IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Ahsanuddin Amanullah, G. Ramakrishna Prasad, JJ.
K. Nabi Rasool, S/o. Khaja Hussain and ors. - Appellants
Versus
Siva Prasad, S/o. J. Subbarayudu Setty and ors. - Respondent
Civil Miscellaneous Appeal No.32 of 2022
Decided On : 16-03-2022
Specific Performance - Agreement for Sale - Code of Civil Procedure, 1908 - Sections 39 Rules 1 and 2 - [Ahsanuddin Amanullah, J.] - [Specific Performance, Agreement for Sale, Code of Civil Procedure, 1908 - Sections 39 Rules 1 and 2] - The court discussed and referenced the provisions contained in Sections 10, 16, and 20 of the Specific Relief Act, 1963, and the principles of granting interlocutory injunctions. The court emphasized the importance of proving readiness and willingness to perform essential terms of the contract and the significance of the time stipulated for performance of the contract. The court also highlighted the need for a prima facie case, irreparable injury, and the balance of convenience in granting interlocutory injunctions.
Fact of the Case:
The respondent filed a suit for specific performance of an Agreement for Sale dated 06.03.2006, seeking a temporary injunction restraining the appellants from alienating the property pending the disposal of the suit. The appellants contended that the suit was time-barred and the respondent failed to perform his obligations under the Agreement.
Finding of the Court:
The court found that the respondent failed to prove readiness and willingness to perform essential terms of the contract within a reasonable time. The court also noted the delay of 15 years in initiating legal action and the absence of a prima facie case for granting an interim injunction. The court held that the grant of temporary injunction was unsustainable and allowed the appeal, directing expedited hearing of the suit.
Issues: The issues involved the readiness and willingness of the respondent to perform essential terms of the contract, the delay in initiating legal action, and the propriety of granting a temporary injunction.
Ratio Decidendi: The court emphasized the importance of proving readiness and willingness to perform essential terms of the contract within a reasonable time, the significance of the time stipulated for performance of the contract, and the need for a prima facie case, irreparable injury, and the balance of convenience in granting interlocutory injunctions.
Final Decision: The court allowed the appeal, finding that the respondent failed to prove readiness and willingness to perform essential terms of the contract within a reasonable time and that the grant of temporary injunction was unsustainable. The court directed expedited hearing of the suit.
Cases Referred :
A. R. Madana Gopal v M/s. Ramnath Publications Pvt. Ltd., 2021 (3) ALT (SC) 11
Ambalal Sarabhai Enterprise Ltd. v KS Infraspace LLP Limited, AIR 2020 SC 307
Charles Osenton & Co. v. Jhanaton [1942 AC 130]
Dalpat Kumar v Prahlad Singh, (1992) 1 SCC 719
Dorab Cawasji Warden v Coomi Sorab Warden, (1990) 2 SCC 117
Gajendragadkar, J. in Printers (Mysore) Private Ltd. v. Pothan Joseph, (1960) 3 SCR 713: AIR 1960 SC 1156
Gujarat Bottling Co. Ltd. v Coca Cola Co., (1995) 5 SCC 545
Gunwanthbhai Mulchand Shah v Anton Elis Farel, 2006 AIR SC 1556
K. Ravi Prasad Reddy v G. Giridhar, 2022 LawSuit (AP) 55
Maharwal Khewaji Trust (Regd), Faridkot v Baldev Dass, 2004 LawSuit (SC) 1261
Mrs. Saradamani Kandappan V. Mrs. S.Rajalakshmi, AIR 2011 SC 3234
Pydi Ramana @ Ramulu v Davarasetty Manmadha Rao, SA No.1282 of 2008, 2011 (6) ALT 505
R. Lakshmikantham v Devaraji, 2019 LawSuit (SC) 1366
Smt. Chand Rani v Smt. Kamal Rani, AIR 1993 SC 1742
Urvashi Aggarwal (since deceased) through Lrs v V. Kushagr Ansal (successor in interest of erstwhile Defendant No.1 Mrs. Suraj Kumari), AIR 2019 SC 1280
Vega Venkateswara Rao v Venkatarama Rao, AIR 1998 AP 6
Wander Ltd. v Antox India (P) Ltd., 1990 Supp SCC 727
Advocate Appeared :
For the Appellant : Mr. G. Ramachandra Reddy, Advocate
For the Respondent : Mr. M. Chalapathi Rao, Advocate
JUDGEMENT :
Ahsanuddin Amanullah, J.
