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IN THE COURT OF THE I ADDL. DISTRICT JUDGE :: GUNTUR.
PRESENT: SRI G. ANWAR BASHA, I Additional District Judge, Guntur.
Wednesday, the 13 th day of April, 2022.
Original Suit No.526/2014
Between:
Vasantha Venkata Rao, S/o.Venkateswarlu, Hindu, aged about 62 years, Agriculture, resident of S.Amaravaram village, Kanchikacharla Mandal, Krishna District, within the jurisdiction of this Hon’ble DMC, Nandigama.
... Plaintiff.
-And-
1. Gadde Yeshoda Rao, S/o.Late Venkateswara Rao, Hindu, aged about 52 years, Agriculture, permanent resident of D.No.4-128, Thulluru village and Mandal, Guntur District, which is within the jurisdiction of Hon’ble DMC, Mangalagiri. Temporarily residing at C/o.Mada Venkateswara Rao, Bunk Centre, Kanchikacharla village and Mandal, Krishna District, which is within the jurisdiction of
Hon’ble DMC, Nandigama.
2. Gadde Venkatapathi Rao, S/o. Nageswara Rao, Hindu, aged about 58 years, Cultivation, resident of Tsunduru, Guntur District, which is within the jurisdiction of
Hon’ble DMC, Tanali.
3. Gadde Surendra Babu, S/o.Venkatapathi Rao, Hindu, aged about 29 years, Cultivation, resident of Tsunduru, Guntur District, which is within the jurisdiction of
Hon’ble DMC, Tenali.
...Defendants.
This suit coming before me for final hearing on 07.04.2022 in the presence of Sri M.V.Subba Rao, Advocate for Plaintiff, and of Sri S.Ramarao, Advocate for the Defendants No.2 and 3, and Defendant No.1 remained ex-parte and upon perusing the material available on record, and having stood over for consideration till this day, this Court delivered the following:
J U D G M E N T
1. This is a suit filed for specific performance of agreement of sale dated 30.04.2011, for permanent injunction, suit costs and other reliefs.
2. The brief averments made in the plaint are that:
The first defendant is the absolute owner of the property situated at
Nelapadu, Sakamuru, Tulluru and Rayapudi which are referred as plaint schedule properties. The first defendant has put the plaint schedule properties to sale in the month of April, 2011. The plaintiff offered to purchase the said properties for 2
Rs.30,00,000/-, and the first defendant having satisfied with the offer agreed to sell the plaint schedule properties to the plaintiff and after the receipt of Rs.12,50,000/- on 30.4.2011, he executed an agreement of sale in favour of the plaintiff. As per the terms and conditions of the agreement, the plaintiff has to pay Rs.10,00,000/- within 90 days, and the defendant has to execute regular sale deed in favour of plaintiff or his nominee, whenever the plaintiff paid balance sale consideration of Rs.7,50,000/-. As such there was time stipulation only for payment of Rs.10,00,000/- and there was no time stipulation for payment of Rs.7,50,000/-. As per the terms and conditions the plaintiff paid Rs.10,00,000/- on 16.6.2011, and it was endorsed on the reverse of agreement.
Subsequently, the plaintiff also paid an amount of Rs.5,00,000/- on 22.12.2012, and the same was endorsed on the reverse of the agreement. The plaintiff has totally paid an amount of Rs.27,50,000/- and the balance to be paid is Rs.2,50,000/-. The plaintiff was ready with Rs.2,50,000/- and had been requesting the first defendant to receive the balance and to execute sale deed, but the first defendant did not come forward to perform his part of obligation and the efforts of the plaintiff made to get regular sale deed had become futile as first defendant evading to perform his obligation. The plaintiff got issued legal notice on 29.10.2014 and having received the notice the first defendant did not respond and as there was no other way, the plaintiff knocked the doors of the Hon’ble Court.
