OS 43/2012 1 3.11.2015
IN THE COURT OF THE PRINCIPAL JUNIOR CIVIL JUDGE::NELLORE.
Tuesday, this the 3rd day of November, 2015
PRESENT: - SRI S. CHINA BABU,
Principal Junior Civil Judge, NELLORE.
Original Suit No.43/2012
Pala Krishnamma... Plaintiff
Vs.
1. Vasudha Real Estate, rep. by its Proprietor, Y. Bayyapu Reddy, Nellore.
2. P. Anki Reddy... Defendants
This suit coming up for final hearing before me on 29-10-2015 in the presence of Sri B. Sreenivasulu, Advocate for plaintiff and of Sri C. Ramagopal Reddy, advocate for the defendant and having stood over for consideration till this day, this Court delivered the following::
J U D G M E N T
1. The suit is filed seeking specific performance of agreement by the 1st defendant to register the plaint schedule plot No.221 in favour of plaintiff with her registration expenses and consequential relief of permanent injunction.
2. The averments of plaint, in brief, are as follows:-
(i) The 1st defendant launched a venture by introducing to public that he purchased the land, laid out the same and converted into plots and offered the public to join as members in his Vasudha Real
Estates, Dhanalakshmi Nagar, Nellore. As per the terms and conditions of the said venture, every subscriber has to pay a sum of Rs.140/- every month for 66 months and at the end of the tenure, the said Vasudha Real
Estates shall execute registered sale deed in favour of subscriber who paid installments regularly and that if any subscriber won the draw he will be allotted a plot and no monthly installments would be recovered from him and such winner subscriber has to bear the registration expenses.
(ii) Plaintiff joined as a subscriber/member in the said venture in the year 1995 and since then she had been paying monthly installments @ Rs.450/- and the 1st defendant allotted P.B. No.1275 in her favour. The plaintiff paid entire 66 monthly installments upto the year
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2000 and in turn 1st defendant duly issued receipts to that effect. While so, on 12.5.2001 the 1st defendant collected a sum of Rs.6,300/- from plaintiff towards registration expenses by allotting plot No.221 in favour of plaintiff and issued a receipt under their letter pad duly signed by him.
The plaintiff was also offered several prizes, but no prize had been given to her. The 1st defendant collected agreed installments from plaintiff.
Even after completion of 66 monthly installments, 1st defendant did not turn up to execute registered sale deed in favour of plaintiff. As per the acknowledgment dt.12.5.2001 issued to plaintiff, she went to suit schedule property i.e. plot No.221 as given to her by 1st defendant and then the 2nd defendant obstructed her stating that he purchased the said plot from 1st defendant denying right of the plaintiff over the same. Then plaintiff immediately approached the 1st defendant and demanded him to perform his part of contract by executing registered sale deed, but he pleaded his inability stating that 2nd defendant grabbed the property without their knowledge and consent. The plaintiff obtained encumbrance certificate No.18251/2011 wherein no alienation was shown between the defendants 1 and 2 till 29.8.2011. Thus it is clear that the 2nd defendant hatched up a plan by colluding with 1st defendant to grab the schedule property by taking advantage that it is a vacant site and also to deprive right of the plaintiff from getting registration of the said property.
1st defendant also dragged on the matter since the year 2001 say ing that the plot certainly belongs to the plaintiff and it will be registered in her favour as and when their accounts were cleared off but in vain. Hence, the suit.
3. 1 st defendant filed written statement denying
material averments of the plaint. The contentions of written
statement of 1 st defendant, in brief, are as follows:-
The 1st defendant never purchased land in Survey Nos.1899, 1900 and 1901 in Nellore Corporation and never converted said site into house plots and hence inviting plaintiff to join as member of the venture and collecting amounts from her on monthly installments, collecting registration amount and allotting plot No.221 would not arise. In fact, the 1st defendant never seen the plaintiff in his life time and never organized
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any such schemes to sell house plots much less the suit schedule property. The 1st defendant does not aware of one P. Venku Reddy i.e.
defendant No.2 and never issued any receipts or letter heads to plaintiff.
