IN THE COURT OF THE V ADDITIONAL DISTRICT JUDGE :: ONGOLE
Present:: Smt. T. Ramani Krupavathi,M.A.,B.L., VII- Additional District Judge, Ongole. FAC-V Additional District Judge, Ongole.
Wednesday this the 4rd day of November, 2015.
O.S.No.265/2011
Between 1.Bandaru Rambabu S/o.Seetharamaiah, aged 49 years, Hindu, R/o.Mulaguntapadu Village, Singarayakonda Mandal, Prakasam District 2.Syed Khadar Basha @ Sardhar S/o.Mahaboob Saheb, Aged 61 years, Muslim, R/o.Mulaguntapadu Village, Singarayakonda Mandal, Prakasam District 3.Shaik Abdul Khadar S/o.Karim Mohiddin, aged 53 years, Muslim, R/o. Singarayakonda (V & M),
Prakasam District ....... Plaintiffs
AND 1.Shaik Hameedunnisa W/o.Chand Saheb,aged 55 years, Muslim,R/o.Thettu Village, Gudlur Mandal, Prakasam District 2.Shaik Mustarunnisa W/o.Sabjan Saheb, aged 30 years,
Muslim, R/o.Navabu Pet, Nellore Town, Nellore District....... Defendants
This suit is coming on 29.10.2015 for final hearing and disposal
before me in the presence of Sri P.L.Govindaiah, Advocate for Plaintiffs
and of M/s.G.J.Raju and Smt.Chiluka Latha, Advocates for the defendants, on perusal of material on record and upon hearing the counsel for both sides and having stood over for consideration till this day this court delivered the following:- // J U D G M E N T//
1. This suit is filed for specific performance of agreement of sale,
dated 26.7.2010 directed th defendants to execute a registered sale
deed in respect of the plaint schedule property in favour of the plaintiffs by receiving the balance of consideration of Rs.42,70,000/- failing which to have the same done through process of the Court or in alternative for refund of Rs.18,36,800/-, being the advance amount of Rs.14,00,000/- and interest of Rs.4,36,800/- and for costs.
2. The brief facts of the plaint are that the 1st defendant being mother and the 2nd defendant as her daughter, having joint share in the plaint schedule property offered to sell it to the plaintiffs and the bargain was settled for Rs.22,500/- per cent and Rs.56,70,000/- for total extent of
Ac.2.52 cents. The plaintiffs have paid Rs.14,00,000/- as advance on 26.07.2010 and obtained agreement of sale with a condition that they would execute the sale deed on or before 26.11.2010 after receipt of balance of consideration and there was jungle in the suit schedule property, the defendants have to get surveyed the land and finalize extents, fix boundaries with clear edges through the Mandal Surveyor, but the defendants were postponing to fulfill the conditions. Therefore, on 1.2.2011 a notice was issued to the defendants which was received by the 1st defendant, whereas the 2nd defendant got returned it with false endorsement and as the defendants have now been trying to sell it to third parties, they are constrained to file the suit.
3. After receiving the notice, defendants No.1 and 2 appeared
before this Court. While the 1st defendant filed her counter, 2nd defendant
has adopted the same. Though admitted the execution of agreement of sale the defendnts alleged that the Mandal Surveyor along with his two servants measured the suit land in the presence of plaintiffs on 2.11.2010 and fixed boundary stones and informed it to the plaintiffs over phone on 15.11.2010 but it was not mentioned in the reply notice and written statements by over sight, but informed it to the plaintiffs and waited till 26.11.2010 by producing original documents before th mediators. But the mediators told the defendants that the amount was not adjusted to the plaintiffs that is why they request time for paying balance of consideration. The schedule land is not a jungle land and it is fit for raising paddy crop. The plaintiffs never demanded the defendants to receive the balance of sale consideration and to execute the registered sale deed in their favour and if the plaintiffs are ready to pay the balance of consideration they would have deposited it any nationalized bank to show their readiness, but they did not do so and even they did not requested the defendants to extend time for payment of balance of sale consideration, so the plaintiffs themselves avoided to perform their part of contract within the time stipulated and hence the agreement of sale is hereby canceled and the amount already paid is forfeited and hence execution of registered sale deed or refund of advance amount does not arise and as the plaintiffs have not come with clean hands, they are not entitled for any relief and prayed to dismiss the suit with costs.