3. The first defendant has remained ex-parte. The second defendant has filed written statement which was adopted by third defendant. The brief averments made in the written statement are that :
The allegations in the plaint are false. Plaintiff and first defendant are close relatives. The plaintiff and one Madala Venkateswara Rao are co-brothers, and first defendant is the son of junior material aunt of Madala Venkateswara Rao and after the marriage of the defendant was dissolved, he had been residing along with Madala
Venkateswara Rao at Kanchekacherla. One Velaga Srinadh Prasad is the brother-in-law of plaintiff and Madala Venkateswara Rao. The first defendant sold the plaint schedule properties to Velaga Srinadh Prasad through registered sale deed 5.7.2011 and 3 delivered possession to him. The plaintiff’s co-brother M.V.Rao was one of the attestors to the said sale deed. By the time of the sale, there was no rumor about establishment of A.P.Capital near plaint schedule property. The said Velaga Srinadh Prasad sold plaint schedule property to Vajja Sasidhar through sale deed dated 30.5.2014, and by that time there was no much value of the lands. Later, second defendant purchased item
No.3 of plaint schedule land from Vajja Sasidhar and third defendant purchased item
No.1, 2 and 4 from said Sasidhar through separate registered sale deeds dated 19.9.2014 and possession was delivered to them. Later, the value of the lands was ascending due to announcement of establishment of capital which caused eyesore to
Madala Venkateswara Rao. The plaintiff has got complete knowledge about first defendant’s sale of plaint schedule property to Velaga Srinadh Prasad and sale of
Srinadh Prasad to Vajja Sasidhar. The plaintiff, first defendant, Madala Venkateswara
Rao and V.Srinadh Prasad had colluded together and brought into existence, suit agreement of sale with ante date to defeat the sale deed in view of increase in the value of plaint schedule lands. There was no real transaction under the suit agreement of sale. The plaintiff has approached this Hon’ble Court with unclean hands, and he is not entitled to equitable relief of Specific Performance. The Revenue authorities issued pattadar passbooks and 10(1) Adanagal in the names of defendants 2 and 3 and these defendants had given the land for pooling to AUDA and they have been paying maktha to this defendant. Hence, the suit is liable to be dismissed with exemplary costs.
4. On the basis above said pleadings my learned predecessor–in–office framed following issues for trial:
1. Whether the first defendant executed agreement of sale on 30.04.2011 in favour of plaintiff by receiving advance sale consideration from him?
2. Whether the sale agreement is the outcome of the alleged circumstances as pleaded by the second defendant?
3. Whether the first defendant made part payment endorsements dt.16.06.2011 and 22.12.2012 by receiving 4 the part of sale consideration covered by those two endorsements in favour of plaintiff?
4. Whether plaintiff is entitled to seek direction against the defendants to execute registered sale deed in favour of the plaintiff or in case of their failure to obtain sale deed through court?
5. Whether the plaintiff is entitled to seek the relief of permanent injunction restraining the defendants from alienating or creating any sort of encumbrances over the schedule properties?
6. To what relief?
5. On behalf of the plaintiff, PW.1 to PW.6 were examined and Exs.A1 to A10 were marked. On behalf of the defendants, DW1 was examined and Exs.B1 to B32 were marked.
6. Heard both sides.
ISSUE Nos.1, 3, 4 and 5:
7. The burden of proving these issues is on the plaintiff. The plaintiff has filed the suit for specific performance of agreement for sale dated 30.4.2011, for permanent injunction, for suit costs and other reliefs. The case of the plaintiff is that, the first defendant is the absolute owner of the property situated at Nelapadu,
Sakamuru, Tulluru and Rayapudi which are referred as plaint schedule properties. The first defendant has put the plaint schedule properties to sale in the month of April, 2011. The plaintiff offered to purchase the said properties for Rs.30,00,000/-, and the first defendant having satisfied with the offer agreed to sell the plaint schedule properties to the plaintiff and after the receipt of Rs.12,50,000/- on 30.4.2011, he executed an agreement of sale in favour of the plaintiff. As per the terms and conditions of the agreement, the plaintiff has to pay Rs.10,00,000/- within 90 days, and the defendant has to execute regular sale deed in favour of plaintiff or his nominee, 5 whenever the plaintiff paid balance sale consideration of Rs.7,50,000/-. As such there was time stipulation only for payment of Rs.10,00,000/- and there was no time stipulation for payment of Rs.7,50,000/-. As per the terms and conditions the plaintiff paid Rs.10,00,000/- on 16.6.2011, and it was endorsed on the reverse of agreement.
