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2025 Supreme(AP) 1145

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Venuthurumalli Gopala Krishna Rao, J.
S. Krishna Reddy - Appellant
Versus
K Lokanadha Reddy and Others - Respondents
Second Appeal No: 188 of 2013
Decided On : 05-12-2025

Advocates Appeared:
For the Appellant : D Purnachandra Reddy
For the Respondent: V Jaya Kumar, Venkatasubbaiah V

An agreement to enter into an agreement is unenforceable; specific performance requires a concluded contractual agreement.

Headnote:(A) Code of Civil Procedure - Section 100 - Specific Relief Act, 1963 - Second appeal against judgment confirming denial of specific performance - Defendants executed a sale deed to a bona fide purchaser - First appellate court wrongly granted conflicting relief beyond what was sought - Court not to interfere with findings of fact unless erroneous. (Paras 15, 30, 33)

(B) Specific performance of contracts - An agreement to enter into an agreement is unenforceable; the court requires a concluded contract. (Paras 23, 32)

Facts of the case:
The plaintiff sought specific performance against the first defendant for a property sale agreement dated 14.02.2001 and claimed the defendants intended to sell to a third party. The trial court dismissed the suit, allowing only recovery of the advance amount. The first appellate court reversed this.

Findings of Court:
The High Court ruled that the first appellate court’s grant of relief for a registered sale deed was beyond what the plaintiff sought, and the original contract was deemed unenforceable as it was merely an agreement to enter into an agreement.

Issues: Whether the original document constituted a binding contract and the appropriateness of the relief granted by the appellate court.

Ratio Decidendi: An agreement to enter into a sale is not binding under law and cannot compel performance. The appellate court erred in granting relief beyond the original claim.

Result: Second appeal allowed; judgment of the lower appellate court set aside.

Table of Content
1. overview of appeal and trial background. (Para 1 , 2)
2. details of plaintiff's and defendants' claims. (Para 5 , 6 , 7)
3. issues framed for the trial. (Para 10 , 11)
4. procedure and argument conclusions. (Para 12 , 17 , 30)
5. analysis on enforceability of the agreement. (Para 15 , 32)
6. res judicata principles discussed. (Para 18 , 20)
7. final judgment and decree outcome. (Para 33)

JUDGMENT :

Venuthurumalli Gopala Krishna Rao, J.

This second appeal under Section 100 of the Code of Civil Procedure is filed aggrieved against the judgment and decree, dated 30.11.2012, in A.S.No.98 of 2006, on the file of the V Additional District Judge, Tirupati, reversing the judgment and decree, dated 11.08.2006, in O.S.No.89 of 2001 on the file of the Principal Senior Civil Judge, Tirupati.

2. Originally, the suit in O.S.No.89 of 2001 was filed by the plaintiff for seeking the relief to direct the defendant No.1 to execute and register the necessary agreement of sale in favour of the plaintiff in respect of the plaint schedule property. The learned trial Judge dismissed the suit for specific performance of agreement and granted refund of advance amount of Rs.20,000/- with proportionate costs against the defendant No.1 with subsequent interest @ 9% per annum from the date of filing the suit till the date of realization. Aggrieved against the judgment and decree passed in O.S.No.89 of 2001, the unsuccessful plaintiff filed an appeal vide A.S.No.98 of 2006, on the file of the V Additional District Judge, Tirupati. The learned first appellate Judge allowed the appeal with costs by setting aside the judgment and decree passed by the learned trial Judge. Aggrieved thereby, the defendant No.2 in the suit approached this Court by way of second appeal.

3. The appellant herein is the defendant No.2, the respondent No.1 is the plaintiff and the respondent No.2 is the defendant No.1 in O.S.No.89 of 2001.

4. For the sake of convenience, both parties in the second appeal will be referred to as they are arrayed in the suit O.S.No.89 of 2001.

5. The case of the plaintiff, in brief, as set out in the plaint averments in O.S.No.89 of 2001, is as follows:

The defendant No.1 is the absolute owner of the plaint schedule land and offered to sell it to the plaintiff, after negotiations the defendant No.1 agreed to sell it for a valid consideration of Rs.2,15,000/- to the plaintiff on 14.02.2001. Thereafter, the defendant No.1 executed an agreement to execute the regular agreement of sale in favour of the plaintiff and received Rs.20,000/- as token advance out of the sale consideration and agreed to receive the balance sale consideration on or before 14.06.2001, and to execute a regular agreement of sale. The plaintiff pleaded that one week prior to the filing of the suit, he requested the defendant No.1 to execute a regular registered agreement of sale in respect of the plaint schedule property by receiving the balance sale consideration in pursuance of the contract dated 14.02.2001, but the defendant No.1 was postponing the same as the value of the schedule property has gone up. He further pleaded that he came to know that the defendant No.1 and her husband were trying to alienate the schedule property to defendant No.2 for wrongful gain. The plaintiff pleaded that one G. Sunil, who is the husband of the defendant No.1, himself, scribed the agreement dated 14.02.2001 and the defendants in collusion with each other are trying to create documents affecting the right of the plaintiff, as such, the plaintiff is constrained to file the present suit.

6. The 1st defendant filed written statement before the trial Court denying the material averments made in the plaint. The brief averments in the written statement of 1st defendant are as follows:

The defendant No.1 never intended to sell the schedule property to the plaintiff and had never executed any agreement dated 14.02.2001 and also did not receive any consideration. The defendant No.1 pleaded that the plain

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