IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K. LAKSHMAN, J.
Mrs. Chatla Sunitha - Petitioner
Versus
Mrs. Yegurla Vijayalaxmi & Others - Respondents
Civil Revision Petition Nos. 1105 and 1416 of 2024
Decided On : 29-08-2024
(A) Civil Procedure Code, 1908 – Order XXI, Rule 99 and Rule 103 – Execution proceedings – The petitioner, a subsequent purchaser, sought to stall execution of a decree for specific performance against the original owner. The trial court dismissed her applications, finding her claim to be without merit as she had knowledge of the prior suit and her purchase was made during pendente lite. (Paras 5, 7, 10, 11, 12)
(B) Specific Performance – The court reaffirmed that a purchaser cannot claim rights over property already subject to a decree for specific performance, especially when the purchase occurred after the decree was issued. (Paras 10, 11)
Facts of the case: The petitioner claimed to have purchased property from the original owner during the execution of a decree for specific performance in favor of the decree holders. The original owner did not comply with the decree, leading to the execution petition.
Findings of Court: The court found that the petitioner had full knowledge of the ongoing litigation and her purchase was an attempt to obstruct the execution of the decree.
Issues: The main issues included whether the petitioner could claim rights over the property despite the existing decree and whether her applications to set aside the ex parte order were justified.
Ratio Decidendi: The court ruled that the petitioner's claim was invalid as she purchased the property with knowledge of the existing decree, and her applications were dismissed for lack of merit.
Result: Civil Revision Petitions dismissed.
ORDER :
K. Lakshman, J.
Heard Mr. P.V. Krishnamachary, learned counsel for the petitioner - judgment debtor No.2 and Mrs. Manjari S. Ganu, learned counsel for respondent Nos.1 to 3 herein - decree holders. Despite service of notice, there was no representation on behalf of respondent No.4 - judgment debtor No.1.
2. The petitioner herein is arrayed as judgment debtor No.2 in E.P. No.298 of 2019. He was added as per the orders dated 02.08.2022 in E.A. No.203 of 2021, while respondent No.4 is judgment debtor No.1. RespondentNos.1 to 3 are the decree-holders.
FACTS:
3. Originally, respondent Nos.1 to 3 herein filed a suit, vide O.S.No.94 of 2016, for specific performance of agreement of sale, dated 29.04.2013 against respondent No.4 herein contending that respondent No.4 is the owner and possessor of the land admeasuring 4114 square yards in Survey No.53, situated at Karkhanagadda (New Gunj) locality along with two other persons, by name, Mr. Billa Vijayender Reddy and Mr. Kandi Thirupathi Reddy, under a registered sale deed bearing document No.5696 of 2013. Apart from that, respondent No.4 herein is also owner of land admeasuring 430 square yards in the very same survey number along with Mr. Kandi Thirupathi Reddy under a registered sale deed bearing document No.5694 of 2013. Both the extents form a compact block. Respondent No.4 has 50% share in 4114 and 430 square yards of land i.e., he is the owner of total extent of 2057 and 215 square yards, respectively.
(ii) Having received the share in oral partition with co-owners, respondent No.4 offered to sell his share of land to an extent of 14 guntas in the second bit covered under the sale deed bearing document No.5694 of 2013, an extent of 1522 square yards in ‘A’ bit covered under sale deed bearing document No.5696 of 2013 and accordingly executed an agreement of sale dated 29.04.2013 for a sale consideration of Rs.70.00 lakhs. Respondent Nos.1 to 3 paid an amount of Rs.64.00 lakhs to respondent No.4, who acknowledged the receipt of the same. Respondent Nos.1 to 3 are also ready to pay remaining balance amount of Rs.6.00 lakhs, but respondent No.4 did not come forward to comply with the terms and conditions of the said agreement of sale. Therefore, after issuing legal notice, dated 01.04.2016 and receipt of reply thereof, respondent Nos.1 to 4 filed the aforesaid suit seeking specific performance.
(iii) Respondent No.4 herein remained ex parte in the said suit. Learned Principal District Judge, Karimnagar on consideration of the entire evidence, both oral and documentary, decreed the said suit vide judgment and decree dated 18.10.2016 directing respondent Nos.1 to 3 to deposit balance sale consideration of Rs.6.00 lakhs into the Court within two (02) weeks from the date of judgment by directing respondent No.4 herein to receive the same and execute and register sale deed in favour of respondent Nos.1 to 3 herein in respect of suit schedule property within forty five (45) days, failing which, they are at liberty to get the sale deed registered through Court process. The petitioner herein is not a party to the suit proceedings.
4. Since respondent No.4 did not come forward to execute a register sale deed, respondent Nos.1 to 3 filed an execution petition vide E.P. No.298 of 2019 seeking a direction to respondent No.4 to execute a register sale deed in their favour in respect of said extent of Ac.0.14 guntas in Survey No.53, situated at Karkanagadda locality, Karimnagar and on his failure to execute a registered sale deed in their favour through Court. While so, the petitioner herein was added as judgment debtor No.2 in the said E.P.
CONTENTIONS OF THE PETITIONER BEFORE EXECUTION COURT:
5. The petitioner herein being judgment debtor No.2 filed two Interlocutory Applications of which one is under Order - XXI, Rule - 99 read with Section - 151 of CPC, vide E.A. No.94 of 2023, to stall/stop respondent Nos.1 to 3 herein in dispossessing her from the schedule de jure property, and another vide E.
A subsequent purchaser cannot claim rights over property already subject to a decree for specific performance, especially when the purchase occurred after the decree was issued.
The court upheld the dismissal of a petition to set aside an ex parte order, emphasizing the importance of timely actions in legal proceedings.
Execution of a sale deed based on a compromise decree is enforceable despite claims of limitation, provided there is consistent pursuit of rights through various legal avenues.
A claim petition under CPC must establish legal rights and possession; mere assertions without evidence are insufficient to challenge execution of a decree.
Repeated failure of petitioners to establish rights in execution proceedings justified dismissal of applications for stay and highlighted abusive court practices.
The court emphasized a lenient approach to granting delay in setting aside ex-parte decrees, underscoring natural justice principles when the Defendants were unable to appear due to bereavement.
The court emphasized the limited grounds on which a decree is unexecutable and highlighted that the right of the Decree Holder to obtain relief is determined in accordance with the terms of the decre....
Decrees obtained through fraud or without conforming to legal standards are nullities, and such cases must be set aside to ensure judicial integrity.
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