A developer must demonstrate readiness and ability to perform contract terms to seek specific performance and cannot claim relief for agreements they haven't upheld.

JUDGMENT:

1. Plaintiff is the appellant. Plaintiff impugns the judgement dated 05.08.2009 of learned V Additional Senior Civil Judge, Guntur in O.S.No.400 of 2001. By the said judgement, the learned trial court refused to grant specific performance of an agreement and other reliefs prayed by the plaintiff and dismissed the suit. Therefore, this appeal is filed under section 96 read with order 41 rule 1 CPC .

2. Respondents in this appeal are the defendants in the suit.

3. Sri P.Veera Reddy, the learned senior counsel representing learned advocate on record Sri K.C.Venkata Reddy submitted arguments and cited precedent. For respondents, a counter was filed and written arguments were filed. Sri S.Raja Gopalan, the learned counsel appearing for respondents submitted arguments and cited precedent.

4. Before adverting to the pleadings and evidence, a few undisputed facts are required to be noticed.

465 square yards of land situated at 1/17 Brodipet, Guntur, Andhra Pradesh in old Ward No.2, New Ward No.5, Block No.6, in T.S.No.4-00 is the property owned by five persons who are arrayed as defendant Nos.1 to 5 in the suit. Along with them, Smt. Kanupathi Vardhanamma had a life estate over that property. She died sometime in the year 1999 or 2000. She had two sons who are arrayed as D6 and D7. Be it noted, on death of life estate holder, nothing was succeeded by D6 and D7 over the above referred property. D1 to D5 along with the life estate holder executed a registered General Power of Attorney in favour of D7 on 09.11.1994 evidenced by Ex.A2. By virtue of this GPA, D7 was entitled to do everything with reference to this property including sale of it.

5. On behalf of land owners, their GPA holder/ D7 and the plaintiff which is a sole propriety firm represented by sole proprietrix Smt.K.Tulasi entered into a development agreement dated 06.08.1997. This bilateral agreement was signed by D7/ GPA Holder and Smt.K.Tulasi/ the proprietrix for Tulasi builders.

6. It is to be recorded here that the defendants would be referred as land owners and the plaintiff would be referred as builder.

7. The terms and conditions of this development agreement/ Ex.A1 = Ex.A20 read as below:

Whereas the vendors were approached by the builders and offered to develop the open plot or land by building residential portions on the said plot of land and the vendors having agreed to the same on the following terms and conditions:-

NOW THIS INDENTURE WITNESSTH AS FOLLOWS:-

1. The builders shall construct a stilt and two storeyed building at their own cost on the scheduled plot of land as per the sanctioned by the Guntur Municipal Corporation.

2. Out of the three storeyed building, the builders shall hand over possession of the 1/3 of the total constructed plinth area and the parking space meant for the portions in the three floors, which will be in lied of the consideration of the land value, by permitting the building to be constructed over the scheduled plot of land, by handing over possession of the same plot of open land. The area to be allotted by the builders to the vendors out of the total constructed building shall be divided equally in the same proportion on all the floors and shall be one portion on each floor on the southern side

3. Whereas the municipal water connection, electricity, transformer, deposit with the APSEB, new connections, if any, expenditure will be borne by the owners and possession of the portions shall be 18 months from the date of the development agreement

4. That the builders shall be entitled to deal with the rema