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2025 Supreme(Online)(Tel) 54269

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. Sree Sudha, J
M/s. Avalon Builders Pvt Ltd – Appellant
Versus
Seri Balreddy – Respondent
Civil Revision Petition No.983 of 2025



An executant of a deed seeking its annulment must file a suit for cancellation of the instrument rather than a mere declaration, and failure to seek substantive reliefs like possession, when available, constitutes clever drafting warranting rejection of the plaint under Order VII Rule 11 of the CPC.

Headnote:(A) Specific Relief Act, 1963 - Section 31 - Indian Contract Act, 1872 - Section 202 - Civil Procedure Code, 1908 - Order VII Rule 11 - Rejection of plaint - Agreement of sale-cum-GPA coupled with interest - Unilateral cancellation of GPA by notice - Maintainability of suit for declaration without seeking cancellation of the base document - Plaintiff/executant of a document who seeks to annul it must seek cancellation of said instrument - Failure to seek cancellation of foundational agreement and delivery of possession renders suit liable for rejection under clever drafting doctrine.

Facts of the case:
The respondents/plaintiffs filed a suit for declaration to set aside certain sale deeds executed by the defendants under a GPA, claiming the GPA was terminated via notice. The petitioners/defendants filed an application under Order VII Rule 11 CPC for rejection of the plaint, contending that the GPA was coupled with interest under Section 202 of the Contract Act and could not be cancelled unilaterally. The defendants argued that because the plaintiffs were executants of the sale documents, they were legally required to seek cancellation rather than simple declaration.

Findings of Court:
The Court found that the plaintiffs, as executants of the underlying agreement of sale-cum-GPA, were legally obligated to seek cancellation of the agreement and delivery of possession. The Court observed the suit was framed via "clever drafting" to bypass necessary reliefs, and thus the plaint was liable to be rejected.

Issues: Whether the suit for declaration of title and invalidity of sale deeds, without seeking cancellation of the underlying agreement of sale-cum-GPA and possession, is maintainable.

Ratio Decidendi: A party who is the executant of a deed must seek its formal cancellation under Section 31 of the Specific Relief Act rather than merely seeking a declaration of its invalidity. Failure to do so, combined with non-pleading of essential reliefs like possession, constitutes an unsustainable suit.

Result: Civil Revision Petition allowed; Order of trial court set aside.

Table of Content
1. procedural history and nature of the challenge to the trial court order. (Para 1 , 2)
2. legal arguments regarding the requirement to seek cancellation of documents by executants. (Para 3 , 11 , 12 , 13 , 14 , 15)
3. factual background involving the agreement of sale and subsequent disputes. (Para 5 , 6 , 7 , 8 , 9 , 10)
4. final outcome of the revision petition. (Para 16)

ORDER:

This Civil Revision Petition is filed against the Order dated 07.03.2025 in I.A.No.2827 of 2024 in O.S.No.53 of 2017, passed by the learned Principal District and Sessions Judge, Sangareddy.

2. Petitioners herein have filed an application vide I.A.No.2827 of 2024 in O.S.No.53 of 2017, against the respondents before the trial Court under Section Order 7 rule 11 of CPC to reject the plaint in O.S.No.53 of 2017. The trial Court after considering the arguments of both sides dismissed the application. Aggrieved by the said order, petitioners/defendants have preferred present revision petition.

3. Learned counsel for the petitioners/defendants herein mainly contended that respondents/plaintiffs have filed a suit vide O.S.No.53 of 2017, to declare the registered documents bearing Nos.5192 and 5193 of 2017, as invalid as they are executed without sanction and authority and also for injunction restraining the defendants from interfering with their possession of the suit land. Respondents/plaintiffs have admitted the execution of agreement of sale-cum-GPA's bearing document Nos.11351 and 11352 of 2016 dated 25.05.2016 in para No.5 of the plaint and they have also admitted the issuance of notice cancelling the GPA's and it clearly shows the execution of agreement cum GPA. The General Power of Attorney (GPA) was executed in pursuance to agreement of sale after payment of sale consideration, therefore GPA is coupled with interest in view of Section 202 of Contract Act and it cannot be cancelled unilaterally and it is barred by law. The registered document can be cancelled through a registered cancellation deed and the cancellation by issuance of notice is unknown to law. In the plaint, it was stated that petitioner No.5/defendant No.5 had not been served with notice and it is not returned, therefore GPA of petitioner No.5 is not cancelled. Consequently, the sale deeds executed are valid and the suit is liable to be dismissed. The trial Court has passed a non-speaking and non-reasoned order. It was simply held that the plaint averments discloses the cause of action. Respondents/plaintiffs did not sought any relief against the agreement of sale cum GPA dated 25.05.2016, as such declaration of the sale deed is invalid, erroneous and against the law. The main relief should be regarding agreement of sale cum GPA. As the cancellation of the GPA is not in accordance with law, there is no cause of action. Clever drafting of the plaint by the respondents/plaintiffs created illusory cause of action. The GPA is not cancelled as per law under Section 31 of the Specific Relief Act, as such respondents/plaintiffs could not avail the remedy against the sale deed and thus the trial Court ought to have rejected the plaint. Therefore, requested the Court to set aside the order of the trial Court.

4. Parties herein are referred as plaintiffs and defendants as arrayed before the trial Court in O.S.No.53 of 2017, for the sake of convenience

5. Plaintiffs in their plaint filed in O.S.No.53 of 2017 stated that plaintiff No.1 is the absolute owner and possessor of the land admeasuring Ac.0-38 gts in Sy.No.120/EE and also to an extent of Ac.2-05 gts in Sy.No.122/AA2, situated at Velimela Village, Ramachandrapur Mandal, Sangareddy District, thus the plaintiff No.1 is having a total extent of Ac.3-03 gts. Plaintiff No.2 is the absolute owner and the possessor of the land admeasuring an extent of Ac.0-38 gts in Sy.No.120/A2 and Ac.1-28 gts in Sy.No.122/A2 and thus he is having total extent of Ac.2-26 gts in the said survey numbers. The lands of the plaintiffs together are form

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