IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
VENUTHURUMALLI GOPALA KRISHNA RAO, J.
Tentu Raja Rao - Appellant
Vs.
Boddu Prabhakara Rao - Respondent
Second Appeal No: 396/2011
Decided On : 08-01-2025
(A) Code of Civil Procedure, 1908 - Section 100 - Limitation Act, 1963 - Article 54 - Second appeal against decree of specific performance - Plaintiff's suit for specific performance of an agreement dated 07.08.2002 was filed on 15.10.2005, post-Dusserah holidays, and deemed within limitation - Courts below found agreement valid and binding - No merit in defendant's claim of limitation. (Paras 12, 20, 22, 24)
(B) Specific Performance - Discretionary Relief - Granting specific performance is discretionary and must be exercised judiciously, considering conduct of parties and circumstances - Courts must recognize significance of prescribed time limits in agreements. (Paras 18, 19)
Facts of the case:
The plaintiff sought specific performance of a sale agreement for land, alleging the defendant failed to execute the sale deed despite payments made. The defendant denied executing the agreement and claimed it was forged, leading to the suit.
Findings of Court:
The appellate court affirmed the validity of the agreement and ruled the suit was not barred by limitation due to the timing of filing.
Issues: The main issues included whether the agreement was valid and whether the suit was barred by limitation.
Ratio Decidendi: The court held that the plaintiff's suit was timely filed and the agreement was valid, emphasizing the importance of time limits in contractual obligations.
Result: Second appeal dismissed, confirming the lower court's decree.
Judgment:
VENUTHURUMALLI GOPALA KRISHNA RAO, J.
This second appeal under Section 100 of the Code of Civil Procedure (“C.P.C.” for short) is filed aggrieved against the decree and Judgment, dated 03.02.2011 in A.S.No.106 of 2010, on the file of the Principal District Judge, West Godavari at Eluru, setting aside the decree and Judgment, dated 18.11.2009 in O.S.No.418 of 2005, on the file of Principal Senior Civil Judge, Eluru, by granting primary relief.
2. The appellant herein is the defendant and the 1st respondent herein is the plaintiff in O.S.No.418 of 2005, on the file of Principal Senior Civil Judge, Eluru. It is to be noted here that the 1st respondent/sole plaintiff died during the pendency of this appeal and his legal representatives are brought on record as respondent Nos.2 to 4.
3. The sole plaintiff initiated action in O.S.No.418 of 2005, on the file of Principal Senior Civil Judge, Eluru, with a prayer for specific performance of agreement of sale, dated 07.08.2002 against the defendant for possession of the property and for alternative relief of refund of amount along with interest.
4. The learned Principal Senior Civil Judge, Eluru, decreed the suit with costs granting alternative relief of refund of the sale consideration paid by the plaintiff with interest at 12% per annum from 10.10.2002 till realization. Felt aggrieved of the same, the plaintiff in the above said suit filed A.S.No.106 of 2010, on the file of the Principal District Judge, West Godavari at Eluru. The learned Principal District Judge, West Godavari at Eluru, allowed the appeal with costs, setting aside the decree and judgment passed by the learned Principal Senior Civil Judge, Eluru, by granting primary relief. Aggrieved thereby, the unsuccessful defendant approached this Court by way of second appeal.
5. For the sake of convenience, both parties in the appeal will be referred to as they are arrayed in the original suit.
6. The case of the plaintiff, in brief, as set out in the plaint averments in O.S.No.418 of 2005, is as follows:
The defendant is the absolute owner of an extent of Ac.1-42 cents in R.S.No.138/10 of Satyavole village i.e., schedule property. The defendant in order to discharge his debts offered to sell the said land to the plaintiff for a sum of Rs.2,20,875/- i.e., Rs.1,55,000/- per acre and the plaintiff agreed to purchase the same. The defendant received a sum of Rs.1,00,000/- as advance from the plaintiff and executed an agreement of sale, dated 07.08.2002 in favour of the plaintiff and he agreed in the agreement that he will got measure the land and receive the balance consideration and execute the registered sale deed on or before 10.10.2002. The plaintiff paid further a sum of Rs.90,000/- on 29.09.2002 after measuring the land and the said payment was also endorsed on the back of the agreement of sale. Since the date of final payment made on 10.10.2002, the plaintiff has been requesting the defendant to execute and register a sale deed for the schedule land, but the defendant has been postponing with wrongful motive. The defendant promised before the elders that he would execute a sale deed shortly stating that the plaint schedule property and some other properties were under mortgage to a bank and that he would discharge that mortgage debt soon. On account of the assurance given by the defendant before elders, the plaintiff waited hoping that the defendant would not deceive him. In the month of September, 2005, the plaintiff met the defendant for obtaining a sale deed from him, but he gave an evasive reply for which the plaintiff understood that the defendant was not inclined to execute the sale deed. So, the plaintiff got issued a legal notice on 07.10.2005 to the defendant demanding him to execute a registered sale deed for the plaint schedule property. The defendant received the same and kept quite. No time limit or date was stipulated in the sale agreement, dated 07.08.2002 for its performance. Therefore, the plaintiff is con
K.S. Vidyanadam and others vs. V.S. Vairavan
The Holiness Acharya Swami Ganesh Dassji vs. Sita Ram Thapar
The court affirmed the validity of a sale agreement and ruled that the suit for specific performance was filed within the limitation period, emphasizing the significance of contractual time limits.
The plaintiff's failure to file the suit within the limitation period and to prove readiness and willingness to perform the contract resulted in dismissal of the specific performance claim.
A sale agreement signed solely by the vendor is enforceable, and no fixed date of performance in an agreement allows suit filing within three years of notice of refusal.
Specific performance of a contract is a discretionary remedy that requires the plaintiff to prove readiness and willingness to perform their obligations within the stipulated time.
The court ruled that time is not an essence of contract in specific performance cases, and the plaintiffs were entitled to specific performance despite the trial court's dismissal.
Time is of the essence in contracts, and failure to perform within the agreed timeline results in the claim being barred by limitation under the Specific Relief Act.
Suit for Specific Performance – Unlimited limitation would lead to a sense of insecurity and uncertainty.
Contractual obligations in specific performance suits require timely action; failure to act within statutory limitation renders claims void.
The court ruled that the plaintiffs were entitled to specific performance of the agreement of sale despite the defendant's claims, as the suit was filed within the limitation period and time was not ....
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