1. This appeal has been preferred challenging the judgment dated 14.11.2003 in Original Suit No.1209 of 1993 on the file of the II Senior Civil Judge, City Civil Court, Hyderabad.

2. The appellants herein are defendants 1 to 5 respectively, and the first respondent herein is the plaintiff, and the respondents 2 to 18 are the other defendants respectively, in the suit. For better appreciation of facts, the parties are hereinafter referred to, as they are arrayed before the trial Court.

3. The plaintiff filed the suit (a) for specific performance of agreement of sale dated 21.3.1982 directing the defendants 1 to 5 to execute sale deed in favour of the plaintiff after receiving Rs.5,24,125/-; (b) to direct the defendants 1 to 5 to take all necessary and appropriate steps for getting permission from the Government of Andhra Pradesh to enable them to execute regular sale deed or deeds in favour of plaintiff; (c) to grant perpetual injunction restraining the defendants from alienating suit schedule land in any manner whatsoever in favour of defendant no.6 or in favour of any third party except in favour of the plaintiff, and in the alternative, to direct the defendants 1 to 5 to refund a sum of Rs.2,90,000/- being the earnest money together with reasonable interest and damages of Rs.5,00,000/-.

4. (a) It is stated in the plaint that, the plaintiff is a co-operative society registered under the provisions of the Andhra Pradesh Co-operative Societies Act, 1964 (for short, ‘APCS Act, 1964’) with registration No.TAB 533, and its main object is to promote activity of house building and mainly providing suitable land to its members for construction of houses. The defendants 2 to 5 and father of the defendant no.1 are the absolute owners and possessors of the suit schedule property admeasuring Ac.13.10 guntas (-) Ac.0.29 guntas = Ac.12.21 guntas in survey no.222/4, Gaddimalkapur village, Golconda revenue mandal, Hyderabad, and they agreed to sell the suit schedule land to the plaintiff. The defendant no.5, on his behalf and on behalf of defendants 2 to 4 and father of defendant no.1 as general power of attorney holder, executed an agreement of sale on 21.3.1982 (Ex.A1), agreeing to sell the suit schedule land at Rs.65,000/- per acre and the plaintiff agreed to purchase the same from them at the same rate, and on the same day, the plaintiff paid an amount of Rs.1,00,000/- to the defendants 2 to 5 and father of defendant no.1. Since they owned other lands also, apart from the suit schedule land, the property fell under the purview of the Urban Land (Ceiling & Regulation) Act, 1976 (for short, ‘the Act, 1976’), under which they cannot alienate the said lands in any manner whatsoever except in favour of the registered co-operative societies in accordance with the provisions of the Act, 1976, Rules and administrative instructions issued by the State from time to time, and that is the reason why they chose to enter into the agreement of sale with the plaintiff.

(b) It is further stated that, one of the covenants of Ex.A1 stipulates that the plaintiff should pay the balance of sale consideration for the entire suit schedule land admeasuring Ac.13.10 guntas, within three months from the date of receipt of permission from the Government under the Act, 1976, and the sale deed was to be executed by the defendants before the Sub Registrar. Another important covenant is initiating and taking appropriate measures for obtaining necessary permission and sanction from the State of Andhra Pradesh. In this regard, it is specifically agreed that the plaintiff and the defendants shall apply with all necessary papers to the Government of Andhra Pradesh and to Bhagyanagar Development Authority for exemption of the land agreed to be sold from the provisions of the Act, 1976, and the plaintiff, on its part, took number of steps for getting necessary exemption particularly under G.O. Ms. No.136, Revenue (UC-III) Department, dated 28.1.1981. The plaintiff