IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A.Santhosh Reddy, J.
B.Kista Reddy - Appellant
Versus
V.Srilatha - Respondent
S.A. No. 1634 of 2011
Decided On : 27-04-2023
specific performance - agreement of sale - Sec. 16(c) of the Specific Relief Act - N.P.THIRUGNANAM (DEAD) BY L.Rs. v. Dr.R. JAGAN MOHAN RAO AND ORS.,1995(5) SCC 115, PADMAKUMARI AND ORS. V. DASAYYAN AND ORS.,(2015) 8 SCC 695, C.S. VENKATESH v. A.S.C.MURTHY (D) by L.Rs. AND ORS.,AIR 2020 SC 930, KATTA SUJATHA REDDY AND ORS. v. SIDDAMSETTY INFRA PROJECTS PVT. LTD AND ORS.,AIR 2022 SC 5435, MANEPALLI UDAYA BHASKARA RAO v. KANUBOYINA DHARMARAJU,2014(1) ALD 269, EASWARI v. PARVATHI AND ORS.,AIR 2014 SC 2912
Fact of the Case:
The plaintiff filed a suit for specific performance of an agreement of sale dated 24/1/1994. The defendants denied the existence of the agreement and the receipt of the sale consideration. The trial court dismissed the suit, but the appellate court allowed the appeal and decreed the suit for specific performance.
Finding of the Court:
The appellate court held that the plaintiff was ready and willing to perform her part of the contract and proved the execution of the agreement of sale and payment of consideration. The court found that the defendants failed to perform their part of the contract and upheld the specific performance of the agreement of sale.
Issues: The main issue was whether the plaintiff was entitled to specific performance of the agreement of sale. The court also considered the conduct of the parties and the timeline for performance of the contract.
Ratio Decidendi: The court emphasized the importance of the plaintiff's continuous readiness and willingness to perform her part of the contract as a condition precedent to grant the relief of specific performance. The court also considered the conduct of the parties and the timeline for performance of the contract.
Final Decision: The second appeal was dismissed, affirming the judgment and decree of the appellate court in favor of the plaintiff for specific performance of the agreement of sale.
JUDGMENT
A.SANTHOSH REDDY, J. - This second appeal is directed against the judgment and decree dtd. 16/9/2011 in A.S.No.288 of 2006, on the file of the III-Additional District Judge (FTC), Ranga Reddy District, wherein the said appeal filed by respondent No.1 herein (plaintiff) was allowed by setting the judgment and decree dtd. 21/11/2006 in O.S.No.11 of 1997, on the file of the Principal Senior Civil Judge, Ranga Reddy District, whereinunder the suit filed by respondent No.1 was dismissed.
2. Heard Sri E.Madan Mohan Rao, learned senior counsel, appearing for Sri Gaddam Srinivas, learned counsel for the appellants, and Sri A.Ravinder Reddy, learned senior counsel, appearing for Sri M.Amogh Reddy, learned counsel for the respondent. Perused the record.
3. For the sake of convenience, the parties are hereinafter referred to as arrayed in the suit.
4. The plaintiff filed suit for specific performance of agreement of sale dtd. 24/1/1994. According to the plaintiff, defendant Nos.1 to 5 are the owners of suit schedule land in Sy.Nos.404, admeasuring Acs.12-36 Gts., and land in Sy.No.405 admeasuring Acs.2-00 at Poodur Village. Defendant Nos. 1 to 3 agreed to sell suit the schedule property in favour of the plaintiff for a sale consideration of Rs.4,02,000.00 by entering into an agreement of sale dtd. 24/1/1994. Plaintiff paid Rs.1,50,000.00 towards part sale consideration to defendant Nos.1 to 3 and agreed to pay balance sale consideration at the time of execution of registered sale deed. Defendant Nos.4 and 5 are brought on record as the legal representatives of deceased defendant No.1. As per the terms of the agreement, defendants have to demarcate the boundaries of the suit schedule property and establish an approach road before execution of registered sale deed, but the defendants have been procrastinating the same though they have received a further sum of Rs.65,000.00 towards sale consideration on various dates from 11/2/1994 and 19/6/1995.
5. The plaintiff further stated that she was ready and willing to pay the balance sale consideration of Rs.1,87,000.00, but the defendants were evading the same. When the plaintiff came to know that the defendants were trying to alienate the suit property in favour of third parties for a higher sale consideration, she got issued legal notice dtd. 2/1/1997. The defendants failed to respond to the plaintiff's legal notice. Though, the plaintiff was always ready and willing to perform her part of contract, the defendants were not coming forward to perform their part of contract. Hence, the suit.
6. Defendant No.1 filed written statement inter alia contending that neither he entered into agreement of sale with the regard to suit property nor received part sale consideration of Rs.1,50,000.00 from the plaintiff. It is also denied that he along with defendant Nos.2 and 3 agreed to demarcate the boundaries of suit schedule property and to establish an approach road and received further amount of Rs.65,000.00 from the plaintiff. Defendant No.1 also denied the execution of agreement of sale dtd. 24/1/1994. Defendant No.1 along with defendant Nos.2 and 3 approached the plaintiff's husband for financial assistance in the year 1994 on the advise of their relative Bagi Reddy. The plaintiff's husband lent an amount of Rs.20,000.00 as hand loan and obtained signatures of defendant Nos.1 to 3 on some blank stamp papers promising to return the said papers soon after the said amount was repaid. Though defendants repaid the loan amount and also requested the plaintiff's husband to return the blank stamp papers, but they fabricated the agreement of sale dtd. 24/1/1994 by using the said stamp papers with a mala fide intention of grabbing the suit property and thus the agreement of sale is unenforceable and void. There is no cause of action for filing the suit. The plaintiff is not entitled for specific performance of agreement of sale.
7. Defendant No.2 adopted the written statement filed by defendant No.1, whi
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The continuous readiness and willingness of the plaintiff to perform her part of the contract is a condition precedent to grant the relief of specific performance.
Point of law: plaintiff cannot take a stand that merely for want of objection in the written statement which is hardly any effect or consequence, without the plaintiff prove his case by letting evide....
Time is of the essence of a contract if the parties have agreed that it is or if the circumstances of the case show that it is.
(1) Specific performance of agreement of sale –Alternative plea of refund of earnest amount and damage could not be bar to claiming decree for specific Performance of contract.(2) Specific performanc....
The plaintiff was always ready and willing to perform her part of the contract, and the defendants failed to prove that the plaintiff lacked the financial capacity to pay the balance sale considerati....
The readiness and willingness of the parties to perform their part of the contract, as per the agreement of sale, is crucial in determining the entitlement to the discretionary relief of specific per....
Time is an essence of the contract in specific performance cases, and plaintiffs must prove continuous readiness and willingness to perform their obligations.
In specific performance cases, the plaintiff must continuously demonstrate financial capacity and willingness to perform contractual obligations for relief, requiring substantial evidence rather than....
(1) Specific performance – Ordinary rule is that specific performance should be granted – It ought to be denied only when equitable considerations point to its refusal and circumstances show that dam....
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