JUDGMENT :

1. This civil miscellaneous appeal is preferred against order dated 10.12.2020 passed in IA No. 1065 of 2017 in OS No. 173 of 2017 by the XVI Additional District and Sessions Judge-cum-III Additional Family Court, Malkajgiri, Ranga Reddy District.

2. The appellants herein are defendants in the suit.

The suit filed by the respondents

3. The said suit is a summary suit filed by the respondents/plaintiffs under Order XXXVII of the Code of Civil Procedure (CPC) against the appellants/defendants for :

(i) Recovery of a sum of Rs. 2,49,50,000/- with interest thereon at 15% p.a. from the date of suit till realization;

(ii) Charge on the plaint schedule property till the amount is repaid by the appellants to the respondents;

(iii) Charge on the lease rentals being paid by the tenants of the plaint schedule property to the appellants on the said property;

(iv) Directing the Sub-Registrar, Malkajgiri, not to entertain any sale transaction relating to the plaint schedule property and also direct them not to undertake any registration/lease till the entire dues of the respondents are cleared;

(v) Directing all the tenants to arrange payments of the monthly rentals to the respondents account only and to forbid the appellants from pledging or mortgaging any of the said property till the dues of the respondents is liquidated.

4. The 1st appellant is a Company registered under the Company's Act, 1956 of which the 2nd appellant was the Director. The appellants had entered into a Development Agreement-cum-GPA on 28.7.2008 (Document No. 3258/2008) with the land owners relating to a theater complex situated at Malkajgiri, Hyderabad.

5. The respondents contended that the appellants informed the respondents that they have subsequently, entered into an MoU on 20.10.2010 with the land owners wherein the sharing ratio of the super built up area and other terms and conditions for the execution/completion of the project were agreed upon; that the appellants are entitled for 50% of the super built up area in all floors except 3rd and 4th floors and 60% of the super built up area in 3rd and 4th floors, which comes to the total area of 55,618 Sq.ft. towards the share of the appellants.

6. The respondents contended that they were made to believe the above facts by the appellants and the respondents then entered into two agreements of sale with the appellants on 27.8.2011 for purchase of 35,379 Sq.ft. and 20,339 Sq.ft. respectively of the super built up area alongwith proportionate share in the land in the proposed complex for Rs. 14.04 crores and Rs. 9.36 crores respectively, totalling to Rs. 23.40 crores.

7. The respondents contended that they paid the appellants an advance of Rs. 4.61 crores, the receipt of which was also acknowledged by the appellants, and that as per the terms of the agreements entered into between the parties, the appellants have to pay interest on the amounts received from the respondents at 15% per annum from the date of payment till the execution and registration of sale deeds in respect of the said property in favour of the respondents.

8. According to the respondents, the appellants had agreed to complete the construction of the complex within a period of 18 months from the date of the agreement with a grace period of 3 months and that the appellants were also under obligation to complete the construction and hand over physical possession of the extent of the property agreed and sold by the appellants to the respondents within the time period agreed and stipulated in the above agreements.

9. The respondents contended that the appellants had miserably failed to fulfill the terms of the agreements and failed to complete even the construction of the complex and did not hand over possession of the same to the respondents as per the terms of the agreements.

10. It is contended by the respondents that on account of the said facts, the re