4. Basing on the pleadings the court settled the following issues :- 1.Whether the plaintiffs are entitled for specific performance of agreement of sale ? 2.Alternatively whether the plaintiffs are entitled for return of the advance amount as prayed for ? 3.To what relief?
5. After settlement of issues both parties agreed to enter into trial and on behalf of plaintiff P.Ws.1 to 4 examined and Exs.A1 to A16 marked. On behalf of defendants D.Ws.1 to 4 were examined and Exs.B1 to B6 were marked.
6. Heard both sides.
7. ISSUE NO.1 & 2 :- The case of the plaintiff is that he is the 2nd plaintiff in the suit. He stated that the defendants offered to sell the schedule land and the bargain was settled for Rs.22,500/- per cent between the plaintiffs and the defendants. The total extent of the schedule land is Ac.2.52 cents. The total value of the schedule land is
Rs.56,70,000/-. As per the bargain settled between the plaintiff and the defendant, the plaintiff paid an amount of Rs.14,00,000/- on 26.7.2010 to the defendants towards advance of sale consideration of the suit schedule land.
8.The defendants executed an agreement of sale jointly in favour of the plaintiffs on 26.7.2010 after receiving the advance of sale consideration. The defendants accepted to execute the sale deed on or
before 26.11.2010 by receiving the balance of sale consideration. After
that, P.W.1 stated that, prior to 26.11.2010 they approached the defendants number of times personally along with elders and requested them to execute registered sale deed in their favour by receiving the balance of sale consideration. Further contention of the plaintiffs is that the agreement of sale is executed by the defendants with the approximate extents in four survey numbers. There is jungle in the suit schedule property at the time of agreement of sale. The defendants have no correct idea of their boundaries, therefore, it was agreed between the plaintiffs and defendants to get survey the schedule land with the
Mandal Surveyor and finalize the extents and boundaries with clear edges as per the agreement of sale, but the defendants did not come forward to get measure the land, in spite of requests made by them. But the defendants did not receive the balance of consideration and to execute the sale deed in their favour. The defendants had been postponing to perform their part of contract on one ground or other without any valid reason. Further contention of P.W.1 is that they are always ready and willing to perform their part of contract by paying the balance of sale consideration under the agreement of sale, dated 26.7.2010 and to obtain regular registered sale deed and the same was informed to the defendants number of times. The defendants have not given proper reply to the plaintiffs.
9.Further contention of the plaintiff is that they got issued legal notice to the defendants on 1.2.2011 calling upon them to execute sale deed as per the terms of agreement of sale, dated 26.7.2010. The office copy of legal notice, dated 1.2.2011 not filed in the suit. The defendants received the legal notice on 4.2.2011. The 2nd defendant did not receive the legal notice and got it returned. Then, the 1st defendant got issued reply notice through her counsel with false allegations.
10.When the defendants have been trying to sell the schedule land to third parties to defeat their rights, they filed the present suit.
11.In support of his contention, 2nd plaintiff himself examined as
P.W.1 and he also examined 1st plaintiff B.Rambabu as P.W.2. P.Ws.3 and 4 are the independent witnesses.
12.The plaintiffs filed Ex.A1, agreement of sale dated 26.7.2010 which shows that the defendants are having Ac.2.52 cents of land and they agreed to sell it for Rs.22,500/- per cent and received Rs.14,00,000/- towards advance amount with a condition to register the sale deed after receiving the remaining sale consideration on or before 26.11.2010. But, there is a clause in Ex.A1 that defendants have to survey the land as per
FMB and cut the crosses, if any, by them. It is further stated in Ex.A1 that
Rs.10,000/- will be paid to the plaintiffs for clearance of the jungle.
13.So, it is the duty of the defendants to survey the land as per the FMB and they have to measure the land and they have to cut the crosses, if any. As seen from the entire evidence of thedefendants they have not surveyed the land according to FMB and measured the land and not cut the crosses, if any, before 26.11.2010. The 1st notice was issued by the plaintiffs to the defendants . But Ex.B1 is the notice issued by the defendants showing that they have measured the suit schedule property in the presence of the mediators on 15.11.2010 and informed the same to the plaintiffs and waited till 26.11.2010. But there is no proof before the Court to show that the defendants measured the land and informed the same to the plaintiff. It is pertinent to note that if the defendants measured the land, they have to measure the land in the presence of the plaintiffs or they have to sent a report of the Surveyor about the land.
