2007 Supreme(Kar) 559
Karnataka High Court
Judges : Subhash B.Adi
M.PONNUSWAMY - Appellant
Versus
M.THAMARAI KANNAN - Respondent
Regular First Appeal 1403 Of 2004
Decided On : 09/03/2007
The main legal point established in the judgment is that the suit for specific performance was barred by limitation, and the plaintiff's delay in filing the suit and the relationship between the parties influenced the court's decision.
Headnote:
specific performance - contract - Article 54 of the Limitation Act - [specific performance] - [contract] - [Article 54]
Fact of the Case:
The plaintiff sought specific performance of a contract for the sale of a property. The plaintiff alleged that the defendant failed to execute the sale deed after receiving the full sale consideration, and the suit was filed nearly 19 years later. The defendant contested the suit on grounds of limitation, readiness and willingness to perform the contract, and ownership of the property.
Finding of the Court:
The court found that the suit was barred by limitation as per Article 54 of the Limitation Act, and the plaintiff failed to demonstrate readiness and willingness to perform the contract. The court also noted that the plaintiff's delay in filing the suit and the relationship between the parties influenced the decision.
Issues: 1) Whether the suit is barred by limitation? 2) Whether the plaintiff was ready and willing to perform his part of the contract? 3) Whether the suit item No. 2 belongs to the defendant No. 1? 4) Whether the trial Court was justified in decreeing the suit?
Ratio Decidendi: The court held that the suit was barred by limitation as the plaintiff failed to demand execution of the sale deed within a reasonable time after the alleged embargo was lifted. The court also considered the relationship between the parties and the plaintiff's delay in filing the suit.
Final Decision: The court set aside the judgment and decree of the trial Court, allowing the appeal and directing the plaintiff to work out any rights accrued in pursuance of a subsequent agreement produced along with a memo.
( 1 ) THIS is 1st defendant's appeal against the judgment and decree dated 14-10-2004 in O. S. No. 15171/2000. 1st respondent is the plaintiff. 2nd respondent is defendant No. 2.
( 2 ) SUIT is one for specific performance of the contract by executing the sale deed in favour of the plaintiff in respect of suit site bearing No. 78 in sy. No. 106 of Kodihalli Village, H. A. Sanitary Board, Varthur Hobli, bangalore South Taluk and No. K formed out in southern portion of Sy. No. 105/a of Kodihalli village, Varthur Hobli, Bangalore South Taluk.
( 3 ) CASE of the plaintiff is that, 1st defendant entered into an agreement of sale dated 10-9-1980 in respect of suit schedule property for consideration of Rs. 15,000/- and advance amount of Rs. 5,000/- was paid on the date of agreement and balance of Rs. 10,000/- was agreed to be paid in installments of Rs. 1,000/- every month till 15-7-1981. Plaintiff paid all the amount as agreed. On receipt of final payment of sale consideration, the 1st defendant delivered vacant possession of the suit schedule property to the plaintiff and 2nd defendant. The 2nd defendant was one of the agreement holder along with the plaintiff, but he abandoned his rights. Plaintiff constructed the house over the suit schedule property by investing Rs. 45,000/ -. The construction was completed in the year 1983. However, 1st defendant being lineal descendent of plaintiff s mother Smt. A. L. Rajammal who was living with the plaintiff used to visit the suit schedule property and the mother died on 28-4-1999. At the time of demise of the plaintiffs mother, defendant no. 1 was in occupation of the suit schedule property with the plaintiffs mother as a licensee. He promised to vacate and redeliver the suit schedule property to the plaintiff. The plaintiff was always ready and willing to perform his part of the contract. The defendant did not perform his part of the contract. Further there was a ban of sale till 1998. The cause of action accrued to him when the defendant No. 1 refused to re-deliver the possession of the suit schedule property. On these averments, the plaintiff sought for decree for specific performance.
( 4 ) 1st defendant contested the suit by filing written statement inter-alia denying the allegations made in the plaint and alleged that, the last installment was to be paid on 15-7-1981. The cause of action for the plaintiff accrued in the year 1981 and the limitation commenced from July 1981 and the suit should have been filed within three years i. e. , by the end of 14-7-1984 and alleged that, the suit is barred by limitation. Defendant no. 1 also alleged that, plaintiff neve called upon the defendant No. 1 for execution of the sale and plaintiff was never ready and willing to perform his part of contract. It is also alleged that, the suit is liable to be dismissed under Order 7, Rule 11 of CPC, as suit being barred by limitation, is not maintainable. It is also alleged that, the agreement was in favour of plaintiff and defendant No. 2 and defendant No. 2 having not filed the suit, the plaintiff alone cannot maintain the suit and suit is required to be dismissed on the said ground also. Further it is alleged that the suit filed after nearly 16 years from the date of agreement and the said suit is liable to be dismissed not only on the ground of delay, but also on the ground of latches.
( 5 ) DEFENDANT No. 2 though served, did not choose to file any written statement.
( 6 ) THE trial Court framed the following issues:
i) Whether the plaintiff proves that he entered into sale agreement with defendant No. 1 on 10-9-1980 pertaining to suit schedule property? ii) Whether the plaintiff proves that he had paid entire sale consideration to defendant No. 1? iii) Whether the plaintiff proves that there was breach of contract by defendant No. 1? iv) Whether the plaintiff proves that he is willing and ready to perform his part of contract? v) Whether the plaintiff is entitled for the delive