Muddam Raju Yadav Vs B. Raja Shanker (D) Through Lrs. & Ors. (Supreme Court of India)
The appeal before the Supreme Court of India arose from a dispute regarding the specific performance of a sale agreement dated 4 June 2002 concerning a residential property situated at Medchal Village and Mandal in Ranga Reddy District. The property, measuring 406.33 square yards, was agreed to be sold for a total consideration of ₹13,00,000. According to the plaintiff, the defendants had received an advance amount of ₹6,00,000 at the time of execution of the agreement, which was registered on the same day. Under the agreement, the plaintiff was required to pay the remaining ₹7,00,000 within 11 months at the time of execution of the sale deed.
The plaintiff claimed that he had always been ready and willing to pay the balance sale consideration but that the defendants avoided completing the transaction. Consequently, he issued a legal notice dated 25 April 2003 requesting execution of the sale deed. The defendants did not respond to the notice and did not execute the deed, leading the plaintiff to file a suit for specific performance of the agreement.
The defendants contested the claim and presented a different version of events. They alleged that the plaintiff was an unlicensed money lender who had advanced a loan of ₹6,00,000 to them. According to their defence, the sale agreement was executed only as security for this loan. They claimed that the plaintiff had retained the original title deeds of the property and that both parties had an understanding that the defendants would repay the loan within 12 months. Once the loan was repaid, the plaintiff was expected to return the title documents and cancel the registered sale agreement.
