vacant and peaceful possession of the flat and all original documents and Society’s No Objection Certificate. Despite agreeing to an extended timeline, Vilasben continued to evade