152. Suit for specific performance – Terminaiton of contract – Effect of – Declaration that termination of contract was invalid – Requirement of -- By accepting Rs.1,95,000 after expiry of six months, D-1 and D-2, firstly, waived their right, as available to them under the contract, to forfeit the advance consideration/ earnest money,
Secondly, by such acceptance and endorsement on the back of the agreement they treated the contract as subsisting and,
thirdly, by transferring part of the subject matter of the agreement in favour of D-3, even before serving a forfeiture notice, they committed a breach of the contract.
In such circumstances, the plaintiff had an option to treat the contract as subsisting and sue for specific performance more so when termination was a void act, no longer permissible under the varied contract -- Suit for specific performance was maintainable even without seeking a declaration that termination of the contract was invalid in law. (SC) Decided on: 29.10.2025