livelawpk.com - Supreme Court of Pakistan Dismisses Vendor’s Appeal

Vendor fails to clear Property Debts and obtain a NOC while vendee demonstrated readiness to fulfill the contract --- Supreme Court of Pakistan Dismisses Vendor’s Appeal, Upholds Specific Performance of Sale Agreement

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Vendor fails to clear Property Debts and obtain a NOC while vendee demonstrated readiness to fulfill the contract --- Supreme Court of Pakistan Dismisses Vendor’s Appeal, Upholds Specific Performance of Sale Agreement

Islamabad 24-12-2024: The Supreme Court of Pakistan has dismissed an appeal filed by the legal heirs of Zeeshan Pervez (Vendor) against the High Court of Sindh’s decision favoring Muhammad Nasir (Vendee) in a dispute over the specific performance of a sale agreement for immovable property.

The three-member bench, comprising Mr. Justice Munib Akhtar (Acting Chief Justice), Mr. Justice Shahid Waheed, and Mr. Justice Irfan Saadat Khan, delivered its judgment affirming the High Court’s findings and ruling against the vendor’s claims.

The legal dispute arose from a sale agreement executed on March 26, 2013, for a property located in Defence Housing Authority, Karachi, valued at Rs. 25,850,000. The vendor alleged that the vendee breached the agreement by failing to meet the stipulated payment deadlines. Conversely, the vendee argued that the vendor failed to fulfill key obligations, such as clearing debts on the property and obtaining a No Objection Certificate (NOC) from the bank.

The High Court of Sindh, through its consolidated judgment, decreed in favor of the vendee, directing the vendor to execute the sale deed and hand over possession of the property. The vendor challenged this decision before the Supreme Court of Pakistan.

The Court addressed the misprint in the contract, which required a payment date (March 20, 2013) that preceded the agreement’s execution date (March 26, 2013). The Court upheld the High Court’s finding that the actual deadline was May 20, 2013, and the vendee had made payments within this timeframe.

The vendor failed to meet critical contractual obligations i.e. clearing debts on the property, securing a NOC from the bank, facilitating the sale deed and transfer of possession by August 15, 2013.

The Court emphasized that the vendee had consistently demonstrated readiness and willingness to fulfill his obligations. This included depositing Rs. 19,800,000 (exceeding the balance payment) in Court and assisting the vendor in clearing debts.

Application of Legal Principles:

The Court reiterated that time is generally not the essence in contracts involving immovable property unless expressly stated.
It applied the contra proferentem rule, resolving ambiguities in the contract against the vendor as its drafter.
Section 55 of the Contract Act, 1872, was invoked to underline that the contract did not become voidable due to delays when time was not the essence.

The Supreme Court of Pakistan dismissed the vendor’s appeal, affirming that the vendee was entitled to specific performance of the contract. The judgment criticized the vendor’s attempts to avoid contractual obligations and use “self-serving interpretations” to claim breaches by the vendee.