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Land & property records

The seller backed out of an agreement for sale in Odisha. Can I get specific performance?

General legal informationUpdated

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The short answer

Yes, if the agreement is clear and you have stayed ready and willing to pay. Since the 2018 amendment to the Specific Relief Act, courts must generally enforce such contracts. File the suit in the civil court where the land lies within three years of the date fixed for the sale deed, or of the seller's refusal (Article 54, Limitation Act). In Odisha, an agreement to sell under which possession is handed over must be registered; an unregistered one can still be used as evidence in the suit.

What specific performance of an agreement for sale means

A suit for specific performance of an agreement for sale asks the civil court to order a seller who has backed out to execute and register the sale deed as promised. An agreement to sell (often called a bikri chuktinama or "agreement" in Odisha) does not by itself make the buyer the owner: Section 54 of the Transfer of Property Act, 1882 says a contract for sale does not create any interest in the property. Ownership passes only through a registered sale deed. So when the seller refuses, delays, or tries to sell to someone else, the buyer's choice is to sue for performance, or to claim back the advance with compensation.

The law after the 2018 amendment

The Specific Relief Act, 1963 was substantially amended by Act 18 of 2018, in force from 1 October 2018. Section 10 now says specific performance of a contract "shall be enforced" by the court, subject only to the bars in Sections 11(2), 14 and 16. Before the amendment the remedy was discretionary, and courts often refused it where money compensation seemed adequate. In Annamalai v. Vasanthi (October 2025) the Supreme Court confirmed that the amendment is not retrospective, so older transactions and suits are still judged under the earlier, discretionary law.

Even after 2018, two conditions decide most cases:

  • Readiness and willingness (Section 16(c)). The buyer must prove that he has always been ready and willing to perform his side, mainly to pay the balance price. Courts look at bank balances, loan sanctions, letters and conduct from the date of the agreement till the hearing. A buyer who sat silent for years, or who could not pay, usually fails.
  • A clear, enforceable agreement. The property, price and other essential terms must be certain, and the seller must have had the right to sell.

Seller refusing to register the sale deed: what to do

  1. Collect the papers. The agreement, receipts for the advance (bank transfers are the strongest proof), messages, and the seller's title documents. Check the current Record of Rights on Bhulekh and take an encumbrance certificate to see whether the seller has already sold or mortgaged the land to someone else.
  2. Show your readiness. If the agreement fixes a date, be ready to pay before it. Where possible, keep the balance in a bank account or arrange a loan sanction letter.
  3. Send a legal notice calling on the seller to execute the deed on a stated date at the Sub-Registrar's office, and stating that you are ready with the balance (see legal notice in Odisha). Going to the Sub-Registrar office on that date and recording your presence is useful evidence.
  4. File the suit in the civil court where the land lies, before the limitation period ends (below). Join anyone who has bought from the seller after your agreement.
  5. Ask for interim protection. A temporary injunction restraining the seller from selling or encumbering the property while the suit is pending is commonly sought with the plaint. Any transfer during the suit is in any case subject to its result under the lis pendens rule in Section 52 of the Transfer of Property Act.
  6. If you win, the decree directs the seller to execute the deed on deposit of the balance within the time fixed. If he still refuses, the court can execute the sale deed on his behalf in execution proceedings.

How a civil suit moves from plaint to decree is explained in civil suit process in Odisha; court fee, which depends on the suit valuation, is covered in court fees.

Specific performance limitation: 3 years

Under Article 54 of the Limitation Act, 1963, the suit must be filed within three years from the date fixed for performance in the agreement, or, if no date is fixed, from the date the buyer has notice that the seller refuses. In Usha Devi v. Ram Kumar Singh (2024) the Supreme Court dismissed a suit filed eight months late: the agreement required the deed within one month, and a clause saying the agreement was "valid for five years" did not change the date fixed for performance. Read the dates in your agreement carefully and do not wait for informal promises.

Unregistered agreement for sale in Odisha

Odisha has its own rule here. The Registration (Orissa Amendment) Act, 2001 (Odisha Act 8 of 2002) added clause (f) to Section 17(1) of the Registration Act, 1908: an agreement to sell immovable property where possession has been or is handed over to the buyer must be registered. Such an agreement may also attract stamp duty as on a sale; check the current position with the Sub-Registrar.

