1. This appeal is preferred by the defendant against the judgment and decree dated 27.08.2012 passed by the learned I Addl. Senior Civil Judge, Belgaum in O.S. No. 214 of 2010, seeking to set aside the judgment and decree passed by the Court below.

2. The brief factual matrix of the case are as under:

The rank of the parties in this appeal shall be maintained as in the original suit before the Court below.

The plaintiffs/respondents herein have filed a suit against the defendant/appellant seeking the relief of specific performance of contract in respect of the lands bearing survey Nos. 55/1B and 55/2B, both situated within the village limits of Bhutaramhatti village of Belgaum Taluka, which are more particularly described in the plaint as suit schedule properties.

The defendant is the owner and possessor of the suit properties which he had purchased under a registered sale deed dated 01.02.2005 for a sale consideration of Rs.4,28,000/-. On the basis of the registered sale deed, name of the defendant came to be entered in the revenue records. In the year 2007, the defendant decided to sell the suit schedule properties to meet his financial difficulties. The plaintiffs approached defendant and expressed their intention to purchase the suit schedule properties. After mutual discussions between them, sale consideration amount was fixed at Rs.7,40,000/- per acre. On 30.11.2007, the defendant executed a deed of agreement for sale of suit lands to the plaintiffs. On the same day, the plaintiffs, as part performance of their part of contract, paid an amount of Rs.7,00,000/- to the defendant. As per the deed of agreement entered, the remaining balance consideration amount was to be paid within 15 days from the date of receipt of necessary documents from the defendant. The defendant too agreed that before executing registered sale deed, he would get measured the suit lands and fix the boundaries of suit lands and only thereafter plaintiffs were required to pay balance consideration amount. Thereafter the plaintiffs came to know that the defendant has raised loan from the Syndicate Bank by offering the suit lands as security and hence requested the defendant to clear the said loan amount and to obtain no due certificate from the bank concerned. At the first instance, the defendant gave assurance that he would repay the loan amount and get no due certificate from die bank, but thereafter, he could not keep up his promise. All the way the plaintiffs are ready and willing to perform their part of contract by paying the remaining consideration amount. The plaintiffs contacted the defendant on many occasions and even they met Sri. N.S. Kole who is one of the attesting witnesses to the deed of agreement for sale entered into between plaintiffs and defendant. But the defendant did not come forward to perform his part of contract by receiving balance consideration amount and to execute registered sale deed in favour of the plaintiffs so as to complete the sale transaction. Plaintiffs were ready and always they kept balance consideration amount ready and they were willing to get the registered sale deed executed with respect to the suit property. But the defendant has not complied his obligation under the deed of agreement for sale. Finally plaintiffs were constrained to issue legal notice through their advocate calling upon the defendant to execute registered sale deed by receiving balance consideration amount. The notice issued though R.P.A.D. was returned with an endorsement of postal authority as 'already out of station'. From the conduct of the defendant, it is clear that, he was intentionally avoiding to perform his part of contract under the deed of agreement for sale entered between them. Therefore the plaintiffs filed a suit for specific performance of contract and prayed for decreeing the suit.

In response to the suit summons issued to the defendant, the defendant appeared through his counsel and resisted the claim of the plaintiff