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2026 Supreme(Online)(Tel) 12168

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K. Lakshman, B. R. Madhusudhan Rao, JJ
Salla Amba Reddy – Appellant
Versus
R. Suresh Kumar – Respondent
IA.NO.1 of 2022 IN/AND APPEAL SUIT NO.219 OF 2009



When a vendor admits the execution of an agreement for sale and has accepted substantial payments beyond the contractually stipulated timelines without protest or reservation, the plaintiff-vendee is deemed to have performed their part, entitling them to specific performance rather than mere refund of the consideration.

Headnote:(A) Specific Relief Act, 1963 - Sections 16 and 20 - Suit for specific performance - Agreement for sale of immovable property - Readiness and willingness of plaintiff - Acceptance of delayed payments by defendants without protest - Effect of - Where vendor admits execution of agreement and receipt of substantial earnest money, plaintiff's readiness is established - Equitable relief of specific performance - Held, refusal to grant specific performance was perverse where plaintiff had already developed property and paid substantial consideration. (Paras 34, 35, 36, 40)

(B) Civil Procedure Code, 1908 - Order 41, Rule 27 - Additional evidence - Appellate stage - When such evidence can be admitted - Held, absence of due diligence in placing documents before trial court warrants dismissal of such application. (Paras 19, 21)

Facts of the case:
The appellant (plaintiff) entered into an agreement of sale for land with respondents (defendants), paid substantial advance, and developed the land into plots. Despite the appellant's payment of most of the consideration, the respondents failed to execute the sale deed, citing various disputes. The trial court dismissed the suit for specific performance, citing that the plaintiff was in default, and instead ordered a refund of the advance paid.

Findings of Court:
The High Court found the trial court’s findings perverse, noting that the defendants had accepted payments beyond the stipulated time without reservation. It held the appellant was entitled to specific performance upon payment of the remaining balance with 12% interest from the date of the legal notice.

Issues: Whether the plaintiff was ready and willing to perform his part of the contract and whether the trial court correctly exercised its discretion in refusing specific performance.

Ratio Decidendi: If the vendor admits the agreement and receipt of substantial part-payment, and has accepted payments beyond the contractual timeline without protest, the plaintiff's performance is deemed adequate, entitling them to the equitable remedy of specific performance.

Result: Appeal allowed.

Table of Content
1. court summarizes the background of the suit for specific performance and the trial court's dismissal. (Para 1 , 3 , 5 , 6 , 7 , 8 , 9 , 10)
2. arguments regarding readiness and willingness and acceptance of part payments. (Para 11 , 12 , 13 , 17 , 18 , 28 , 29)
3. criteria for admitting additional evidence under order 41 rule 27. (Para 19 , 20 , 21)
4. legal reasoning on discretion, readiness, and the effect of accepting payments beyond contractual dates. (Para 23 , 24 , 25 , 26 , 27 , 30 , 31)

JUDGMENT: (per Justice B.R.Madhusudhan Rao)

1. This Memorandum of Appeal is filed under Section 96 of the Civil Procedure Code, 1908 (for short ‘CPC’) assailing the judgment and decree passed by the learned IV Additional District Judge, Ranga Reddy in OS No.183 of 2005, dated 28.02.2009.

2.1. Appellant counsel submits that respondent No.3 is a formal party in the Appeal.

2.2. Suit against respondent No.3-defendant No.3 is dismissed for default on 14.11.2005 for non-payment of process.

3. Appellant is the plaintiff and respondents are the defendants. For the sake of convenience, respondent Nos.1 and 2 - defendant Nos.1 and 2 are herein after referred to as respondents-defendants.

4.1. The case of the appellant-plaintiff is that he has entered into Agreement of Sale with (1) Ravula Devamma (2) R.Sadanand (3) R.Krishna and R.Suresh Kumar (respondent No.1-defendant No.1) to purchase the land to an extent of Acs.3-21 gts., in Sy.Nos.31, 36, 67 and 68 part situated at Nagole Village, Uppal Revenue Mandal, Ranga Reddy District with specific boundaries for a total sale consideration of Rs.50,23,125/- and entered into agreement on 28.11.1999. On the date of agreement, appellant-plaintiff paid an amount of Rs.3,50,000/- as advance and the balance amount has to be paid by way of three installments within 19 months from the date of agreement. First installment has to be paid within seven months from the date of agreement (28.11.1999) remaining two installments have to be paid for every six months. The payments are subject to availability of land on the ground and survey has to be conducted which is liable for exclusion in calculating 19 months period. As per the agreement dated 28.11.1999, appellant-plaintiff is authorised to demarcate the schedule property into residential plots for which the vendors agreed to deliver the peaceful possession of the property. Appellant-plaintiff has purchased neighbouring properties to an extent of Ac.12-00 guntas by way of agreements. Subsequently, the property was measured and the land available is Acs.03-14 gts., boundaries were fixed (suit schedule property). Memorandum of Understanding is executed between the parties on 07.08.2000 to that effect. In the month of December, 2000 when the appellant-plaintiff proceeded for development of the suit property into plots, the neighbouring owners raised objections and he informed the same to the respondents-defendants. Respondents-defendants sought time to resolve the disputes. Appellant-plaintiff spent huge amount for the purpose of development of the property i.e., leveling the land, laying of roads, and errection of electricity poles. Appellant-plaintiff has paid different amounts on different intervals till 28.08.2002 in favour of respondent No.1-defendant No.1 and his brother Krishna. Respondent No.1-defendant No.1 received the amounts after the death of his mother (R.Devamma) and brother (R.Krishna). Respondents-defendants developed evil thoughts and started evading the appellant-plaintiff. Respondent No.3-defendant No.3 executed registered GPA cum agreement of sale with possession of his 1/3rd undivided share in Sy.Nos.31, 36, 67 and 68 (part) in the name of nominee of the appellant-plaintiff on 02.06.2001.

4.2. In the last week of January, 2003 appellant-plaintiff approached the respondents-defendants with balance sale consideration of Rs.6,34,166/- after deducting an amount of Rs.25,48,334/- already paid and executed sale deeds in his favour in r

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