Smt. Mudigonda Madhavi vs M. Phanidhara Prasad on 24 July, 2026

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    Telangana High Court

    Smt. Mudigonda Madhavi vs M. Phanidhara Prasad on 24 July, 2026

         IN THE HIGH COURT FOR THE STATE OF TELANGANA
                             AT HYDERABAD
    
             THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN
    
                       APPEAL SUIT No. 83 OF 2021
    
                            DATE: 24.07.2026
    
    Between:
    Smt.Mudigonda Madhavi
                                                       ....Appellant
    
                                    And
    M.Phanidhara Prasad
                                                        ....Respondents
                                JUDGMENT
    

    Heard Sri Vijay B. Paropakari, learned counsel for the

    appellant and Sri W.B.Srinivas, learned Senior Counsel

    SPONSORED

    representing Sri K.Ramalingeswara Sarma, learned counsel for the

    respondent and perused the record.

    2. This appeal, filed under Section 96 of the Code of Civil

    Procedure, 1908 (hereinafter referred to as ‘CPC‘), is directed

    against the judgment and decree dated 18.02.2021 passed by the

    learned XIV Additional District Judge, Ranga Reddy District at L.B.

    Nagar (hereinafter referred to as ‘the trial court’) in O.S.No.224 of

    2013. By the said Judgment and Decree, the trial court decreed the

    suit filed by the respondent/plaintiff seeking specific performance

    of Agreement of Sale dated 22.10.2011.

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    3. The respondent/plaintiff is the younger brother of the

    appellant’s late husband, M. Mahanandeeshwara Rao, who passed

    away on 25.04.2000. The appellant/defendant is the widow of the

    said M. Mahanandeeshwara Rao and is, therefore, the elder sister-

    in-law of the respondent. The appellant has two daughters. The

    close familial relationship between the parties constitutes the

    foundation of the appellant’s defence. According to her, following

    the demise of her husband, the respondent, being her brother-in-

    law, actively assisted her in her family affairs and occupied a

    position of trust and confidence, which, according to the appellant,

    was subsequently misused by him.

    4. The subject matter of the litigation is a residential house

    bearing Municipal No.1-12-169/172, situated on Plot No.172,

    Sy.No.5, Block No.1, Ward No.12, admeasuring 97 Sq yards,

    consisting of a ground floor and first floor, located at Sri Sai

    Narayana Enclave, Fathullaguda Village, Uppal Mandal, Ranga

    Reddy District (hereinafter referred to as “the suit schedule

    property”). It is not in dispute that the appellant is the absolute

    owner of the suit schedule property, having acquired title thereto

    under a registered sale deed dated 23.08.2007, and the said

    ownership forms the basis of the present dispute.
    3

    Plaint Averments (Respondent/Plaintiff’s case)

    5. The case of the respondent/plaintiff, as set out in the plaint,

    in substance, is as follows:

    i. The respondent/plaintiff instituted O.S.No.224 of 2013

    before the learned XIV Additional District Judge, Ranga

    Reddy District at L.B. Nagar, seeking the relief of specific

    performance of the Agreement of Sale dated 22.10.2011 in

    respect of the suit schedule property.

    ii. According to the plaintiff, the appellant/defendant, being in

    dire financial necessity to maintain her family, offered to sell

    the suit schedule property to him for a total sale

    consideration of Rs.20,00,000/-. The plaintiff accepted the

    offer, and on 22.10.2011, the appellant executed an

    Agreement of Sale (Ex.A1) in his favour, acknowledging

    receipt of Rs.19,00,000/- in cash towards part sale

    consideration. The balance sale consideration of

    Rs.1,00,000/- was agreed to be paid at the time of execution

    and registration of the sale deed. It was further pleaded that

    the appellant simultaneously handed over the original title

    deed relating to the suit schedule property to the plaintiff.

    iii. The plaintiff pleaded that, in the month of February, 2012,

    he called upon the appellant to receive the balance sale

    consideration and execute the registered sale deed. However,
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    the appellant postponed the execution of the sale deed on

    one pretext or another. According to the plaintiff, he

    subsequently came to know on 03.02.2013 that real estate

    brokers were frequently visiting the suit schedule property

    and that the appellant was attempting to alienate the

    property to third parties by suppressing the earlier

    Agreement of Sale.

