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2023 Supreme(AP) 1610

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
M.G.Priyadarsini, J.
P.Rama Krishna & Anr. – Petitioners
Versus
K.Goverdhan Reddy @ Gopal Reddy & Ors. – Respondents
A.S.No.626 of 2006
Decided On : 20-04-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr.Harender Prasad
For the Respondent: Mr.Vedula Venkata Ramana

Headnote:(A) Civil Procedure Code, 1908 - Order 7 Rule 11(d) - Limitation Act, 1963 - Rejection of plaint - Plaintiffs sought specific performance of a sale agreement dated 25.05.1988 but were barred by limitation, and the trial court held their suit inadmissible as it was filed beyond the statutory period. (Para 19)

(B) Time as essence of contract - The court reaffirmed that where the agreement stipulates a timeline for execution of sale, failure to act within that period results in the claim being barred by limitation. (Para 12)

(C) Conduct of parties - The plaintiffs were found lacking in explaining the significant delay of over 12 years before pursuing their claim, highlighting a potential lack of diligence. (Para 17)

Facts of the case:
The plaintiffs alleged specific performance of a sale agreement executed by the deceased vendor and made various payments towards the purchase but faced repeated refusals to register the sale. After a lengthy delay since the last payment, the defendants contested the suit, citing limitation.

Findings of Court:
The trial court ruled that the suit was barred by limitation pursuant to provisions under the Limitation Act and Order 7 Rule 11 of the CPC, emphasizing the timelines defined in the agreement.

Issues: The main question was whether the trial court's rejection of the plaintiffs' suit as time-barred was valid.

Ratio Decidendi: The court held that the trial court acted within its jurisdiction in determining that the suit was barred by limitation, as it was necessary to assess only the plaint's allegations rather than the defendants' responses.

Result: Appeal dismissed.

Table of Content
1. factual background of the case. (Para 1 , 2)
2. defendants argue suit is barred by limitation. (Para 3 , 4 , 5)
3. court analyzes the rejection under order 7 rule 11. (Para 6 , 10 , 12)
4. legal standards for rejection of plaint discussed. (Para 11 , 13 , 14 , 15 , 18)
5. appeal dismissed; confirming lower court decision. (Para 20)

JUDGMENT :

M.G.Priyadarsini, J.

The plaintiffs in O.S.No.573 of 2006, on the file of the learned I Additional Senior Civil Judge, Rangareddy District are the appellants before this Court. The challenge in this appeal is the order of the trial Court dated 18.08.2006 in I.A. No.2077 of 2006 in allowing the application filed by the defendants under Order 7 Rule 11(d) C.P.C. thereby rejecting the suit as barred by limitation. For the sake of convenience, in this appeal, the parties are referred to as they were arrayed in the suit.

2. Plaintiff No.1 is the husband of plaintiff No.2. Defendant Nos.1 & 2 are the sons and defendant No.3 is the daughter-in-law of late K.Narayana Reddy. Plaintiffs laid the suit in O.S. No.573 of 2006 against the defendants seeking specific performance of agreement of sale, dated 25.05.1988 executed by late K.Narayana Reddy in respect of the suit schedule property i.e., land admeasuring Ac.57.00 guntas, situated in Sy. Nos.57 to 68, situated at Gangaram, Maheswaram Mandal, Ranga Reddy District. According to the plaintiffs, during his lifetime, K.Narayana Reddy agreed to sell the suit schedule property in their favour for a consideration of Rs.5,00,000/- by receiving a sum of Rs.10,000/- towards advance sale consideration on 19.05.1988. Later, on 25.05.1988, said K.Narayana Reddy executed the agreement of sale (Ex.R1) wherein the balance sale consideration was agreed to be paid within a period of two years from the date of execution of Ex.R1. As per the agreement of sale, said K.Narayan Reddy, filed the papers before the revenue officials for mutation of the land and delivered the peaceful possession to the plaintiffs. Apart from Rs.10,000/- paid on 19.05.1988, the plaintiffs paid a further sum of Rs.10,000/- on 20.09.1988; Rs.15,000/- on 15.05.1989 and Rs.13,500/- on 18.07.1989, totaling to Rs.48,500/- to said K.Narayan Reddy and with mutual understanding, the name of the plaintiffs were recorded in the Pahani Nakal in Column No.13 from the year 1988-89 onwards though the balance sale consideration was due to the executant. Since the land was not cultivable, the plaintiffs allegedly invested huge amount and started to raise the crops. Subsequently, the vendor changed his mind and in spite of receiving the balance sale consideration, he started harassing the plaintiffs. Therefore, the plaintiffs got issued a legal notice to the executant on 10.04.1990 and as he evaded to receive the said notice, they filed a suit against the executant seeking perpetual injunction in O.S. No.74 of 1990 on the file of District Munsiff (Junior Civil Judge) at Ibrahimpatnam, Ranga Reddy District wherein he obtained interim injunction orders in I.A. No.166 of 1990. Since the executant i.e., the defendant therein, did not turn up, he was set exparte on 11.02.1991, but the suit was dismissed for default on 25.02.1991. It is stated that pending the suit, there was amicable settlement between the plaintiffs and the executant, that the plaintiffs paid a sum of Rs.2,00,000/- to the executant and that as the plaintiffs did not turn up for ex parte evidence, the suit was dismissed for default on 25.02.1991. The plaintiffs continued to grow the crops on the suit land. Subsequently, on 17.08.1992, the plaintiffs paid a further sum of Rs.2,00,000/- to the executant followed by Rs.51,500/- on 26.06.1994 towards final payment of balance sale consideration with a assurance by the executant to register the sale deed in favour of plaintiffs or in favour of their legal heirs as and when demanded. As the plaintiff No.2, wife of plaintiff No.1, was sick, they could not concentrate on the said sale transacti

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