IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V.R.K. KRUPA SAGAR, J.
Chodisetti Putrayya - Petitioner
Versus
Vatsavai Sandeep Raju - Respondent
Second Appeal No. 220 of 2014
Decided On : 16-06-2023
Specific Performance - Oral Agreement for Sale - Indian Contract Act, 1872 - Sections 13, 20 - Plaintiff sought specific performance of an oral agreement for sale. Defendants resisted, claiming misrepresentation and breach of contract. Trial court decreed in favor of plaintiff. First appellate court upheld the decision. Second appeal filed. Court found that there was a concluded oral agreement for sale, evidenced by the preparation of a regular registered sale deed and the agreed sale consideration. Defendants failed to prove their claims of misrepresentation and breach of contract. Judgment confirmed.
Fact of the Case:
Plaintiff sought specific performance of an oral agreement for sale. Defendants resisted, claiming misrepresentation and breach of contract. Trial court decreed in favor of plaintiff. First appellate court upheld the decision. Second appeal filed.
Finding of the Court:
Court found that there was a concluded oral agreement for sale, evidenced by the preparation of a regular registered sale deed and the agreed sale consideration. Defendants failed to prove their claims of misrepresentation and breach of contract.
Issues: Existence of a concluded oral agreement for sale, misrepresentation, breach of contract
Ratio Decidendi: The evidence demonstrated the truthfulness of the plaintiff's claim and the defendants failed to prove misrepresentation and breach of contract. The judgment of the trial court and first appellate court was upheld.
Final Decision: Second appeal dismissed, confirming the judgment of the first appellate court. No order as to costs.
JUDGMENT :
Defendants in the suit filed this appeal against appellate Court’s judgment under section 100 CPC. Respondent in this appeal was the plaintiff before learned trial Court.
2. Seeking relief of specific performance of an oral agreement for sale plaintiff laid O.S.No.129 of 2005 before learned I Additional Senior Civil Judge, Kakinada. Defendants resisted the suit. After due trial the suit was decreed in favour of the plaintiff. Aggrieved of it, defendants preferred their first appeal in A.S.No.3 of 2008 before learned VII Additional District Judge, Kakinada. The winning plaintiff preferred cross objections questioning the failure of the trial court in omitting to grant costs of the suit. After due hearing, by a judgment dated 24.01.2013, the learned VII Additional District Judge, Kakinada agreed with the findings of the trial court on all aspects and dismissed the appeal preferred by the defendants and also dismissed the cross objections filed by the plaintiff. It is against that judgment of the first appellate Court, the defendants have come up with this Second Appeal. On 25.07.2014, an Hon’ble judge of this Court admitted the Second Appeal on the following substantial questions of law :
1. Whether the trial Court decreed the suit without there being any acceptance on behalf of the appellants with regard to the sale consideration as the appellants are disputing with regard to the passing of sale consideration concerned and they are not interested in alienating the property as per the offer made by the respondent? Whether the trial Court can direct the appellants herein to alienate the property?
2. Whether the Courts below have adjudicated the suit basing on the principle of consensus-ad-idiom?
3.Whether the trial Court and the lower appellate Court are justified in decreeing the suit without there being any document with regard to the market value of the suit schedule property?
4. Whether the decrees and judgments of the Courts below are sustainable under law when they were made without following of the principles of the contract such as the offer and acceptance between the parties?
3. Learned counsel for appellants as well as learned counsel for respondent submitted oral arguments and cited legal authorities in support of their respective contentions.
4. The dispute raised before this Court has a few curious aspects. On certain facts relevant to the dispute, there has been no controversy between the parties. Plaintiff in the suit is Sri. V. Sandeep Raju. His grandfather is Sri V. Subba Raju. An extent of 568.33 Sq.Yards of site in Survey No.30/2 in Ramanayya peta of Kakinada Rural Mandal of the then East Godavari District is a property owned by Sri Chodisetti Putrayya/defendant No.1. The said Ch.Putrayya has four children and they are shown as defendant Nos.2 to 5 respectively. By the time the suit was laid in the year 2005 defendant Nos.4 and 5 were minors and during the course of pendency of litigation before the trial Court, they attained majority and therefore on 14.12.2006 in I.A.No.1543 of 2006, the same was declared and the guardian was discharged. Till then these minor children were represented by their father/natural guardian/Sri Ch. Putrayya. It was alleged that the grand father of the plaintiff negotiated with defendant No.1 with reference to purchase and sale of the plaint schedule property and on 23.05.2004, the deal was settled between them whereunder defendant No.1 agreed to sell the property in favour of plaintiff and that defendant Nos.2 to 5, though were not holding any rights over the plaint schedule property, it was at the request of Sri Subba Raju/plaintiff, defendant No.1 agreed to have all his children become parties to the regular registered sale deed. It was agreed between the parties that the entire sale consideration should be paid before the Sub-Registrar at the time of registration of sale deed. The registration date was fixed on 02.06.2004. On these aspects, there has been no controversy betwee
AI
Existence of a concluded oral agreement for sale, as evidenced by the preparation of a regular registered sale deed and the agreed sale consideration, is crucial in a specific performance case. Defen....
Point of law: specific performance of oral Agreement of sale – Not proved - In a case of specific performance of contract, a greater degree of certainty is required and it demands a clear, definite a....
The burden was on the plaintiff to prove readiness and willingness to perform the essential terms of the contract. The plaintiff failed to establish his readiness to discharge the debts of the defend....
The main legal point established is that an oral agreement of sale can be enforced through specific performance if the requirements under the law are met, and that a sale deed obtained by misrepresen....
A party alleging an oral agreement for sale must prove its existence and payment through substantive evidence; failure to do so can lead to dismissal of the suit.
[The court established that in cases of specific performance based on oral agreements, the plaintiff bears the burden of proof to demonstrate the existence and terms of the agreement with clear and c....
An oral agreement for the sale of immovable property requires proof of consideration and a concluded contract to be enforceable under the Indian Contract Act.
An oral agreement is valid for specific performance if made with free consent and lawful consideration, separate causes of action do not bar subsequent suits.
Unregistered oral agreements for sale of property are unenforceable and cannot be claimed for specific performance.
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