The Supreme Court of Pakistan has ruled that specific performance, being an equitable remedy, can only be granted to a party that clearly demonstrates continuous readiness, willingness, and financial ability to fulfil contractual obligations.

In a detailed judgment approved for reporting, a two-member bench comprising Justice Shakeel Ahmad and Justice Mian Gul Hassan Aurangzeb dismissed civil appeals against a Lahore High Court decision involving a dispute over the sale of a five-kanal and four-marla property in Sialkot.

The case concerned an agreement executed on March 11, 2014, under which purchaser Amjad Javed paid Rs 0.8 million as earnest money. The remaining amount of Rs 6.48 million was to be paid by July 27, 2014. The agreement clearly stated that failure to pay within the stipulated time would result in forfeiture of the earnest money, making time an essential condition of the contract.

The court observed that the buyer later filed a suit seeking specific performance of the agreement but repeatedly failed to deposit the remaining amount despite being granted multiple opportunities by the trial court. His request for extensions was also rejected, leading to dismissal of the case.

The Supreme Court held that mere claims of readiness and willingness are not sufficient unless supported by actual financial capacity and timely performance. It further noted that changing market conditions and rapidly rising property values require courts to adopt a stricter approach, rather than assuming that time is not essential in immovable property transactions.

The judgment added that a buyer cannot indefinitely bind a seller while failing to meet contractual obligations. Since the purchaser deposited the balance amount after a delay of several years, the court ruled that it did not cure his default.

Upholding the Lahore High Court’s decision, the Supreme Court dismissed the appeal, reinforcing strict standards for enforcement of property contracts.