Subsequently, the plaintiff also paid an amount of Rs.5,00,000/- on 22.12.2012, and the same was endorsed on the reverse of the agreement. The plaintiff has totally paid an amount of Rs.27,50,000/- and the balance to be paid is Rs.2,50,000/-. The plaintiff was ready with Rs.2,50,000/- and had been requesting the first defendant to receive the balance and to execute sale deed, but the first defendant did not come forward to perform his part of obligation and the efforts of the plaintiff made to get regular sale deed had become futile as first defendant evading to perform his obligation. The plaintiff got issued legal notice on 29.10.2014 and having received the notice the first defendant did not respond and as there was no other way, the plaintiff knocked the doors of the Hon’ble Court.
8. To prove the case of the plaintiff, PW.1 to 6 were examined and Exs.A1 to
A10 were marked.
9. PW.1, Vasantha Venkata Rao, is the plaintiff himself. PW.2, Velaga Krishna, is a third party, PW.3, Karla Srinivasarao, is also a third party. PW.4, Shaik Karimulla, is too a third party. PW.5, Gujjarlapudi Sudhakar Babu, is a lorry driver. PW.6, Jalla
Tirupathi Srinivasa Pullarao, is a third party.
LAW ON THE SUBJECT:
10. The relief of Specific Performance is a discretionary remedy and the court is not bound to grant such relief merely it is lawful to do so. The jurisdiction to decree,
Specific performance is discretionary, but the discretion of the court is not to be arbitrary, but sound and reasonably guided by judicial principles and capable of correction by court of appeal. Where the terms of contract or the conduct of the parties at the time of entering into contract or the other circumstances under which the contract was entered into or such that the contract though not voidable but gives the plaintiff an unfair advantage over the defendant, the court cannot grant a decree for 6 specific performance. Where the performance of the contract would involve some hardship on the defendant, which he did not foresee, whereas its non-performance would involve no such hardship on the plaintiff, there is no obligation on the court to grant the relief of Specific performance. Where the defendant entered into the contract under the circumstances, which though not rendering the contract voidable, makes it inequitable to empower specific performance, the court may probably exercise its discretion not to decree specific performance. Mere inadequacy of consideration or the mere fact that the contract is onerous to the defendant or improvident in its nature shall not be deemed to constitute an unfair advantage. The question whether the performance of the contract would involve hardship on the defendant shall, except in cases, where hardship had resulted from any act of the plaintiff subsequent to contract, be determined with reference to the circumstances existing at the time of contract. The court may probably exercise discretion to decree specific performance in any case where plaintiff has done substantial acts or suffered losses in consequence of a contract capable of specific performance. The court shall not refuse to any party, specific performance of the contract merely on the ground that the contract is not enforceable at the instance of other party. Discretion when applies to the court of justice means sound discretion guided by law. It must be governed by rule and not by humour. It must not be arbitrary, vague and untactful but legal and regular. In view of the above said legal position, it has to be seen whether the discretion has to be exercised in favour of the plaintiff or whether there is any unfair advantage to the plaintiff or hardship to the defendant and the discretion has to be denied.
THE CASE ON HAND:
11. The plaintiff has filed his affidavit in accordance with the pleadings in his plaint. He was cross-examined by the learned counsel for defendants 2 and 3. In the cross-examination of PW.1, he has stated that he does not know whether the signature on Ex.A1 belongs to D1, and he did not see when D1 signed on Ex.A.1, and he did not see whether D1 signed on Ex.A.2 and Ex.A.3. Ex.A.1 is original agreement of sale
dated 30.4.2011. Ex.A.2 is part-payment endorsement dated 16.6.2011. Ex.A.3 is also
7 part-payment endorsement dated 22.12.2011. The plaintiff, as admitted by him, has not seen the first defendant either signing on Ex.A.1 or on Exs.A.2 and A3.
12. He has also admitted that it was true that for the purpose of filing this suit they prepared Ex.A.1, sale agreement and it was true that, he, D1 and Madala
Venkateswara Rao together prepared Ex.A.1, and Ex.A.1 was prepared about three months prior to the filing of this suit.