Except the oral evidence and Ex.B1, there is no proof before the Court that the defendants surveyed the land in the presence of mediators. The defendants also filed Ex.B2, a letter to Tahasildar along with a challan
dated 13.10.2010. Notice also issued by the Mandal Surveyor showing
that he will survey the land on 2.11.2010. But the notice shows that the land was surveyed on 15.11.2010 (As per Ex.B1), statements were also recorded by the Tahasildar on 2.11.2010. But the Tahasildar, Gudlur, sent a letter, dated 14.8.2012 in RC/DT/197/2012 stating that the plaintiffs' land in Sy.No.231, 232 was surveyed and submitted report as per the
Arzee (Application), dated 26.4.2012. So, as per Ex.B6 the defendant filed an application on 26.4.2012. But Ex.B1 shows that the land was measured on 15.11.2010 and the statements were recorded on 2.11.2010. That means before the defendant filing the application for measuring the land, dated 26.4.2012 the notice was issued by the
Tahasildar showing that the Surveyor going to visit the land on 2.11.2010 and the statements Exs.B4 and B5 were recorded on 2.11.2010. This shows that the defendant filed the application on 26.4.2012 beyond the stipulated date in Ex.A1 and all the documents filed by her under Exs.B3 to B5 are earlier to her application dated 26.4.2012. So, the defendants did not perform their part of contract as per Ex.A1. Now going to the depositions of P.Ws.3 and 4, they support the contention of P.Ws.1 and 2.
So, as per the evidence of P.Ws. 1 to 4 and the documents filed by the plaintiffs go to show that the defendants failed to perform their part of duty.
14.Now, coming to the statements of defendants. Their contention is that the Mandal Surveyor and his servants measured the suit schedule property in the presence of the plaintiffs, defendants, the neighbouring boundary owners and the mediators on 2.11.2010. After measuring the suit schedule land it is found correct and fixed the boundary stones. Further contention of the defendants is that again the defendants informed the same to the plaintiffs by phone on 15.11.2010 and further stated that they have waited till 26.11.2010 by producing the original documents before the mediators. But the mediators told the defendants that the amount was not adjusted to the plaintiffs that is why requesting some time for paying the balance of amount. Further the defendants stated that the schedule property is cultivable land by raising paddy the crop and it is not a jungle land. Further defendants denied that the plaintiffs never demanded the defendants to receive the balance of sale consideration and to execute registered sale deed in their favour and if the plaintiffs are ready to pay the balance amount, they have to deposit the amount in any nationalized banks to show their readiness to perform their part of contract. Not depositing the money in any nationalized bank will show that the plaintiffs are not ready to perform their part of contract. Further, the defendants stated that the agreement of sale was executed on 26.7.2010 and the defendants also agreed to receive the balance of consideration under the agreement of sale before expiry of the prescribed time mentioned. But the plaintiffs failed to pay the balance amount within the prescribed period for four months and the plaintiffs never requested the defendants to extend the time for payment of balance of sale consideration. So, this amounts to violation of conditions mentioned in the agreement of sale. Further, the defendants contended that the plaintiffs intentionally avoiding and dragging on the matter for payment of balance of consideration till notice was issued on 1.2.2011, so, the plaintiffs failed to perform their part of contract for getting the registered sale deed from the defendants. They further contended that after the lapse of time the plaintiffs fabricated and created false allegations against the defendants for getting time. Time is essence of contract as mentioned in the agreement. The defendants were ready and willing to perform their part of contract before expiry of the stipulated date. They further contended that the agreement of sale is hereby canceled after the lapse of three months of time and the consideration which was paid by the plaintiffs was forfeited. They further contended that the plaintiffs have no right to demand the defendants to execute registered sale deed on the basis of the agreement and prayed the Hon'ble Court to dismiss the suit.
