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Court has power to reduce interest rate specified in contract and to award the reasonable rate if it is found penal or excessive.

The Supreme Court held that “A suit for specific performance cannot be dismissed on the sole ground of delay or laches. However, an exception to this rule is where an immovable property is to be sold within a certain period, time being of the essence, and it is not found that owing to some default on the part of the plaintiff, the sale could not take place within the stipulated time. Once a suit for specific performance has been filed, any delay as a result of the Court process cannot be put against the plaintiff as a matter of law in decreeing specific performance. However, it is within the discretion of the Court, regard being had to the facts of each case, as to whether some additional amount ought or ought not to be 13 | P a g e paid by the plaintiff once a decree of specific performance is passed in its favor even at the appellate stage.

 A.R. Madana Gopal etc.  Vs. M/s Ramnath Publications Pvt. Ltd. and Anr., dated 9.04.21.


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