When immovable property is being sold or purchased, there are stages.
First, only part payment is made. Then parties are required to do certain things. Then finally full payment is made and sale contract is complete.
Sometimes, certain things to be done by some party is delayed for some reasons.
In the meantime, one party forfeits earlier deposit and refuses to extend time.
Then parties go to court. Normally, court says that Time is not the essence of contract of sale of immovable properties. The Court then forces parties to abide by earlier terms even if something is delayed by some party.
There is an exception.
When while making earlier agreement, if one party makes it clear to other party that "Look Mister. Think twice. Here Time is essence. If you will fail to do certain thing in time, then your deposit will be forfeited and no extension of time will be given."
Then here, Time becomes the Essence of contract.
The law is more clearly discussed by Supreme Court in case of I.S. Sikandar v K Subramani reported in 2014 (1)Scale 1
Haresh Raichura
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