The suit is barred by limitation.
4. The 2 nd defendant filed written statement denying
material allegations of the plaint. The averments of his written
statement, in brief, are as follows:-
Originally the plaint schedule property was purchased by wife of 2nd defendant by name P. Vijayamma under registered sale deed dt.18.5.2003 in document No.5030/2003 of S.R.O., Nellore from one
Gadam Munibabu @ Muni Rajasekhar and others for valuable consideration and since then she had been in possession and enjoyment of said property with absolute rights. The 1st defendant attested the said registered sale deed as a witness. Subsequently said P. Vijayamma gifted the schedule property to her daughter P. Srikala under registered settlement deed dt.29.3.2001 in document No.4403/2010 of S.R.O.,
Nellore out of love and affection and since then said Srikala has been in possession and enjoyment of said vacant site. In fact, the 1st defendant helped the land owners in converting said locality into house plots. He is not the owner of house plots as alleged in the plaint and never purchased any land in said locality. The plaintiff is not known to 1st defendant and does not have any right and title over the suit property and filed this suit with a view to grab the same which belongs to 2nd defendant. Hence the suit may be dismissed.
5. During the trial, the plaintiff herself was examined as PW1 and got marked Exs.A1 to A5 and she also examined PW2. On behalf of defendants, proprietor of Vasudha Real Estate was examined as DW1 and the 2nd defendant was examined as DW2 and through DW2, Exs.B1 to B3 were marked.
6. Heard the learned counsel for plaintiff. The defendant did not turn up to present his arguments and hence the material available on record is considered.
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7. Basing on the pleadings on record, the following issues are settled for trial:-
1) Whether the plaintiff is entitled for specific performance for execution of registered sale deed from 1st defendant for schedule plot No.221, as prayed for?
2) Whether the plaintiff is entitled for permanent injunction against the defendants, as prayed for?
3) To what relief?
ISSUE NO.1:-
8. In order to seek specific performance of the agreement in respect of suit schedule property from 1st defendant, the plaintiff has to prove that the 1st defendant is having title, right and alienable interest over said property and that the execution of agreement by 1st defendant shall also be proved. It is the specific contention of 1st defendant that he has no title, right and alienable interest over suit schedule property and that he has not entered into any agreement with plaintiff.
9. In order to prove that the 1st defendant has right and alienable interest over suit property, the plaintiff contended in plaint that the 1st defendant launched a venture, purchased the land and laid out the same in Survey Nos.1899, 1900 and 1901, launched a scheme and offered the interested public to subscribe in the scheme. Even the plaintiff as PW1 and her husband as PW2 averred the same in their affidavits of chief examination. Except that, they failed to produce any piece of evidence including any document to prove the right and interest of 1st defendant over the suit property.
10. Either the pass book of Vasudha Real Estates i.e. Ex.A1 or the subscription payment receipts Ex.A2 or the acknowledgment dt.12.5.2001/Ex.A3 does not show anything that the 1st defendant has any right and interest over the suit schedule property. The plaintiff also filed Encumbrance Certificate dt.29.8.2011 as Ex.A4. It also does not show anything that the 1st defendant has any right, interest or title over the suit property. The last document filed by plaintiff is the layout plan/Ex.A5. It is unsigned, unstamped and undated. Further, the name of 1st defendant was not referred therein. Thus, Exs.A1 to A5 filed by
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plaintiff totally failed to establish the right, interest and title of 1st defendant over suit property in order to alienate the same to plaintiff.
