- (1.) The heirs and legal representatives of the Original Defendant in a suit for specific performance of contract and the subsequent purchaser are before us in these appeals which arise out of a judgment and order dated 10.09.2003 passed by a Division Bench of the Andhra Pradesh High Court in Letters Patent Appeal Nos. 168 and 169 of 1996 whereby and whereunder the judgment and decree passed by a learned Single Judge dated 05.11.1996 affirming a judgment and decree dated 30.04.1990 passed by the Additional Chief Judge-cum-Spl. Judge for SPE & ACB Cases, City Civil Court, Hyderabad, was set aside.
(2.) The Defendant in the suit together with his other co-sharers were owners of Survey No.71, West Marredpalli, Secunderabad. A proceeding under the Urban Land (Ceiling & Regulation) Act, 1976 (for short, 'the 1976 Act') was initiated against them. In the said proceeding at the hands of the landholders, excess land was directed to be vested in the Central Government. The owners were allowed to retain 1000 sq. metres of land each. Allegedly, on that premise a piece of vacant land bearing Plot No.2 in Survey No.71 measuring 1000 sq. metres which had been allotted to the defendant was allowed to be retained by him. On or about 27.06.1978 he (original Owner) entered into an agreement with the Plaintiff for sale in respect thereof on a consideration of Rs.50/- sq. yard . As on the said date, a proceeding under the 1976 Act was pending, the agreement to sell was subject to the grant of permission by the competent authority under the said Act. It stipulated that in the event of refusal on the part of the competent authority to grant such permission, the advance paid to the Defendant would be refunded. It was further stipulated that in the event of refusal on the part of the vendor to execute the sale deed upon obtaining permission, if any, not only the amount paid by way of advance was to be refunded but also damages to the extent of Rs.15, 000/- was to be paid by the Defendant to the Plaintiff. The application under Section 26 of the 1976 Act filed for seeking permission to sell the said land was rejected by the competent authority by an order dated 24.08.1978.
(3.) An application was filed under Section 10 of the 1976 Act on 29.04.1980 which was again rejected by an order dated 26.06.1980 stating that no vacant land measuring 1000 sq. metres was available, in view of the order passed in the proceedings under the 1976 Act and as such no permission could be granted. A clarification of the said order was sought for. Allegedly, on the ground that permission to sell the vacant land had been rejected by a notice dated 26.06.1980, the agreement was sought to be cancelled by the Respondent on the premise that the same stood frustrated. The Plaintiff-Respondent in C.A. No.2023 of 2004 thereafter filed a suit for specific performance of contract.;