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2025 Supreme(Telangana) 288

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P.SAM KOSHY, ANIL KUMAR JUKANTI, JJ.
Mr. L. Jaya Reddy and Mr. B. Aga Reddy - Appellant
Versus
Mr. Bandaru Narayana Swamy - Respondent
Appeal Suit No.451 of 2023 and Appeal Suit No.453 of 2023
Decided On : 21-05-2025

Advocates:
Advocate Appeared:
For the Appellant : TARUN G. REDDY

Unregistered sale deeds have limited legal validity and cannot establish ownership or title; the burden of proof lies with appellants to substantiate claims in specific performance suits.

Headnote:(A) Civil Procedure Code, 1908 - Section 96 - Specific Relief Act, 1963 - Appeals against dismissal of suits for specific performance of unregistered sale deeds - Appellants failed to prove validity of unregistered sale deeds and establish their case for specific performance - Unregistered sale deeds have limited legal validity and cannot prove ownership or title - The appellants did not provide cogent evidence to support their claims and did not justify delay in filing suits. (Paras 5, 15, 18)

(B) Burden of proof - When parties are set ex parte, the burden to establish the case lies with the appellants, necessitating a clear presentation of evidence and pleadings. (Paras 11, 16)

(C) Legal notice - Issuance of legal notice prior to filing suit does not substitute for established interest in property or urgency in registration. (Paras 14, 18)

Facts of the case:
The appellants sought specific performance of two unregistered sale deeds executed in 1998 and 1999 for land. They claimed to be the absolute owners, but the respondent did not register the deeds due to pending litigation with the State Government. The Trial Court dismissed the suits, finding insufficient evidence to support the appellants' claims.

Findings of Court:
The appellants failed to establish their case for specific performance, as the unregistered deeds lacked necessary legal standing and evidence, leading to dismissal of the appeals.

Issues: The court addressed whether the appellants could prove their ownership and the validity of the unregistered sale deeds, and whether the Trial Court erred in its findings.

Ratio Decidendi: The court emphasized that unregistered sale deeds do not confer ownership and require additional evidence to substantiate claims, reaffirming the burden of proof rests with the appellants when the other party is absent.

Result: Appeals dismissed.

Judgement Key Points

Key Points: - Unregistered sale deeds have limited legal validity and cannot establish ownership or title (!) (!) . - The burden of proof lies with the appellants to substantiate claims for specific performance when respondents are set ex parte (!) (!) . - Legal notice prior to filing suit does not substitute for established interest or urgency in registration (!) (!) . - Appellants failed to provide cogent evidence or justify delay, leading to dismissal of appeals (!) (!) . - Unregistered sale deeds cannot be used as sole evidence of sale under the Evidence Act (!) (!) .

What are the rights of the appellants regarding specific performance of unregistered sale deeds?

What is the burden of proof when respondents are set ex parte in specific performance suits?

What is the legal validity of unregistered sale deeds in establishing ownership or title?


Table of Content
1. plaintiffs seek specific performance of unregistered sale deeds. (Para 2 , 4 , 5 , 6)
2. court highlights doubts regarding unregistered sale deeds. (Para 8 , 13 , 15 , 16 , 17)
3. appellants argue trial court erred in dismissing suits. (Para 9 , 10 , 11)
4. appeals dismissed; no merit found in claims. (Para 18)

JUDGMENT :

P. SAM KOSHY, J.

1. Since the issue involved in the instant appeals is one and the same, we proceed to decide the instant appeals by way of this common judgment.

2. Appeal Suit No.451 of 2023 is filed by the appellant/plaintiff under Section 96 of the Civil Procedure Code, 1908 assailing the judgment and decree dated 05.07.2023 in O.S.No.28 of 2020 passed by the VI Additional District and Sessions Judge-cum-VI Additional Metropolitan Sessions Judge-cum-Family Court, Ranga Reddy District, at Prashanth Nagar, Kukatpally; and Appeal Suit No.453 of 2023 is filed by the appellant/plaintiff under Section 96 of the Civil Procedure Code, 1908 assailing the judgment and decree dated 05.07.2023 in O.S.No.27 of 2020 passed by the same Court (for short ‘the impugned judgments’).

3. Heard Mr.A. Venkatesh, learned Senior Counsel representing Mr. Tarun G. Reddy, learned counsel for the appellant / plaintiff, in both the appeals.

4. Initially, the appellants herein filed two suits, viz., O.S.No.27 of 2020 and O.S.No.28 of 2020 both under Order VII Rules 1 and 2 read with Section 26 of Civil Procedure Code, 1908 seeking for relief of specific performance of two unregistered Sale Deeds dated 09.04.1998 and 09.01.1999.

5. The brief facts of the case are that the plaintiffs herein, viz., Mr. L. Jaya Reddy and Mr. B. Aga Reddy, have filed the above suits seeking for specific performance of the above sale deeds. The relief sought for by the plaintiffs was for a direction to the respondent No.1 to complete the registration process of a sale deed in respect of the suit schedule property pursuant to the above unregistered sale deeds in the above two suits; and also for a direction to the respondent No.2 to register the names of plaintiffs in the Dharani website by way of mutation in the Revenue Records so far as the suit schedule property is concerned. The contention of the appellants herein is that they are absolute owners and possessors of an extent of land admeasuring Acs.1.17 gts., situated in Survey No.66/2 of Raidurg Navkhalsa Village, Serilingampally Mandal, Ranga Reddy District. The claim of the appellants in the above two suits are that the two schedule properties in the two suits is part of a bigger chunk of Acs.5.00 of land which once stood in the name of one Mrs.Chandini Begum; after the death of Mrs.Chandini Begum, her legal representatives have sold the said Acs.5.00 of land in favour of one Mr.Bandaru Narayana Swamy (respondent No.1 in the instant appeals) under a registered Sale Deed bearing Document No.6770 of 1989. It is the further case of the plaintiffs that on 09.04.1998 and 09.01.1999, the said respondent No.1 is said to have executed an unregistered sale deed each in favour of the plaintiffs herein insofar as Acs.1.17 gts., situated in Survey No.66/2 of Raidurg Navkhalsa Village, Serilingampally Mandal, Ranga Reddy District, out of the total extent of Acs.5.00 gts. of land. It is contended that the above two plots of land purchased by the appellants admeasuring Acs.1.17 gts. each was purchased for a sale consideration of Rs.17,95,500/- and Rs.19,23,750.00, respectively. The appellants further contended that the entire sale consideration agreed upon was paid to the vendor, i.e., the respondent No.1. According to the appellants, the respondent No.1 did not get the sale deed registered because of certain litigation pending with the State Government in respect of the entire land situated at Survey No.66 of Raidurg Navkhalsa Village, Serilingampally Mandal, Ranga Reddy District, as there were certain claims made by the State Government in respect to the said property. Therefore, it was agreed between the pa

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