IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. SRINIVAS, J.
A.Kanthudu S/o.A.China Besanna – Appellant
Versus
S.Venkat Narayana S/o.late S.Satyanarayana – Respondent
First Appeal No.678 of 2007
Decided on : 14-12-2023
Specific Performance - Agreement of Sale - Section 20 of Specific Relief Act, 1963 - [FRAUD] - [LAND SALE] - [Section 96 CPC] - [Section 20 of Specific Relief Act, 1963]
Fact of the Case:
The respondent instituted the suit for specific performance of agreement of sale. The trial Court settled the following issues for trial: Whether the agreement of sale dated 11.01.2005 is true, valid and binding on the defendant? Whether there is no consensus ad idem and contract is vitiated by fraud and misrepresentation, as being claimed by the defendant? and To what relief?
Finding of the Court:
The trial Court concluded that the agreement of sale dated 11.10.2005 is true, valid and binding on the appellant and the respondent is entitled for the relief of specific performance. The trial Court decreed the suit. The appellate Court confirmed the decree and judgment of the trial Court.
Issues: Whether the agreement of sale dated 11.01.2005 is true, valid and binding on the defendant? Whether there is no consensus ad idem and contract is vitiated by fraud and misrepresentation, as being claimed by the defendant? To what relief?
Ratio Decidendi: The Court found that the agreement of sale dated 11.10.2005 is true, valid and binding on the appellant and the respondent is entitled for the relief of specific performance. The Court also found that the defendant failed to prove that the suit land is more than Rs.12,35,000/- as on the date of execution of Ex.A.1. The Court held that the plaintiff is always ready and willing to perform his part of the contract.
Final Decision: The appeal is dismissed by confirming the decree and judgment dated 25.10.2007 in O.S.No.8 of 2005 on the file of the Court of learned I Additional District Judge, Kurnool. There shall be no order as to costs.
JUDGMENT :
This regular appeal under Section 96 Code of Civil Procedure (hereinafter referred to as ‘CPC’) is directed against the decree and judgment in O.S.No.8 of 2005 dated 25.10.2007 on the file of the Court of learned I Additional District Judge, Kurnool.
2. The defendant, before the trial Court, is the appellant. The respondent herein is the plaintiff.
3. The respondent instituted the suit for specific performance of agreement of sale.
4. Before adverting to the material and evidence on record and nature of findings in the judgment of the trial Court, it is necessary to scan through the case pleaded by the parties in their respective pleadings.
5. The case of the respondent/plaintiff in brief in the plaint was as follows:
(ii) On 22.01.2005, respondent approached the appellant with balance sale consideration and requested him to receive the same and execute a sale deed in his favour. But appellant expressed personal inconvenience to receive the same and execute the sale deed and informed that he would receive the same on 05.02.2005 and asked the respondent to come to the Office of Sub-Registrar.
(iii) On 27.01.2005, the respondent received a legal notice got issued by the sisters of the appellant with false and frivolous allegations. Then the respondent approached the appellant, who inturn informed that he would come to the Office of Sub-Registrar on 05.02.2005. On that respondent went to the office of Sub-Registrar with balance sale consideration and waited till 05.00 p.m. on 05.02.2005, but the appellant did not turn up for the reasons best known to him. As the due date was approaching, respondent deposited the balance sale consideration of Rs.12,70,000/- in Andhra Bank, Ashok Nagar Branch on 07.02.2005.
(iv) Then the respondent received a legal notice dated 05.02.2005 from the appellant with false allegations along with Banker’s Cheque bearing No.750012 dated 05.02.2005 for Rs.35,000/-, wherein it was mentioned that the agreement of sale is cancelled. The Banker’s Cheque with mis-description is in the hands of the respondent un-encashed, because he is not agreed for appellant’s illegal attempt to cancel the agreement of sale. Then the respondent got issued a telegraph notice on 09.02.2005 demanding the appellant to receive the amount and execute sale deed in his favour. Hence, the suit.
6. The appellant/defendant denying all the allegations in the plaint and contending in the written statement as follows:
7. On these pleadings, the trial Court settled the following issues for trial:
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The Court found that the agreement of sale dated 11.10.2005 is true, valid and binding on the appellant and the respondent is entitled for the relief of specific performance. The Court also found tha....
The subsequent rise in price and the defendant's resistance were not valid grounds to deny the relief of specific performance. The trial court rightly exercised its discretion in granting the relief ....
Mere escalation of price does not constitute hardship to the vendor, and the conduct of the parties and the terms of the agreement are crucial in determining entitlement to specific performance.
(1) Agreement to sell – Specific performance will not be ordered if contract itself suffers from some defect which makes contract invalid or unenforceable – Discretion of court will not be there even....
Specific performance can be granted when the buyer has made substantial payments and the seller's refusal to execute the sale deed is unjustified, even if specific issues on readiness and willingness....
The plaintiff must prove the genuineness of the agreement for sale, establish readiness and willingness to perform the contract, and file suit within a reasonable time for specific performance.
The court reinforced that specific performance can be granted if the plaintiff proves readiness to perform, regardless of price escalation, citing a precedent that supports enforcing agreements despi....
The ruling emphasizes the necessity of fulfilling contractual obligations for specific performance and the implications of non-compliance by the seller.
The court affirmed that specific performance is a discretionary remedy, requiring the plaintiff to prove the validity of the contract and readiness to perform.
The grant of specific performance requires the plaintiff to prove continuous readiness and willingness to perform the contract and the court's discretion is governed by principles of equity and justi....
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