IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A. Abhishek Reddy, J.
Smt. Razia Begum and Others - Petitioners
Versus
Sri N. Hanumanth Reddy and Another – Respondents
Civil Revision Petition No.1803 of 2021
Decided On : 14-03-2022
Specific Relief Act - Rescission of Agreement of Sale - Section 28 - [AGREEMENT OF SALE] - [SPECIFIC RELIEF ACT, 1963, SECTION 28] - The court discussed the provisions of Section 28 of the Specific Relief Act, 1963, and the interpretation of the time period for depositing the balance sale consideration. The court highlighted the importance of the period of limitation and the concept of 'reasonable time' in the context of specific performance of a contract for the sale of immovable property. The court emphasized that the power of superintendence under Article 227 of the Constitution of India is intended to be used sparingly and only in appropriate cases for the purpose of keeping the subordinate courts within the bounds of their authority and not for correcting mere errors.
Fact of the Case:
The petitioners and respondent No.1 entered into an agreement of sale in 1997. The respondent filed a suit for specific performance of the agreement, which was decreed ex parte in 2001. The respondent deposited the balance sale consideration in 2005. The petitioners filed an application in 2020 seeking to rescind the agreement for non-deposit of the balance sale consideration within time and on other grounds. The trial Court dismissed the application, leading to the filing of the present Civil Revision Petition.
Finding of the Court:
The court found that the petitioners' application for rescinding the agreement was barred by laches and delay, and beyond the period of limitation. The court emphasized that the judgment and decree passed by the trial Court had become final, and the petitioners could not agitate the validity of the agreement of sale in the present Civil Revision Petition. The court held that the impugned order passed by the trial Court was in consonance with the provisions of the Act and well-established principles of law, and there was no illegality or perversity in the impugned order warranting interference under Article 227 of the Constitution of India.
Issues: The issues included whether the petitioners were entitled to rescind the agreement for sale as per the provisions of Section 28 of the Act, whether the balance sale consideration deposited by the respondent was in time, and whether the petition was barred by limitation.
Ratio Decidendi: The court held that an application under Section 28 can only be filed within three years from the date when the right to apply for rescission accrues. The court emphasized the importance of the period of limitation and the concept of 'reasonable time' in the context of specific performance of a contract for the sale of immovable property. The court found that the petitioners' application for rescinding the agreement was hit by laches and delay, and beyond the period of limitation.
Final Decision: The Civil Revision Petition was dismissed, and pending miscellaneous petitions, if any, were also dismissed. No order as to costs was given.
ORDER :
The present Civil Revision Petition, under Article 227 of the Constitution of India, is filed by the petitioners/defendants, against the order dated 05.10.2021, passed by the learned Senior Civil Judge, Zaheerabad, in I.A.No.29 of 2020 in O.S.No.33 of 2013 [O.S.No.36 of 2001 (OLD)].
2. The petitioners herein are the defendants in the suit viz., O.S.No.36 of 2001 (OLD) and the respondent No.1 herein is the plaintiff in that suit.
3. The parties are referred to as arrayed in the Civil Revision Petition.
4. The brief facts of the case, which are necessary for disposal of the present Civil Revision Petition, are set out below.
The petitioners herein and the respondent No.1 entered into an agreement of sale dated 29.12.1997 agreeing to sell the suit schedule property and received an amount of Rs.1,00,000/- towards advance sale consideration. Thereafter, the respondent No.1 herein has filed the suit for specific performance of said agreement of sale vide O.S.No.36 of 2001 [O.S.No.33 of 2013 (new number)]. The said suit was decreed ex parte on 08.11.2001. Thereafter, the respondent No.1 deposited the balance sale consideration on 26.09.2005 to the credit of the suit. Thereafter, seeking to set aside the ex parte judgment and decree dated 08.11.2001, the petitioners herein have filed I.A.No.67 of 2013 along with an application to condone the delay vide I.A.No.151 of 2008 (Old I.A.No.102 of 2006). The said Interlocutory Applications were allowed vide order dated 13.03.2013 by the Court below. Aggrieved by the same, the respondent No.1 herein filed C.R.P.Nos.1926 and 1927 of 2013 before this Hon’ble High Court, and the said Civil Revision Petitions were allowed on 19.07.2013. Aggrieved by the order passed in the said C.R.Ps., the petitioners herein have approached the Hon’ble Supreme Court and filed S.L.P. (C) Nos.35968 and 35969 of 2013. The said S.L.Ps were also dismissed on 25.07.2016 and the Review Petition filed by the petitioners herein was dismissed on 08.12.2016. Thereafter, the petitioners have filed the present I.A.No.29 of 2020 under Section 28 of the Specific Relief Act, 1963 (for short, ‘the Act’) seeking to rescind the agreement of sale dated 29.12.1997 for non-deposit of the balance sale consideration within time and on other grounds. The trial Court vide the impugned order dated 05.10.2021 has dismissed the said I.A. Aggrieved by the same, the petitioners have filed the present Civil Revision Petition.
5. It is pertinent to note that the trial Court while decreeing the suit filed by the respondent No.1 has not stipulated the time period within which the balance sale consideration was to be deposited by the respondent No.1 i.e., plaintiff in the suit.
6. Sri J. Prabhakar, the learned Senior Counsel appearing on behalf of Sri V.S.R. Avadhani, the learned counsel for the petitioners, has vehemently argued that the order passed by the trial Court is without any application of mind, contrary to the well established principles of law laid down by the High Court as well as the Hon’ble Supreme Court in a catena of cases and also the provision of Section 28 of the Act. Learned Senior Counsel has stated that as the ex parte judgment and decree was passed on 08.11.2001, having regard to the provision of Section 28 of the Act and Article 137 of the Limitation Act, 1963 (for short, ‘the Limitation Act’), the respondent No.1 ought to have deposited the balance sale consideration within a period of three years from the date of decree or three years after the expiry of the time mentioned in the agreement of sale dated 29.12.1997. But, the respondent No.1 took his own sweet time and deposited the balance sale consideration after more than four years from the date of obtaining the ex parte decree. Learned Senior Counsel has further stated that the trial Court, without adverting to the above factum of not depositing the balance sale
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An application under Section 28 of the Specific Relief Act can only be filed within three years from the date when the right to apply for rescission accrues. The concept of 'reasonable time' is cruci....
The central legal point established in the judgment is the application of Section 28 of the Specific Relief Act, 1963 in the context of specific performance and the consequences of the purchaser's fa....
Agreement to sell – Provisions to grant specific performance of agreement are quite stringent – Equitable considerations come into play.
Point of Law : Provisions of section 28(1) of the Specific Relief Act, 1963 in light of the provisions of Order XX Rule, 12A of the CPC, and it was held that the provisions of Order XX, Rule 12A mand....
The court ruled that the application for extension of time for depositing sale consideration is valid, given the decree holder's consistent readiness and ongoing appeals affecting timelines.
The court retains jurisdiction to extend time for performance of a decree, but such extensions must be justified and considered alongside applications for rescission to ensure fairness.
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