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2014 Supreme(Kar) 581

High Court of Karnataka
K.L. MANJUNATH, A.V. CHANDRASHEKARA, JJ.
M.V. Prema Chandra & Another
Versus
Sarojamma & Others
R.F.A.No. 1890 of 2012
Decided On: 14-10-2014

Advocates Appeared:
For the Appellants:R.L. Patil, Advocate.
For the Respondents:Siddharth B. Muchandi, V.S. Madhuri Gaikwad for Chinmay J. Mirju, Advocates.

Headnote:SPECIFIC RELIEF ACT, 1963 - Section 16: [Manjunath K.L. & Chandrashekara A.V. JJ] Specific performance of agreement to sell - Readiness & willingness - Specific clause in agreement fixing six months as time within which vendees were expected to get sale deed by paying balance consideration - Suit filed almost one year five months after lapse of six months time - Held, Vendees expected to exercise their right of specific performance at earliest without giving room for any laches. Laches on part of vendees disentitle them to have relief of specific performance.

       SPECIFIC RELIEF ACT, 1963 - Section 20: [Manjunath K.L. & Chandrashekara A.V. JJ] Suit for specific performance of agreement to sell - Plea of vendee that he had made payment of Rs.95 Lakhs, Rs.46 lakhs through cheques and Rs.49 Lakhs in cash - No evidence on record to show that vendees held cash at relevant time - Vendees being Income Tax assesses if they could show payments of Rs.46 lakhs made through cheques in their Assessment, it was not understandable as to how they could make payment of Rs.49 lakhs in cash - Vendees if had encashed any Fixed Deposits to pay said sum in cash, same could also be paid through cheques - Vendees admitted of not having any document to show that they had held cash - Held, Vendees are not entitled to relief of specific performance.

Judgment :

1. Being aggrieved by the rejection of their prayer to grant the relief of specific performance, the plaintiffs of an original suit bearing O.S.No.87/2010 which was pending on the file of the Court of Senior Civil Judge, Madikere, have filed this appeal under Section 96 of CPC. Respondents are the defendants in the said suit.

2. Facts leading to the filing of this appeal are as follows:

Defendants are the absolute owners in possession of 6.55 acre in Sy.No.81 of Bychanahalli Village of Somwarpet Taluk, Kodagu District. The defendant No.1 is the mother of remaining defendants and wife of one late B.V.Yogananda. The said Yogananda and the defendants, according to the plaintiffs, had agreed to sell 6.11 acres in out of total extent of 6.55 acres in Sy.No.81 to the plaintiffs for a total consideration of Rs.1.5 crores and in this regard, executed an agreement of sale on 13.09.2008. It is the further case of the plaintiffs that on 13.09.2008 itself, defendants received a sum of Rs.46 lakhs through three cheques i.e.,

1) Rs.25 lakhs drawn on I.O.B, Mysore,

2) Rs.13 lakhs drawn on Karnataka Bank Limited, Somwarpet,

3) Rs.8 lakhs drawn on Corporation Bank, Somwarpet and Rs.49 lakhs in cash as advance and agreed to execute a regular sale deed within six months from 13.09.2008 by receiving the balance consideration.

3. Inspite of several oral demands, B.V.Yogananda went on postponing to execute the sale deed on one pretext or the other and died on 01.06.2010. Hence, plaintiffs waited for sometime so that the defendants would come forward to execute the sale deed. Finally the plaintiffs approached the defendants demanding them to execute the sale deed by receiving the sale consideration. Since the defendants did not comply with their demand, a suit was got filed seeking the relief of specific performance alternatively, for refund of advance amount of Rs.95 lakhs with interest thereon along with costs of the suit.

4. The defendants appeared before the Court and denied the very execution of the agreement of sale, receipt of advance amount of Rs.95 lakhs and readiness and willingness of the plaintiffs. According to the defendants, Sri Yogananda had deposited a sum of Rs.50 lakhs with the plaintiffs with a specific understanding that they would refund the deposits to him as and when required, as the plaintiffs and Yogananda were good friends. According to them, no amount was paid in cash to them and the three cheques issued were towards the refund of amount deposited with the plaintiffs. They have called upon the plaintiffs to strictly prove the contents of the plaint. According to them, the averment that plaintiffs had paid Rs.45 lakhs to them has been specifically denied. Sri Yogananda died on 01.06.2010 due to prolonged terminal illness of cancer of oesophagus and the suit is stated to be engineered by one A.M.Nanjappa. The alleged consideration is stated to be grossly inadequate since as the lands are converted lands. With these pleadings they had requested to dismiss the suit.

5. On the basis of the above pleadings, following issues came to be framed:

1. Whether the plaintiffs prove that, by sale agreement dated 13.09.2008 the Defendants have agreed to sell the suit schedule property to the Plaintiffs for Rs.1,50,00,000/- and as part of sale consideration amount received a sum of Rs.95,00,000/-on the very same day, agreed to receive the balance sale consideration amount at the time of execution of sale deed?

2. Whether the Plaintiffs prove that, they are/were ready and willing to perform their part of contract?

3. Whether the Plaintiffs are entitled for the specific performance of contract as prayed for?

4. Whether the Plaintiffs are entitled for the alternative relief of refund of advance amount of Rs.95,00,000/- as prayed for?

5. Whether the Defendants prove that, the alleged agreement dated 13.09.2008 is nothing but forged document?

6. What order or decree?

6. On behalf of the plaintiffs, in all five witnesses have been exa













































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