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2013 Supreme(Kar) 899

High Court of Karnataka
JAWAD RAHIM, J.
S.H. Muniyappa
Versus
Subba & Others
R.S.A. No. 1792 of 2009
Decided on: 17-07-2013

Advocate Appeared:
For the Appellant:B.T. Indu Shekar, D.N. Ashok Kumar, Advocates.
For the Respondents:R1 to R3, A. Balakrishnan, Advocate.

Headnote:CODE OF CIVIL PROCEDURE, 1908 - Order 22, Rule 3: [Jawad Rahim, J] Abatement of Appeal - Appeal against decree for specific performance - Relief was sought only against one defendant - Others were arrayed as parties as they were consenting witness - Pending appeal one of the defendant-appellant (mother) died - Her LRs were not brought on record - Held, Appeal had not abated as her legal heirs were co-appellants.

       SPECIFIC RELIEF ACT, 1963 - Section 16(c): [Jawad Rahim, J] Suit for specific performance - Agreement dated 5.7.1985 - Suit filed in 1996 after 11 years - No action on part of plaintiff to enforce alleged agreement - Defence of defendants that their signature were obtained on blank papers for the loan of Rs.4,000/- advanced for the marriage of sister of defendants - Held, In order to sustain action for specific performance of an agreement, the plaintiff has the primary burden of proving that the agreement sought to be enforced is an agreement of sale executed consciously by the defendant and it must spell out consensus ad idem, meeting of minds. Unless the plaintiff establishes lawfulness in the transaction legally acceptable oral or documentary, he will not be entitled to a decree for specific performance. Besides, as envisaged under Section 16(c) of the Specific Relief Act, plaintiff had the duty to establish he was ready and willing to perform his part of the obligation under the agreement. Appellate Court was right in holding that mere acceptance by the defendants that they had signed Ex.P1 is not enough proof that it was a binding contract of sale and is not proof enough to decree the suit for specific performance. In order to decree the suit for specific performance, Courts are required to keep in mind Sections 10 and 20 of the Specific Relief Act which envisages the circumstances in which specific performance of the agreement could be ordered and the circumstances in which it has to be denied. This is a fit case where the circumstances enumerated under clauses (a), (b) and (c) of Section 20 of the Act had to be applied which the trial Court had failed. The trial Court has also failed to record reasons for the defence taken by the defendant that great hardship will result if Ex.P1 is treated as an agreement of sale to compel them to sell the property in question. Judgment and decree of lower appellate Court setting aside the Judgment and decree of Trial Court for specific performance was confirmed.

Judgment

1. Unsuccessful plaintiff is in appeal against judgment in R.A.No.128/2004 reversing the finding of the Trial Court in O.S.No.428/96 and dismissing the suit declining to grant decree for specific performance.

2. The appeal has been admitted to consider the following questions of law:

"1) Whether the judgment and decree of the Appellate Court is sustainable as respondent no.4, who was an appellant no.4 in the appeal died during pendency of the appeal and her LRs were not brought on record?

2) Whether the Appellate Court was right in holding mere acceptance of having signed the Ex.P.1 in blank is not enough proof to decree the suit for specific performance?

3) Whether the Appellate Court was right in placing burden of proof of Ex.P1 on the plaintiff when the defendant has admitted the signature appearing therein?

3. After admission of the appeal, learned counsel on both sides plead for expeditious disposal and hence the appeal is taken up for final disposal.

4. I have heard both sides substantially and perused the records, from which following facts manifest:

a) Appellant/Plaintiff filed a suit in O.S.No.428/1996 seeking a decree to direct the respondents 1 to 4 to execute an agreement of sale in his favour in respect of the property described in the schedule on the assertive contention that the suit property was originally owned by one Kempaiah, father of the defendants 1 to 3 and the husband of defendant no.4. He died leaving behind them to succeed to his estate.

b) Under the family arrangement the suit property was assigned and allocate a to the 1st defendant - Subba and thus he became absolute owner thereof from the year 1995, Having acquired right, title and interest in the property in the manner aforesaid, he agreed to sell unto him for consideration of Rs.4,000/- and the transaction culminated in a binding sale agreement on 5.7.1985. The plaintiff paid the entire sale consideration of Rs.4,000/- in acknowledgement of which Subba-1st defendant executed the sale agreement and also got it attested by his brothers - defendant 2 and 3 as consenting witnesses.

c) The plaintiff further averred, the 1st defendant delivered physical possession of the property and has improved the property at heavy cost.

d) Alleging that the defendants, without unjustifiable cause or reason, refused to fulfill the obligation under the agreement, he sought a decree.

e) The defendants 1 to 4 entered contest and denied vehemently all averments in the plaint. They traversed the statement in each of the paragraphs making it clear that at no point of time they had undertaken or agreed to sell the property unto the plaintiff nor there was any transaction of sale. They denied they had agreed to sell the property bearing Sy.No.94 and Sy, No.34/1, in consideration of Rs. 4000/- as alleged.

f) Later, they filed additional written statement wherein, they narrated certain additional facts to show that in the year 1985 they wanted to perform the marriage of their sister and being in need of money approached the plaintiff. The plaintiff insisted them to sign on certain papers in blank. Having no choice, they signed certain blank papers to secure the loan. Which, they alleged, the plaintiff has misused their signatures on blank papers and converted it into agreement of sale. This is, therefore, not binding on them. Each of the defendants took similar consistent plea, consequent to which, the learned Trial judge framed following issues for consideration based on the material propositions:

"1) Whether the plaintiff proves that the defendant executed an agreement of sale deed on 05/07/1985?

2) Whether the plaintiff proves thatRs.4,000/- acknowledged by the defendant?

3) Whether the plaintiff proves that the suit property is in actual possession of the plaintiff?

4) Whether the plaintiff proves that he is willing to perform his part of contract?

5) Whether the plaintiff proves that he is entitled to claim the relief of permanent injunction against the defendants?

6) Whether th
































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