To obtain a temporary injunction, a plaintiff must demonstrate a prima facie case, balance of convenience, and potential for irreparable harm, without conducting a mini trial.

JUDGMENT :

Ravi Nath Tilhari, J.

Heard Sri Virupaksha Dattatreya Gowda, learned counsel representing Sri Vivekananda Virupaksha, learned counsel for the appellants and Sri K.Narsireddy, learned counsel for respondents.

2. This appeal under Section 104 r/w Order 43 Rule 1 of the Code of Civil Procedure (for short ‘the C.P.C’) has been filed by the appellants/defendants, challenging the order dated 02.11.2022 passed by the learned IV Additional District Judge, Kurnool in O.S.No.70 of 2021 filed by the respondents/plaintiffs, in I.A.No.154 of 2021, granting temporary injunction.

3. The respondents filed O.S.No.70 of 2021 for specific performance of agreement of sale dated 24.12.2018 as also for permanent injunction. They filed I.A. for grant of temporary injunction.

4. There was another suit, in O.S.No.63 of 1999 with respect to the subject matter of the agreement of sale pending in the court of the Principal Junior Civil Judge, Kurnool, for partition between the parties thereto which included the defendant of O.S.No.70 of 2021.

5. As per the plaintiffs’ case, the defendants are the absolute owners of the plaint schedule property to an extent of Ac.1.35 cents in Sy.No.371/3D of Kallur Village and they entered into an agreement for Rs.1,42,50,000/- by executing agreement of sale dated 24.12.2018. They received earnest money of Rs.35,60,000/-, out of which, an amount of Rs.15,60,000/-was received in cash and Rs.20,00,000/- was received by transfer. The plaintiffs had to pay the balance of Rs.1,06,90,000/- by 23.06.2019 after receiving the final decree copy, as the final decree proceeding pertaining to the plaint schedule property in O.S.No.63 of 1999, was pending. Both the parties agreed for the forfeiture of earnest money and for cancellation of the agreement, in the event of not paying the balance sale consideration within the stipulated time. There was also a condition to supply final decree copy to the plaintiffs by the defendants by 23.06.2019. In the event of not supplying the final decree copy, the defendants were liable to return the earnest money by cancelling the agreement. The plaintiffs submitted that the said condition was incorporated to conclude the sale at the earliest time and was not to be misused. They approached the defendants for supply of final decree copy before the scheduled date and even thereafter, the defendants postponed the process and finally they failed to produce the copy of the final decree, by taking shelter under Covid-19 pandemic situation. The plaintiffs had always been ready and willing to perform their part of the contract. However, the defendants sent notice dated 16.08.2021 that the final decree could not be passed till 23.06.2019. It was passed on 16.10.2019. There was some mistake in the final decree, which was got amended on 11.12.2000. The defendants, therefore, offered to return the earnest money to the plaintiffs, for which the plaintiffs were not prepared.

6. The defendants 1 to 4 filed their counter-affidavit, and the defendant No.5 adopted the same. The case of the defendants is that they are the absolute owners and agreed to sell the plaint schedule property at Rs.1,42,50,000/-, for which they entered into sale agreement dated 24.12.2018. They also received advance of Rs.35,60,000/-. As per the agreement, the plaintiffs agreed to pay the balance of Rs.1,06,90,000/- to the defendants by 23.06.2019 as also for forfeiture of the advance and for cancellation of the agreement in the event of not paying the balance sale consideration by 23.06.2019. The plaintiffs failed to pay the balance sale consideration within the stipulated time. Time was the essence of the contract. At the time of the agreement, final decree petition was pending. One of the terms of the agreement was that in case the copy of the final decree was not obtained by the defendants by 23.06.2019, the defendants would be liable to return the advance money. The final decree could not be passed till 23.06.2019. There was mistake