13. From these admissions of PW.1, it is clear that Ex.A.1 was prepared by the plaintiff, first defendant and Madala Venkateswara Rao, three months prior to the suit for the purpose of filing this suit.
14. PW.1 has pleaded ignorance stating that he does not know who scribed
Ex.A.1, and again he has stated that one Lawyer by name A.Syam Sundar Reddy,
Gandhi Nagar, Vijayawada, scribed Ex.A.1. He has categorically admitted that it was true that his counsel prepared Ex.A.1. He has further admitted that the Government acquired items No.1 to 4 of schedule properties from D2 and D3. With regard to purchase of item Nos.1 to 4 by D2 and D3, he has pleaded ignorance stating that he does not know whether D2 and D3 purchased items 1 to 4 from Vajja Sasidhar. He as admitted that till Srinadh Prasad sold item Nos.1 to 4 to Vajja Sasidhar, the properties were in possession of Srinadh Prasad. He has also admitted that presently the schedule properties are not in possession of D2 and D3, and they were acquired by Government.
15. In spite of admissions made by Pw.1 that Ex.A.1 was prepared by an
Advocate in collusion with plaintiff, D1 and Madala Venkateswara Rao, for the purpose of filing the suit, PWs.2 to 6 were examined by the plaintiff. PW.2 has admitted that the plaintiff had purchased stamp paper on 30.4.2011. Ex.A.1 goes to show that the stamp papers were purchased by the first defendant and not by the plaintiff. He has also admitted that he does not remember the name of scribe of Ex.A.1. He has further admitted that he does not know the details of the properties including extents.
16. PW.3 has admitted that he does not know the other details and he does not know from where the plaintiff brought the cash. He has also admitted that the property is in possession of D1. He has further admitted that he does not know who 8 scribed Ex.A.1.
17. PW.4 has admitted that the contents of chief-examination were stated by plaintiff and then he signed and it was true that he does not know the contents of his chief examination.
18. PW.5 has admitted that it was true that contents of chief-examination were prepared by the plaintiff and he signed.
19. PW.6, who was examined by an Advocate-commissioner, has admitted that he does not know whether the plaintiff got any land except the plaint schedule land and he never signed on any property document of plaintiff. He has also admitted that he did not sign in respect of plaint schedule property documents also. He has further admitted that he did not sign on any property document of Gadde Yashoda Rao. He has categorically admitted that he does not know any transactions of Vasantha Venkata
Rao.
20. Therefore, from the evidence of PW.1 to PW.6, it is crystal clear that the agreement of sale under Ex.A.1, was prepared by plaintiff, D1 and Madala
Venkateswara Rao, three months prior to filing of suit and it was prepared by the counsel of the plaintiff by name A.Syam Sundar Reddy. The plaintiff who had entered into an agreement of sale with first defendant does not know whether the signature on
Ex.A.1 belongs to D1 and surprisingly he has admitted that he did not see as to when
D1 signed on Ex.A.1 and further he did not see D1 signing on Ex.A.2 and A3. He has categorically admitted that himself, D1 and Madala Venkateswara Rao, got prepared the suit. From these admissions it is very clear that Ex.A.1 was created for the purpose of filing of this suit.
21. In Kamal Kumar v. Prema Latha Joshi and others, 2019 (1) ALD 181 (SC), the Hon’ble Supreme Court, has discussed about the principles of law relating to grant of relief of Specific performance as follows:- “10. It is settled principles of law that the grant of relief of Specific performance is a discretionary and equitable relief. The material questions, which are required to be gone into for grant of the relief 9 for specific performance, are first, whether there exists a valid and concluded contract between the parties for sale/ purchase of the suit property, second, whether the plaintiff has been ready and willing to perform his part of contract and whether he is still ready and willing to perform his part as mentioned in the contract; third, whether the plaintiff has, in fact, performed his part of contract and if so, how and to what extent and in what manner he has performed and whether such performance was in conformity with the terms of the contract; fourth, whether it will be equitable to grant the relief of specific performance to the plaintiff against the defendant in relation to the suit property or it will cause any kind of hardship to the defendant and, if so, how and in what manner and the extent if such relief is eventually granted to the plaintiff; and lastly, whether the plaintiff is entitled for grant of any other alternative relief, namely, refund of earnest money etc., and if so, on what grounds.”
