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2003 Supreme(AP) 1106

Andhra Pradesh High Court
Judges : B.S.A.SWAMY, ELIPE DHARMA RAO
Metadin Agarwal (died) by LRs. - Appellant
Versus
Syed Abdul Razack - Respondent
Decided On : 09-10-03

Headnote:

Civil Procedure Code, 1908 – Urban Land ceiling Act – Section 10 (1) – Refused permission – Whether the agreement of sale entered into between the parties became frustrated as held by the Courts below accepting the contentions of the respondents parties are different in both the suits they can be disposed of by a common Judgment –An advance was paid in each of the agreement of sale –After sometime they got issued a legal notice stating that the competent authority under urban Land Ceiling Act refused permission to sell the vacant land to the plaintiff and as such the agreement of sale stood cancelled – They also offered to refund the advance paid under the agreement of sale –Held, If the Court takes any other view in the facts and circumstances of a case of this nature the people who are in the habit of evading law will have the last laugh at the functioning of the institution and its very existence will be at peril. Accordingly the judgment and decree of the Trial Court as confirmed are set aside and the suit for specific performance is decreed as prayed –Material facts are one and the same as that – So the benefit enured to the plaintiff will also enure to the plaintiff – Accordingly is allowed and the judgment and decree of the trial Court confirmed are set aside and the suit for specific performance is decreed as prayed for –Months time is granted to execute the sale deed in favour of the plaintiff and deliver possession of the vacant land after receiving the balance of sale consideration.

B. S. A. SWAMY, J.

( 1 ) IN these two appeals the common question that arises for consideration is whether the agreement of sale entered into between the parties became frustrated as held by the Courts below accepting the contentions of the respondents herein.

( 2 ) THOUGH the parties are different in both the suits they can be disposed of by a common Judgment. One Syed Abdul Razack and his sister Mohamuda Begum agreed to sell thousand square meters of vacant land under two agreement of sales marked as ex. A. 1 in O. S. No. 667 of 1985 and the other agreement executed by Mohamuda begum was marked as Ex. A. l in O. S. No. l 16 of 1986. An advance of Rs. 15,000. 00 was paid in each of the agreement of sale. After sometime they got issued a legal notice stating that the competent authority under urban Land Ceiling Act refused permission to sell the vacant land to the plaintiff and as such the agreement of sale stood cancelled. They also offered to refund the advance paid under the agreement of sale. The plaintiffs contested the claim of the defendants by getting legal notice issued ex. A. 7 dated 16-6-1981. Thereafter, the defendants got a rejoinder Ex. A. 8 dated 1-7-1981 issued. In these circumstances, the agreement holders filed the above suits for specific performance with an alternate prayer to repay the advance with interest at 18% p. a from the date of suit till the date of realisation and also claimed damages with costs. While Metadin Agarwal filed o. S. No. 1161 of 81, Syed Abdul Razack and his brother filed O. S. No. 1160 of 81 against moharnuda Begum. Subsequently these two suits were transferred to IV Additional chief Judge, City Civil Court and they were numbered as O. S. Nos. 667 of 1985 and 116 of 1986 respectively. For the sake of convenience the parties are referred in the judgment as they are arrayed in the suits. The Trial Court framed the following issues in both the suits:1. Whether the defendant duly applied for permission for alienation of the plaint schedule land under the provisions of the Ceiling Act and if so whether the same was finally rejected? 2. Whether the agreement to sell is illegal and unenforceable? 3. Whether the plaintiff is entitled to specific performance as claimed or alternatively to damages and if so how much? 4. To what relief?

( 3 ) BOTH the suits were clubbed together and evidence was recorded in o. S. No. 667 of 1985. In support of their contentions, the plaintiff examined himself as P. W. I and marked Exs. A. l to A. 40. The first defendant, Syed Abdul Razack got examined himself as D. W. I and got marked exs. B. l to B. 20. On appreciation of the oral and documentary evidence the Trial Court came to the conclusion that though the agreement of sale entered into between the parties is true it became unenforceable due to rejection of permission by the competent authority and ultimately granted alternative relief of directing the defendant to refund the advance paid Rs. l5,000. 00under agreement of sale and also to pay a sum of rs. 15,000/- towards damages from 24-8-1978 the date on which the competent authority rejected the permission for the first time under Ex. B. 9 with interest at 6% p. a. in each of the case.

( 4 ) AGGRIEVED by the said judgment and decree of the Trial Court the plaintiffs filed CCCA 47/90 and 48/90. The learned single Judge of this Court confirmed the judgment of the Trial Court. During the pendency of the first appeals, the plaintiff obtained injunction in both the appeals on 5-7-1990. Without taking notice of these injunction orders the defendants sold the lands in question to the third parties on 10-9-1990. The alienees under the sale deeds from the defendants in both the suits sold away their lands to third parties by executing four sale deeds in September and november along with other family members jointly to show that the plots belong to the whole family. Having come to know of this, the plaintiffs brought them on record as party respondents. Thereafter t
















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