The court determined that agreements must be properly evaluated concerning repayment obligations and limitations, recognizing the creditor's rights while ensuring due legal process is followed.

JUDGMENT :

B.R. MADHUSUDHAN RAO, J.

1. This appeal is filed by the appellant-defendant aggrieved by the judgment and decree passed in O.S.No.157 of 2015, dated 23.10.2019 by the I Additional District and Sessions Judge, Warangal.

2. The respondent-plaintiff has filed suit under Section 26 r/w Order 7 Rule 1 of CIVIL PROCEDURE CODE , 1908 and under Sections 36 and 38 of SPECIFIC RELIEF ACT against the appellant-defendant with a prayer to direct the defendant to register the suit schedule property in his favour (respondent-plaintiff), in alternative the defendant (appellant herein) is directed to repay the amount of Rs.23,70,333/- (Rupees Twenty Three Lakhs Seventy Thousand and Three Hundred and Thirty Three only) and to award costs of the suit.

3.1. Respondent-plaintiff and the appellant-defendant are residing in Parkal Town and they are known to each other. Appellant-defendant approached the respondent-plaintiff on 09.04.2010 with a request to lend Rs.10,00,000/- stating that he wants to construct a house in the Plot purchased by him and he deposited his Deed of Agreement of Sale, dated 11.11.2009 with the respondent-plaintiff and promised to pay interest @ 2% per month on the loan amount and he will clear the same by 31.03.2013. Appellant-defendant undertook that in case of his inability in making the repayment of the loan amount of Rs.10,00,000/- before 31.03.2013 with interest @ 2% which will be treated as the value of the house constructed. As per the recitals of the agreement, dated 09.04.2010, the appellant-defendant has to register the house property in favour of the respondent-plaintiff. The respondent-plaintiff has paid the above said amount to the appellant- defendant in the presence of the witnesses. Appellant-defendant has obtained loan for construction of the house in the Plot purchased by him and got the Grampanchayath assessment number as 5-183/1/C.

3.2. Since more than 2 years and 8 months the appellant-defendant has not come forward to settle the issue and that the respondent- plaintiff is not a money lender, he made several requests to the appellant-defendant to repay his money back with interest but he did not care. Finally, the respondent-plaintiff got issued legal notice on 03.12.2015 calling the appellant-defendant to perform his part of contract either to pay the money or to get the house property and Plot register in his name within one week from the date of receipt of the notice. Appellant-defendant received the notice on 07.12.2015 and he got issued reply notice on 10.12.2015 with false allegations. The amount payable by the appellant-defendant to the respondent-plaintiff is as follows:

and prayed to decree the suit.

4. Appellant-defendant has filed his written statement and contended that he is the absolute owner, possessor of the suit property by virtue of Agreement of Sale executed in his favour by its erstwhile owner on 11.11.2009. Thereafter, he got the same mutated in the records of Nagar Panchayathi Parkal and the house stands in his name in the records, got constructed the house in the said Plot with his hard earned money and residing therein peacefully and enjoying the fruits of the property. Respondent-plaintiff is unauthroised money lender in Parkal and he is involving innocent people after developing relationship with them as money lender, obtaining their signatures of innocent p