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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. Mallikarjuna Rao, J.
Mogadati Ramatulasamma - Appellant
Vs.
Nandru Nagendramma - Respondent
Apppeal Suit No: 1117 of 2016
Decided On : 03-01-2025

Advocates:
Advocate Appeared:
For the Appellant : P S P Suresh Kumaar
For the Respondent: Suresh Kumar Potturi

The court affirmed that specific performance can be decreed if the plaintiff proves readiness and willingness, and the burden of proof shifts once a prima facie case is established.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Code of Civil Procedure, 1908 - Section 96 - Appeal for specific performance of a sale agreement - Appellant claimed sale agreement was fabricated; respondent provided evidence of willingness and readiness to perform obligations. (Paras 1, 6, 29, 33, 59, 63)

(B) Burden of Proof - The initial burden of proof lies on the party asserting existence of the contract; it shifts to the opposing party once a prima facie case is established. (Paras 17, 20)

(C) Discretion of Court - Specific performance is a discretionary relief, requiring careful examination of parties' conduct and evidence; mere allegations of hardship do not suffice to deny it. (Paras 52, 59)

Facts of the case:
The Plaintiff entered a sale agreement to purchase property from the Defendant for Rs. 15,00,000/- with Rs. 3,75,000/- paid as earnest money; Defendant later denied the existence of the contract, alleging fraud. (Paras 2, 4, 6)

Findings of Court:
The trial Court found a valid sale agreement to exist; confirmed the Plaintiff's readiness and willingness to fulfill obligations; ordered Defendant to execute the sale deed upon deposit of outstanding amounts. (Paras 8, 62)

Issues: Whether the Plaintiff was ready and willing to perform the contract, and whether the trial Court rightly decreed specific performance. (Paras 1, 12)

Ratio Decidendi: The Court held that the Plaintiff established her case for specific performance, and Defendant's failure to prove the contrary warranted decree of specific performance with conditions set forth. (Paras 59, 63)

Result: Appeal partly allowed; decree for specific performance modified, and conditions for payment set. (Para 63)

Table of Content
1. background of the appeal and prior case (Para 1 , 2 , 4)
2. overview of case background and factual context regarding the sale agreement. (Para 3)
3. defendant's claims against the sale agreement (Para 5 , 6)
4. legal representations made by counsel regarding the trial court's interpretation. (Para 10 , 11 , 26)
5. court's jurisdiction and burden of proof considerations (Para 12 , 13 , 16)
6. evaluation of evidence regarding the sale agreement (Para 19 , 20 , 21)
7. legal standards for specific performance (Para 28 , 44 , 49)
8. basic principles on readiness and willingness, as they relate to specific performance. (Para 43 , 60)
9. discretionary powers of courts in granting specific performance. (Para 50 , 51 , 56)
10. final judgment and order of the court (Para 61 , 62 , 63)

JUDGMENT :

1. The Appeal, under Section 96 of the Code of the Civil Proceedure, 1908 (for short, 'C.P.C.'), is filed by the Appellant/Defendant challenging the decree and judgment dated 27.10.2016 in O.S.No.19 of 2014 passed by the learned XVI Additional District and Sessions Judge at Nandigama, Krishna District (for short, ‘the trial Court’).

2. Respondent is the Plaintiff, who filed the suit in O.S.No.19 of 2014 for Specific Performance of sale agreement dated 07.02.2014 seekinng to direct the defendant to receive the balance sale consideration of Rs.11,25,000/- and execute a regular Registereed sale deed in respect of plaint scheduule property in favour of the Plaintiff at his costs or in alternative to pass a deccree for the amount of Rs.3,75,000/- with interest at 24% per annum from the date of transaction till the date of realization. The Appellant herein is the defendant in the suit.

3. Referring to the parties as arrayed in the suit is expedient to mitigate confusion and better comprehend the case.

4. The factual matrix, necessary and germane for adjudicating the contentious issues between the parties inter se, may be delineated as follows:

    (a) The Defendant is the sole owner of property No. 4, measuring 145.2 sq. yards, situated in R.S. No. 323 of Jaggaiahpet, along with an RCC roofed building (D.No. 6-591/4, Assessment No.1069006099, Electricity Service Nos. 5528 and 5527) (hereinafter, it would be referred as ‘plaint schedule property’). The Defendant purchased this property from Kolagani Kondaiah through a registered sale deed on 17.09.2005. On 07.02.2014, the Defendant offered to sell the property to the Plaintiff for Rs. 15,00,000/- in Bill Maktha. The Plaintiff accepted the offer and paid Rs. 3,75,000/- as earnest money. An agreement of sale was executed the same day, stipulating that the Plaintiff would pay the remaining Rs.11,75,000/- by 07.05.2014, and the Defendant would clear all dues, including taxes, electricity, and water charges.

    (b) The Plaintiff holds sufficient funds in the form of security deposits (Nos.0333879 and 0333880) totalling Rs.9,00,000/- and a fixed deposit (No.0333882) of Rs.4,50,000/- in the same bank under her husband's name, with the fixed deposit maturing on 12.02.2014. The Plaintiff has been ready and willing to perform her obligations under the sale agreement since its execution. Despite this, when she approached the Defendant to complete the sale, the Defendant delayed, citing various excuses. On 04.04.2014, Plaintiff issued a legal notice confirming her readiness to pay the balance consideration and complete the sale at her own cost. In response, the Defendant received the notice but sent a caveat petition with false allegations, denying the sale agreement instead of proceeding with the agreement. The Plaintiff later discovered the Defendant's intention to avoid fulfilling her part of the contract for wrongful gain.

5. The Defendant filed a written statement denying the material allegations in the plaint, claiming that the sale agreement was false, fraudulent, and fabricated, lacking any consideration. She contended that in February 2014, with witness, she borrowed an interest-free hand loan from Plainti

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