Relief Of Specific Performance In An Agreement Of Sale Will Not Be Granted If Vendor Has No Absolute Title Over Suit Schedule Property: Andhra Pradesh HC

The Andhra Pradesh High Court in a recent judgment held that an agreement of Sale cannot be decreed to be performed if the seller did not have absolute right and title over the suit schedule property in view of Section 17 of the Specific Relief Act, 1963. The provision states that contract to sell or let property by one who has no title is not specifically enforceable. Brief Facts of the Case The plaintiff filed the suit seeking specific performance of agreement of sale dated 23.07.2011 or alternatively for refund of advance sale consideration of Rs. 90,000/- with interests and costs etc. In the plaint it was contended that defendants entered into a contract of sale agreeing to sell the plaint schedule property on bill contract rate of Rs. 4,10,000/- by receiving advance sale consideration of Rs. 90,000/-. As per the terms of the agreement of sale, balance sale consideration was to be paid by the plaintiff within 30 days and thereafter the defendants had to execute registered sale deed either in favour of plaintiff or his nominees. The plaintiff got issued a legal notice calling upon the defendants to execute sale deed by receiving sale consideration. In the reply notice it was contended that daughters of 1st defendant did not agree to sell their part of share and defendants were ready to return the advance of Rs. 90,000/-. The trial Court on consideration of oral and documentary evidence vide judgment granted relief of fund of Rs. 90,000/- with interest at 24% p.a. from 2011 till the date of filing of suit and subsequent interest at 12% p.a. from the date of suit till the date of decree and thereafter with interest at 6% p.a. till realization against defendants. Aggrieved by the said judgment and decree the plaintiff filed the Appeal Suit which was dismissed. Aggrieved by the said judgment, the second appeal was filed. Issue Whether the plaintiff is entitled to relief of specific performance since daughters of Defendant 1 are not parties to the Agreement in view of Section 17 of the Specific Relief Act? Findings of the Court The court observed from the record that the plaintiff was aware of the right of daughters of the 1st defendant in the suit schedule property, and still entered into agreement with the defendants (mother and son). The plaintiff did not take steps to get the signatures of daughter on the agreement of sale. Going by the conduct of the plaintiff in not entering agreement with daughter having knowledge about their shared disentitled him to get the relief of specific performance of contract. The Agreement of Sale is unenforceable since the defendants with exclusion of daughters had no absolute right and title over the suit schedule property to sell the same in view of Section 17 of the Specific Relief Act. Thus, the findings of the Courts below are not perverse in not allowing specific performance of the agreement of sale unless the daughter give their consent to alienate their share in the schedule property. The second appeal was thus dismissed. Case Title : Gampala Naga Raju Versus Shaik Nazeerunnisa Citation: 2022 LiveLaw (AP) 62 Click Here To Read/Download Order

Relief Of Specific Performance In An Agreement Of Sale Will Not Be Granted If Vendor Has No Absolute Title Over Suit Schedule Property: Andhra Pradesh HC

Jagriti Sanghi

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