    iv. Consequently, the plaintiff caused a legal notice dated

    05.02.2013 (Ex.A2) to be issued through registered post

    calling upon the appellant to perform her contractual

    obligations. Despite receipt of the said notice, the appellant

    neither complied with the demand nor sent any reply.

    v. The plaintiff asserted that he had always been ready and

    willing to perform his part of the contract by paying the

    balance sale consideration of Rs.1,00,000/- and obtaining a

    registered sale deed. Alleging that the appellant had failed to

    honour the terms of the Agreement of Sale and that he had

    no other efficacious remedy, the plaintiff instituted

    O.S.No.224 of 2013 on 27.02.2013, seeking a decree for

    specific performance of the Agreement of Sale dated

    22.10.2011.

    vi. In support of his case, the plaintiff examined himself as PW.1

    and examined Kummari Srinivas, one of the attesting
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    witnesses to the Agreement of Sale, as PW.2. He also marked

    Exs.A1 to A9, namely:

            a) Ex.A1      -    Original       Agreement    of    Sale     dated
                 22.10.2011;
    
    

    b) Ex.A2 – Office copy of the legal notice dated
    05.02.2013;

    c) Ex.A3 – Original Registered Postal Receipt;

    d) Ex.A4 – Original sale deed of the suit schedule
    property standing in the name of the appellant;

    e) Exs.A5 to A8 – Certified copies of registered sale
    deeds relating to the plaintiff’s properties, relied upon
    by him to establish the source of the amount of
    Rs.19,00,000/- allegedly paid as advance sale
    consideration; and

    f) Ex.A9 – Bank statement of the plaintiff.

    Written Statement (Appellant/Defendant’s case)

    6. The appellant/defendant filed her written statement resisting

    the suit, and has contended as under:

    i. The appellant categorically denied the execution of the

    Agreement of Sale dated 22.10.2011 (Ex.A1) and disputed

    the receipt of Rs.19,00,000/- or any part of the alleged sale

    consideration from the plaintiff. Appellant asserted that

    Ex.A1 is a forged and fabricated document brought into
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    existence by the plaintiff for his wrongful gain and that there

    was neither any agreement to sell the suit schedule property

    nor any concluded contract between the parties.

    ii. The appellant pleaded that, after the demise of her husband

    on 25.04.2000, the respondent/plaintiff, being brother of her

    late husband, actively assisted her in family affairs,

    including the construction of the suit schedule house, and

    thereby occupied a position of trust and confidence.

    According to appellant, taking advantage of such fiduciary

    relationship, the respondent/plaintiff obtained her

    signatures on certain blank papers and took custody of the

    original title deed of the suit schedule property on the pretext

    of securing a bank loan for construction of the house. It was

    her specific case that those signatures were subsequently

    misused for creating the alleged Agreement of Sale.

    iii. The appellant further contended that the plaintiff, being a

    Government employee, lacked the financial capacity to pay

    Rs.19,00,000/- in cash. According to appellant, if such a

    transaction had in fact taken place, the plaintiff ought to

    have obtained the requisite permission from his higher

    authorities and disclosed the transaction in accordance with

    the applicable service rules. The absence of any such
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    disclosure, according to the appellant, rendered the plaintiff’s

    version inherently improbable.

    iv. The appellant further pleaded that the respondent/plaintiff

    had even attested the registered sale deed executed by her in

    favour of his own sister. Appellant asserted that she had

    purchased Plot No.172 under a registered sale deed dated

    23.08.2007 and had subsequently sold a portion thereof

    measuring 40 Sq yards to the plaintiff’s sister under a

    registered sale deed dated 29.08.2011, wherein the plaintiff

    figured as an attesting witness. These circumstances,

    according to the appellant, demonstrated the confidence

    reposed in the plaintiff, which he later misused.

    v. The appellant denied that she was in financial distress or

    under any compulsion to sell the suit schedule property.

    According to appellant, she had no necessity to alienate the

    property, and pleaded that she had contracted a second

    marriage on 08.12.2012 and that, owing to personal

    differences arising therefrom, the plaintiff bore a grudge

    against her and instituted the present suit only to harass

    her.

    vi. A substantial part of the defence centred around the stage of

    construction of the suit schedule property. The appellant

    asserted that, as on 22.10.2011, only the ground floor
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    existed and that the first floor had not been constructed.