What happens if it was not registered?

  • The proviso to Section 49 of the Registration Act allows an unregistered document to be received as evidence of the contract in a suit for specific performance, so the suit is not automatically lost.
  • But the buyer cannot rely on it for the protection of part performance under Section 53A of the Transfer of Property Act, which since 2001 requires a registered agreement. That protection is what lets a buyer in possession resist the seller's attempt to evict him.
  • An agreement without possession is not compulsorily registrable, but registration and proper stamping still make proof easier.

When a court may refuse or limit relief

  • The seller had no right to sell, or the sale needs a permission that was never obtained. For example, a transfer by a Scheduled Tribe raiyat to a non-tribal person without permission under Section 22 of the Odisha Land Reforms Act, 1960 is void (see tribal land transfer). Land settled by the government on conditions, or ceiling-surplus land, raises similar issues.
  • Only some co-owners signed. The court cannot force a co-sharer who never agreed to sell; relief may be limited to the share of those who signed.
  • A bona fide later buyer. Under Section 19(b), the decree does not bind a later transferee who paid value in good faith without notice of your agreement. Possession by the first buyer, or a registered agreement, usually defeats that defence.
  • Lack of readiness and willingness, or delay amounting to abandonment.

Refund of advance money for property

If you no longer want the land, or performance becomes impossible, you can claim the advance back. In a specific performance suit, Section 22 lets the buyer also claim, in the alternative, refund of the earnest money or deposit; this must be specifically asked for in the plaint, though the court may allow an amendment at a later stage. Section 21 allows compensation in addition to, or instead of, performance.

Whether the seller may forfeit the advance depends on the agreement and the facts. The Supreme Court has allowed forfeiture of a genuine earnest-money deposit where the buyer is at fault and the agreement provides for it, but has held that a large "advance" that is really part-payment of the price cannot simply be kept without proof of loss. A separate suit for refund is a money claim; see money recovery suit.

If the seller dies before registration

The agreement binds the seller's legal heirs to the extent of the property they inherit. The suit is filed against, or continued against, the heirs. Mutation in the heirs' names (see mutation) does not defeat a valid agreement.

Related work handled is listed under civil litigation and land and property; court locations are on the courts page.

Odia terms used in this guide

OdiaTransliterationMeaning
ଚୁକ୍ତିନାମାchuktinamawritten agreement
ଦଲିଲdaliladeed, such as the final sale deed

Frequently asked questions

What is the limitation period for specific performance of an agreement for sale?

Three years under Article 54 of the Limitation Act, 1963: from the date fixed for performance in the agreement, or, if no date is fixed, from when the buyer has notice that the seller refuses.

The seller is refusing to register the sale deed. What can I do?

Send a legal notice fixing a date for registration and showing you are ready with the balance, check whether the land has been sold to someone else, and file a suit for specific performance with an application for temporary injunction against further sale.

Is an unregistered agreement for sale valid in Odisha?

In Odisha an agreement to sell where possession is handed over must be registered under Section 17(1)(f) as amended for the state. An unregistered agreement can still be used as evidence of the contract in a specific performance suit, but it does not give part-performance protection under Section 53A.

Can I get my advance money back if the property deal fails?

Yes. You can claim refund of the advance, alone or as an alternative relief in a specific performance suit under Section 22 of the Specific Relief Act. Whether the seller can forfeit any part depends on the agreement and who broke it.

Does the 2018 amendment to the Specific Relief Act apply to my old agreement?

The Supreme Court has held that the amendment, in force from 1 October 2018, is not retrospective. Transactions and suits from before that date are judged under the earlier, discretionary law.

Can the seller sell the land to someone else after taking my advance?

He may try, but a later buyer who had notice of your agreement is bound by a decree in your favour, and any sale during the suit is subject to its result. A temporary injunction can restrain such a sale.

Official sources

General information, not legal advice. Every matter turns on its own facts and documents, and the law and official procedures change. Check the current position with the concerned office, or take advice on your own facts, before acting.

Published by

Chambers of Dhwanit Mishra, Advocate

Enrolled with the State Bar Council of Odisha; chambers at Patia, Bhubaneswar. Written as general information on the law and procedures in Odisha, checked against the official sources listed above. It is not legal advice and does not create an advocate–client relationship.

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