Citation : 2022 Latest Caselaw 5353 Tel
Judgement Date : 27 October, 2022
THE HONOURABLE SRI JUSTICE M.LAXMAN
CITY CIVIL COURT APPEAL No.12 of 1994
JUDGMENT:
1. The present appeal has been directed against the
judgment and decree dated 25.10.1993 in O.S.No.892 of
1980 on the file of the V Additional Judge, City Civil Court
at Hyderabad, wherein and whereby the suit filed by the
appellant herein for specific performance of contract was
dismissed.
2. The appellant herein is the plaintiff and the
respondents herein are the defendants in the said suit.
For the sake of convenience, the parties hereinafter are
referred to as they are arrayed in the suit.
3. The sum and substance of the case of the plaintiff is
that defendant No.1 is owner of land admeasuring Ac.2-20
guntas in Sy.No.91 of Meer Sagar Village, Taluk Urban of
Hyderabad District (hereinafter, it is referred to as 'suit
property'). The plaintiff and defendant No.1 entered into
an agreement of sale dated 26.08.1974 for sale of the suit
property. The said sale agreement was for total sale
consideration of Rs. 49,900/-. Out of said sale
consideration, Rs.5,000/- was paid by the plaintiff in cash
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on the date of execution of the agreement of sale and
Rs.5,000/- was paid through demand draft drawn on State
Bank of Hyderabad at Sirpur and the balance amount
payable was Rs.39,900/-.
4. The agreement also contemplates that the plaintiff
shall obtain all the necessary permissions for sale of suit
property and get transfer of title as per law. The purpose of
purchasing the suit property was to establish a Dall Mill.
Accordingly, in pursuance of the agreement of sale, the
plaintiff obtained permission from the Hyderabad Urban
Development Authority, Hyderabad under Ex.A-14 dated
11.08.1976 and also obtained required permission from
the Revenue Department under Ex.A-16 dated 12.09.1980.
5. It is the further case of the plaintiff that while so, in
the year 1980, the plaintiff visited the suit property and
found that the land was converted into plots by some third
party, who had nothing to do with the title and possession
of the suit property and executed sale deeds. In the said
circumstances, the plaintiff issued legal notice to defendant
No.1 dated 14.02.1980 and defendant No.1 issued reply
dated 02.04.1980 and thereafter, the present suit has been
filed.
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6. Defendant No.1 did not file any written statement,
but other defendants, who purchased and in possession of
the suit property, filed their written statements. They
specifically denied the allegations made by the plaintiff and
also denied the existence of agreement of sale between the
plaintiff and defendant No.1. They also pleaded that they
are bona fide purchasers of the suit property for valid
consideration from defendant No.1, as such, they hold the
title of the suit property through registered sale deeds. It is
their specific pleading that they are in possession of the
suit property. Basing on the above pleadings, they prayed
to dismiss the suit.
7. On the basis of the above pleadings, the trial Court
has framed the following issues:
"1. Whether the plaintiff is entitled for specific performance of contract dated 26.08.1974?
2. Whether the suit agreement of sale is there?
3. Whether the contesting defendants are bonafide purchasers for value without notice?
4. Whether the sales set up by the defendants are null and void as they are in contravention of the provisions of Urban Land (Ceiling and Regulation) Act, 1976?
5. Whether plaintiff is entitled for possession of the suit land?
6. Whether the suit is barred by limitation?
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7. To what relief?"
8. The plaintiff, to support his case, examined P.Ws.1 to
3 and relied upon Exs.A-1 to A-18 and X-1 and X-2. The
defendants, to support their case, examined D.Ws.1 to 15
and relied upon Exs.B-1 to B-95.
9. The trial Court, after appreciating the evidence on
record, found that there is a valid agreement in between
plaintiff and defendant No.1. However, the specific
performance is denied on the ground that defendant Nos. 2
to 45 raised constructions and were in possession of the
suit property. Consequently, the suit was dismissed.
Hence, the present appeal at the instance of the plaintiff.
10. Heard.
11. The points emerging for consideration in this appeal
are as follows:
"1. Whether the plaintiff has performed or has always been ready and willing to perform his part of obligation as per the agreed terms of the contract all through?
2. Whether the plaintiff is entitled for specific performance, as prayed for?
3. To what relief?"
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12. The evidence and pleadings on record clearly show
that there is agreement of sale in between the plaintiff and
defendant No.1 under Ex.A-1. The terms of the said
agreement of sale show that on the date of execution of
agreement of sale, the plaintiff paid Rs.5,000/- towards
advance sale consideration, out of the agreed total sale
consideration of Rs.49,900/-. Subsequently, he has paid
Rs.5,000/- through demand draft. Thus, the plaintiff paid
total sale consideration of Rs.10,000/- leaving balance sale
consideration of Rs.39,900/- to be paid at the time of
registration of document.
13. The terms of Ex.A-1 show that it is the obligation of
the plaintiff to obtain all permissions for sale transaction
from various departments/authorities. It is also agreed
that the transaction shall be concluded within four (4)
months, and if the transaction could not be completed
within four (4) months, both the parties mutually can
extend the time for a reasonable period. It is further
agreed that defendant No.1 shall deliver the vacant
possession of the suit land in favour of the plaintiff
simultaneously with the execution of the registered sale
deed on payment of the balance sale consideration. It is
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also mentioned that if the plaintiff desires to get advance
possession of the suit property, he has to pay further
amount of Rs.20,000/- and seek advance possession
before the execution of the sale deed. The terms of the
agreement also show that the plaintiff shall suitably
advertise the proposed sale and call for objections, if any,
so as to have clear title on the suit property.
