Agreement to Sell Dispute in Punjab & Haryana High Court | RSA

Disputes arising out of an agreement to sell are among the most common forms of property litigation before civil courts and appellate courts. Such matters often involve questions relating to payment of balance sale consideration, execution of sale deed, readiness and willingness of the purchaser, and the conduct of parties throughout the transaction.

In a recent matter argued before the Punjab and Haryana High Court at Chandigarh, Advocate Shubham Aggarwal and Advocate Suksham Aggarwal represented a litigant in a Regular Second Appeal (RSA) arising from a long-standing property dispute concerning a suit for specific performance.

The dispute arose after the owner of a property alleged that although an agreement to sell had been executed, the complete sale consideration had not actually been received, despite signatures appearing on the receipt documents. The matter had earlier been decided in favour of the purchaser by both the Civil Judge as well as the District Judge. After suffering adverse findings before both the courts below, the property owner approached the Hon’ble Punjab and Haryana High Court through a Regular Second Appeal.

During the hearing before the High Court, emphasis was placed on the legal requirement of continuous readiness and willingness, which forms an essential element in suits seeking specific performance of an agreement to sell. It was argued that the purchaser had failed to establish that he possessed sufficient financial means to complete the transaction at the relevant time and had also failed to demonstrate consistent willingness to perform his part of the contract from the date of execution of the agreement till the institution of the suit.

After considering the record and hearing the parties, the Punjab and Haryana High Court observed that the aspect of readiness and willingness appeared to be missing in the matter. The Court further noted that merely creating paper records would not satisfy the legal requirement unless the conduct of the purchaser consistently demonstrated actual willingness and preparedness to complete the transaction.

The Hon’ble High Court consequently stayed the judgments passed by both the courts below and granted relief in favour of the appellant, who had approached the Court after losing before the subordinate courts.

The matter, titled Sombir versus Manjeet (RSA-4255-2025), highlights the continuing importance of the principle that in a specific performance suit, readiness and willingness must remain continuous and genuine throughout the transaction and the litigation process.

This case also reflects how appellate courts, including the Punjab and Haryana High Court at Chandigarh, closely examine the conduct of parties, financial capacity, documentary evidence, and surrounding circumstances in property disputes involving agreements to sell and specific performance claims.

At Siddhik Law Chambers, matters involving property disputes, agreement to sell litigation, Regular Second Appeals, and civil proceedings before the Punjab and Haryana High Court are examined carefully on the basis of the factual record, documentary material, and the applicable legal principles involved in the matter.