15.If we perused the documents and the evidence on behalf of the defendants, it shows that the land was measured on 2.11.2010. But the Tahasildar gave a report stating that the defendant filed the application on 26.4.2012. The stipulated time in the agreement is 26.11.2010. This shows that the defendants did not measure the land
before the stipulated time i.e., on 26.11.2010. Further, the defendants
stated in the notice issued by them to the plaintiff that the land was measured on 15.11.2010. Exs.B2 to B5 are earlier to her application
dated 26.4.2012. There is no corroboration among the documents filed
by the defendants. The application was filed by the defendant
dated 26.4.2012 and the land was measured on 2.11.2010. In the
notice issued, he stated that the land was measured on 15.11.2010. So, the contention raised by the defendants that they measured the land
before the stipulated time as mentioned in Ex.A1 is not correct. So, the
defendants themselves failed in performing their part of the contract.
16.Now, another contention raised by the defendants is that the plaintiffs are not ready with the money and if they have money they have to deposit the balance of sale consideration in any nationalized bank
before the stipulated time. At the outset I have to say that it is not a
condition in Ex.A1 that the plaintiffs have to deposit the balance of sale consideration in any nationalized bank before the stipulated time. If the plaintiffs did not come forward to perform their part of contract, it is the duty of the defendants to issue notice that plaintiffs did not come forward to perform their part of contract and so the agreement Ex.A1 is canceled. But, till filing of written statement the defendants did not issue any such notice to the plaintiffs canceling Ex.A1 and forfeiting the advance amount. It is not the head ache of the defendants to know the financial status of the plaintiffs, but It is the duty of the plaintiffs to pay the rest of the balance of consideration and to get the registered sale deed. But defendants can not question the plaintiffs or demand the plaintiffs as to why they have not deposited the balance of sale consideration in any nationalized banks and as they have no money to pay the balance of consideration and as such the terms and conditions of the contract is defaulted by the plaintiffs. It is the duty of the plaintiffs to pay the balance of consideration by 26.11.2010 and get the registered sale deed. It is true that the plaintiffs did not pay the balance of sale consideration on 26.11.2010. The explanation given by the plaintiffs is that as per the note in Ex.A1 the defendants have to get the land measured as per FMB and they have to cut the crosses and the plaintiffs have to clear the jungle by receiving a sum of Rs.10,000/- from the defendants. The two conditions of the defendants are not fulfilled. There is no proof before the Court that the defendants have fulfilled the two conditions as per their documents. The documents filed by the defendants are also not coinciding with each other. So, the defendants failed to perform their part of the duty. Of course the plaintiffs also failed to perform their duty in clearing the jungle by receiving the payment from the defendants. There is no proof before the Court that the plaintiffs have cleared the jungle.
17.Specific performance of contract is an equitable relief. But the contention of the defendants is that as the plaintiffs did not perform their part of contract, Ex.A1 agreement of sale is canceled and the advance amount is forfeited. There must be some conditions for forfeiting the money paid as part payment of purchase price and not as an earnest money. The counsel for the defendants filed a Judgment reported in (2013) 1 Supreme Court Cases (Civil) 483 their lordships held that :
“To justify the forfeiture of advance money being
part of “earnest money” the terms of the contract
should be clear and explicit”
So, in order to forfeit the earnest money the contract should have clear conditions. In Ex.A1 there is no condition about the forfeiting the advance amount paid by the plaintiffs. Further, their lordships held that if the payment is made only towards part payment of consideration and not intended as earnest money then the forfeiture clause will not apply.
So, in Ex.A1 the amount paid by the plaintiffs are towards part payment of their consideration, so forfeiting of amount will not arise.
18.Specific performance is an equitable relief is having much bearing on the parties to Ex.A1. When the parties entering into agreement of sale are more cautious with regard to the terms and conditions in the agreement. The parties can not turn the agreement as they like and as such they mend their behaviour according to their terms.
The terms and conditions of the contract should be clear and they can not take shelter as they like under Ex.A1 where there is no terms and conditions properly. In the present case the defendant can not cancel the sale agreement as she likes without any clause in the agreement and also she can not forfeit the advance amount as she likes where there is no clause in the agreement.
19.The plaintiffs rightly filed the suit under the specific performance of contract with an alternative relief of refund of the advance amount. The plaintiffs filed this suit within the limitation. The plaintiffs filed this suit for specific performance of contract which is a discretionary power of the Court. The Court has to use the discretionary power and right in granting decree to the plaintiffs. As per Section 20 of the Act the relief of specific performance lies on the discretion of the
Court and the Court is not bound to grant such relief merely because it is lawful to do so and the exercising of discretion in order to specific performance has required to satisfy itself. The jurisdiction of the Court to grant specific performance is discretionary and the role of the parties is one of the most important factor to be taken into consideration while exercising the discretionary jurisdiction in terms of section 20 of the Act.
