High Court of Karnataka
K.L. MANJUNATH & RAVI MALIMATH, JJ.
A.G. Sheshappa & Others
Versus
R Basappa
Regular First Appeal No. 282 of 2007 (SP-DB)
Decided on: 22-01-2014
SPECIFIC RELIEF ACT, 1963 - Section 16(c): [K.L. Manjunath & Ravi Malimath, JJ] Suit for specific performance of agreement of sale - Registered Agreement dated 1.5.1996 - Defence plea that it is forged and impersonated - Second defendant denied her L.T.M. on the agreement and that she has been impersonated - Also that they had only borrowed a loan - Agreement stating that Rs.20 lakhs advance given and that balance Rs.20 lakhs to be paid within 20 years - Trial Court decreed the suit - Clauses in the agreement cancelled at the time of registration of agreement and the conduct of plaintiff showing the nature of transaction as a loan transaction and that the agreement was executed as a security - Letter of plaintiff’s husband demanding the amount with interest and warning the defendants that if demand is not complied with the defendants would lose the property - Held, The nomenclature of the document will not alone decide the nature of the document. Since the trial Court did not consider the effect of clauses 11 to 13, an error is committed by the Court below in holding that there is an agreement of sale between the parties to sell the suit schedule property. Even if we exclude clauses 11 and 12 of the agreement, clause-13 would clinch the issue to hold that the agreement has come into existence only as a security for the loan advanced. Trial Court failed to notice the discrepancies in signature of Defendant No. 2. When the plaintiff has failed to prove that he had cash of Rs.20.00 lakh to advance on 1-5-1996, we are of the view that even the plaintiff is not entitled for refund of alleged payment of Rs.20.00 lakh. In the circumstances, the trial Court has committed an error in decreeing the suit. The judgment and decree of the trial Court requires to be reversed and the suit of the plaintiff has to be dismissed.
Manjunath, J.
1. The legality and correctness of the judgment, and decree dated 5-12-2006, passed in OS No 2483 of 1998, on the file of XI Additional City Civil Judge, Bangalore, is challenged in this appeal.
2. Appellants were defendants and respondent was the plaintiff before the trial court. For the sake of convenience, the parties would be referred to as per their ranking in the trial court.
3. Plaintiff - Basappa - instituted the suit to direct the defendants to execute sale deed for a sum of Rs 40.00 lakh in respect of suit schedule property, by receiving the balance sale consideration of Rs 20.00 lakh, within the time stipulated by the court and to put the plaintiff in possession of the property, a residential building situated at No. 23, Gramadevatha Temple Street, Division No 66. Audugodi, Bangalore, measuring 48+63/2 feet by 85+75/2 feet, totally measuring 4440 sqft.
4. According to plaint averments, in a family partition, the suit schedule property had fallen to the share of first defendant and for his legal necessity and for family benefit, defendants, being husband and -wife, agreed, to sell the suit schedule property for a sum of Rs 40.00 lakh on 1-5-1996. By receiving a sum of Rs. 20.00 lakh as advance sale consideration, executed a registered agreement of sale, registered in the office of the sub-registrar, Jayanagar, Bangalore. The defendants further agreed to receive the balance sale consideration of Rs.20.00 lakh within three years from 1-5-1996. Contending that in spite of repeated requests, the defendants failed to execute sale deed by receiving balance sale consideration, the suit came to be filed for specific relief.
5. The suit was contested by the defendants. According to them, the agreement dated 1-6-1996 is forged, concocted created and obtained by the plaintiff by playing fraud committing forgery and impersonation and that the suit is not maintainable. According to them, the suit for specific performance is unenforceable, because of lack of marketable title. It is also their case that second defendant did not execute the agreement of sale. She did not appear before the sub-registrar to execute the agreement of sale. According to defendants, the mother of first defendant was unwell in the year 1996. She was admitted to hospital. Therefore, the first defendant was in need of money. In the circumstance, first defendant approached one Diwakar, a KAS officer working in the state government, and he was ready to advance a loan of Rs 1.00 lakh to the first defendant, subject to execution of an agreement of sale as desired by him. Accordingly, under duress and coercion, suit document came to be executed by the first defendant only. The second defendant did not appear before the sub-registrar and she has not put her signature on the document and the LTM found on the document is also not that of her. It was also contended that the agreement is only a document executed by the first defendant as security for due repayment of the loan of Rs 1.00 lakh borrowed from Diwakar and there is no privity of contract between the plaintiff and the defendants and prayed for dismissal of the suit.
6. The second defendant filed written statement separately, which is replica of the written statement filed by the first defendant. She contended that she has not executed any agreement of sale and she has not appeared before the sub-registrar and some one has impersonated her.
7. Based on the above pleadings, the trial court framed the following issues:
1) Whether the plaintiff proves that the defendants agreed to sell the suit property for a consideration of Rs. 40 lakhs and executed an agreement of sale dated 01.05.1996?
2) Whether the plaintiff proves that he has paid advance sale consideration of Rs.20 lakhs to the defendants?
3) Whether the plaintiff proves that he has been ever ready & willing to perform his part of contract?
4) Whether the plaintiff proves that he is entitled to the specific performance of the agreeme
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