(1) Where in any suit a decree for specific performance of a contract for the sale or lease of immovable property has been made and the purchaser or lessee does not, within the period allowed by the decree or such further period as the court may allow, pay the purchase money or other sum which the court has ordered him to pay, the vendor or lessor may apply in the same suit in which the decree is made, to have the contract rescinded and on such application the court may, by order, rescind the contract either so far as regards the party in default or altogether, as the justice of the case may require.
(2) Where a contract is rescinded under sub-section (1), the court—
(a) shall direct the purchaser or the lessee, if he has obtained possession of the property under the contract, to restore such possession to the vendor or lessor; and
(b) may direct payment to the vendor or lessor of all the rents and profits which have accrued in respect of the property from the date on which possession was so obtained by the purchaser or lessee until restoration of possession to the vendor or lessor, and, if the justice of the case so requires, the refund of any sum paid by the vendee or lessee as earnest money or deposit in connection with the contract.
(3) If the purchaser or lessee pays the purchase money or other sum which he is ordered to pay under the decree within the period referred to in sub-section (1), the court may, on application made in the same suit, award the purchaser or lessee such further relief as he may be entitled to, including in appropriate cases all or any of the following reliefs, namely:—
(a) the execution of a proper conveyance or lease by the vendor or lessor;
(b) the delivery of possession, or partition and separate possession, of the property on the execution of such conveyance or lease.
(4) No separate suit in respect of any relief which may be claimed under this section shall lie at the instance of a vendor, purchaser, lessor or lessee, as the case may be.
(5) The costs of any proceedings under this section shall be in the discretion of the court.
Legal Commentary & Landmark Judgments: Section 28
Section 28 of the Specific Relief Act, 1963 regulates the rescission of contracts for the sale or lease of immovable property after a decree for specific performance has already been passed.
Upon such application, the court may order the contract to be rescinded, restore possession to the vendor, and direct refund of earnest money or forfeit deposits as equity requires. Sub-section (3) provides the converse right: if the purchaser pays the amount, the court may order the vendor to execute the conveyance and deliver possession. Sub-section (4) explicitly bars any separate suit for relief that could be obtained under this section.
Section 28 maintains judicial oversight over the execution of specific performance decrees. All post-decree applications—whether by the vendor seeking rescission for non-payment, or by the purchaser seeking extension of time to deposit the balance purchase price—must be filed in the original suit itself, as separate suits are barred by Section 28(4).