Specific performance may be refused where enforcement is inequitable and refund with interest is the proper equitable relief.

Specific performance remains a discretionary equitable remedy under the Specific Relief Act, 1963, and may be refused where enforcement would be inequitable or the surrounding facts do not justify it. The court noted that possession had not been delivered, the exact area agreed to be sold was not finally settled, and the measurements relied on by the High Court were not conclusive. On those facts, the plaintiff was not entitled to insist on enforcement of the sale contract, and refund of the earnest money with interest was the appropriate equitable relief.

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Issues: Whether a decree of specific performance should be granted in the facts of the case, or whether refund of the earnest money with interest would be the appropriate equitable relief.

Analysis: Section 20 of the Specific Relief Act, 1963 confers discretion on the court in decreeing specific performance, and that discretion must be exercised on judicial principles. The court may decline specific performance where the contractual terms or surrounding circumstances make enforcement inequitable, where hardship would result, or where the plaintiff has not done substantial acts or suffered losses in consequence of the contract. Here, possession had not been delivered, the exact area agreed to be sold was not finally settled, and the measurements accepted by the High Court were not conclusive. In those circumstances, the plaintiff's case did not justify the grant of specific performance as a matter of equity.

Conclusion: The decree of specific performance was declined and the appellants were directed to refund the earnest money with interest to the respondent.

Final Conclusion: The appeal succeeded to the extent that specific performance was not maintained, and the dispute was resolved on an equitable monetary refund instead of enforcement of the sale contract.

Ratio Decidendi: Specific performance is a discretionary and equitable remedy that may be refused where enforcement would be inequitable or where the circumstances do not justify such relief despite legality of the contract.

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