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2008 Supreme(Kar) 74

2008 (1) KLO 764
IN THE HIGH COURT OF KARNATAKA
S. Abdul Nazeer, J.
R.F,A. No. 1162/2004
Dr. N. Kasinath - Appellant
Vs.
Sri Arun R. Rawell and Others - Respondents
Decided on 5-2-2008

Advocates appearing for:
Appellants : Sri Ashok Haranahalli, Adv.
Respondents:Sri S.Y. Giridhar, Advocate for R3(a) to (f) R2 & R2 deleted vide Court Order dated 23-1-2008, Advs.

Headnote:SPECIFIC RELIEF ACT, 1963 - Section 21 (1), (2), (3), (4), & (5) & 22 (3): [S. Abdul Nazeer, J] Grant of Relief of compensation in addition to or in substitution of specific performance - Refund of earnest money - Power of the Court to order compensation - Held, As per Sub-Section (3) of Section 22 of the Act, the court has the power to order refund any earnest money or deposit is without prejudice to its powers to award compensation under Section 21 of the Act. Therefore, even if the court directs refund of earnest money or deposit, it will not preclude the court to award compensation under Section 21 of the Act. The claim for compensation and the claim for specific performance under the provisions of the Act are independent to each other. Further, An alternative relief under Section 21 of the Act does not debar a plaintiff from asking for specific relief on the ground that plaintiff has, on his own, quantified the actual amount to which he is entitled to in the event of the grant of alternative relief to him. On facts, held, A party committing breach is liable to compensate. The Trial Court has held that the first defendant has committed breach of contract and therefore, the first defendant is liable to compensate the plaintiff.

JUDGMENT

Abdul Nazeer, J.

This appeal arises out of a judgment and decree in O.S.N 0.1198/1991 dated 28.7.2004 passed by the 11th Additional City Civil Judge, Bangalore City. The appellant was the plaintiff in the suit and the respondents were the defendants. Since the third respondent died during the pendency of this appeal, his legal representatives have been brought on record.

2. The plaintiff has contended that first defendant is the owner of site bearing No .26/4 (old site Nos.31 & 32 laid out in Sy.No.s11 of Gangehalli village), K.H. Muniswamappa Block, Gangenahalli, Bangalore, which is more-fully described in the schedule 10 the plaint (hereinafter referred to as ‘schedule site’) having purchased the same from J.P. Shastry, under a sale deed dated 23.4.1974. The second defendant is the uncle and power of attorney holder of the first defendant. In July l August, 1985, the second defendant represented on behalf of the first defendant that the first defendant is the sole and absolute owner, in possession and enjoyment of the schedule site. The plaintiff was looking for a suitable site to be given to his daughter. On inspection, the plaintiff found that the schedule site is suitable for the said purpose. Therefore, he negotiated with the second defendant for the purchase of the said site. The terms of sale were concluded between himself and the first defendant represented by the second defendant where-under the plaintiff agreed to purchase and the first defendant agreed to sell the schedule site to him or to his nominee for a total sale consideration of Rs. 1,30,000/-. All the terms and conditions of the sale were set out in the agreement dated 6.9 .1985 entered into between the parties. The plaintiff had paid and the first defendant had received an advance of Rs. 30,000/-. It is further contended that the second defendant had informed him that a writ petition in No.23117/1982 filed by the first defendant challenging the notification for acquisition of the schedule site is pending, and subject to the said writ petition, the first defendant had good marketable title to the schedule site. After the agreement, the plaintiff used to meet the second defendant from time to time and enquire about the progress made in the writ petition. On 8.4.1987, the second defen-dant wrote a letter to the plaintiff informing him that second defendant had improved the property at a cost of Rs. 60,000/- and to revise the price payable at Rs.1,90,000/-. Plaintiff has sent a reply refusing to pay an additional sum of Rs. 60,000/-.

3. It is further contended that a mechanic of the second defendant met the plaintiff’s son Prem Kumar in August, 1987 and informed him that the second defendant is negotiating with the third defendant for the sale of the schedule site. When Prem Kumar informed him the same, he sent Prem Kumar to the third defendant to inform him the execution of agreement by defendant Nos. 1 and 2 in favour of the plaintiff in respect of the schedule site. Accordingly, Prem Kumar informed the third defendant about the transaction entered into between the plaintiff and defendant Nos. 1 and 2. It is contended that the third defendant after going through the agreement, thanked Prem Kumar for having informed him about the agreement and assured him that he will not enter into any transaction with defendant Nos. 1 and 2 in respect of the schedule site. On 26.12.1989, the plaintiff sent a notice through his Advocate to the first defendant with a copy to the second defendant calling upon them to inform him if the writ petition has been disposed, of and to perform their part of the contract by receiving the balance of the sale consideration and execute the sale deed. On 7.11.1990, the plaintiff met the second defendant in the head office of the State Bank of Mysore, Bangalore and enquired with him the latest position of the writ petition. The second defendant evaded the question. This made the plaintiff suspicious and he made enquiry about the wri





































































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