Section 28 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 28 applies where a court has decreed specific performance of a contract for the sale or lease of immovable property and the purchaser or lessee does not pay what the decree orders within the time allowed. The vendor or lessor may apply in the same suit to have the contract rescinded. The section then sets out the consequences, further relief if payment is made, a bar on a separate suit, and costs.
This article follows the consolidated text of the Act consulted (amendments shown up to Act 18 of 2018). Later amendments should be checked before you rely on any provision.
After a decree for specific performance of a contract for the sale or lease of immovable property, if the purchaser or lessee does not pay the money ordered within the period allowed (or further period the court allows), the vendor or lessor may apply in the same suit to have the contract rescinded, wholly or only as regards the party in default. On rescission the court shall direct restoration of possession and may direct rents and profits and refund of earnest money. If payment is made in time, further relief is available. No separate suit lies for relief under this section.
When section 28 applies
Section 28(1) begins: "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 Act uses "vendor" for the seller and "lessor" for the landlord, "purchaser" for the buyer and "lessee" for the tenant.
So three things must be in place: (1) a decree for specific performance of a contract to sell or lease immovable property; (2) an order in that decree to pay the purchase money or another sum; and (3) failure to pay within the period allowed by the decree or any further period the court allows.
If you are a vendor or lessor holding a decree on which payment has not been made, or a purchaser or lessee who has defaulted, you can talk to our dispute resolution team about the position under this section.
Section 28(1): the application and the order
Where the conditions are met, "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."
Points to note: the application is made in the same suit; the court "may" rescind (discretion); and it can rescind "so far as regards the party in default or altogether". That allows for cases with more than one purchaser or lessee, where only one is in default. For the general grounds of rescission and the court's power to refuse, see section 27.
Section 28(2): consequences of rescission
"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 the lessee as earnest money or deposit in connection with the contract."
Notice the contrast between "shall" in clause (a), which makes restoration of possession mandatory if possession was obtained, and "may" in clause (b), which leaves rents and profits and refund of earnest money to the court. The refund of earnest money or deposit is available "if the justice of the case so requires". "Vendee" is used in clause (b); it means the purchaser.
An invented example: the court decrees that Anand must buy a plot from Brij for a stated price, payable within sixty days. Anand takes possession but does not pay. Brij applies in the same suit. If the court rescinds, it shall direct Anand to restore possession, and may direct payment of the rents and profits that accrued during Anand's possession and, if justice requires, refund of the earnest money Anand paid.
Section 28(3): payment in time, further relief
"If the purchase 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."
Printing slip: "If the purchase or lessee pays" should read "purchaser or lessee". The sub-section is the mirror of the vendor's application: if the purchaser or lessee pays in time, he can apply in the same suit for a conveyance or lease, and for delivery of possession or partition and separate possession. For comparison with the relief available in the original suit, see section 22.
Section 28(4): no separate suit
"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." Relief under section 28 must be sought by application in the same suit. A fresh suit for the same relief is not available.
Section 28(5): costs
"The costs of any proceedings under this section shall be in the discretion of the court."
| Provision | Rule | Key words |
|---|---|---|
| 28(1) | Vendor's or lessor's application | Same suit; default in paying within the period allowed or further period; rescind wholly or as regards party in default |
| 28(2)(a) | Possession | Court "shall" direct restoration if possession was obtained |
| 28(2)(b) | Money | Court "may" direct rents and profits and, if justice requires, refund of earnest money or deposit |
| 28(3) | Payment in time | Further relief on application in same suit: conveyance or lease; possession or partition |
| 28(4) | No separate suit | For relief claimable under the section |
| 28(5) | Costs | Discretion of the court |
Practical points
Read the decree for the time allowed to pay and the amount ordered; the section runs from those terms. If time is running short, a purchaser or lessee should consider asking for a further period, as the section contemplates "such further period as the court may allow". A vendor or lessor should apply in the same suit rather than start a new one. Keep a record of any possession given, rent or profits received and amounts paid as earnest money or deposit, since sub-section (2) deals with each. The Act prints no limitation period for the application; the law of limitation should be checked, and for the execution of decrees see the Limitation Act article on execution of decrees and the residuary article for applications.
For decree enforcement in general, see our post on execution petition and decree enforcement procedure.
Need help with a decree where payment is overdue?
Whether you are the party owed or the party who must pay, the terms of the decree and the dates matter. You can bring the decree and the payment record to our dispute resolution team to plan your next step in the same suit.
Key takeaways
- Section 28 applies after a decree for specific performance of a contract for sale or lease of immovable property.
- If the purchaser or lessee does not pay within the period allowed, the vendor or lessor may apply in the same suit for rescission.
- On rescission the court shall direct restoration of possession and may direct rents and profits and refund of earnest money.
- If the purchaser or lessee pays in time, further relief such as conveyance or lease and possession is available.
- No separate suit lies for relief under the section; costs are in the discretion of the court.
Read next
- Section 27 of the Specific Relief Act, 1963: rescission of contracts, when adjudged or refused
- Section 22 of the Specific Relief Act, 1963: possession, partition and refund of earnest money
- Sections 29-30 of the Specific Relief Act, 1963: alternative prayer for rescission and doing equity
Disclaimer: Based on a consolidated text of the Specific Relief Act, 1963 showing amendments up to the Specific Relief (Amendment) Act, 2018 (in force from 1 October 2018), as consulted on 2 October 2026. Later amendments, notifications under the Act and the law of limitation should be checked. This article is general information, not legal advice; check the official text before acting.