The High Court of Delhi dismissed the appeals filed by the appellants against the Trial Court’s common judgment dated December 21, 2015, which had rejected their counter-claims for specific performance of an Agreement to Sell (ATS) dated September 29, 1995, and a subsequent compromise dated April 30, 2004. The Court affirmed that the appellants were not entitled to specific performance due to their own breach of contract, failure to prove continuous readiness and willingness, and conduct disentitling them to equitable relief.
Key Findings and Analysis
- Breach of Contract: The appellants admitted to stopping payments of monthly installments in February 1997, despite the terms of the ATS. Because the appellants were the first to breach the essential terms of the agreement, they are barred from seeking specific performance under Section 16(b) of the Specific Relief Act, 1963.
- Lack of Readiness and Willingness: The appellants failed to demonstrate continuous financial capacity and readiness to perform their obligations throughout the relevant period. Specifically, they canceled bank drafts intended for the sale consideration, and the Court found no credible evidence of their financial readiness.
- Misuse of Suit Property: The Court noted that the perpetual lease of the suit property was terminated by the DDA due to unauthorized commercial activity (steel fabrication). The appellants admitted to conducting such business on the premises, which directly contributed to the non-restoration of the lease, thereby violating the terms intended to be established by the compromise.
- Equitable Relief: Specific performance is a discretionary, equitable remedy. The Court determined that the appellants’ conduct—specifically their continued misuse of the property and failure to act in accordance with the compromise—was not “blemishless,” thus precluding the grant of such relief.
- Evidentiary Issues: While the Court noted that the Trial Court had erred in relying on documents that were never formally proved (such as certain inspection reports and the content of Mutual Agreements), this did not change the final outcome, as the appellants’ own admissions regarding the breach of contract and property misuse were sufficient to justify the dismissal of their counter-claims.
2026 DHC 5649
Krishan Gopal Aggarwal V. Dalip Singh (D.O.J. 15.07.2026)