Heard Mr. G. Ramachandra Reddy, learned counsel for the appellants and Mr. M. Chalapathi Rao, learned counsel for the respondent.
2. The present appeal is directed against the Order dated 29.11.2021 in I.A. No.258 of 2021 in O.S. No.27 of 2021 passed by the learned Judge, Family Court–cum-VI Additional District Judge, Kadapa.
3. The respondent/plaintiff instituted a suit viz. OS No.27 of 2021 for specific performance of an ‘Agreement for Sale’/‘Agreement to Sell’/‘Agreement of Sale’ (as variously described in the papers annexed to this appeal) dated 06.03.2006 (hereinafter referred to as the ‘Agreement’) entered into between the appellants no.1 and 2 and the respondent with regard to a piece of land. The Agreement indicates that the parties would perform their part of the obligation(s) as per the terms therein and the cutoff date was fixed as 16.11.2006 indicating the consequences which would follow in the event the respondent did not perform his part of the contract as also for the appellants no.1 and 2 if they did not perform their part of the obligations.
4. In the suit (supra), the respondent filed an application (IA No.258 of 2021) under Order 39 Rules 1 and 2 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as the ‘Code’), seeking a temporary injunction restraining the appellants, their men and agents from alienating the petition schedule property shown as ‘B’ Schedule in favour of third persons, pending the disposal of the suit. The Court below, after hearing, allowed the IA and passed an order granting temporary injunction restraining the appellants from alienating the ‘B’ Schedule property in favour of third persons, pending the disposal of the suit. Aggrieved by the same, the instant appeal has been preferred by the appellants.
5. Learned counsel for the appellants submitted that the suit was an abuse of the process of Court and ought to have been summarily rejected on the sole ground of delay, laches and limitation. It was contended that as per the terms of the Agreement, the exercise had to attain finality latest by 16.11.2006 and if the same could not be acted upon, depending on the default/non-performance of the respective party, the other side would face consequences, as already agreed upon vide the Agreement. Thus, it was submitted that after 16.11.2006, even if the appellants no.1 and 2 had failed to perform their obligation(s) under the Agreement, the only remedy available to the respondent was to move for an appropriate relief seeking recovery o
A. R. Madana Gopal v M/s. Ramnath Publications Pvt. Ltd.
Ambalal Sarabhai Enterprise Ltd. v KS Infraspace LLP Limited
Dorab Cawasji Warden v Coomi Sorab Warden
Gajendragadkar, J. in Printers (Mysore) Private Ltd. v. Pothan Joseph
Gujarat Bottling Co. Ltd. v Coca Cola Co.
Gunwanthbhai Mulchand Shah v Anton Elis Farel
Mrs. Saradamani Kandappan V. Mrs. S.Rajalakshmi
Pydi Ramana @ Ramulu v Davarasetty Manmadha Rao, SA No.1282 of 2008
The main legal point established in the judgment is the requirement to prove readiness and willingness to perform essential terms of the contract within a reasonable time, the significance of the tim....
Agreement to Sell – Suit for Specific Performance – There is distinction between limitation and delay and laches.
Time is of the essence of a contract if the parties have agreed that it is or if the circumstances of the case show that it is.
A plaintiff's delay in filing a suit impacts the entitlement to injunction and specific performance, as timely prosecution and adherence to evidential requirements are essential for equitable relief.
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