2003 Supreme(AP) 721
Andhra Pradesh High Court
Judges : BILAL NAZKI, G.YETHIRAJULU
Central Bank of India Staff Co-operative Building Society Ltd., Vijayawada - Appellant
Versus
Dulipalla Ramachandra Koteswara Rao - Respondent
A.S.Nos.917,918/02
Decided On : 06-13-03
Advocates Appeared :
Mr.M.Chandrasekhara Rao,Mr.K.Raji Reddy
Headnote:INDIAN CONTRACT ACT, 1872, Sec.56 - Suit for specific performance of agreement of sale - Doctrine of Frustration - Defendants contend that agreement obtained by playing fraud and undue influence and same frustrated since it became impossible to perform by virtue of provisions of Urban Land Ceiling Act - Trial court decreed suit, but gave finding carried away by recitals of agreement that possession delivered to plaintiff - Defendants paying land revenue and electricity consumption charges subsequent to agreement and also received compensation regarding land transferred for roads - Plaintiff failed to prove delivery of possession or subsequent enjoyment - Cross- objection filed by defendants against finding of possession, allowed.
Doctrine of Frustration - In the instant case non-pursuance of matter for 19 years, non-delivery of possession under agreement and non-granting of permission by Urban Land Ceiling Authority clearly indicates abandonment - Since plaintiff remained silent for unduly long period, it amounts to abandoning agreement.
Where entire performance of contract became absolutely impossible without any fault on either side, contract is prima facie dissolved by doctrine of frustration - Suit is hit by doctrine of frustration - Plaintiff not entitled for relief of specific performance as prayed for - Appeal dismissed.
( 1 ) THESE appeals are preferred by the sole plaintiff in O. S. Nos. 504 and 983 of 1993 filed for specific performance of agreements of sale on the file of the II Additional Senior Civil Judge, vijayawada.
( 2 ) THE plaintiff in both the suits is the central Bank of India Staff Co-operative buildings Society Ltd. Vijayawada represented by its President, "which was formed with the sole object of securing land for construction of houses to its members. The respondent and his mother executed two separate agreements of sale covered by O. S. No. 504 of 1993 and O. S. No. 983 of 1993 respectively on 10-12-1974. Since his mother died before filing of the suit, and as the respondent-defendant is the sole legal heir to his mother, both the suits were filed against him for specific performance of agreements of sale. Subsequently, by an order dated 30-7-2001 passed in I. A. No. 723 of 2001 the trial Court added his wife and son as defendants 2 and 3 in O. S. No. 983 of 1993 which relates to the agreement of sale executed by the defendant s mother. The averments in both the suits are almost common, therefore, the lower Court recorded common evidence and disposed of the suits through its common judgment dated 8-4-2002.
( 3 ) THE averments of the plaints in both the suits are briefly as follows :
( 4 ) THE defendant is the absolute owner of an extent of Ac. 3-73 cents of dry land situated in NTS No. 25 of Vijayawada Town. His mother was the absolute owner of an extent of Ac. 2-00 dry land situated in the same survey number. Both of them executed agreements of sale on 10-12-1974 in favour of the plaintiff agreeing to sell the land @ rs. 40,000/- per acre and executed agreements of sale by receiving Rs. 5,000. 00 each towards advance. It was agreed that the balance sale consideration be paid within three months after the defendant and his mother obtaining necessary permission from the Government of A. P. for executing sale deeds in favour of the plaintiff-society or its members. It was further agreed that in case of the plaintiff-society committing default in payment of balance of sale consideration within the time stipulated therein, the said balance amount carries interest @ 12% per annum. The possession of the suit lands was delivered to the plaintiff on the date of the agreements and since then the plaintiff-society is in continuous possession and enjoyment of the same. The plaintiff is always ready and willing to perform its part of contract. Despite repeated requests, the defendant did not come forward to execute the sale deeds. Therefore, the plaintiff got issued a legal notice dated 14-1-1992 to the defendant and his mother calling upon to perform their part of contract, but they sent reply notices on 10-2-1992 with all false and untenable allegations. The plaintiff issued a rejoinder to the reply notice on 16-2-1992 and later filed the suits for specific performance of agreements of sale.
( 5 ) THE defendant filed written statement in both the suits with the following averments in brief:
( 6 ) VIJAYAWADA Municipality laid a road for public use in an extent of 2105 2/3 sq. yds. of land in the land covered by the sched-ule of O. S. No. 504 of 1993 and an extent of 991 sq. yds. in the land covered by the schedule of O. S. No. 983 of 1993. The representatives of the plaintiff-society approached the defendant and his mother seshamma and induced them by playing fraud, undue influence and misrepresentation to agree to sell the plaint schedule land. The representatives of the plaintiff got the agreements prepared behind the back of the defendant. The agreements are therefore illegal, unenforceable and unsustainable. By the date of the alleged agreements of sale the Andhra Pradesh Vacant Lands in Urban areas (Prohibition of alienation) Act, 1972 (Act 12 of 1972) came into force and it was repealed on 5-11-1977. By virtue of the provisions of the said act, the alienation of the urban vacant land was prohibited and the aliena