IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
V.R.K. KRUPA SAGAR, J.
Puli Varalakshmi - Appellant
Versus
Puli Govinda Reddy - Respondent
First Appeal No. 486 of 2014
Decided On : 23-04-2024
(A) Specific Relief Act, 1963 - Section 96 CPC - Appeal against judgment for specific performance - The trial court decreed the suit for specific performance based on Ex.A1 agreement for sale dated 16.10.2003 - The appellate court found that the agreement was not proved to have been executed and was devoid of consideration - The plaintiff failed to demonstrate readiness and willingness to perform the contract - The judgment of the trial court was set aside. (Paras 1, 23, 25)
(B) Evidence - Burden of proof - The burden lies on the party asserting the execution of a document to prove its authenticity - The discrepancies in the evidence regarding the execution and consideration were significant and led to the conclusion that the agreement was fabricated. (Paras 10, 21)
JUDGMENT :
V.R.K. Krupa Sagar, J.
1. Defendant in O.S.No.226 of 2008 preferred this appeal under section 96 CPC impugning the judgment dated 02.07.2014 of learned Principal Senior Civil Judge, Gajuwaka. Respondent herein is the plaintiff in the said suit. O.S.No.226 of 2008 is a suit for specific performance of an agreement for sale with an alternative relief of refund of advance sale consideration along with interest and for costs and such other reliefs.
2. The appellant has been owning 2,222 square yards of vacant site in Chinagantyada Village. Her husband is Sri P. Satyanarayana Reddy. The respondent/ plaintiff Sri P. Govinda Reddy is the younger brother to Sri P. Satyanarayana Reddy and thus is brother-in-law for the appellant/ defendant. The controversy revolves around 1,111 Square Yards of the vacant site along with an office room situated therein alleging that his sister-in-law executed an agreement for sale dated 16.10.2003 in his favour and thereafter failed to execute registered sale deed, the respondent/ plaintiff filed the suit. Defendant filed a written statement and resisted the claim raising various contentions. Learned trial court settled the following issues for trial: -
2. To what relief?
Plaintiff testified as PW.1. One of the attestors to the agreement for sale testified as PW.2. The scribe of the document testified as PW.3. The agreement for sale is Ex.A1. Earlier to the institution of the suit, plaintiff got issued notice dated 01.09.2008 as per Ex.A2 and it came returned unserved with a postal endorsement that the “addressee/ appellant refused to receive it” as per Ex.A3. As against the above evidence, defendant/ appellant testified as DW.1 and her husband testified as DW.2. No documents were exhibited for defendant.
3. On considering the entire evidence on record and the contentions raised on both sides, the learned trial court recorded its findings that Ex.A1 was executed by defendant/ appellant in favour of plaintiff/ respondent and the vendor received the entire sale consideration under Ex.A1. It further held that even on assessment of equities, it found that the primary relief for specific performance is deserved. Accordingly, it decreed the suit in favour of the plaintiff in the following terms: -
4. Aggrieved by it, the defendant filed the present appeal. Sri P.Raj Kumar, learned counsel for appellant and Sri P. Veera Raghavaiah and Sri K. Srinivas, the learned counsel for respondent submitted their respective arguments.
5. The principal contentions of appellant are that the respondent/ plaintiff was a minor and had no source of income and had never paid the alleged sale consideration of Rs.5,00,000/- and that there have been disputes between the respondent/ plaintiff and his father on one side and the husband of the appellant on the other side and that the appellant had other assets and thriving business and there was no need for her to sell the property covered by Ex.A1. The learned counsel further contended that by the averments in the written statement and by her evidence as DW.1, the appellant denied execution of Ex.A1 agreement for sale and denied signature on it attributed to her and that she has always been subscribing her signature in English language whereas the impugned Ex.A1 agreement for sale contains signature in Telugu langu
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 affirmed that an agreement for sale is valid and enforceable when supported by consideration, rejecting claims of it being merely a security for a loan.
Comparison of signatures by Court is always a hazardous course. Court should not as a matter of course loosely resort to application of Section 73 of Indian Evidence Act.
The plaintiff failed to establish the existence of a binding contract or prove payment of earnest money for specific performance, leading to the dismissal of his claims.
The plaintiff's failure to prove willingness to perform the contract led to the grant of the alternate relief of refund of the advance money.
The court ruled that mere proof of signature does not establish the execution of a sale agreement if fabrication is probable, thus denying specific performance.
The main legal point established in the judgment is that the plaintiff's readiness and willingness to perform his part of the contract, as well as the fulfillment of the terms of the agreement for sa....
The court affirmed that specific performance is a discretionary remedy, requiring the plaintiff to prove the validity of the contract and readiness to perform.
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