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2026 Supreme(Online)(Tel) 11218

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
B.R.Madhusudhan Rao, J
Dudekula Chand Pasha – Appellant
Versus
Mirza Hussain Ali – Respondent
CIVIL REVISION PETITION NO.1684 OF 2023



In a suit for specific performance, the plaintiff's financial capacity and readiness to perform the contract are triable issues to be determined during the trial, and the court should not compel the production of personal bank statements at an interlocutory stage through a roving inquiry.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Suit for Specific Performance - Readiness and willingness - Production of bank statements for analyzing cash flow - Plaintiff's capacity to pay balance sale consideration - Trial Court allowed the application for discovery and production of documents - Held, capacity to pay balance sale consideration is a matter to be established during trial - Irrelevant for court to compel production of personal financial documents at interlocutory stage - Impugned order perverse - CRP allowed. (Paras 16, 17, 19)

Facts of the case:
Petitioner filed a suit for specific performance of an agreement of sale. The defendant filed an interlocutory application seeking discovery and production of the plaintiff's bank statements to analyze his cash flow, liquidity, and solvency. The Trial Court allowed the application, prompting the plaintiff to prefer the present Civil Revision Petition.

Findings of Court:
The court determined that under Section 16(c) of the Specific Relief Act, it is not mandatory for a plaintiff to prove their entire financial capacity by producing specific bank records at the interlocutory stage, as this is a matter to be adjudicated during trial upon leading evidence. The court found the lower court's direction to be perverse.

Issues: Whether the trial court was correct in compelling the plaintiff to produce bank statements to verify his financial solvency in a suit for specific performance.

Ratio Decidendi: The question of readiness and willingness, including the capacity to pay, is a triable issue to be decided during the course of the trial based on evidence, and the court should not engage in a roving inquiry by compelling the production of sensitive personal financial documents at an interlocutory stage.

Result: CRP allowed; impugned order set aside.

Table of Content
1. nature of the civil revision petition. (Para 1 , 2)
2. summary of rival arguments regarding discovery. (Para 4 , 5)
3. factual background of the specific performance suit. (Para 7 , 8 , 9 , 10 , 11)
4. statutory provisions and precedents on discovery. (Para 12)

ORDER

1. This Memorandum of Civil Revision Petition is filed under Article 227 of the Constitution of India assailing the order passed by learned IX Additional Chief Judge, City Civil Court at Hyderabad in I.A.No.457 of 2023 in O.S.No.328 of 2021 dated 11.04.2023.

2. Petitioner is the respondent-plaintiff and respondent No.1 is the petitioner – defendant in I.A.No.457 of 2023 in O.S.No.328 of 2021 and respondent Nos.2 to 5 are the legal representatives of respondent No.1.

3.1 Respondent No.1 – petitioner - defendant has filed I.A.No.457 of 2023 under Order XI Rules 12 and 14 read with Section 151 of CPC to pass an order for discovery and inspection and production of documents from the custody of the petitioner – respondent - plaintiff. The documents sought by the respondent No.1 – petitioner – defendant are bank statements for the period commencing from 31.03.2020 till date i.e., 27.02.2023 for analyzing the petitioner-respondent-plaintiff's cash flow and liquidity and solvency for having paid the advance sale consideration amount and for paying the balance sale consideration amount as asserted in the pleadings in the plaint.

3.2 Petitioner-respondent-plaintiff filed counter and contended that the application filed by respondent No.1 – petitioner - defendant is not maintainable and devoid of merits. Respondent No.1 – petitioner - defendant did not take any plea in the written statement, a new plea is taken in the affidavit, the issue has to be decided during the course of trial and prayed to dismiss the petition.

3.3 Learned Trial Court has allowed the application filed by respondent No.1 – petitioner - defendant which is impugned in the present CRP.

4. Learned Senior Counsel for the petitioner – respondent – plaintiff submits that the learned Trial Court failed to appreciate the facts with its judicial mind and ought to have seen that no one is compelled to produce the documents which have no relevancy at all. As per Section 16(c) Explanation (i) of the Specific Relief Act, 1963 where a contract involves the payment of money, it is not essential for the plaintiff to actually tender to the defendant or to deposit in Court any money except when so directed by the Court. The learned Trial Court ought to have seen that suit is for specific performance of contract and the petitioner-respondent-plaintiff is ready to perform his contract, himself and his family members are having sufficient lands which are fetching good value in the market. Respondent No.1 – petitioner - defendant having filed IA under Order VII Rule 11 read with Section 151 of CPC, which came to be dismissed and only to harass the petitioner-respondent-plaintiff he filed I.A.No.457 of 2023. The order passed by the learned Trial Court is perverse. In support of his contention has relied on the decisions in the cases of (i) Central Bank of India Vs. Shivam Udyog and others11 (1995) 2 SCC 74, (ii) Sukhbir Singh and Others Vs. Brij Pal Singh and Others22 AIR 1996 SUPREME COURT 2510 (iii) Azhar Sultana Vs. B.Rajamani and others33 AIR 2009 Supreme Court 2157 (iv) Hari Steel and General Industries Limited and another Vs. Daljit Singh and Others44 AIR 2019 Supreme Court 4796 and (v) Rajesh Bhatia and others Vs. G.Parimala and another55 2006 (3) ALD 415.

5. Learned counsel for respondent Nos.1 to 5 submits that the learned Trial Court has rightly directed the petitioner-respondent-plaintiff to produce the documents which shows whether he has capacity to pay the amount and the respondent No.1- petitioner-defendant during his lifetime has issued statutory notice dated 11.02.2023 under Order XI Rules 15 and 16 of CPC calling the petitioner-respondent-plaintiff to produce the documents to prove his case

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