    According to appellant, the first floor was completed only in

    April, 2012 by availing a gold loan through Manappuram

    Finance with the assistance of her father, and the loan was

    later discharged by selling her gold ornaments. Appellant

    further pleaded that she had paid Rs.64,000/- to the plaintiff

    by cheque dated 16.11.2011 towards purchase of

    construction material and another sum of Rs.4,400/- by

    cheque dated 13.06.2012 towards patchwork in the first

    floor. Therefore, it was contended that the recital in Ex.A1

    describing the suit schedule property as consisting of a

    “ground floor and first floor” clearly established that the

    document was fabricated.

    vii. The appellant also disputed the admissibility and

    genuineness of Ex.A1 by contending that it was not duly

    stamped, was hit by Sections 17 and 49 of the Registration

    Act, contained several corrections and interpolations, and

    that the stamp papers used therein were not genuine.

    Appellant further denied having received the legal notice

    allegedly issued by the plaintiff and asserted that she had

    never met the alleged scribe or attesting witnesses to Ex.A1.

    On the aforesaid grounds, the appellant prayed for dismissal

    of the suit with exemplary costs.

    9

    Consideration by the trial Court

    7. The Trial Court, upon consideration of the averments in the

    pleadings and contents of the documents produced by the rival

    parties has framed the following issues for determination:

    I. Whether the plaintiff is entitled to a decree for specific

    performance of the Agreement of Sale dated 22.10.2011 in

    against the defendant in respect of the suit schedule

    property as prayed for?

    II. To what relief?

    By judgment and decree dated 18.02.2021, the learned trial Court

    answered Issue No.1 in favour of the plaintiff and decreed the suit

    with costs.

    The trial Court held that the due execution of the Agreement

    of Sale dated 22.10.2011 (Ex.A1) stood established through the

    oral evidence of PW.1, the plaintiff, and PW.2, one of the attesting

    witnesses to the document. The Court observed that, although the

    appellant/defendant alleged that Ex.A1 was forged and fabricated,

    she had not specifically disputed the signatures appearing thereon

    and had failed to adduce any oral or documentary evidence in

    support of her plea of forgery or fabrication. The trial Court further

    held that the evidence of PW.2 corroborated the plaintiff’s version

    regarding the execution of Ex.A1, payment of Rs.19,00,000/- as
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    advance sale consideration, and handing over of the original title

    deeds by the appellant.

    With regard to the appellant’s contention that the plaintiff

    lacked the financial capacity to pay Rs.19,00,000/-, the trial Court

    held that the plaintiff had satisfactorily explained the source of

    funds by producing Exs.A5 to A8, namely, certified copies of

    contemporaneous registered sale deeds relating to the sale of his

    own properties. The Court, therefore, rejected the contention that

    the plaintiff lacked the financial means to pay the advance sale

    consideration.

    The trial Court held that the plaintiff had established his

    continuous readiness and willingness to perform his part of the

    contract by paying the balance sale consideration of Rs.1,00,000/-

    and seeking execution of the registered sale deed. As regards the

    appellant’s contention that the plaintiff, being a Government

    servant, had not obtained prior permission from his higher

    authorities before entering into the transaction, the Court held that

    any violation of service rules, if at all, was a matter between the

    plaintiff and his employer and did not affect the validity or

    enforceability of Ex.A1.

    The trial Court rejected the defence set up by the

    appellant/defendant on the ground that she had neither entered
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    the witness box nor adduced any documentary evidence in support

    of her allegations that Ex.A1 had been fabricated by misusing her

    signatures obtained on blank papers; that the plaintiff lacked

    financial capacity; or that the Agreement of Sale was otherwise not

    genuine. The Court further held that the mere fact that the

    attesting witnesses were known to the plaintiff or were working

    under him was insufficient to discredit Ex.A1 in the absence of any

    evidence to substantiate the appellant’s allegations.

    Accordingly, the trial Court decreed the suit with costs and

    directed the plaintiff to deposit the balance sale consideration of

    Rs.1,00,000/- to the credit of the suit within the stipulated time,

    whereupon the appellant was directed to execute and register the

    sale deed in favour of the plaintiff within two weeks, with liberty to

    withdraw the amount so deposited.