This Court meticulously considered all the facts and circumstances of the case. In the present suit the plaintiffs deposited the balance of consideration in the Court as per the directions of the Court. It shows that they are ready with money to perform their part of contract. Just because the plaintiffs not depositing the remaining amount in the nationalized banks, it does not mean that they do not have money to perform their part of contract. Moreover, while cross examining D.W.1 by the counsel for the plaintiffs, she categorically stated that she does not want to sell the property even now. Taking into consideration the statement made by
D.W.1 that she does not want to sell the property the plaintiffs are having only alternative relief. The defendants after receiving Rs.14,00,000/- towards the balance of consideration from the plaintiffs, they can not forfeit it as they like without there being any condition in Ex.A1. So, there is no condition in Ex.A1 about the forfeiture of the advance amount. It is the duty of the defendants to return back the amount to the plaintiffs as she does not want to sell the property to the plaintiffs. So, issues 1 and 2 have been decided in favour of the plaintiffs and against the defendants.
20. ISSUE NO.3 : As Issue Nos.1 and 2 are settled in favour of the plaintiffs, the plaintiffs are entitled for the suit amount as prayed for.
Accordingly suit is decreed with costs.
21. In the result, the suit is decreed partly with costs for a sum of
Rs.18,36,800/- with interest @ 18% p.a., from 26.07.2010, the date of agreement of sale till the date of decree and thereafter at 6% p.a. till realization. Rest of suit claim of the plaintiffs in respect of execution of regular registered sale deed basing on the agreement of sale, dated 26.7.2010 is dismissed.
Dictated to the Personal Assistant, transcribed by her corrected and
pronounced by me in the open court, this the 4 th day of November, 2015
VII-Additional District Judge, FAC/V Additional District Judge, Ongole.
Appendix of Evidence
Witnesses Examined
For Plaintiffs:- For Defendants:-
P.W.1 : Syed Khadar Basha @ Sardhar D.W.1 : Hameedunnisa P.W.2 : Bandaru Rambabu D.W.2 : Sk.Bude Saheb P.W.3 : Sk.Rahamthulla D.W.3 : Jangala Mala Kondaiah P.W.4 : Shaik Sandhani Basha D.W.4 : Shaik Kalesha
Exhibits Marked
For Plaintiffs:-
Ex.A.1 / 26.07.2010 : Original sale agreement Ex.A.2 / - : Office copy of legal notice Ex.A.3 / - : Acknowledgement Ex.A.4 / - : Unserved R.P. Cover of 2nd defendant Ex.A.5 / 22.05.1978 : C/c of sale deed Ex.A.6 / 23.01.1989 : C/c of sale deed Ex.A.7 / 05.09.2011 : Letter given by the Syndicate Bank issued to 1st plaintiff
Ex.A.8 / 01.10.2011 : Letter issued by Andhra Pragathi Grameena Bank to 1st plaintiff Ex.A.9 / 29.09.2011 : Letter issued by Syndicate Bank to 3rd plaintiff Ex.A10/ 01.10.2011 : Letter issued by Andhra Pragathi Bank to 2nd plaintiff Ex.A11/ - : Syndicate Bank A/c statement of 2nd plaintiff Ex.A12/ - : Savings Bank A/c statement of 1st Plaintiff in Syndicate Bank, S.Konda Ex.A13/ - : Bank A/c statement of 1st plaintiff in Andhra Pragathi Gramena Bank, Ex.A14/ - : Bank A/c statement of 2nd plaintiff in Andhra Pragathi Gramena Bank, S.Konda Ex.A15/ - : Bank A/c statement of 2nd plaintiff in Syndicate Bank,S.Konda Ex.A16/ - : Bank A/c statement of 3rd plaintiff in Syndicate Bank,S.Konda
For Defendants:-
Ex. B1 / 12.02.2011 : Reply notice Ex. B2 / 13.10.2010 : Representation along with Challan to MRO to measure land Ex. B3 / 31.10.2010 : Notice issued by the Surveyor to D.W.1 Ex. B4 / 02.11.2010 : Statement recorded by Surveyor Ex. B5 / 03.11.2010 : Report submitted by the Surveyor to Tahasildar Ex. B6 / 14.08.2012 : Representation submitted by D.W.1 to Tahasildar
VII -ADJ,Ongole. FAC/V-A.D.J.,
IN THE COURT OF THE V ADDITIONAL DISTRICT JUDGE :: ONGOLE
Present:: Smt. T. Ramani Krupavathi,M.A.,B.L., VII- Additional District Judge, Ongole. FAC-V Additional District Judge, Ongole. Wednesday this the 4rd day of November, 2015.
