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2021 Supreme(Telangana) 389

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A. Rajasekhar Reddy, Shameem Akther, JJ.
Siddamsetty Infra Projects Private Limited – Appellant
Versus
Debbad Visweswara Rao and Ors. – Respondents
Appeal Suit No. 998 of 2010 and Writ Petition No. 13334 of 2020
Decided On : 23-04-2021

Advocates:
Advocate Appeared:
For the Appellant : Harin P. Raval, Senior Counsel for N. Vasudeva Reddy and D. Jagan Mohan Reddy
For the Respondent: Dadi Radhakrishna, E. Ajay Reddy for Sampath Prabhakar Reddy, Y.N. Anjaneyacharyulu and G.P.

Headnote:(A) Specific Relief Act, 1963 - Section 10 - Limitation Act, 1963 - Article 54 - Appeal against dismissal of specific performance suit - Plaintiff invoked agreements dated 26.03.1997 and 27.03.1997 - Dismissal reasoned on time being essence and delay in payment - Time not deemed essence due to lack of explicit clause - Plaintiff in possession and timely payment of 90% sale consideration established. (Paras 1, 10, 12, 18, 26, 35, 60)

(B) Limitation - Proceedings on specific performance - Suit filed within three years upon refusal of performance - Time of refusal constitutionally begins limitation period underpinning claims - Court wrongfully assessed entitlement due to conjectured delay miscalculating readiness and willingness of plaintiff. (Paras 18, 21, 36, 60)

(C) Relief - If certain conditions are met, decree for specific performance shall be granted, upholding the principle of justice over technicalities, allowing enforcement of agreements alongside payment proportionate to performance capabilities demonstrated by plaintiff. (Paras 12, 62)

Facts of the case:
A private limited company initiated suit for specific performance of two agreements of sale, claiming readiness to perform obligations by fulfilling monetary terms. The trial court dismissed based on alleged delays and lack of possession. Defendants claimed time as essence, further complicating the proceedings. (Paras 2, 3, 4, 10, 18)

Findings of Court:
The court determined that the time established is not the essence of the agreements, reaffirming that specific performance should be granted when equitable grounds presented are upheld. (Paras 30, 60, 70)

Issues: Courts primarily examined whether the plaintiff proved timely payment, continued readiness to perform contract, nature of possession over the property, and applicability of limitation laws. (Paras 1, 10, 15)

Ratio Decidendi: The court emphasized the law of specific relief as partly procedural, allowing retrospective considerations in proceedings in a waiver of strict timelines when fair jurisdiction prevails. (Paras 80, 81, 86)

Result: Appeals partially allowed; parties directed to execute registration of properties as per established agreements proportionate to payment, along with interest on prior deposits. (Paras 91, 94)

JUDGMENT :

A. Rajasekhar Reddy, J.

A.S. No. 998 of 2010

1. This Appeal Suit is filed against judgment and decree dated 12.11.2010 in O.S. No. 88 of 2002 wherein and whereby the trial Court dismissed the suit filed by the appellant/plaintiff against the respondents/defendants for specific performance in respect of agreement of sales dated 26.03.1997 and 27.03.1997.

2. For the sake of convenience, the parties hereinafter will be referred to as arrayed in the suit.

It is the case of the plaintiff that the defendants 1 to 4 are the owners of the agricultural land admeasuring Acs. 141.05 gts in Sy. Nos. 300 to 309 in Budwel Village, Rajendernagar Mandal (for short 'the suit schedule property'). The suit schedule property was purchased by Debbad Narayana, father of defendant Nos. 1 and 2 through registered sale deed No. 127 of 1969, dated 26.02.1969 from Mohd. Abdul Khader. The said D. Narayana and defendants 1 to 4 agreed to sell an extent of Acs. 127.29 guntas out of the total extent to defendant Nos. 5 to 10 and executed an agreement of sale dated 19.03.1994 and defendant Nos. 5 to 10 were also put in possession of the property to an extent of Acs. 65.23 gts. As per the terms of the said agreement, the defendant Nos. 1 to 4 and said late D. Narayana executed two Powers of Attorney in favour of defendant Nos. 5 and 6. Subsequently, on payment of balance sale consideration, the remaining land was also delivered to the defendant Nos. 5 to 10, as such, the defendant Nos. 5 to 10 were put in possession of entire extent of Acs. 127.29 gts. In pursuance of the agreement of sale in favour of defendants 5 to 10 dated 19.03.1994 and two power of Attorneys executed by defendant Nos. 1 to 4 and D. Narayana in their favour, they agreed to sell an extent of Acs. 38.15 gts of land covered by Sy. Nos. 301 (part), 302, 303 and 304 (part) @ Rs. 1,00,000/- per acre, for a total sale consideration of Rs. 38,37,500/- and for that purpose executed an agreement of sale dated 26.03.1997 (Ex. A5) in favour of the plaintiff. The defendant Nos. 5 and 6 also agreed to sell an extent of Acs. 1.33 gts of land in Sy. No. 304 part to the plaintiff @ Rs. 1,00,000/- per acre for a total sale consideration of Rs. 1,82,500/- under an agreement of sale dated 27.03.1997(Ex. A4). Under an agreement of sale dated 26.03.1997, the defendant Nos. 5 to 10 received advance sale consideration of Rs. 34,70,000/- and also an advance amount of Rs. 10,850/- in respect of agreement of sale dated 27.03.1997 was received by the defendant Nos. 5 to 10. Thus, under the two sale agreements, out of total sale consideration of Rs. 40,20,000/-, the plaintiff paid a sum of Rs. 34,80,850/- and balance payable under the said two agreements is Rs. 5,39,150/-. It is asserted that in pursuance of the said two sale agreements, the plaintiff was put in possession of the suit schedule property and since then the plaintiff has been in possession and enjoyment of the same and invested huge amounts. As per the two sale agreements, the defendant Nos. 5 to 10 have to obtain necessary permissions and certificate from the concerned authorities and to furnish the same to the plaintiff within three months from the dates of agreement of sales but the defendant Nos. 5 to 10 failed to comply the same, even though the plaintiff is always ready and willing to perform his part of the contract. The plaintiff also demanded the defendants on many occasions to execute registered sale deeds in terms of the agreement of sales by performing their part of the agreement i.e., by obtaining necessary permissions and certificates from the concerned authorities by receiving balance sale consideration. But the defendants have postponed the same. Thereafter, the plaintiff got issued legal notice dated 08.02.2000 to the defendants 6 & 8, who are General Power of Attorneys, but there is no response from them. The plaintiff again issued legal notice dated 06.07.2002, which was received by the defendants 1, 2, 3, 5, 8 to 10, to which

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