    Submissions on behalf of the Appellant (Defendant)

    8. The learned counsel appearing for the appellant/defendant

    assailed the impugned judgment and decree dated 18.02.2021

    passed in O.S.No.224 of 2013 and advanced his submissions as

    under:

    i. That the respondent/plaintiff is the natural brother of the

    appellant’s deceased husband and, following the death of her

    husband, actively managed the appellant’s family affairs,
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    including the construction of the suit schedule house.

    Taking advantage of the confidence reposed in him, the

    respondent allegedly obtained the appellant’s signatures on

    certain blank papers and also secured possession of the

    original title deed under the pretext of arranging a bank loan

    for construction of the house. It is submitted that the said

    documents were subsequently misused for fabricating the

    Agreement of Sale dated 22.10.2011 (Ex.A1).

    ii. That the appellant has consistently denied the execution of

    Ex.A1 as well as the receipt of Rs.19,00,000/- towards

    advance sale consideration. It is submitted that Ex.A1 is a

    forged and fabricated document, containing several

    corrections, insertions and interlineations, which render its

    genuineness highly doubtful. It is argued that the learned

    trial Court has failed to subject the document to the degree

    of scrutiny warranted in the facts of the case.

    iii. That the respondent, being a Government servant, failed to

    establish his financial capacity to pay Rs.19,00,000/- in

    cash. According to the learned counsel, the respondent

    neither obtained the requisite permission from his competent

    authority under the applicable service rules nor disclosed the

    alleged cash transaction in the prescribed service records. It

    is contended that these circumstances cast serious doubt
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    upon the respondent’s claim of having paid such a

    substantial amount in cash and render the transaction

    inherently improbable.

    iv. That the burden squarely rested upon the

    respondent/plaintiff to establish the due execution of Ex.A1

    and his continuous readiness and willingness to perform his

    part of the contract. It is argued that the learned trial Court

    erroneously shifted the burden onto the appellant and was

    carried away merely because she did not adduce oral

    evidence.

    v. That the evidence of PW.2, being a subordinate employee

    working under the respondent, ought not to have been

    accepted without independent corroboration, and that the

    trial Court failed to appreciate the interested nature of the

    evidence adduced on behalf of the plaintiff.

    vi. That the decree for specific performance is inequitable and

    ought to have been refused in the exercise of equitable

    discretion. Learned counsel submits that the appellant is a

    widow having two daughters and that the suit schedule

    property constitutes her only residential house. It is argued

    that enforcement of the alleged Agreement of Sale would

    deprive the appellant and her daughters of their only shelter.

    It is further submitted that the suit came to be instituted
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    after an inordinate delay of more than one and a half years

    from the alleged cause of action, and that, during the

    intervening period, the market value of the property has

    increased substantially. Thus, compelling the appellant to

    execute the sale deed for the consideration allegedly agreed

    upon in the year 2011 would result in grave hardship and

    manifest injustice.

    9. Learned counsel for appellant has placed reliance on the

    following decisions in support of his case:

    a) U.N.Krishnamurthy (Since Deceased) through Legal

    Representatives v. A.M. Krishnamurthy 1 (at paras 38 and

    42.3.)

    b) Nanjappan v. Ramasamy and another 2 (at para 15)

    c) Rajinder Kumar v. Kuldeep Singh and others 3 (at paras 37

    and 45)

    Submissions on behalf of the Respondent (Plaintiff)

    10. The learned Senior Counsel appearing for the

    respondent/plaintiff supported the impugned judgment and decree

    and advanced the following submissions:

    1 (2023) 11 SCC 775
    2 2015 (4) ALD 135 (SC)
    3 2014 (3) ALD 100 (SC)
    15

    i. That the due execution of the Agreement of Sale dated

    22.10.2011 (Ex.A1) stands conclusively established through

    the oral evidence of PW.1, the plaintiff, and PW.2, one of the

    attesting witnesses to the document. It is contended that the

    appellant never specifically disputed her signatures

    appearing on Ex.A1 and, despite alleging forgery and

    fabrication in the written statement, failed to adduce any oral

    or documentary evidence in support of such allegations.

