Karnataka High Court
K.Venkoji Rao - Appellant
Versus
M.Abdul Khuddur Kureshi - Respondent
Decided On : 08-23-90
R.S.A. : 314 of 1990
specific performance - agreement of sale - Limitation Act, Article 54 - S. 9 of the Limitation Act - Specific Relief Act, S. 20 - equitable remedy of specific performance
Fact of the Case:
Plaintiff filed suit against defendant for specific performance of an agreement of sale. Defendant resisted the suit, claiming time-bar, lack of readiness by plaintiff, and entitlement to damages. Trial court decreed in favor of plaintiff. Defendant appealed, but the appeal was dismissed. The court admitted the appeal and raised substantial questions of law for consideration.
Finding of the Court:
The court found that the suit was not time-barred as the cause of action arose after the disposal of a related suit. The court also found that the failure to raise an issue regarding the plaintiff's readiness did not vitiate the judgment. Additionally, the court held that the facts did not warrant refusal of specific performance and that the plaintiff was not guilty of laches.
Issues: Whether the suit was time-barred, failure to raise an issue regarding plaintiff's readiness, and whether the facts warranted refusal of specific performance.
Ratio Decidendi: The court interpreted the provisions of the Limitation Act and the Specific Relief Act to determine the timeliness of the suit and the discretion to decree specific performance. The court also considered the doctrine of laches and the circumstances under which specific performance may be refused.
Final Decision: The appeal was dismissed, and the appellant was granted time to execute the sale deed. Each party was directed to bear their own costs.
( 2 ) PLAINTIFF-RESPONDENT filed a suit against the defendant-appellant for specific performance of agreement of sale dated 26-8-1975 executed by the defendant in favour of the former. Plaintiff also prayed for an alternative relief for the damages in the sum of Rs. 6007-24 ps. Plaintiff's case can be briefly summarised as follows: Defendant was the owner of the suit house and plaintiff was a tenant in a portion of the same since 1966. Defendant entered into an agreement of sale of the suit property viz. , the southern half of the entire property for Rs. 14,000/ -. Rupees 2000/- was received as advance by the defendant. Defendant agreed to complete the sale transaction within 3 months from the date of agreement. In the agreement it was mentioned that the sale was for the purpose of discharging the prior encumbrances.
( 3 ) IT transpired that the defendant had earlier entered into an agreement of sale with one Smt. Dhondubai. This fact was not made known to the plaintiff at the time when he entered into an agreement. She had filed a suit against the defendant in O. S. No. 139/77 in the Court of the Ist Additional Civil Judge, Mysore. Defendant had promised to get the portions of the property which were in the occupation of the tenants vacated and put the plaintiff in possession of the same. On account of these facts it was not possible for the defendant to execute the sale-deed within the stipulated time. Under these circumstances, the time to execute the sale-deed was extended up to 26-2-1976. Subsequently, that is to say, on 25-8-1977, it was further extended till the disposal of O. S. No. 139/77. O. S. No. 139/77 filed by Smt. Dhondubai was disposed of in the month of December, 1980 and plaintiff and defendant wanted to see if Dhondubai would prefer an appeal against the decision in O. S No. 139/ 1977 which was dismissed. After waiting for some time plaintiff took back the agreement executed in his favour by the defendant, which was filed in the suit in O. S. No. 139/77 before the Court of the Ist Additional Civil Judge, Mysore. Thereafter, plaintiff called upon the defendant to execute the sale-deed by a notice dated 22-4-1981. Defendant was served with the said notice on 30-4-1981. But defendant was postponing the performance which he was expected to do. Plaintiff was always ready and willing to perform his part of the contract as per the terms of the agreement dated 26-8-1975. Since defendant did not do the needful notwithstanding the notice given to him to execute the sale-deed, plaintiff filed the suit in question.
( 4 ) DEFENDANT resisted the suit of the plaintiff by his written statement. Defendant admitted the execution of the agreement dated 26-8-1975 for a sum of Rs. 14,000/ -. It was also admitted by him that he received a consideration of Rs. 2000/ -. However, he denied that the said amount of Rs. 2000/- was towards the sale price. Defendant admitted the agreement of sale executed in favour of Dhondubai prior to the execution of the agreement in favour of plaintiff. The fact that Dhondubai had filed the suit at O. S. No. 139/77 was also admitted by the defendant. However, defendant asserted that this fact was known to the plaintiff. He admitted that the time for executing the sale was extended up to 26-2-1976. However, his version was that it was at the instance of the plaintiff that the time was extended. Defendant denied the case of the plaintiff that after the disposal of the suit filed by Dhondubai, he (defendant) evaded the execution of the document. On the other hand, it is contended by the defendant that it was not necessary for the plaintiff to have waited to see if further proceedings would be taken by Dhondubai. Defendant also took up a contention that the suit is barred
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