14. In the plaint, there is no averment with regard to his
readiness and willingness for payment of balance sale
consideration all through from the date of execution of the
agreement of sale till the date of filing of the suit.
15. The contention of the learned counsel for the
plaintiff/appellant is that permission under Exs.A-14 and
A-16 clearly shows that the plaintiff had exhibited his
readiness and willingness. The said permissions were
obtained in the years 1976 and 1977.
16. Learned counsel for the plaintiff/appellant also
contended that the period for completion of the sale
transaction was referred in the context of obtaining
permission from the Government departments/authorities.
Obtaining of permissions is uncertain event, as such, there
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was some delay in that regard. Non-issuance of notice for
specific performance does not automatically give an
inference that the plaintiff has not exhibited readiness and
willingness on his part.
17. The evidence relied upon by the defendant Nos.2 to
45 shows that they obtained sale deeds from defendant
No.1 and on the basis of the sale deeds, they have raised
constructions. The trial Court took the note that as the
sale transaction relied by defendant Nos.2 to 45 is invalid,
their occupation and constructions over the suit land are
also illegal.
17. Admittedly, defendant No.1 is the owner of the
subject property and he did not take any steps till date for
eviction of the encroachers. The plaintiff has also not
sought any relief against defendant No.1 for affecting the
eviction proceedings against the encroachers, so that he
could get valid title and possession by executing the sale
deed in pursuance of agreement of sale. Instead of seeking
the said relief, the plaintiff has prayed for specific
performance of the contract with defendant No.1.
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18. According to the pleadings and evidence of defendant
No.1, he is not in possession of the suit property, but the
encroachers are in possession of the same. Further, the
terms and conditions of the contract clearly show that the
original period contemplated by both the parties for
concluding the contract was four (4) months and this
condition contemplates that all the requirements for
obtaining permission for sale transaction must be obtained
as expeditiously as possible, which shall not normally more
than four months. However, if both the parties mutually
agreed for extension of period, reasonable period can be
extended to facilitate the plaintiff to obtain permissions for
the sale transaction. If the original period is taken into
consideration, the reasonable period cannot mean that it
shall be more than two years. Receiving certain amounts
by defendant No.1/General Power of Attorney and the
efforts of the plaintiff in obtaining permissions upto the
year 1977 would demonstrate that there was readiness and
willingness on the part of the plaintiff upto the year 1977.
From 1977 to 1980, absolutely there are no pleadings or no
positive acts on the part of the plaintiff, which
demonstrates that he exhibited his readiness and
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willingness to perform his part of obligation as agreed
between the plaintiff and defendant No.1.
19. Prior to amendment Act of 2018 to the Specific Relief
Act, 1963, Section 16 (c) requires that there shall be
averment and proof of readiness and willingness. When
the pleadings are perused, absolutely there is no pleading
to show that the plaintiff has exhibited his readiness and
willingness to perform his part of obligation from 1977 to
till the date of filing of suit. The evidence also shows that
after filing of the suit, the balance sale consideration of
Rs.39,900/- was deposited.
20. It is to be noted that for three years, absolutely there
is no evidence to demonstrate the exhibition of readiness
and willingness on the part of the plaintiff. The trial Court
has not framed any issue in this regard which is in
violation of Section 16 (c) of the Specific Relief Act, 1963.
The plaintiff also failed to comply with the requirements of
averments and proof of such readiness and willingness, for
the period from 1977 to 1980.
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21. In view of the above, this Court finds that there is
absolutely no readiness and willingness on the part of the
plaintiff from the year 1977 to 1980.
22. The evidence also demonstrates that the entire illegal
transactions were done in the year 1980 which are prior to
the filing of the suit. If the plaintiff had exhibited his
readiness and willingness immediately after 1977, when he
obtained required permissions from the authorities, this
situation could have been prevented. It is the plaintiff's
own inaction which invited the entire encroachment and
illegal constructions over the suit property.
23. The encroachers are in settled possession till today.
Defendant No.1 has not initiated any proceedings for their
eviction by seeking appropriate relief. The plaintiff even if
he got executed the sale deed, he cannot insist any eviction
proceedings after lapse of nearly fifty (50) years. Therefore,
in the said circumstances, this Court cannot entertain any
specific performance even if there is proof that there is a
valid agreement of sale between the plaintiff and defendant
No.1.
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24. In view of the above, I do not find any illegality in the
findings of the trial Court in rejecting the specific
performance of the agreement of sale entered into between
the plaintiff and defendant No.1. Hence, this appeal is
liable to be dismissed.
25. In the result, the appeal is dismissed confirming the
judgment and decree dated 25.10.1993 in O.S.No.892 of
1980 on the file of the V Additional Judge, City Civil Court
at Hyderabad. There shall be no order as to costs.
Miscellaneous petitions, if any, pending, shall stand closed.
______________ M.LAXMAN, J Date: 27.10.2022 TJMR/GVR
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