Unilateral Cancellation of Sale Agreement Invalid Without Contractual Right: Supreme Court

The Supreme Court held that a party cannot unilaterally cancel an agreement to sell unless the contract explicitly permits such termination. Interpreting Section 14 of the Specific Relief Act, 1963,

The Court clarified that where an agreement is non-determinable, unilateral termination is invalid in law. The aggrieved party, therefore, need not first challenge such cancellation before seeking specific performance.

The Court further held that the burden to justify termination lies on the party cancelling the contract, who must approach the court to establish its validity. The judgment reinforces the principle that contractual obligations cannot be avoided by unilateral actions lacking legal or contractual sanction.

[K. S. Manjunath & Ors v Muttanna Chennappa Batil & Ors.]