    Therefore, it is submitted that a mere plea of denial,

    unsupported by evidence, cannot discredit a duly proved

    document.

    ii. That the respondent continuously remained ready and

    willing to perform his part of the contract. In support of the

    said contention, reliance is placed upon the legal notice

    dated 05.02.2013 (Ex.A2) issued to the appellant calling

    upon her to receive the balance sale consideration and

    execute the registered sale deed. It is further submitted that,

    pursuant to the decree passed by the learned trial Court, the

    respondent deposited the balance sale consideration of

    Rs.1,00,000/- to the credit of the suit within the time

    stipulated, thereby demonstrating his bona fides and

    continuous readiness and willingness to perform the

    contract.

    16

    iii. That the respondent satisfactorily established his financial

    capacity to pay the advance sale consideration of

    Rs.19,00,000/- by producing Exs.A5 to A8, being certified

    copies of registered sale deeds evidencing the sale of his own

    properties, coupled with Ex.A9, his bank statement.

    According to the learned Senior Counsel, the said documents

    sufficiently establish the legitimate source of funds utilised

    by the respondent for payment of the advance sale

    consideration.

    iv. That, notwithstanding the serious allegations of forgery,

    fabrication and misuse of trust levelled in the written

    statement, the appellant neither entered the witness box nor

    adduced any oral or documentary evidence in support of her

    defence. It is, therefore, contended that the learned trial

    Court rightly rejected the appellant’s pleas and was justified

    in drawing an adverse inference against her for withholding

    the best available evidence.

    v. That no equitable consideration arises in favour of the

    appellant so as to deny the relief of specific performance.

    According to the learned Senior Counsel, the appellant

    voluntarily entered into the Agreement of Sale, received

    Rs.19,00,000/-, constituting 95% of the total sale

    consideration, and also handed over the original title deeds
    17

    to the respondent. Having accepted the substantial portion of

    the consideration, the appellant cannot be permitted to

    retain both the advance amount and the property by resiling

    from her contractual obligations. It is contended that the

    appellant’s status as a widow, the existence of two

    daughters, or the subsequent appreciation in the market

    value of the property cannot, by themselves, constitute valid

    grounds for refusing enforcement of an otherwise valid

    contract.

    vi. With regard to the plea of delay, learned Senior Counsel

    submitted that the respondent issued the legal notice within

    the period of limitation immediately upon learning of the

    appellant’s attempts to alienate the suit schedule property to

    third parties and thereafter instituted O.S.No.224 of 2013

    without undue delay. It is, therefore, contended that the plea

    of delay or hardship raised by the appellant does not

    constitute a legally sustainable ground for denying the

    equitable relief of specific performance.

    11. Learned Senior Counsel for respondent has placed reliance

    on the following decisions in support of his case:

    a) Vidhyadhar v. Mankikrao and another 4

    b) Sardar Gurubaksh Singh v. Gurdial Singh and another 5

    4 (1999) 3 SCC 573
    18

    c) Bhagwan Dass v. Bhishan Chand 6

    12. I have taken note of the rival submissions advanced by the

    learned counsel for the parties and perused the pleadings, oral and

    documentary evidence and the material available on record.

    Consideration by this Court

    13. The principal contention urged by the appellant is that the

    Agreement of Sale dated 22.10.2011 (Ex.A1) is a forged and

    fabricated document brought into existence by misusing the trust

    reposed in the respondent, who is admittedly the natural brother of

    the appellant’s deceased husband. According to the appellant, the

    respondent obtained her signatures on certain blank papers and

    secured possession of the original title deed under the pretext of

    arranging a bank loan, which were subsequently misused for

    fabricating Ex.A1.

    14. It is trite that, in a suit for specific performance, the initial

    burden lies upon the plaintiff to establish the due execution of the

    agreement sought to be enforced, together with his continuous

    readiness and willingness to perform his part of the contract. Once

    such initial burden is discharged by leading acceptable evidence,

    the onus shifts to the defendant to substantiate the specific pleas

    5 (1927) 29 Bom. L.R. 1392
    6 AIR 1974 P&H 7
    19

    raised in defence, including allegations of fraud, fabrication or

    forgery.

