Supreme Court Dismisses Review Petition in Specific Performance Suit — No Error Apparent on Face of Record. Court upholds its earlier judgment reversing High Court's partial decree for specific performance, holding that the petitioner failed to prove readiness and willingness and that the suit was barred by limitation.

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Case Note & Summary

The petitioner, M/s Siddamsetty Infra Projects Pvt. Ltd., filed a review petition under Article 137 of the Constitution read with Order XLVII Rule 1 of the Supreme Court Rules 2013, seeking review of a judgment dated 25 August 2022 passed by a three-Judge Bench of the Supreme Court. That judgment had allowed an appeal against the High Court of Telangana's judgment dated 23 April 2021, which had partially decreed a suit for specific performance in favour of the petitioner. The background of the case involves agreements to sell land executed in 1994 and 1997. The original owners entered into an agreement to sell 127.29 acres to vendors in 1994. On 26 March 1997, the vendors executed an agreement to sell 38.15 acres to the petitioner for Rs 38,37,500, with an advance of Rs 11,30,000 paid. A second agreement to sell 1.33 acres was executed on 27 March 1997. The petitioner claimed to have paid substantial consideration and sought specific performance. The Trial Court dismissed the suit on 12 December 2010, holding that the petitioner failed to prove readiness and willingness, and that the suit was barred by limitation. The High Court partially decreed the suit, directing registration proportionate to the consideration paid. The Supreme Court, in its judgment of 25 August 2022, allowed the appeal and set aside the High Court's decree, restoring the Trial Court's dismissal. The petitioner sought review of that judgment. The legal issues considered were whether the judgment suffered from an error apparent on the face of the record, whether the suit was barred by limitation, whether the petitioner proved readiness and willingness, and whether the doctrine of lis pendens applied. The petitioner argued that the Supreme Court erred in holding that time was of the essence and that the suit was barred by limitation. The respondents contended that the review petition was an attempt to re-argue the case. The Court analyzed the grounds for review, noting that the review jurisdiction is limited to correcting errors apparent on the face of the record and cannot be used to re-argue the case. On limitation, the Court held that the suit was filed beyond three years from the date fixed for performance (three months from 26 March 1997), and the first legal notice was issued after the limitation period had expired. On readiness and willingness, the Court found that the petitioner failed to prove continuous readiness, as a cheque was dishonoured and there was a delay in issuing legal notices. The Court also held that the doctrine of lis pendens does not apply to protect a transferee pendente lite if the transferor had no valid title or the suit is dismissed. The Court concluded that there was no error apparent on the face of the record and dismissed the review petition.

Headnote

A) Review Jurisdiction - Error Apparent on Face of Record - Article 137 of the Constitution read with Order XLVII Rule 1 of the Supreme Court Rules 2013 - The petitioner sought review of a judgment allowing the appeal against the High Court's partial decree for specific performance. The Court held that the review jurisdiction is limited and cannot be used to re-argue the case. No error apparent on the face of the record was found. (Paras 1, 17-24)

B) Specific Performance - Readiness and Willingness - Section 16(c) of the Specific Relief Act, 1963 - The Court held that the petitioner failed to prove continuous readiness and willingness to perform his part of the contract. The dishonour of a cheque and the delay in issuing legal notices indicated lack of readiness. (Paras 25-31)

C) Limitation - Suit for Specific Performance - Article 54 of the Limitation Act, 1963 - The suit was filed beyond three years from the date fixed for performance (three months from 26 March 1997). The first legal notice was issued after the limitation period had expired. The suit was barred by limitation. (Paras 19-24)

D) Lis Pendens - Section 52 of the Transfer of Property Act, 1882 - The Court held that the doctrine of lis pendens does not apply to protect a transferee pendente lite if the transferor had no valid title or the suit is dismissed. (Paras 32-35)

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Issue of Consideration

Whether the judgment of this Court dated 25 August 2022 suffers from an error apparent on the face of the record which warrants the exercise of the review jurisdiction.