11. On the other hand, the contention of 2nd defendant is that the suit schedule property was purchased by his wife Vijayamma under Ex.B1 sale deed dt.8.5.2003 and subsequently the property was settled in favour of her daughter by name Srikala on 29.3.2010 under
Ex.B2. The link document of sale deed of Vijayamma i.e. Ex.B1 was also produced as Ex.B3 dt.29.12.1964 which is a registered relinquishment deed executed in favour of vendors of wife of 2nd defendant. The 2nd defendant examined himself as DW2 and testified that his wife purchased suit property under Ex.B1 and subsequently settled in favour of his daughter under Ex.B2. His evidence was not shaken throughout his cross-examination in respect of right, interest and title of his wife and presently of his daughter over the suit property. Thus, the evidence of 2nd defendant as DW2 is corroborated by the documentary evidence Exs.B1 to B3. It shows that by the time of filing of the suit, the daughter of 2nd defendant is having right and title over the suit property. On one hand the plaintiff failed to prove the right and interest of 1st defendant and on the other hand the 2nd defendant established that his daughter is having right and interest over the said property. Therefore, the plaintiff failed to establish that the person from whom specific performance by way of registration of sale deed is sought for does not have any right and interest over suit property.
12. The plaintiff has to further establish that the 1st defendant himself made an agreement with her to execute registered sale deed in her favour with respect to suit schedule site in case of her regular payment of 66 installments @ Rs.440/- per installment in the course of the scheme launched by him. In order to prove the same, the evidence produced by plaintiff is Exs.A1 to A5. Ex.A1 is the pass book in the name of Vasudha Real Estates issued to the plaintiff. The 1st defendant admitted in his cross-examination that he is running Vasudha
Real Estates and in that course, he launches several schemes and used to collect 66 installments from subscribers @ Rs.420/- per installment and they also used to issue pass books. DW1 deposed in respect of a scheme
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launched by him but not about the scheme as contended by the plaintiff.
Further, DW1 not admitted that Ex.A1 pass book is related to his Real
Estates and that it was signed by his agent. Moreover, it is the version of
DW1 that he has no agents to sign such books or receipts in favour of his real estates. Furthermore, Ex.A1 pass book does not contain the name or signature of 1st defendant. It is also to note here that it is not specifically mentioned in the terms and conditions laid down in the pass book that after payment of 66 installments by subscriber the real estate or 1st defendant has to execute registered sale deed for suit schedule property in favour of plaintiff.
13. The plaintiff also produced subscription payment receipts. They are in the name of Vasudha Real Estates containing the alleged signature of 1st defendant in a stamp. They are 62 in number.
Except the stamp showing the name of 1st defendant, there is nothing to show that said receipts were issued by 1st defendant or by another person on his behalf. Said receipts also do not show the terms and conditions much less the condition to execute registered sale deed by 1st defendant in favour of plaintiff. Thus, Exs.A1 and A2 failed to prove the existence of the alleged scheme and that the 1st defendant has launched such scheme and himself received the subscription amounts.
14. The acknowledgment dt.12.5.2001 was also produced by plaintiff as Ex.A3 wherein it was mentioned that the 1st defendant received the registration amount of Rs.6,300/- from plaintiff. The 1st defendant totally denied his signature in Ex.A3. Then it is the burden of plaintiff to establish the contents and signature of said document.
Moreover, it is nothing in Ex.A3 about launching of a scheme and alleged agreement of 1st defendant to execute the sale deed after regular payments of 66 installments by subscribers. The remaining Encumbrance
Certificate/Ex.A4 and the lay out plan/Ex.A5 do not show anything about the alleged and involvement of 1st defendant in the said scheme. Thus all the documents produced by plaintiff failed to prove the establishment of the alleged scheme by 1st defendant and agreement with subscribers to allot the residential plot by him.
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15. The aforementioned discussion made it clear that the prerequisite for granting specific performance of the agreement i.e. the title, right and alienable interest of 1st defendant over the suit property and the 1st defendant made agreement were not proved by plaintiff.
16. In order to grant relief of specific performance of the agreement, another essential ingredients to be proved is that the plaintiff has averred and proved that she has performed or always ready and willing to perform the essential terms of the agreement. At this juncture, it is pertinent to refer the legal provision as laid down in Section 16 (c) and the appended Explanation II of the Specific Relief Act, 1963.
