PARMANAND vs BAJRANG

The Supreme Court held that in a suit for specific performance of an agreement, the burden of proof lies on the defendant to establish that the agreement was not intended as a real sale but merely as security for a loan, as per the principles of contract law. The Court found that the defendant failed to produce evidence to support his claim, especially after being denied an adjournment to do so. Consequently, the High Court's decision to dismiss the suit was overturned, and the trial court's decree for specific performance was reinstated.