    15. In the present case, the respondent examined himself as

    PW.1 and one of the attesting witnesses to Ex.A1, namely PW.2,

    who deposed to the execution of the Agreement of Sale, payment of

    Rs.19,00,000/- towards advance sale consideration, and delivery of

    the original title deeds by the appellant. The respondent also

    produced the original Agreement of Sale as Ex.A1 along with the

    connected documentary evidence.

    16. Significantly, although the appellant alleged that Ex.A1 was

    forged and fabricated, she did not adduce any oral or documentary

    evidence in support of such plea. The record further discloses that,

    while disputing the execution of the agreement, the appellant did

    not specifically dispute the signatures appearing on Ex.A1.

    Therefore, the defence remains unsupported by any evidence.

    17. The appellant has also questioned the credibility of PW.2 on

    the ground that he was working under the respondent.

    Undoubtedly, the relationship between a witness and a party is a

    relevant circumstance while appreciating evidence. However, such

    relationship, by itself, does not render the testimony inadmissible

    or unreliable. The evidence of PW.2 has to be assessed on its own

    merits in the light of the surrounding circumstances and the other

    evidence available on record. The learned trial Court noticed that
    20

    the mere fact that PW.2 and the other attesting witness were

    known to the respondent or were employed in the same

    establishment did not, in the absence of any contrary evidence,

    justify an inference that Ex.A1 was fabricated.

    18. It is well settled that allegations of fraud or forgery are

    required to be specifically pleaded and strictly proved by the party

    asserting them. Mere allegations, however serious, cannot take the

    place of proof. Whether the respondent has satisfactorily

    discharged the burden of proving the execution of Ex.A1 and

    whether the appellant has succeeded in probabilising her defence

    are, therefore, required to be examined on the basis of the evidence

    available on record.

    19. In this regard, it is apposite to note that the respondent has

    discharged the initial burden of proving the due execution of Ex.A1

    by examining himself as PW.1 and one of the attesting witnesses as

    PW.2 and by producing the original Agreement of Sale. Once such

    burden stood discharged, the appellant, who alleged fraud and

    fabrication, was required to substantiate the same by acceptable

    evidence. Having failed to do so, the findings recorded by the

    learned trial Court on the due execution of Ex.A1 do not warrant

    interference.

    20. The appellant contends that the respondent, being a

    Government servant, lacked the financial capacity to pay
    21

    Rs.19,00,000/- in cash under Ex.A1 and had failed to comply with

    the applicable service rules governing acquisition of immovable

    property. However, the record demonstrates that the respondent

    sought to establish the source of the advance sale consideration by

    producing Exs.A5 to A8, being certified copies of registered sale

    deeds relating to the sale of his own properties, along with Ex.A9,

    his bank statement. The learned trial Court accepted the said

    documentary evidence as sufficient to establish the respondent’s

    financial capacity to pay the advance sale consideration under

    Ex.A1.

    21. It is pertinent to note that the objection founded upon the

    respondent’s alleged non-compliance with the applicable service

    rules does not materially affect the enforceability of Ex.A1. The

    appellant contends that the respondent neither obtained prior

    permission from his competent authority nor disclosed the

    transaction in the manner required under the relevant service

    regulations. The learned trial Court was of the view that any such

    omission, if established, would constitute a matter between the

    respondent and his employer and would not, by itself, affect the

    validity or enforceability of the Agreement of Sale executed between

    the parties. Therefore, the documentary evidence produced by the

    respondent sufficiently establishes the source of the advance sale

    consideration. The objection regarding violation of service rules
    22

    cannot invalidate an otherwise enforceable civil contract between

    the parties.

    22. In a suit for specific performance, the plaintiff is required to

    establish his continuous readiness and willingness to perform his

    part of the contract from the date of the agreement until the

    passing of the decree. In the present case, the respondent

    consistently pleaded that he was ready and willing to perform his

    contractual obligations and, in support thereof, relied upon the

    legal notice dated 05.02.2013 (Ex.A2) calling upon the appellant to

    receive the balance sale consideration and execute the registered

    sale deed.

