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2023 Supreme(AP) 566

ANDHRA PRADESH HIGH COURT AT AMARAVATI
V.R.K. Krupa Sagar, J.
Tatiparthi Narsi Reddy – Appellant
Versus
Tatiparthi Jayarami Reddy – Respondent
Second Appeal No. 1483 of 2018
Decided On : 20-01-2023

Advocates appeared:
Aravala Sreenivasa Rao, Advocate, Thota Ramakoteswara Rao, Advocate

The doctrine of laches applies on equitable considerations and whether someone's conduct suffers from such laches is to be inferred from the totality of facts and circumstances.

Headnote:

SPECIFIC PERFORMANCE - AGREEMENT FOR SALE - LACHES - READINESS AND WILLINGNESS - INTERPRETATION OF AGREEMENT - SECTION 16(C) OF THE SPECIFIC RELIEF ACT - SECTION 73 OF THE INDIAN EVIDENCE ACT - TIME LIMITS IN AGREEMENT FOR SALE - STAMP PAPER PURCHASE DATE - EXECUTION OF AGREEMENT - DISCHARGE OF MORTGAGE DEBT - NOTICE TO EXECUTE REGISTERED SALE DEED - DELAY IN FILING SUIT - EVIDENCE OF READINESS AND WILLINGNESS.

Fact of the Case:

Plaintiff filed a suit for specific performance of an agreement for sale dated 31.05.1990, alleging that the defendant, his cousin, agreed to sell a property to him for Rs.25,000/-, which was fully paid. The agreement stipulated that the defendant would discharge the mortgage debt on the property and execute a registered sale deed in favor of the plaintiff. However, the defendant failed to do so, prompting the plaintiff and another partner to discharge the debt on 30.03.2001. The plaintiff served a notice on the defendant on 26.04.2001, demanding execution of the sale deed, but the defendant denied the transaction and refused. The suit was filed on 27.04.2004.

Finding of the Court:

The trial court and the first appellate court found that the agreement for sale was genuine and valid, and that the defendant had executed it. The courts also found that the plaintiff was ready and willing to perform his part of the contract and that there was no unreasonable delay in filing the suit. The courts decreed the suit, directing the defendant to execute a registered sale deed in favor of the plaintiff.

Issues: 1. Whether the suit for specific performance was filed within a reasonable time? 2. Whether the plaintiff proved his continuous readiness and willingness to perform his part of the contract as required under Section 16(c) of the Specific Relief Act?

Ratio Decidendi: 1. The doctrine of laches applies on equitable considerations and whether someone's conduct suffers from such laches is to be inferred from the totality of facts and circumstances. In this case, the plaintiff had paid the full sale consideration, discharged the mortgage debt on the property, and served a notice on the defendant demanding execution of the sale deed. The delay between the notices and the institution of the suit was understandable given the defendant's history of litigation and the plaintiff's forbearance in not rushing to court for another set of litigation. 2. The plaintiff's readiness and willingness to perform his part of the contract was evident from the fact that he had paid the full sale consideration, discharged the mortgage debt, and served a notice on the defendant demanding execution of the sale deed. The defendant's contention that the plaintiff lacked the capacity to purchase the property was not supported by evidence.

Final Decision: The second appeal was dismissed, upholding the judgments of the trial court and the first appellate court. The court held that the suit was filed within a reasonable time and that the plaintiff had proved his continuous readiness and willingness to perform his part of the contract.

JUDGMENT

Dr. V.R.K. Krupa Sagar, J. - Having lost his defence in the two Courts below, the defendant in a suit for specific performance preferred this second appeal under Section 100 C.P.C. questioning the correctness of the judgments of the Courts below. Respondent herein is the plaintiff.

2. There is a partnership firm called as Sri Anjaneya Enterprises consisting of three partners. All three partners are cousins to one another. One of the partners in his individual capacity with reference to his own private transaction filed O.S.No.253 of 2004 as against another partner, who is his own cousin. The suit was filed before learned Principal Junior Civil Judge, Narasaraopet on the premise that the defendant being owner of plaint schedule property offered it for sale and the plaintiff agreed to purchase it. The agreed sale consideration was Rs.25,000/- and the entire sale consideration was paid by the plaintiff to the defendant and to this effect defendant executed an agreement for sale dated 31.05.1990. The property that was agreed to be transacted was in fact under a mortgage with Andhra Bank Chilakaluripet and the loan was raised by the partnership firm referred above. In the agreement for sale it is agreed upon between parties that the defendant should discharge the mortgage debt and thereafter execute registered sale deed in favour of the plaintiff at the expenses of plaintiff. For a long time defendant failed to discharge the debt and failed to get the property relieved of from the mortgage. In those circumstances, the plaintiff and the other partner together paid the entire debt to Andhra Bank on 30.03.2001 and got the property discharged from the mortgage. Since the defendant, who is the other partner in the firm, was not contributing his share of the money to repay the debt, it was only plaintiff and the other partner discharged the debt and to get back for recovery of share that was supposed to be contributed by the defendant, the other two partners filed O.S.No.45 of 2001 before the same Court as against the present suit defendant. Subsequent thereto, plaintiff got issued a legal notice dated 26.04.2001 demanding the defendant to come forward and execute the registered sale deed. Denying the version of the plaintiff, the defendant got issued a reply notice dated 07.05.2001. In this reply notice, the defendant denied the entire transaction of agreement for sale and thereby refused to concede to the request made by the plaintiff. Thereafter, plaintiff presented his plaint on 27.04.2004 and the suit was instituted and the defendant was summoned.

3. Raising a contest defendant filed his written statement and denied the entire case set up in the plaint. He denied receipt of Rs.25,000/- towards full sale consideration and denied execution of agreement for sale. It is then stated that this defendant entrusted Rs.5,50,000/- to the plaintiff and the other partner and when he was demanding for repayment of it, they created a web of false story and filed false suit O.S.No.45 of 2001 and they also filed a criminal case in C.C.No.25 of 1999 and filed the present suit for specific performance. In his written statement defendant denied about mortgage debt with Andhra Bank. At para No.3 defendant alleged that the plaintiff as well as the defendant are chronic litigants. It is pleaded that plaintiff came to the Court with unclean hands and no one would have paid the entire sale consideration without taking possession of the property. The stamp paper on which the projected agreement for sale is prepared itself indicates the falsity of the case. For all these reasons he sought for dismissal of the suit.

4. Learned trial Court took the suit for trial on the following issues:

    1) Whether the suit agreement of sale dt.31.5.90 is true, valid and binding on the defendant?

    2) Whether the plaintiff is entitled for specific performance of agreement of sale dt.31.5.90 as prayed for?

    3) To what relief?

    5. Plaintiff testified as PW.1 and one of the attestor

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