P. PURUSHOTTAM REDDY vs M/S. PRATAP STEELS LTD.

The Supreme Court held that under the Urban Land (Ceiling and Regulation) Act, 1976, the agreement for sale of immovable property became inoperative due to the vendor's failure to obtain necessary permissions by the stipulated date. The Court emphasized that specific performance of a contract is contingent upon the enforceability of the agreement, which was rendered void as per the terms agreed upon by the parties. Consequently, the Court upheld the High Court's decision to remand the case for additional trial on the merits of the case, reinforcing the principle that readiness and willingness to perform the contract must be established by the plaintiff.