    23. The record further discloses that, pursuant to the decree

    passed by the learned trial Court, the respondent deposited the

    balance sale consideration of Rs.1,00,000/- within the stipulated

    time. Though the deposit was made subsequent to the decree, it

    nevertheless lends credence to the respondent’s plea of readiness

    and willingness. The issuance of Ex.A2 coupled with the

    subsequent deposit of the balance sale consideration pursuant to

    the decree lends weightage to the respondent’s plea of continuous

    readiness and willingness. This Court finds no reason to differ from

    the conclusion reached by the learned trial Court on this aspect.

    24. It is to be noted that despite specifically pleading fraud,

    fabrication and misuse of her signatures, the appellant neither
    23

    entered the witness box nor adduced any oral or documentary

    evidence in support of such pleas. It is well settled that allegations

    of fraud or forgery must be established by cogent and convincing

    evidence and cannot rest on mere pleadings. The absence of any

    evidence in support of the defence is, therefore, a relevant

    circumstance while appreciating the rival claims of the parties.

    25. In Sardar Gurubaksh Singh (supra 5), the Privy Council

    has held as under:

    “The true object to be achieved by a Court of justice can only be
    furthered with propriety by the testimony of the party who
    personally knowing the whole circumstances of the case can
    dispel the suspicious attaching to it. The story can then be
    subjected in all its particulars to cross-examination.”

    26. The contention of the learned counsel for the appellant that

    the relief of specific performance deserves to be declined on

    equitable considerations, for the reason that the appellant is a

    widow having two daughters; that the suit schedule property

    constitutes her only residential house; and that its market value

    has appreciated substantially since the execution of the Agreement

    of Sale dated 22.10.2011, are to be noted only to be rejected. The

    personal hardships of the appellant may arise sympathetic

    considerations but do not constitute legally sustainable grounds to

    deny specific performance. The alleged hardships were not caused

    by the respondent/plaintiff and do not directly guise of the

    contract and cannot invalidate a binding common commitment.
    24

    27. It is well settled that the relief of specific performance is

    discretionary and governed by equitable principles. While

    exercising such discretion, the Court is required to balance the

    equities between the parties and consider whether enforcement of

    the contract would result in such hardship to the defendant as

    would render the grant of the relief inequitable. At the same time,

    hardship pleaded by the defendant must be weighed against the

    rights acquired by the plaintiff under the contract and the conduct

    of the respective parties.

    28. The respondent/plaintiff has paid (substantial portion) 95%

    of the entire consideration. The vendor has enjoyed the purchaser’s

    money since 2011. In such circumstances, equity must operate to

    prevent unjust enrichment. Equity cannot be invoked to sanction a

    breach of faith against an innocent purchaser who has acted bona

    fide under a lawful agreement. It is well settled that equity follows

    the law; it cannot be employed to defeat a valid contract, nor can

    equitable principles be applied in a manner that is entirely one-

    sided.

    29. The appellant has also sought to invoke the fiduciary

    relationship between the parties, contending that the respondent,

    being the brother of her deceased husband, abused the confidence

    reposed in him and procured Ex.A1 by obtaining her signatures on

    blank papers. However, the mere existence of a close familial
    25

    relationship does not, by itself, establish undue influence or abuse

    of confidence in relation to a commercial transaction evidenced by

    a written agreement. Whether such plea is sustainable necessarily

    depends upon the evidence adduced in support thereof. The

    absence of any evidence to establish undue influence or abuse of

    the alleged fiduciary relationship renders the plea wholly

    unsubstantiated.

    30. Further, the appellant has relied upon her personal

    circumstances, namely that she is a widow having two daughters

    and that the suit schedule property is her only residential house.

    These are undoubtedly relevant circumstances which merit due

    consideration while exercising equitable jurisdiction. However,

    equally relevant, is the respondent’s case that he had paid

    Rs.19,00,000/-, constituting a substantial part of the agreed sale

    consideration, and had consistently expressed his willingness to

    pay the balance consideration. Therefore, this Court is required to

    balance the competing equities in the light of the evidence available

    on record.

    31. It is a settled principle that subsequent appreciation in the

    value of immovable property, in the absence of other compelling

    circumstances, cannot ordinarily defeat an otherwise enforceable

    contract. This principle was affirmed by the Hon’ble Supreme
    26

    Court in K. Prakash v. B.R. Sampath Kumar 7, has held that a

    decree for specific performance cannot be reversed solely on the

    ground of a rise in price, though the Court may consider imposing

    conditions to compensate the other party. The said relevant para is

    extracted hereunder:

    18. Subsequent rise in the price will not be treated as a hardship
    entailing refusal of the decree for specific performance. Rise in
    price is a normal change of circumstances and, therefore, on that
    ground a decree for specific performance cannot be reversed.