O.S.No.265/2011
Between 1.Bandaru Rambabu S/o.Seetharamaiah, aged 49 years, Hindu, R/o.Mulaguntapadu Village, Singarayakonda Mandal, Prakasam District 2.Syed Khadar Basha @ Sardhar S/o.Mahaboob Saheb, Aged 61 years, Muslim, R/o.Mulaguntapadu Village, Singarayakonda Mandal, Prakasam District 3.Shaik Abdul Khadar S/o.Karim Mohiddin, aged 53 years, Muslim, R/o. Singarayakonda (V & M),
Prakasam District ....... Plaintiffs
AND 1.Shaik Hameedunnisa W/o.Chand Saheb,aged 55 years, Muslim,R/o.Thettu Village, Gudlur Mandal, Prakasam District 2.Shaik Mustarunnisa W/o.Sabjan Saheb, aged 30 years,
Muslim, R/o.Navabu Pet, Nellore Town, Nellore District....... Defendants
This suit is filed for directing the defendants to execute the registered sale deed in favour of the plaintiffs as per the terms of agreement of sale, dated 26.7.2010 and to deliver possession of the same to the plaintiffs, if the defendants fails to get execute the sale deed, the same may be done by the Court under due process of law or if the Court is not inclined to grant relief of specific performance of agreement of sale under any circumstances, alternatively direct the defendants to refund the advance of sale consideration and interest thereon @ 24% p.a. i.e., 18,36,800/- with subsequent interest @ 12% p.a.
on the advance sale consideration of Rs.14,00,000/- till the date of realization and for costs of the suit.
Plaint Presented on: 08.11.2011 and filed on: 10.11.2011
Court fee & Valuation :-
Since the suit is for specific performance of agreement of sale at the rate of Rs.56,70,000/- on which a Court Fees of Rs.59,226/- is paid under section 39 of ACF & SV Act.
The alternative relief of refund of advance of sale consideration of
Rs.14,00,000/- and interest thereon will come to Rs.18,36,800/- is refundable on which a C.F. of Rs.20,826/- is payable but Court Fees is paid more than the said amount on specific performance and that no
Court fees is paid on alternative relief.
The value of the suit for the purpose of Jurisdiction is valued at
Rs.56,70,000/-.
This suit is coming on 29.10.2015 for final hearing and disposal
before me in the presence of Sri P.L.Govindaiah, Advocate for Plaintiffs
and of M/s.G.J.Raju and Smt.Chiluka Latha, Advocates for the defendants, on perusal of material on record and upon hearing the counsel for both sides and having stood over for consideration till this day this court Doth order and decree:-
1. that the defendants 1 and 2 do pay to the plaintiffs 1 to 3 a sum of Rs.18,36,800/- together with interest at 18% p.a. from the date of agreement of sale i.e., 26.7.2010 till 4.11.2015 the date of decree and thereafter at 6% p.a. till realization, and
2. that the defendants 1 and 2 do also pay Rs.2,09,618/- to the plaintiffs 1 to 3 towards the costs of this suit bearing their own costs of Rs.-Nil- as (CM & FC not filed)
Given under my hand and the seal of this court, this the 4rd day of
November, 2015.
VII-Additional District Judge, FAC/V Additional District Judge, Ongole.
Table of Costs
For Plaintiffs:- For Defendants :-
Stamp on Vakalat Rs. 2-00 (CM & FC not filed) Stamp on Plaint Rs. 59,226-00 Stamp on process Rs. 190-00 Advocate fee Rs.1,50,000-00 (as claimed) Typing charges Rs. 200-00 ---------------------- Rs.2,09,618-00 ----------------------
VII -ADJ,Ongole. FAC/V-A.D.J.,