Section 16 (c) and Explanation II of the Specific Relief Act, 1963, reads that -
Section 16 - Personal bars to relief:- Specific performance of a contract cannot be enforced in favour of a person -
(c) who fails to aver and prove that he has performed or has always been ready and willing to perform the essential terms of the contract which are to be performed by him, other than terms the performance of which has been prevented or waived by the defendant.
Explanation:- (ii) For the purposes of clause (c) :-
The plaintiff must ever performance of, or readiness and willingness to perform, the contract according to its true construction.
17. On going through the plaint and chief affidavit of either
PW1 or PW2, it is apparent that it is no where averred specifically that the plaintiff has performed or always ready to perform her portion of contract.
Even as per the alleged agreement, as contended by plaintiff, only after regular payment of 66 installments @ Rs.450/- per installment by the subscribers including the plaintiff, the 1st defendant has to allot a house plot and execute a registered sale deed. Though the plaintiff and her husband testified that they paid total 66 installments to the real estate of the 1st defendant, as per the record supplied by the plaintiff Ex.A1 the
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pass book contains 62 entries only. As per Exs.A1 or A2, the last installment paid by the plaintiff is the 62nd installment dt.11.12.2000.
Except the self-serving testimony of plaintiff and her husband, there is nothing to show that the plaintiff has paid the total 66 installments. On the other hand, Exs.A1 and A2 shows that she has paid upto 62 installments alone. Therefore, the plaintiff has not complied the conditions of alleged agreement completely. In the circumstances, the plaintiff has to aver in the plaint that she is always ready and willing to pay the remaining installments, but it was not averred. If her contention that she has paid all installments is true, she has to prove the same by cogent and convincing evidence. The plaintiff has not averred that she is ready and willing to perform her portion of agreement or already performed the same.
18. At this juncture, it is pertinent to go through the observations of the Hon’ble Supreme Court made in Jugraj Singh and another Vs. Labh Singh and others; AIR 1995 SC 945 wherein it was held that “the plaintiff has to prove his continuous readiness and willingness at all stages from the date of agreement till the date of filing of the suit and the substance of the matter, surrounding circumstances and conduct of the plaintiff must be taken into consideration in adjudging readiness and willingness to perform the plaintiff’s part of the contract”.
19. In another decision in M. Rangaiah Vs. T.V.
Satyanarayana Rao & Another; 2009 (5) ALD 663 it was held in para 10 that - “The requirements in suits for specific performance are, one is the plaintiff must have demanded or requested the defendant to perform the contract and another is the statement of plaintiff that he is ready and willing to perform his part of contract”.
20. In view of the aforementioned discussion and on considering the rulings of the Hon’ble courts, it is pertinent to note that the plaintiff failed to comply the essentials of law laid down in Section 16
(c) and explanation II thereto in order to grant the specific performance of alleged agreement by plaintiff.
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21. Another important aspect to be complied by plaintiff is that she has to demand or request the 1st defendant to execute the registered sale deed in her favour before she filed the suit. In the case on record, the plaintiff has not issued any such notice. The husband of plaintiff deposed as PW2 in his cross-examination that they have not issued legal notice to 1st defendant demanding him for execution of the sale deed. It is to note here that the Hon’ble High Court of Andhra
Pradesh held in M. Rangaiah Vs. T.V. Satyanarayana Rao and another, mentioned supra, that one of the requirements in a suit for specific performance is the plaintiff must have demanded or requested the defendant to perform the contract. The material on record apparently shown that the plaintiff has failed to comply the same. In the suit for specific performance issue of legal notice by plaintiff to defendant from whom specific performance is sought for is essential and unless it is complied with, it cannot be held that the plaintiff complied the mandatory requirements of the suit.
Limitation aspect:-
22.The defendants further contended that the suit is barred by limitation as the same was not filed within 3 years of alleged cause of action. Hence it is pertinent to go through Article 54 of the schedule appended to Limitation Act, 1963. It reads that-
Description of Period of Time from which period begins
suit limitation to run
For specific Three yearsThe date fixed for the performance, performance of a or, if no such date is fixed, when contract the plaintiff has notice that performance is refused.”
