IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
U. Durga Prasad Rao, Kiranmayee Mandava, JJ.
Vonteddu Chinna Venkata Krishna Reddy – Petitioner
Versus
Belle Lakshmanna and Ors. – Respondents
First Appeal No. 2040/2018
Decided On : 24-06-2024
(A) Specific Relief Act, 1963 - Section 20 - Specific performance of contract - Plaintiffs sought specific performance of an agreement to sell dated 01.02.2009 for land purchase - Plaintiffs failed to demonstrate readiness and willingness to perform the contract, as they were aware of pending litigation affecting the property - The trial court's dismissal of the suit was upheld. (Paras 1, 12, 14)
(B) Readiness and Willingness - The court emphasized that a party seeking specific performance must show readiness and willingness to perform their part of the contract, which was not established by the plaintiffs. (Paras 12, 14)
Facts of the case:
The plaintiffs entered into an agreement to purchase land but claimed they were unable to proceed due to undisclosed pending litigation by the defendants. The trial court found that the plaintiffs were aware of the litigation and failed to show readiness to complete the sale.
Findings of Court:
The plaintiffs did not demonstrate readiness and willingness to perform their contractual obligations, leading to the dismissal of their suit for specific performance.
Issues: Whether the plaintiffs were misled about the pending litigation and whether they were ready and willing to perform the contract.
Ratio Decidendi: The court ruled that mere awareness of litigation does not prevent a sale transaction, and plaintiffs must show actual readiness and willingness to perform their contractual obligations.
Result: Appeal dismissed.
JUDGMENT :
U. Durga Prasad Rao, J.
1. Aggrieved by the judgment dated 18.01.2018 in O.S. No.36/2009 passed by learned District Judge, Anantapuram dismissing the suit for specific performance of agreement to sell dated 01.02.2009, the 1st plaintiff out of 4 plaintiffs filed the instant appeal.
2. The factual matrix of the case is thus:
(b) It is further case of the plaintiffs that the 1st plaintiff will have 50% of the share and remaining plaintiffs 2 to 4 will together have remaining 50% of the share in the plaint schedule land on purchase.
(c) It is the case of the plaintiffs that they were ready and willing to perform their part of the contract. However, they came to know in respect of suit schedule property there is a Second Appeal No. 335 of 2005 in C.M.A. No.694 of 2005 was pending before common High Court of Andhra Pradesh wherein interim status quo orders were passed and pending against the defendants herein. The said fact was not disclosed by the defendants. In that view, during the pendency of the said appeal the said property shall not be dealt with or alienate to anybody. Hence the plaintiffs brought the said fact before the defendants however there was no reply from them. The plaintiffs conducted number of mediations, negotiations and panchayats before the defendants. However, their efforts proved futile. Hence the suit for specific performance.
3. The 3rd defendant filed written statement opposing the suit and defendants 1, 2, 5 to 9 adopted the same. It is contended that the plaintiffs were never ready and willing to pay the balance sale consideration to obtain registration. The allegation that there was a division of the suit schedule property among the plaintiffs was not known to the defendants and such a condition was not mentioned in Ex.A1- agreement to sell. Even the advance amount was not paid in full but only Rs. 9 lakhs was paid in cash and for the balance of Rs. 1 lakh cheque bearing No. 005876515013002 was issued and the same was dishonored for lack of funds in the account of plaintiffs. So far as the pendency of the appeal is concerned, plaintiffs were well aware of the pendency of the litigation regarding the suit schedule property and that cannot be a ground to question the defendants. Further contention of the plaintiffs that despite the notices the defendants were not willing to receive the balance sale consideration is false. Upon receiving notice dated 04.07.2009 issued by the plaintiffs on 09.07.2009 the defendants gave a reply notice dated 13.07.2009 whereunder the defendants intimated plaintiffs to pay the balance of sale consideration and get registered sale deed on 27.07.2009 but the plaintiffs failed to do so which establishes that the plaintiffs were not ready and willing to perform their part of the contract. The defendants contended that the suit is not maintainable as the plaintiffs themselves willfully avoided the performance of the contract.
4. The 4th defendant filed written statement contending that the plaintiffs were not ready and perform their part of contract and further the 4th defendant is entitled to 0.42 cents of the suit schedule property and he is willing to sell the same by receiving his share of the consideration.
5. A perusal of the impugned judgment would show that so far as the pendency of the litigation before the High Court and the plaintiffs' allegation that the defendants did not inform the said fact to them is concerned, the observation of the trial Court is somewhat lacking clarity.
A party seeking specific performance must demonstrate readiness and willingness to perform their contractual obligations, which was not established in this case.
Plaintiffs must prove continuous readiness and willingness to perform a contract for specific performance, supported by evidence of financial capacity.
In a suit for specific performance, plaintiffs must prove continuous readiness and willingness to perform their part of the contract, supported by cogent evidence; mere assertions are insufficient.
A plaintiff in a specific performance suit must prove continuous readiness and willingness to perform their contractual obligations throughout, as mandated by Section 16(c) of the Specific Relief Act....
Continuous readiness and willingness to perform a contract is essential for specific performance; failure to pay within stipulated time bars the claim.
The plaintiff must prove continuous readiness and willingness to perform a contract for specific performance, which was not established in this case due to the failure to show evidence of intention a....
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 ....
For specific performance, a plaintiff must consistently prove readiness and willingness to perform their contractual obligations. Failure to do so, along with unexplained delays, can result in denial....
Specific performance – Relief of specific performance is equitable remedy – Plaintiff have to necessarily show their readiness and willingness in performing their part of contract from date of agreem....
To secure a decree for specific performance, plaintiffs must demonstrate continuous readiness and willingness, supported by credible evidence, amidst a contract that specifies actionable terms.
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