22. Therefore, the first and foremost requirement for grant of relief of specific performance is existence of a valid and concluded contract between the parties for sale of the property.
23. The learned counsel for the plaintiff contended that there were weaknesses in the case of the defendants and want to rely upon such weaknesses for the purpose of proving the case of the plaintiff. In Chodi Mahalakshmi v. Koppada
Sathiraju and another, 2011 (3) ALD 774, the Hon'ble High Court of A.P., held that- “Evidently, as per law of evidence, the burden is on the person who fails if evidence is not adduced to prove the fact in issue. The fact in issue is as to whether the agreement was executed in the manner alleged by the plaintiff. If there is evidence on the side of the plaintiff to probabalise the truthfulness of the contents, then 10 the plea of the defendant has to be put juxtaposition and the court can decide as to whether the plea of the defendant is true or not.
In a suit for specific performance where a decree is only a discretionary, in the proof of the substance of the claim of the plaintiff, the burden cannot be cast on the defendant.”
The Hon'ble High Court also held that- “In fact, when the parties are denying the transaction itself, it is for the plaintiff to prove the truthfulness of the transaction, the authority and the binding nature.”
24. Therefore, except the interested evidence of PW.1, surrounded by suspicious circumstances, there is no other evidence to prove the execution of Ex.A.1 or the probability of its execution for consideration as alleged by the plaintiff. The plaintiff has clearly admitted that himself, D1 and M.Venkateswara Rao had prepared Ex.A.1 for the purpose of this suit three months prior to filing of this suit. Ex.A.1 was created by the plaintiff for the purpose of this suit and on the basis of such an agreement the plaintiff is not entitled to the discretionary relief of specific performance of said agreement. The plaintiff has approached the court with falsity and not with clean hands. The plaintiff is liable to be prosecuted on criminal side for creating Ex.A.1, and filing this suit on the basis of Ex.A.1. Ex.A.1 is not an agreement of sale executed by the first defendant receiving any consideration amount and no part payments were made under Ex.A.2 and Ex.A.3, hence, the plaintiff is not entitled to specific performance of said agreement and for permanent injunction. These issues are found against the plaintiff.
ISSUE NO.2:
25. The burden of proving this issue is on the defendants. It is the case of the defendants that the plaintiff, first defendant, Velaga Srinadh Prasad and Madala
Venkateswara Rao, together to defeat the rights of these defendants in plaint schedule property collusively brought into existence the suit agreement of sale in the name of plaintiff with ante date and there was no real transaction under the suit agreement of 11 sale. From the admissions made by PW.1, in his cross-examination, that for the purpose of filing this suit, they prepared Ex.A.1 sale agreement and that PW.1, D1 and Madala
Venkateswara Rao together prepared Ex.A.1 and it was prepared about three months prior to filing of this suit, it is clear that there was no any genuine transaction between the plaintiff and D1, and Ex.A.1 was brought into existence in the circumstances stated by the defendants. This issue is found in favour of defendants.
ISSUE NO.6:
26. In view of the findings recorded in the above said issues, the plaintiff is not entitled to the discretionary relief of specific performance or the relief of permanent injunction.
27. IN THE RESULT, the suit is dismissed with exemplary costs to the defendants 2 and 3.
The plaintiff in collusion with others has created Ex.A.1, only for the purpose of filing this suit, hence, a criminal complaint to be lodged against the plaintiff for the offences under Sections 193 and 196 of Indian Penal Code, 1860.
Typed to my dictation, corrected and pronounced by me, in the open court, on this the 13th day of April, 2022.
Sd/- Sri G. Anwar Basha
I ADDL. DISTRICT JUDGE,
GUNTUR.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Plaintiff: P.W.1 – Vasantha Venkata Rao.
P.W.2 – Velaga Krishna.
PW 3 – Kota Srinivasa RAo.
PW.4 – Shaik Karimulla.
PW.5 – Gujjarlapudi Sudhakar Babu.
PW.6 – Jalla Tirupathi Srinivas Pulla Rao.