23. The cause of action for filing suit arise either from the date fixed for the purpose or if there is no such date fixed, when the plaintiff has noticed that the performance is refused. Even it is not the case of plaintiff that any date was fixed for the performance of alleged agreement. Further, either of Exs.A1 to A3 does not show any date for performance of the agreement by 1st defendant. As per the version of plaintiff, the 1st defendant agreed to execute the registered sale deed soon after regular payment of 66 installments by the plaintiff. The
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plaintiff contended that she completed payment of installments by 12.5.2001 and on that date 1stdefendant issued the acknowledgment/Ex.A3 and allotted the plot No.221. However, the said date was not fixed as date for performance of the alleged agreement.
Therefore, the 1st limb of the article 54 would not attract.
24. The plaintiff and her husband testified as PWs.1 and 2 that after the 1stdefendant issued the acknowledgment dt.12.5.2001/Ex.A3 PW1 went to the schedule property and the 1st defendant obstructed her from entering into the same by claiming his right over the property and on that she approached the 1st defendant and demanded him for execution of registered sale deed for schedule mentioned property in her favour. They further testified that since the demand of plaintiff, the 1st defendant dragged on the matter saying that the plot certainly belongs to the plaintiff and as and when their accounts were cleared off, the register sale deed would be executed in her favour, but in vain. This version of plaintiff does not show anything as to the date of her 1st demand for performance of the agreement. Further, this does not reveal as to when the 1st defendant finally refused to perform the agreement and as to when it was come to her notice. If the plaintiff has issued a notice demanding for execution of the sale deed and the same was refused by 1st defendant, since then the limitation may be started.
But in the case on record, there is no material as to when plaintiff has demanded for performance and as to when 1st defendant refused for performing the same. In these circumstances, reckoning starting period of limitation is not possible. Unless and until the period of limitation starts there would not be any cause of action for filing the suit for specific performance of the alleged agreement. In these circumstances, the court is of the view that the plaintiff failed to prove that the suit is within the period of limitation. Though the defendants themselves contended about the bar of limitation, it is the duty of plaintiff to show the arising of cause of action and the availability of limitation period, but she failed to do so.
25. The 2nd defendant specifically contended in his written statement and deposed in his chief affidavit that even prior to filing of the suit by plaintiff, the schedule property was purchased by his wife Pallala
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Vijayamma from the sons of Gadam Rosaiah i.e. Gadam Munibabu @
Muni Rajasekhar and others under Ex.B1 and subsequently it was settled in favour of his daughter under Ex.B2. As the schedule property is said to be in the name of daughter of 2nd defendant even prior to filing of the suit, the option left to the plaintiff is to implead said daughter of 2nd defendant as party to suit, but she failed to do so. When the 1st defendant clearly contending that the schedule property is not belongs to him and that the 2nd defendant contended that said property belongs to his daughter. It is necessary to implead said daughter of 2nd defendant as her rights would be affected in case of directing registration of the suit property in favour of plaintiff. Hence non-impleadings the daughter of 2nd defendant is an adverse circumstance against the case of plaintiff.
26. In the light of above discussion, the court observed that the plaintiff failed to prove the essential ingredients for seeking specific performance of alleged agreement by 1st defendant.
27. If the plaintiff has strong grievance that the 1st defendant had cheated her by collecting the installment amounts by offering to allot a house site in her favour, she can initiate criminal action against the 1st defendant or she can seek for return of the amount allegedly paid by her to the real estate of the 1st defendant. However, basing on the material placed on record, she is not successful to claim the relief of specific performance of alleged agreement from the 1st defendant. Accordingly, this issue is answered against the plaintiff and in favour of defendants.
ISSUE NO.2:-
Relief of permanent injunction:-
28. In order to grant the equitable relief of perpetual injunction, the plaintiff has to establish that she is in the possession and enjoyment of suit schedule property as on the date of filing of the suit.
