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Telikicherla Sesibhushan v. Kalli Raja Rao

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 6071-6072 of 2007)Decided 8 Sept 2014
Civil Appeal Nos. 6071-6072 of 2007
Justice Sudhansu Jyoti Mukhopadhaya · Justice Prafulla C. Pant

Background

A landowner agreed to sell agricultural land to a buyer who undertook to repay the owner's bank loan with interest. The buyer received possession and made some payments, but the loan remained unpaid and the bank obtained a recovery decree. The parties then litigated the owner's claim for possession and the buyer's demand to compel the sale.

Decision Breakdown

The Supreme Court dismissed both buyer's appeals with costs. The evidence supported the concurrent finding that he had failed to perform his essential repayment obligation and had not established continuing readiness and willingness to complete the contract. The refusal to order specific performance therefore stood. The High Court's arrangement restoring possession to the vendors after refund of the stipulated amount also remained, with their claim for occupation profits to be determined separately.

Lesson Learnt

A buyer seeking to compel a property sale must prove performance, or continuing readiness and willingness to perform, the essential promised obligations. Receiving possession and making partial payments did not overcome the unfulfilled loan-repayment obligation here.

Official source (sci.gov.in)View Judgment (PDF)

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