KONE SATYANARAYANA Vs. ALAPATI JAYAPRAKASH NARAYANA

JUDGEMENT

(1.) The defendants in O.S. No. 100 of 2000 on the file of the Court of the Senior Civil Judge, Tadepalligudem, are the appellants in this Second Appeal which raises an interesting question as to the rate of interest that can be awarded by a Court of law to the plaintiff in a suit for specific performance of agreement of sale of immovable property when specific enforcement of the agreement of sale is denied for one reason or the other.

(2.) The fact of the matter is not in dispute. The defendants entered into agreement of sale dated 02.12.1997 (Ex.Al) in respect of a house bearing Door No. 2-19-2 (new assessment No. 21965) along with the land admeasuring 213 1/2 square yards situated at Tadepalligudem for a total consideration of 5,40,116/-. The plaintiff paid advance amount of 1,85,000/- on 02.12.1997, 07.12.1997 and 14.01.1998 - which were marked as Exs.A2 and A3 in the suit. When the sale deed was not executed the plaintiff issued notice of demand and filed a suit for specific performance, being O.S. No. 100 of 2000, on the file of the Court of the Senior Civil Judge, Tadepalligudem. The defendants opposed the suit, inter alia, on the ground that defendant Nos. 1 to 3 did not receive any amount, that signatures of defendant No. 1 were obtained on white papers, that the plaintiff had no capacity to pay the amounts, and that defendant No. 4, being a minor, Ex.A1 is not binding on her.

(3.) The suit went to trial. The oral and documentary evidence was let in. Trial Court on considering the evidence denied specific performance, but directed the defendants to pay 1,85,000/- with interest at 24% per annum from 14.01.1998 and post decree interest at 12% per annum till realization. The defendants (appellants herein) filed A.S. No. 158 of 2006 on the file of the Court of the II Additional District Judge, Eluru. The appellate Court affirmed the judgment of the trial Court.