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1986 Supreme(Kar) 365

Karnataka High Court
Jose - Appellant
Versus
Anantha Bhat - Respondent
Decided On : 10-24-86

Enforcement of an agreement to sell agricultural land is not prohibited unless action under the Land Reforms Act declares the sale void. Time may not be the essence of a contract, and the party seeking specific performance must prove readiness and willingness to perform the contract.

Headnote:

Specific Performance - Contract for Sale of Property - Karnataka Land Reforms Act - Section 79-A(1) - Section 83 - Prohibition on Sale to Non-Agriculturists - Time not the Essence of Contract - Specific Performance Decreed

Fact of the Case:

The plaintiff filed a suit for specific performance of an agreement to sell agricultural land with buildings, kumki rights, right of way, and water. The defendant contended that the plaintiff failed to pay the balance consideration and had contracted to purchase other property, thus forfeiting the advance payment.

Finding of the Court:

The court found that time was not the essence of the contract and decreed specific performance, directing the defendant to execute the deed of conveyance and receive the balance of consideration.

Issues: The issues included the plaintiff's readiness and willingness to perform the contract, possession of the property, entitlement to possessory relief, refund of advance money, damages for breach of contract, and excessive claims.

Ratio Decidendi: The court held that the agreement to sell was not hit by Section 23 of the Indian Contract Act and that the enforcement of the agreement would not result in a breach of the law, particularly the Karnataka Land Reforms Act. It also emphasized that time was not the essence of the contract and that the plaintiff had proved readiness and willingness to perform the contract.

Final Decision: The appeal was rejected, and the judgment and decree of the trial court were upheld.

CHANDRAKANTHARAJ J.

( 1 ) THIS appeal by the indigent is directed against the judgment and decree dated 20-4-1985 in O. S. No. 20 of 1981 on the file of the Civil Judge, Puttur, d. K. The respondent in this appeal filed that suit inter alia stating that there was an agreement to sell as per exhibit P-1 by which the defendantappellant had agreed to convey to him the suit schedule property being agricultural land with buildings, kumki rights, right of way and water etc. , that he had paid an advance of Rs. 13,000/- in two instalments and had further agreed to pay a sum of Rs. 5,000/- on or before 30th April 1981 and take possession of the property and complete the transaction of sale within six months from the said date. He further stated that on 27-4-1981, he went to the house of the defendant to tender Rs. 5000/ but did not find him in the house. Therefore, returned without paying the amount. He was accompained by two of his friends. Similarly, he attempted to tender the amount on 30-4-1984 and went to the house of the defendant along with his friends, but did not find the defendant in the house. Therefore, he came back without tendering the amount as he was unable to do so. He received soon thereafter a Lawyer's notice dated 5-5-1981 got issued by the defendant stating that he had forfeited the sum of Rs. 13,000/- paid as advance towards the purchase of the suit schedule properties as time was the essence of the contract and as he had failed to pay the sum of Rs. 7000/- being the balance consideration on or before 30-4- 1981. He got a reply issued through his lawyer and as the defendant did not make any attempt to convey the property receiving the balance consideration, he was compelled to fife the suit for specific performance.

( 2 ) THE defendant contended in his written statement that in the light of the failure of the plaintiff to pay the balance consideration on or before 30-4-1981 and in the meanwhile he having contracted to purchase some property in Kerala and having paid Rs. 13,000/- advance to the owner of that property, had been compelled to forfeit that amount of Rs. 13,000/- on account of the non-payment of the balance of consideration on or before 30-4-1981 and in the light of that there was no obligation on the part of the defendant to perform his part of the contract. It was also averred that by the conduct of the plaintiff, he had shown no willingness to perform his part of the contract under the suit agreement.

( 3 ) IN the light of the pleadings as above in essence, the following issues were framed:1. Where the plaintiff proves that he was always ready and willing to perform the suit agreement of sale dated 16-4-1981 and that the defendants evaded to perform their part of contract? 2. Whether the plaintiff proves that the defendants by evading to receive rs. 5000/- part of sale consideration amount, failed to handover possession of the suit 'a' Schedule property? 3. Whether the plaintiff is entitled to claim possessory relief egainst the defendants on the strength of suit agreement of sale ? 4 ). Whether the plaintiff provesthat alternatively defendants are liable to refund Rs. 13,000/- advance money together with interest 15% annum ? 5. Whether the plaintiff proves that the defendants are liable for damages in a sum of Rs. 3000/- on account of their breach of suit contract ? 6. Whether the plaintiff is entitled to recover mesne profits from the defendants as claimed? If so, at what rate? 7. Whether the plaintiff entitled to possesory relief as well as relief of specific performance of suit agreement for sale against the defendants? 8. Whether the defendants prove that time was the essence of suit contract ? 9. Whether the defendants prove that the plaintiff committed breach of suit agreement of sale ? 10. Whether the claims made by the plaintiff are excessive ? 11. Whether the plaintiff is entitled to the relief of possession and specific performance or refund of the amount with interest and mesne profits a














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