IN THE HIGH COURT FOR THE STATE OF TELANGANA HYDERABAD
M.LAXMAN, J.
Namboori Janaki died per L.Rs and Others - Appellants
Vs.
Gurram Hanumantha Rao - Respondents
APPEAL SUIT Nos.2361 & 2429 OF 2001
Decided On : 22-12-2021
Specific Relief Act - Section 22 - Civil Procedure Code, 1908 - Order VII Rule 7 - Sale of Goods Act, 1893 - Section 4(1) – Suit for specific performance of Agreement – Readiness and willingness to perform Contract - Whether Loan transaction - Admission of amount in Agreement – Recovery of amount - Plaintiff had been demanding defendant to come forward to execute a registered sale deed by measuring suit schedule property to ascertain actual extent of land within the specific boundaries given in suit schedule, but the defendant had been postponing matter on one or other pretext. plaintiff has issued a legal notice and the defendant, despite receipt of notice, did not give any reply - Defendant claimed that suit schedule property is his ancestral property - plaintiff was running a chit fund company in name of style - defendant took membership in the chit fund company of plaintiff and has subscribed a chit worth - daughter of the defendant was also a member of chit run by the plaintiff, and on demand, the plaintiff paid.
Finding of the Court :
Defendant denied the execution of agreement, admitted that the amount which is mentioned under the sale agreement was in fact received as a loan - Court denied the specific performance, has granted relief of recovery of such amount from the defendant - Decision squarely applies to present facts of the case - Court do not find any material illegality in judgment of trial Court in directing the defendant to refund amount - suit agreement is of year 1992 prevailing rate of interest was higher than present rate past rate of interest and present rate of interest, this Court feels that awarding rate of interest @ 12% per annum is justified in the facts and circumstances of the case.
Result: A.S.No.2429 of 2001 is dismissed and A.S.No.2361 of 2001 is partly allowed
JUDGMENT :
M.LAXMAN, J.
APPEAL SUIT Nos.2361 & 2429 OF 2001
1. Since both the appeals arise out of same judgment, they are being disposed of by this common judgment.
2. Both these appeals assail the judgment and decree dated 18.07.2001 in O.S.No.6 of 1993 on the file of the Senior Civil Judge at Khammam, whereunder and whereby the suit filed by the plaintiff, who is the appellant in A.S.No.2429 of 2001, was partly decreed rejecting specific performance and directed the defendant, who is the appellant in A.S.No.2361 of 2001, to refund a sum of Rs.1,60,000/- received by him as part sale consideration with interest 18% per annum.
3. For the sake of convenience, the parties hereinafter are referred to as they are arrayed in the said suit.
4. The case of the plaintiff is that the defendant is the absolute owner of dry land admeasuring Ac.1-00 gunta, forming part of Sy.Nos.92, 93 and 96, situated at Velugumatla Village, Khammam Urban Mandal, Khammam District (hereinafter, referred to as ‘suit schedule property’). The defendant agreed to sell the suit schedule property to the plaintiff through the agreement of sale dated 30.04.1992 (Ex.A-2). The total sale consideration was Rs.2,00,000/-. The plaintiff had paid Rs.10,000/- on the date of agreement towards advance and subsequently he has paid Rs.90,000/- on 14.05.1992, Rs.15,000/- on 16.09.1992 and Rs.45,000/- on 18.09.1992. Thus, the plaintiff has paid total sum of Rs.1,60,000/- and the defendant has also handed over the original sale deed of the suit schedule property dated 01.05.1987.
5. It is the further case of the plaintiff that he was always ready and willing to perform his part of contract i.e., payment of balance sale consideration to get the registered sale deed executed in his favour. The plaintiff had been demanding the defendant to come forward to execute a registered sale deed by measuring the suit schedule property to ascertain the actual extent of land within the specific boundaries given in the suit schedule, but the defendant had been postponing the matter on one or other pretext. Therefore, the plaintiff has issued a legal notice and the defendant, despite receipt of the notice, did not give any reply. Therefore, the plaintiff filed the present suit.
6. The defendant filed his written statement denying the execution of agreement of sale and receipt of any sale consideration. He has also stated that the plaintiff was not ready and willing to perform his part of obligation. He has also denied the demand of the plaintiff to measure the land and execute the sale deed.
7. The defendant claimed that the suit schedule property is his ancestral property. The plaintiff was running a chit fund company in the name of style ‘Sarasa Chit Fund Private Limited’ and the defendant took membership in the chit fund company of the plaintiff and has subscribed a chit worth of Rs.50,000/-. The defendant has received Rs.45,000/- on completion of the said chit. The daughter of the defendant was also a member of chit run by the plaintiff, and on demand, the plaintiff paid Rs.1,500/- towards chit. As such, the said payments are nothing to do with the agreement of sale. The defendant further stated that the agreement of sale was not attested and prayed to dismiss the suit.
8. The trial Court, on the basis of the above pleadings, has framed the following issues:
2. Whether the plaintiff was always ready and willing to perform his part of the contract, but the defendant was at fault?
3. Whether the plaintiff is entitled to the relief of specific performance?
4. To what relief?”
9. The plaintiff, to support his case, examined P.Ws.1 to 3 and relied upon Exs.A-1 to A-8, Ex.C-1 and Exs.X-1 to X-4. The defendant, to support his case, examined D.W.1, but did not file any documentary evidence.
10. Though, initially the
Point of Law : Agreement of Sale - On the basis of such admission, though the Court denied the specific performance, has granted relief of recovery of such amount from the defendant.
Relief of refund in specific performance cases must be specifically claimed in the plaint, or it cannot be granted by the court.
Specific performance requires continuous proof of readiness and willingness, which was found lacking in this case, leading to a dismissal of the claim.
The plaintiff must demonstrate continuous readiness and willingness to perform a contract for specific performance; failure to do so justifies dismissal of the suit.
(1) Though, principle that time is not essence of contract in a suit for specific performance of immovable property deserves its consideration in appropriate cases, said principle cannot be applied a....
(1) Agreement to Sell – Suit for Specific Performance – Plaint may be amended at any stage of proceedings to enable plaintiff to seek alternative relief, including that of refund of earnest money and....
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