Jai Narain Parasurampuria (Dead) & Ors vs Pushpa Devi Saraf & Ors

The Supreme Court held that the agreement for sale executed by the directors of a company must be honored, as per the provisions of the Indian Contract Act, 1872, particularly Section 10, which mandates that agreements must be enforceable by law. The Court emphasized that the company, having acknowledged the property as its own in its balance sheets and directors' reports, is bound by its resolutions to sell the property. The appeal for specific performance of the agreement was granted, affirming the lower court's decision to enforce the sale agreement despite disputes regarding possession.