For Defendants:
DW.1 – Gadde Venkatapathi Rao.
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DOCUMENTS MARKED
FOR PLAINTIFFS: Ex.A1: Original agreement of sale in favour of plaintiff dt. 30-04-2011.
Ex.A2: Acknowledgment by the 1st defendant for receipt of Rs.10,00,000/- by way of endorsement on the reverse of agreement of sale dt.16.06.2011.
Ex.A3 : Acknowledgment by the 1st defendant for receipt of Rs.5,00,000/- by way of endorsement on the reverse of agreement of sale dt.22.12.2012.
Ex.A4 : Office copy of legal notice to the 1st defendant to his two addresses dt.29- 10-2014.
Ex.A5 : Postal receipts (2) dt.29-10-2014.
Ex.A6 : Returned notice cover of the 1st defendant dt.01-11-2014.
Ex.A.7 to A10 : Mee-seva copies of gift deeds executed by DW1 in favour of his son who is third defendant in respect of items Nos.1 to 3 & 5.
FOR DEFENDANTS: Ex.B1: Certified copy of the sale deed, dt.12.07.2010.
Ex.B2: Certified copy of sale deed dt.05.07.2011 bearing No. 1990/2011 containing the schedule i.e., confronted to the witness.
Ex.B3 : Certified copy of sale deed dt.05.07.2011 bearing No.1989/2011 containing the schedule i.e., confronted to the witness.
Ex.B4 is the true extract of sale deed dt.05-07-2011.
Ex.B5 is the true extract of sale deed dt.09-09-2011.
Ex.B6 is the true extract of sale deed dt.30-05-2014 bearing No. 1848/2014.
Ex.B7 is the true extract of sale deed dt.30-05-2014 bearing No. 1849/2014.
Ex.B8 is the true extract of sale deed dt.19-09-2014 bearing document No. 4619/2014.
Ex.B9 is the true extract of sale deed dt.19-09-2014 bearing document No. 4620/2014.
Ex.B10 is the true extract of sale deed dt.19-09-2014 bearing document No. 4622/2014.
Ex.B11 is the true extract of sale deed dt.19-09-2014 bearing document No. 4621/2014.
Ex.B12 is the true extract of sale deed dt.26-11-2015.
Ex.B13 is the true copy of development agreement dt.15-05-2017 bearing document N..300/2017.
Ex.B14 is the true copy of development agreement dt.15-05-2017 bearing document No.301/2017.
Ex.B15 is the true copy of development agreement dt.01-09-2017 bearing No. 413/2017.
Ex.B16 is the true copy of development agreement dt.01-09-2017 bearing No. 414/2017.
Ex.B17 is the true copy of development agreement dt.01-09-2017 bearing No. 415/2017.
Ex.B18 is the true copy of development agreement dt.22-09-2017 bearing No. 1338/2017.
Ex.B19 is the true copy of development agreement dt.22-09-2017 bearing No. 1255/2017.
Ex.B20 is original pattadar passbook.
Ex.B21 is original title deed book.
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Ex.B22 is original pattadar passbook.
Ex.B23 is original title deed book.
(Ex.B20 to 22 are standing in the name of Vajja Sasidhar)
Ex.B24 is mee-seva copy of adangal for fasli 1424 (Survey No.6A).
Ex.B25 is mee-seva copy of 1B register dt.19-03-2015.
Ex.B26 is mee-seva copy of adangal for fasli 1424 ( Survey No. 20-A1).
Ex.B27 is mee-seva copy of adangal for fasli 1425 (Survey No. 20-A1).
Ex.B28 is mee-seva copy of 1B register dt.04-03-2015.
Ex.B29 is mee-seva copy of adangals for fasli 1424 for Survey Nos.308-C1 and 309-C1.
Ex.B30 is mee-seva copy of adangals for fasli 1425 for Survey Nos. 308-C1 and 309-C1.
Ex.B31 is mee-seva copy of 1B register dt.16-03-2015.
Ex.B32 is mee-seva copy of adangal for fasli 1424 for Survey No. 423-1.
Sd/- Sri G. Anwar Basha
I ADDL. DISTRICT JUDGE,
GUNTUR.