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2022 Supreme(AP) 1368

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V R K Krupa Sagar, J.
Sri. M. Venugopal Reddy S/o. Venkatram Reddy and ors. – Petitioners
Versus
Sri. P. Nagappa S/o. Sri P. Venkataramappa - Respondents
Second Appeal No: 1383 of 2017
Decided On : 24-11-2022

Advocates:
Advocate Appeared:
For the Petitioner: S Ashok Anand Kumar
For the Respondent: S Parineeta

The main legal point established in the judgment is that an inadequately stamped and unregistered agreement for sale is admissible in evidence in a suit for specific performance.

Headnote:

Specific Performance - Agreement for Sale - Section 100 C.P.C. - [AGREEMENT FOR SALE] - [SPECIFIC PERFORMANCE] - [Indian Stamp Act, Indian Registration Act] - The court decreed the suit for specific performance of an agreement for sale in favor of the plaintiff, directing the defendants to execute a registered sale deed. The court found that the agreement for sale was validly executed by the defendants and they were bound by it. The court also held that the inadequately stamped and unregistered agreement for sale was admissible in evidence in a suit for specific performance. The court dismissed the second appeal, finding no substantial question of law arising between the parties for a decision.

Fact of the Case:

The suit was for specific performance of an agreement for sale of agricultural land. The plaintiff alleged that the defendants executed an agreement for sale and received part of the sale consideration, but failed to execute the registered sale deed. The defendants denied executing the agreement and claimed the property was joint family property.

Finding of the Court:

The court found that the agreement for sale was validly executed by the defendants and they were bound by it. The court also held that the inadequately stamped and unregistered agreement for sale was admissible in evidence in a suit for specific performance. The court dismissed the second appeal, finding no substantial question of law arising between the parties for a decision.

Issues: The issues included the validity of the agreement for sale, the nature of the property, and the readiness and willingness of the plaintiff to perform the contract.

Ratio Decidendi: The court held that the agreement for sale was validly executed by the defendants and they were bound by it. The court also held that the inadequately stamped and unregistered agreement for sale was admissible in evidence in a suit for specific performance.

Final Decision: The court decreed the suit for specific performance of the agreement for sale in favor of the plaintiff, directing the defendants to execute a registered sale deed.

JUDGMENT:

Three defendants in the suit seek intervention of this Court by way of second appeal filed under Section 100 C.P.C. as against concurrent judgments of two Courts below. Respondent herein is the sole plaintiff in the suit. The suit is for specific performance of an agreement for sale. Plaintiff filed O.S.No.19 of 2007. After due trial, by a judgment dated 21.10.2011 learned Senior Civil Judge, Penukonda decreed the suit in favour of the plaintiff.

2. Defendants preferred first appeal in A.S.No.29 of 2012. After due hearing, learned II Additional District Judge, Hindupur by a judgment dated 22.06.2017 dismissed the appeal and thereby confirmed the judgment of the trial Court.

3. The present second appeal is filed by the defendants questioning the correctness of the judgment of the first appellate Court. Learned counsel on both sides submitted arguments before admission. To consider these submissions, one shall notice the legal proceedings that took place before the Courts below.

4. Various extents of agricultural land spread in four survey numbers totaling Ac.10.35 cents situate in Chilamathur Village in Puleru Village of Gorantla Mandal of Anantapur District are the immovable properties that are subject matters of litigation in the suit. Plaintiff pleaded that defendant Nos.1 to 3 executed an agreement for sale on 01.12.2006 agreeing to sell these properties to the plaintiff for Rs.3,05,000/- and they received Rs.50,000/- towards part of the sale consideration. The balance sale consideration of Rs.2,55,000/- was to be paid by the plaintiff on or before 03.03.2007. In the event of failure on part of the plaintiff in paying the balance sale consideration, it was agreed between the parties that the agreement should stand cancelled and the advance sale consideration paid stand forfeited. Thereafter, plaintiff called upon the defendants to receive balance sale consideration and execute registered sale deed, but the defendants were postponing it for one or the other reason. In those circumstances, well before the outer date set the said agreement, plaintiff got issued a notice dated 13.02.2007 calling upon the defendants to receive the balance sale consideration as the plaintiff has been ready and willing to perform his part of the contract and invited them to execute registered sale deed in his favour. There was no response. Plaintiff got issued another notice on 26.02.2007 and another notice on 27.02.2007. Despite all this, defendants did not come forward. Pleading that he has always been ready and willing to perform his part of the contract and he is prepared to pay the balance sale consideration and obtain a registered sale deed, he laid the suit.

5. In contest, 1st defendant filed a written statement and the remaining defendants filed a memo adopting it. They denied the plaint averments and stated that they never executed the agreement for sale alleged in the plaint and they had no need to sell the property and that it is a fabricated document. That they live at Anantapur and taking advantage of it, the plaintiff and his followers fabricated the agreement for sale. It is further stated that notice dated 13.02.2007 was received by the defendants, but they did not give any reply since the agreement for sale alleged is a fabricated document. That the alleged agreement for sale is not valid and does not bind on the defendants and it is not stamped properly. In these circumstances, there is no breach of contract on part of the defendants. For these reasons, they sought for dismissal of the suit.

6. It seems during the trial, one of the valiant contests raised by the defendants was that defendants are not the sole owners of the property and it is a joint family property. From the records placed before this Court, it is not very clear as to whether this aspect of the matter was pleaded in the written statement or not? However, both the Courts below addressed that contention and recorded their finding. On the above rival pleadings,

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