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2012 Supreme(Kar) 1070

IN THE HIGH COURT OF KARNATAKA AT BANGALORE
A.S. Bopanna, J.
M. Bhujangaveni and others —Appellant
Vs.
C. Sarasa K.S. Reddy and others —Respondent
Regular first appeal No. 259 of 2011
Decided on : 21-08-2012

Advocates:
Advocate Appeared:
Mr. B.K. Manjunath, for the Appellant
Mr. P. Krishnappa, Sri Bipin Hegde, for the Respondent

Headnote:LIMITATION ACT, 1963 - Article 54: [A.S. Bopanna, J] Suit for specific performance of agreement of sale of site allotted by BDA after completion of the lease period - Cause of action arose only after lease period of 10 years - Held, the suit field for relief specific performance was within limitation.

       SPECIFIC RELIEF ACT, 1963 - Section 20: [A.S. Bopanna, J] Suit for specific performance of agreement to sell site allotted by BDA during the lease period - Discretion to grant specific performance - Escalation of price - The property in fact was allotted for Rs. 91,236/- from the BDA and was immediately on its allotment agreed to be sold for Rs. 3,05,000/- and the entire sale consideration was paid before 24-9-1990. The money value at that point needs to be taken into consideration. Even if the avocation of the plaintiff as alleged is accepted to be correct, it is not one such case where agreement has been entered and a nominal advance has been paid and plaintiff was speculating for better price without getting the transaction completed. On the other hand, the entire sale consideration was paid, but, the plaintiff had to wait all these years to secure sale deed and if in the mean while, the value has gone up, it cannot be construed as an act of speculation. The plaintiff herself is seeking for specific performance and it is not by any nominee or assignee to show that she has acted as a intermediary. Since at that stage, she had paid the entire sale consideration and in a normal circumstances, but for the legal impediment if she had got the sale deed in her favour, she would in any case have been entitled to the appreciated value.

       BANGALORE DEVELOPMENT AUTHORITY ACT, 1976 - Sections 35 & 38 & Bangalore Development Authority (Allotment of Sites) Rules, 1984, Rule 14: [A.S. Bopanna, J] Alienation of site during lease period - Held, In the instant case, though the agreement is entered, the period agreed for execution of sale deed is after the lease period or after clearance is obtained from BDA and enforcement sought is after lease period. As already noticed, the above document cannot be construed as a sale deed. If that is kept in view, there is no alienation made within the period of embargo nor is it agreed to be sold within the period of embargo so as to make it contrary to the Rules. Hence, It cannot be said that the Rule has been violated and that question would not arise at all as the specific performance is not being sought during the lease period.

JUDGMENT

A.S. Bopanna , J.—The appellants herein are the defendants 1 to 7 in O.S. No. 3106 of 2003. The said suit was filed by the plaintiff seeking for specific performance of the agreement of sale dated 10-3-1990 and the continuation agreement dated 24-9-1990 and for the consequential relief. The Court below after considering the rival contentions has decreed the suit by its judgment dated 2-11-2010. The defendants 1 to 7 claiming to be aggrieved by the said judgment and decree are before this Court in this appeal. The case of the rival parties in a nutshell is that the suit schedule property bearing No. L-101 in H.S.R. Layout, Bangalore, was allotted in favour of late M. Ananda Rao, the husband of the first defendant and father of defendants 2 to 7 under a letter of allotment dated 30-1-1989. Thereafter a lease-cum-sale agreement dated 3-7-1990 was executed. The possession of the site was handed over to late M. Ananda Rao under the certificate dated 27-7-1990. The plaintiff contends that since the said allottee did not have sufficient funds to pay the allotment price had requested the plaintiff for payment of the amount. Thereafter, he has executed a sale deed dated 10-3-1990 agreeing to sell the site property for the consideration of Rs.3,05,000/-. In that regard, the plaintiff had paid the sum of Rs.15,000/- on 15-2-1990 and a further sum of Rs.50,000/- on 6-3-1990 and a further sum of Rs.1,00,000/- on 6-3-1990 which in all amounted to Rs.1,65,000/-. The further sum of Rs.1,40,000/- was to be paid after delivery of possession certificate and lease-cum-sale agreement by the Bangalore Development Authority (for short, the 'BDA'). Since the site was under lease period, the said late Ananda Rao agreed to execute the sale deed after obtaining permission and therefore, the continuation agreement dated 24-9-1990 was executed in continuation of the earlier agreement and the balance sum of Rs.1,40,000/- was also paid as per the details indicated in the plaint. Hence, the entire sale consideration had been paid by the plaintiff and the plaintiff was also put in possession of the site and the original allotment papers were handed over to the plaintiff. A registered General Power of Attorney was also executed on 24-9-1990. However, the lease period of ten years with BDA was to expire before the sale deed was to be executed. During the said period, M. Ananda Rao expired, which came to the knowledge of the plaintiff only in the year 2003 when it was confirmed, to the plaintiff by the first defendant. Since the defendants 1 to 7 failed to honour the agreement entered into between the plaintiff and late Ananda Rao and since they were attempting to obtain sale deed in their favour, the plaintiff got issued legal notice and thereafter instituted the suit.

2. The defendants 1 to 7 on entering appearance have filed their written statement. They have raised several contentions to deny the case of the plaintiff. Apart form contending that the Court fee paid is insufficient; suit being bad for mis-joinder of parties and that the suit is barred by limitation since agreement relied on are dated 10-3-1990 and 24-9-1990 and M. Ananda Rao died on 21-8-1994, have also denied the right of the plaintiff to seek for a decree for specific performance. They have denied that late M. Ananda Rao had agreed to sell the property for a sum of Rs.3,05,000/-. The BDA had only executed the lease-cum-sale agreement and therefore, until completion of the ten years, there was no right to sell the property and as such, the agreement is not sustainable in law as being contrary to the provisions of law. The execution of an irrevocable Power of Attorney is also denied. The defendants contended that the plaintiff by putting forth a false case is attempting to knock off the valuable property of the defendants and the fact that the suit is filed after nine years from the date of death of Ananda Rao would indicate that the plaintiff is taking advantage of the situation. It is































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