    (Emphasis supplied)

    32. Moreover, the contention regarding escalation in the market

    value of the suit schedule property also does not furnish a ground

    to decline the relief of specific performance. It is a settled principle

    that subsequent appreciation in the value of immovable property,

    in the absence of other compelling circumstances, cannot

    ordinarily defeat an otherwise enforceable contract.

    33. Further, the decisions relied upon by the appellant are

    distinguishable on facts and law for the following reasons:

    i. In U.N. Krishnamurthy (supra 1), the Hon’ble Supreme

    Court has observed that the execution and validity of the

    agreement of sale were not in dispute; the controversy was

    confined to the equitable exercise of discretion in granting

    specific performance, particularly with reference to delay,

    readiness and willingness, and escalation of property prices.

    7 (2015) 1 SCC 597
    27

    However, in the present case, the very execution and

    genuineness of the Agreement of Sale (Ex.A1) are seriously

    disputed. The appellant has consistently pleaded that Ex.A1

    is a forged and fabricated document created by misusing her

    signatures obtained on blank papers, and has denied receipt

    of any sale consideration or the existence of a concluded

    contract. Therefore, the question of applying equitable

    considerations regarding readiness, willingness or payment

    of substantial consideration does not arise unless the

    plaintiff first establishes a valid and enforceable agreement.

    ii. In Nanjappan (supra 2) it was observed that the execution

    and validity of the agreement of sale were undisputed, and

    the Hon’ble Supreme Court declined specific performance

    solely on equitable considerations, having regard to the

    hardship that would be caused to the defendant. However, in

    the present case, the very execution and genuineness of

    Ex.A1 are in dispute. The appellant has consistently pleaded

    that Ex.A1 is a forged and fabricated document created by

    misusing her signatures obtained in a fiduciary relationship.

    Therefore, unless the plaintiff first establishes a valid and

    enforceable agreement, the question of exercising equitable

    discretion in granting specific performance does not arise.
    28

    iii. In Rajinder Kumar (supra 3) the Hon’ble Supreme Court,

    has made observations regarding the principle of a fortiori,

    namely that a vendor may be compensated for accretion in

    the value of the property where execution of an undisputed

    decree is delayed by the purchaser, were made in the context

    of post-decree proceedings under Section 28 of the Specific

    Relief Act, where the validity of the agreement and the decree

    for specific performance had already attained finality.

    However, in the present case, the very execution and

    genuineness of Ex.A1 are in serious dispute, the appellant

    having consistently alleged that it is a forged and fabricated

    document created by misusing her signatures obtained in a

    fiduciary relationship. Thus, the said decision does not

    advance the case of the appellant.

    34. Thus, the appellant has failed to establish that Ex.A1 was

    fabricated or that the respondent lacked financial capacity or

    readiness and willingness to perform his part of the contract.

    Equally, no exceptional circumstance has been shown warranting

    refusal of the equitable relief of specific performance. This Court,

    therefore, finds no perversity, illegality or infirmity in the findings

    recorded by the learned trial Court warranting interference in the

    present appeal.

    29

    Conclusion

    35. For the foregoing reasons, this Court is of the considered

    view that the appellant has failed to demonstrate any factual or

    legal infirmity warranting interference with the judgment and

    decree dated 18.02.2021 passed in O.S.No.224 of 2013. The

    findings recorded by the learned XIV Additional District Judge are

    founded on a proper appreciation of the evidence and the settled

    principles governing suits for specific performance.

    36. Accordingly, the Appeal Suit No.83 of 2021 is dismissed. The

    judgment and decree dated 18.02.2021 passed by the learned XIV

    Additional District Judge, at L.B.Nagar in O.S.No.224 of 2013 is

    confirmed.

    As a sequel, miscellaneous applications pending if any in the

    appeal, shall stand closed. No costs.

    _____________________
    G.M.MOHIUDDIN, J

    Date: 24.07.2026
    szt



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