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Final Decision

The Supreme Court dismissed the review petitions, holding that there was no error apparent on the face of the record in the judgment dated 25 August 2022. The Court found that the suit was barred by limitation, the petitioner failed to prove readiness and willingness, and the doctrine of lis pendens did not apply. The review petitions were dismissed.

Law Points

  • Review jurisdiction
  • Error apparent on face of record
  • Specific performance
  • Readiness and willingness
  • Limitation
  • Lis pendens
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Case Details

2024 LawText (SC) (11) 301

Review Petition (C) No. 1565 of 2022 in C.A. No. 5822 of 2022

2024-11-18

Dr Dhananjaya Y Chandrachud, CJI

2024 INSC 861

M/s Siddamsetty Infra Projects Pvt. Ltd.

Katta Sujatha Reddy & Ors.

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Nature of Litigation

Review petition against a judgment of the Supreme Court in a civil appeal arising from a suit for specific performance of agreements to sell land.

Remedy Sought

The petitioner sought review of the Supreme Court's judgment dated 25 August 2022 which allowed the appeal and set aside the High Court's partial decree for specific performance.

Filing Reason

The petitioner claimed that the Supreme Court's judgment suffered from an error apparent on the face of the record, particularly regarding limitation and readiness and willingness.

Previous Decisions

The Trial Court dismissed the suit on 12 December 2010. The High Court of Telangana partially decreed the suit on 23 April 2021. The Supreme Court allowed the appeal on 25 August 2022, restoring the Trial Court's dismissal.

Issues

Whether the judgment of this Court dated 25 August 2022 suffers from an error apparent on the face of the record which warrants the exercise of the review jurisdiction. Whether the suit for specific performance was barred by limitation under Article 54 of the Limitation Act, 1963. Whether the petitioner proved readiness and willingness to perform his part of the contract under Section 16(c) of the Specific Relief Act, 1963. Whether the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882 applies to protect the petitioner's claim.

Submissions/Arguments

The petitioner argued that the Supreme Court erred in holding that time was of the essence in the agreement and that the suit was barred by limitation. The petitioner contended that the High Court correctly held that time was not of the essence and that the suit was within limitation. The respondents argued that the review petition was an attempt to re-argue the case and that there was no error apparent on the face of the record. They submitted that the Supreme Court's judgment was correct on all counts.

Ratio Decidendi

The review jurisdiction under Article 137 read with Order XLVII Rule 1 of the Supreme Court Rules 2013 is limited to correcting errors apparent on the face of the record and cannot be used to re-argue the case. The suit for specific performance was barred by limitation under Article 54 of the Limitation Act, 1963, as the suit was filed beyond three years from the date fixed for performance. The petitioner failed to prove continuous readiness and willingness under Section 16(c) of the Specific Relief Act, 1963. The doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882 does not apply to protect a transferee pendente lite if the transferor had no valid title or the suit is dismissed.

Judgment Excerpts

The issue for the consideration of this Court is whether the judgment of this Court dated 25 August 2022 suffers from an error apparent on the face of the record which warrants the exercise of the review jurisdiction. The review jurisdiction is limited and cannot be used to re-argue the case. The suit was barred by limitation under Article 54 of the Limitation Act, 1963. The petitioner failed to prove continuous readiness and willingness to perform his part of the contract. The doctrine of lis pendens does not apply to protect a transferee pendente lite if the transferor had no valid title or the suit is dismissed.

Procedural History

The original owners entered into an agreement to sell land in 1994. Vendors executed agreements to sell to the petitioner in 1997. The petitioner filed a suit for specific performance in 2002. The Trial Court dismissed the suit on 12 December 2010. The High Court of Telangana partially decreed the suit on 23 April 2021. The Supreme Court allowed the appeal on 25 August 2022, restoring the Trial Court's dismissal. The petitioner filed review petitions, which were dismissed by the present judgment.

Acts & Sections

  • Constitution of India: Article 137
  • Supreme Court Rules, 2013: Order XLVII Rule 1
  • Specific Relief Act, 1963: Section 16(c)
  • Limitation Act, 1963: Article 54
  • Transfer of Property Act, 1882: Section 52
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