On going through the documents filed by the plaintiff any of them does not show that the suit schedule property i.e. plot No.221 was allotted to plaintiff. Further, the evidence on record also shows that the 1st defendant from whom the plaintiff allegedly obtained the right and
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interest over the suit property is found to be not having any right and alienable interest over the same.
29. On the other hand, the evidence produced by 2nd defendant as DW2 i.e. Exs.B1 to B3 goes to show that his daughter is having right and interest over the suit property as on the date of filing of the suit. Even the 1st defendant himself contending that he did not have any title, right and interest over said property. As the owner of property himself did not have right over the same, he cannot pass better title to plaintiff.
30. Testimony of PW1 is that when she went to the suit schedule property after receiving Ex.A3 on 12.5.2011 the 1st defendant obstructed her stating that he purchased the said property and then she went to the 1st defendant and question him about the same. This version of plaintiff clearly shows that she was never in possession and enjoyment of the suit schedule property. On the other hand, the Exs.B1 to B3 goes to show that the daughter of 1st defendant is having right and interest over said property as on the date of filing of the suit. As the schedule property is a vacant site, on drawing the preposition of law that the “possession follows title” it would be held that the said daughter of 1st defendant by name Sri Kala is having possession and enjoyment over the suit property. In the evidence on record it does not show anything that the plaintiff is in possession and enjoyment of suit property in any manner.
31. The Hon’ble High Court of Andhra Pradesh in Madduru
Papai (died) by L.Rs. Vs. Ch. Ramakrishna and others reported in 2012 (2) ALD 768 in Para 10:- “ In a suit for injunction, the burden squarely rests upon the plaintiff to prove his possession over the suit schedule property. Apart from proving possession, he must also convince the court, as to the existence of semblance of right in him, vis-a-vis the property. The reason is that even if a person is in possession of the property, without there being any right in him, and as a trespasser, he cannot be granted the relief of injunction against the true owner. The possession over the vacant land is
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mostly established through the extracts in revenue records.”
32. In the absence of proof of possession and enjoyment of the plaintiff, she is not entitled for the equitable relief of perpetual injunction against the defendant. Accordingly, the point is answered against the plaintiff.
ISSUE NO.3:-
33. In view of the issue Nos.1 and 2 are answered against the plaintiff, the suit shall be dismissed.
34. In the result, the suit is dismissed. In the circumstances of the case, there is no order as to costs.
Dictated to the Personal Assistant, transcribed by her, corrected and
pronounced by me in the open court on this the 3rd day of November, 2015.
PRL. JUNIOR CIVIL JUDGE,
NELLORE.
APPENDIX OF EVIDENCE
Witnesses examined
For Plaintiff:For Defendant:
PW1: Pala Krishnamma. DW1: Y. Bayyapu Reddy. PW2: Pala Ramanaiah. DW2: Pallala Chinna Anki Reddy @ Anki Reddy.
Documents marked
For Plaintiff:
EX.A1: The pass book in respect of P.B.No.1275 issued by defendant No.1 in favour of plaintiff. EX.A2: The payment receipts 66 in number issued by defendant No.1 in favour of plaintiff. EX.A3: The receipt dt.12.5.2001 issued by defendant in favour of plaintiff in respect of payment of Rs.6300/- towards registration expenses. EX.A4: The certificate of encumbrance on property dt.29.8.2011 issued by the S.R.O., Nellore. Ex.A5:The Layout plan showing the allotment of Plot No.221.
F or Defendant :-
EX.B1: The certified copy of the registered sale deed dt.8.5.2003 executed by the sons of Gadam Rosaiah (4 persons) in favour of
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one Pallala Vijayamma. EX.B2: The certified copy of registered settlement deed dt.29.3.2010 executed by one Pallala Vijayamma in favour of Pallala Sreekala D/o Pallala Chinna Ankireddy. EX.B3: The Certified copy of registered relinquishment deed dt.29.12.1964 executed by Gadam Rosaiah in favour of the sons of Gadam Rosaiah (4 sons) i.e. to their mother Rohinamma as guardian.
Prl. J.C.J., Nellore.