IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V.Srinivas, J.
Mutyala Nageswara Rao, S/o.Venkata Rao - Appellant
Versus
Reddy Rajasekhar, S/o. Ramakrishna - Respondent
Appeal Suit No.939 of 1999
Decided On : 03-01-2024
Specific Performance - Contract - Section 96 Code of Civil Procedure - [SPECIFIC PERFORMANCE] - [Section 20 of the Specific Relief Act, 1963] - [Section 77, 79 of the Indian Evidence Act] - The court discussed the validity of the contract for specific performance and the enforceability of the agreement of sale executed by the defendant. The court examined the evidence presented by both parties and concluded that the defendant was a minor at the time of the agreement, rendering the contract voidable. The court also considered the probative value of the documents presented, including the date of birth certificate and the school register entry, and found that the defendant's age at the time of the agreement was sixteen years, making the contract unenforceable against him. The court emphasized the discretionary nature of specific performance and the need for a valid and enforceable contract. The court also highlighted the importance of proving the nature and obligation arising from the contract. The court ultimately dismissed the appeal, confirming the trial court's judgment and decree.
Fact of the Case:
The plaintiff filed a suit for specific performance of a contract for the sale of a property. The defendant, who was a minor at the time of the agreement, denied executing the sale agreement and contended that the contract was voidable. The trial court dismissed the suit, and the plaintiff appealed the decision.
Finding of the Court:
The court found that the defendant was a minor at the time of the agreement, rendering the contract voidable. The court also concluded that the plaintiff failed to prove the enforceability of the agreement and the payment of the amount to the defendant. As a result, the court dismissed the appeal and confirmed the trial court's judgment and decree.
Issues: The issues included the validity and enforceability of the contract for specific performance, the defendant's minority at the time of the agreement, and the plaintiff's failure to prove the agreement's enforceability and the payment of the amount to the defendant.
Ratio Decidendi: The court's decision was based on the defendant's minority at the time of the agreement, the probative value of the documents presented, and the discretionary nature of specific performance. The court emphasized the need for a valid and enforceable contract and the importance of proving the nature and obligation arising from the contract.
Final Decision: The court dismissed the appeal, confirming the trial court's judgment and decree, and held that the plaintiff was not entitled to specific performance or the return of the amount allegedly paid under the agreement.
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.49 of 1989 dated 27.10.1998 on the file of the Court of learned Senior Civil Judge, Ramachandrapuram.
2. The plaintiff, before the trial Court, is the appellant. The respondent herein is the defendant.
3. The appellant instituted the suit for specific performance of contract directing the respondent to execute a proper sale deed in his favour and get it register for the schedule property after receiving the balance of sale consideration and further to deliver the possession of the schedule property together with improvements thereon or in the alternatively to grant a decree to refund of advance money together with interest @ 18% per annum.
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 appellant/plaintiff in brief in the plaint was as follows:
(ii) Inspite of repeated demands, respondent failed to execute the sale deed. The appellant is always ready and willing to get the sale deed with balance sale consideration and expenses. But the respondent postponed the same. Hence, the suit.
6. The respondent denying all the allegations in the plaint and contending in the written statement and additional written statement as follows:
(ii) Moreover, he has no salable interest over the plaint schedule property and the same is always in possession and enjoyment of his mother Reddy Surya Prabhavathi on her own right, title and interest since July 1984 and it is not a vacant site. She constructed a building therein and setup an Ice Factory by name Sri Surya Ice Industries by installing machinery after obtaining permission from Gram Panchayat, Annayyapeta and other concerned officials and running the said business in the schedule property in the past three years without any interruption. The door number of the building situated in the schedule property is 136/2.
(iii) Even the appellant is aware of the said fact and he concocted the agreement of sale by playing fraud. The father of the respondent, who is addicted for vices, colluded with the appellant created the suit document. The alleged contract of sale became impossible of performance and the appellant is not entitled for the relief of specific performance. Hence, prays to dismiss the suit with costs.
7. Subsequently, the appellant also filed a rejoinder by denying the averments in the additional written statement and contended interalia as follows:
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AI
The main legal point established in the judgment is the discretionary nature of specific performance, the need for a valid and enforceable contract, and the importance of proving the nature and oblig....
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 appellate court ruled that the agreement for sale was not proved and lacked consideration, leading to the dismissal of the specific performance suit.
The Court exercised its discretion under Sec. 20 of the Specific Relief Act to set aside the judgment and directed the defendant to return the advance amount with interest.
Specific performance of a contract is a discretionary remedy, requiring proof of readiness and willingness by the plaintiff, which was established in this case.
The court reaffirmed that the plaintiff must prove execution and enforceability of agreements in specific performance suits, with due regard to burden of proof and document legitimacy.
The Plaintiff's readiness and willingness to perform the contract, as well as the Defendant's failure to prove that the sale agreement was fabricated, were crucial in the court's decision to confirm ....
The main legal points established in the judgment include the interpretation of Section 49 of the Registration Act, 1908, the determination of whether time is of the essence in a contract, and the co....
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