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2025 Supreme(Telangana) 717

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD 
K. SUJANA, J.
K. Satyanarayana - Appellant 
Vs.
P. Satyanarayana Died Per LRs. - Respondent 
I.A.No.1 of 2023 In/and APPEAL SUIT No.3650 of 2003 
Decided on : 03-04-2025


Advocates:
Advocate Appeared:
For the Appellant : PUTREVU PRABHAKAR
For the Respondent: P V NARAYANA RAO

A suit for specific performance necessitates the plaintiff's readiness to fulfill obligations, while unregistered documents cannot substantiate ownership rights unless properly admitted as evidence.

Headnote:(A) Specific Relief Act, 1963 - Section 10 - Indian Registration Act, 1908 - Section 49, Section 35 - Appeal against judgment granting specific performance of sale agreement - The appellant's claim of prior sale agreement dismissed as he failed to prove bona fide purchase and proper diligence - No sufficient grounds established for admitting additional evidence after significant delay - Registration for agreement not compulsory at the time of the agreement per prior legal provisions. (Paras 18, 20, 22)

(B) Suit for specific performance - The principle of ready and willing - The court emphasized that a plaintiff must demonstrate readiness to fulfill contractual obligations and act on notice against future transactions - The court reaffirmed that merely possessing an unregistered document does not confer rights over property in the absence of compliance with legal requirements. (Paras 17, 19, 23)

Facts of the case:
The plaintiff sought specific performance of a sale agreement dated 03.07.1993 against the defendant, who had allegedly sold the property to a third party claiming prior agreement. The trial court ruled in favor of the plaintiff, leading to the appeal.

Findings of Court:
The trial court’s judgment was upheld, supporting the plaintiff's assertion of the agreement while dismissing the appellant's argument on the basis of evidentiary insufficiency and lack of bona fides.

Issues: Whether the plaintiff is entitled to enforce the sale agreement, whether the plaintiff was ready and willing to complete the contract, and whether the second defendant holds rightful ownership of the property.

Ratio Decidendi: The court concluded that the appellant's failure to prove he was a bona fide purchaser, combined with a lack of due diligence and delayed presentation of key evidence, warranted upholding the lower court’s decree in favor of the plaintiff.

Result: Appeal suit dismissed, confirming the original judgment.

Table of Content
1. factual background of the case (Para 1 , 2 , 4)
2. court's observations and reasoning (Para 3 , 5 , 14 , 15 , 16 , 17)
3. arguments and contentions of the appellant (Para 6 , 8 , 10 , 11)
4. legal standing of unregistered documents and requirements for evidence. (Para 12 , 20)
5. ratio decidendi regarding evidence admissibility (Para 18 , 19)
6. outcome dismissing the appeal and confirming lower court's decree. (Para 22)
7. final conclusion of the judgment (Para 23 , 24)

JUDGMENT :

K. SUJANA, J.

Challenging the judgment and decree dated 17.09.2003 passed in O.S.No.21 of 1996 by the learned II Additional District Judge, Karimnagar, the present Appeal Suit is filed.

2. The brief facts of the case are that O.S.No.21 of 1996 is filed by the plaintiff seeking a decree for specific performance of an agreement of sale dated 03.07.1993, along with the recovery of possession of the plaint schedule house. As per the plaintiff, defendant No.1 entered into a sale agreement with him for a consideration of Rs.2,10,000/-, out of which Rs.1,10,000/- was paid as part consideration. The remaining Rs.1,00,000/- was to be paid by 03.04.1994, upon which the sale deed was to be executed. The plaintiff alleges that despite being ready and willing to perform their obligations under the contract and offering the balance amount, defendant No.1 failed to execute the sale deed. Instead, defendant No.1 proceeded to sell the property to defendant No.2. Defendant No.2, however, denies the claim of the plaintiff and asserts that they had an earlier agreement of sale with defendant No.1 dated 27.03.1993, pursuant to which possession of the property was delivered.

3. Basing on the above pleadings, the trial Court framed six issues and on behalf of the plaintiffs i.e., PWs.1 to 3 were examined and Ex.A1 to A8 are marked. DWs.1 to 3 are examined and Exs.B1 to B7 were marked on behalf of the defendants.

4. After examining the evidence, the trial Court, vide order dated 17.09.2003, allowed the suit observing that the agreement of sale dated 03.07.1993, was valid, true, and binding on the parties. Furthermore, the plaintiff was found to have been consistently ready and willing to fulfill his contractual obligations. Aggrieved by the said judgment and decree, the appellant/defendant No.2 filed the present appeal suit.

5. Heard Sri P. Prabhakar, learned counsel appearing on behalf of the appellant as well as Sri V. Ravi Kiran Rao, learned Senior Counsel representing Sri V. Rohit, learned counsel appearing on behalf of the respondents.

6. Learned counsel for the appellant submitted that the impugned judgment and decree of the trial Court is contrary to law and the facts of the case. He contended that the trial Court erred in not considering the fact that the appellant had been in possession of the suit schedule property. Furthermore, the trial Court ought to have noted that respondent No.2 had executed a registered sale deed in favor of the appellant on 29.12.1993, and respondent No.1 was not competent to execute the agreement dated 03.07.1993 in favor of respondent No.1. He argued that the trial Court failed to observe that respondent No.1 was incapacitated from executing a registered sale deed in favor of respondent No.1, as respondent No.1 had already executed a registered sale deed in favor of the appellant. He further contended that the suit was barred by limitation and that the trial Court erred in marking Ex.A1, an unregistered agreement of sale, while refusing to mark the agreement of sale dated 27.03.1993, executed by respondent No.1 in favor of the appellant.

7. Learned counsel for the appellant further submitted that the trial Court failed to appreciate that respondent No.2 had secured the execution of a registered sale deed in favor of the appellant, and that the plaint schedule property did not include a description of the RCC building and that respondent No.3 had become an inheritor and left Karimnagar approximately one and a half years ago, and was

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