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2023 Supreme(AP) 629

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T.MALLIKARJUNA RAO, J.
Dudala Sarojinamma died – Appellant
Versus
Vannepenta Ramanamma – Respondent
Appeal Suit No.8 of 2011
Decided on : 04-07-2023

Advocates:
Advocate Appeared:
For the Appellant : P GANGA RAMI REDDY
For the Respondent: J PRADEEP KIRAN

The plaintiff was always ready and willing to perform her part of the contract, and the defendants failed to prove that the plaintiff lacked the financial capacity to pay the balance sale consideration.

Headnote:

Specific Performance - Agreement of Sale - Code of Civil Procedure - 96 - Ex.A1 - Ex.A2 - Ex.A7 - Ex.A11

Fact of the Case:

The plaintiff filed a suit seeking specific performance of an agreement of sale for a property. The defendants, who inherited the property, agreed to sell it to the plaintiff for a specified amount. The plaintiff paid an advance but failed to pay the remaining balance by the agreed date. The trial court decreed the suit in favor of the plaintiff, granting specific performance of the contract.

Finding of the Court:

The trial court correctly appreciated the facts of the case and came to a correct conclusion. The plaintiff was always ready and willing to perform her part of the contract. The defendants failed to prove that the plaintiff lacked the financial capacity to pay the balance sale consideration. The trial court's findings were accurate, and there was no need for interference except for awarding interest on the balance sale consideration amount.

Issues: 1) Whether the plaintiff is entitled to specific performance of the agreement of sale, dated 29.12.2006? 2) To what relief?

Ratio Decidendi: The plaintiff was always ready and willing to perform her part of the contract. The defendants failed to prove that the plaintiff lacked the financial capacity to pay the balance sale consideration. The trial court's findings were accurate, and there was no need for interference except for awarding interest on the balance sale consideration amount.

Final Decision: The Appeal is allowed in part. The Judgment and decree dated 14.12.2010 passed in O.S.No.67 of 2007 by the learned Principal District Judge, Nellore, is hereby confirmed to the relief of specific Performance with costs. The Judgment and decree dated 14.12.2010 in the O.S.No.67 of 2007 shall stand modified and direct the 1st respondent/plaintiff to deposit the balance sale consideration amount of Rs.19,05,500/- within two months from the date of this Judgment (if not already deposited), and the Plaintiff is further directed to deposit the amount towards interest @ 12% per annum on the balance sale consideration from 01.06.2007 till the date of deposit of such amount in the Court. On such deposit, the defendants 2 and 3 shall execute the sale deed in favour of the plaintiff within one month, failing which, the Court shall execute the sale deed in favour of the Plaintiff in respect of the plaint schedule property. After execution of the sale deed, the defendants 2 and 3 are entitled to withdraw the amount deposited in the Court. In the facts and circumstances, the parties have to bear their costs in the Appeal.

JUDGMENT :

1. The Appeal, under Section 96 of the Code of the Civil Procedure, is filed by the appellants/defendants 1 to 3 challenging the decree and Judgment dated 14.12.2010 in O.S.No.67 of 2007 passed by the learned Principal District Judge, Nellore (for short, ‘the trial court’). The 1st respondent is the plaintiff, who filed the suit in O.S.No.67 of 2007 seeking specific performance of agreement of sale dated 29.12.2006, registered on 30.12.2006.

2. The parties will hereinafter be referred to as arrayed before the trial Court.

3. The brief averments of the plaint are as under:

    (a) The plaint schedule property was originally owned by Dudala Venkata Subbaiah, who was the 1st defendant’s husband and father of defendants 2 and 3. He died intestate. Defendants 1 to 3 inherited his estate and became absolute owners. They agreed to sell the schedule property to the plaintiff on 29.12.2006 for Rs.21,05,500/-. In pursuance of the same, an agreement was entered between the plaintiff and the defendants 1 to 3 by reducing the terms into writing on that day, where the plaintiff paid an advance of Rs.2,00,000/-. It was agreed that the remaining sale consideration of Rs.19,05,500/-would be paid on or before 01.06.2007, and the defendants 1 to 3 would execute the registered sale deed in favour of the plaintiff upon receiving the balance amount.

(b) All the aforementioned conditions were included in the said sale agreement and was registered as a document No.3013/2006 at the Sub Registrar’s Office, Buchireddipalem, on 30.12.2006. The defendants 1 to 3 utilized the advance payment and failed to fulfill their obligations under the agreement. They failed to receive the balance of sale consideration till 01.06.2007 by postponing the same on some pretext. The plaintiff waited till 04.06.2007, hoping that defendants 1 to 3 would positively react to her persuasions. Still, there was no response from them. Subsequently the plaintiff got issued a legal notice calling upon them to fulfill their contractual obligations by receiving the balance payment.

(c) Defendants 1 to 3 received a notice. They got issued notice on 06.06.2007. The plaintiff waited for a response from the defendants until 15.06.2007 as she had set the dead line for receiving the balance payment. As the defendants 1 to 3 did not respond, the plaintiff filed the suit for specific performance of the agreement of sale.

4. A detailed written statement filed on behalf of the 2nd defendant which is adopted by defendants 1 and 3, the contents of which in brief as follows:

    (a) The 2nd defendant admitted to agreeing to sell the plaint schedule property for Rs.21,05,500/-and executing the agreement of sale on 29.12.2006 after receiving an advance payment of Rs.2,00,000/-. They sold the plaint schedule property in order to purchase the site in the Nam-pally area of Hyderabad, by paying an advance amount of Rs.4,00,000/-to a person named Dhanaraj. Therefore, time was the essence of the contract.

(b) The plaintiff despite agreeing to pay the balance of sale consideration on or before 01.06.2007, failed to do so even after repeated demands from the defendants. The defendants got issued a notice on 06.06.2007 stating that the agreement of sale dated 29.12.2006 was cancelled, and the advance amount was forfeited. The plaintiff being aware of this notice, subsequently issued another notice with ante-date as 04.06.2007. The plaintiff had no capacity to purchase the same.

5. Based on the above pleadings, the trial Court framed the following issues:

(1) Whether the plaintiff is entitled to specific performance of the agreement of sale, dated 29.12.2006?

(2) To what relief?

6. During the trial, on behalf of the plaintiff, P.Ws.1 and 2 were examined, and Exs.A1 to A.11 were marked. On behalf of the defendants, D.W.1 was examined, and no documents were marked.

7. After completion of the trial and hearing the arguments of both sides, the trial Court decreed the suit with costs by granting specific performance of the

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