IN THE HIGH COURT OF KARNATAKA AT BENGALURU
B. Veerappa, K. Natarajan, JJ.
H. R. Subramanya Shastry, S/O Late H. S. Ramashastry And Ors. – Appellants
Versus
Sri K. Mohan Kumar S/O Kaithmal Jain – Respondent
Regular First Appeal No.666 of 2013
Decided On : 06-01-2021
Code of Civil Procedure, 1908 - Section 96 - Specific Relief Act - Section 20 - Suit property - Sale deed - Sale consideration - Suit for specific performance - Enforcement of oral agreement - Respondent-plaintiff filed a suit for specific performance for enforcement of oral agreement dated contending that defendants are joint owners of suit property morefully described in schedule to plaint - After negotiation, defendants entered into an oral agreement dated agreeing to sell schedule property for sale consideration to plaintiff and in pursuance of the same, the plaintiff paid a sum as earnest money to defendants and defendants promised to complete the sale transaction by executing the registered Sale Deed in his favour after acknowledgement of the balance sale consideration - It was further contended that plaintiff had paid said amount to defendants by way of cash as well as through cheque bearing No. - Whether appellants-defendants have made out any case to interfere with impugned judgment and decree passed by trial Court decreeing suit of plaintiff for specific performance of oral agreement in facts and circumstances of present case? - Whether suit filed by plaintiff for specific performance based on oral agreement was maintainable in facts and circumstances of present case? –
Finding of the Court:
plaintiff has set up an oral agreement dated and same is denied by defendants in their written statement and also presence of P.Ws.2 to 6 at time of oral agreement, which is neither pleaded in plaint nor in legal notice and presence of witnesses – In that view of matter, plaintiff has failed to prove oral agreement and has not proved his case as pleaded in plaint and therefore, trial Court ought not to have exercised its discretionary power in favour of plaintiff - Present regular first appeal is answered in affirmative holding that appellants-defendants have made out a case to interfere with impugned judgment and decree passed by trial Court - Accordingly, point No.2 has to be answered in the negative holding that suit filed by plaintiff for specific performance based on oral agreement was not maintainable and plaintiff is not entitled to relief of specific performance –
Result: First appeal is allowed.
JUDGMENT :
B.VEERAPPA, J.
The defendants have filed the present regular first appeal against the impugned judgment and decree dated 11.2.2013 made in O.S.No.80/2010 on the file of the I Additional Senior Civil Judge and CJM., Shivamogga decreeing the suit of the plaintiff with cost and directing the defendant to execute the registered Sale Deed in favour of the plaintiff by receiving the balance sale consideration within two months time from the date of the impugned judgment and decree, failing which, the plaintiff would be at liberty to take steps in accordance with law.
2. The parties herein are referred to as per their rankings before the trial Court.
I. The brief facts of the case
3. The respondent-plaintiff filed a suit for specific performance for enforcement of oral agreement dated 10.4.2010 contending that the defendants are joint owners of the suit property morefully described in the schedule to the plaint. After negotiation, the defendants entered into an oral agreement dated 10.4.2010 agreeing to sell the schedule property for sale consideration of Rs.40,11,000/(Rupees Forty Lakhs Eleven Thousand Only) to the plaintiff and in pursuance of the same, the plaintiff paid a sum of Rs.5,11,000/- (Rupees Five Lakhs Eleven Thousand Only) as earnest money to the defendants and the defendants promised to complete the sale transaction by executing the registered Sale Deed in his favour after acknowledgement of the balance sale consideration of Rs.35,00,000/- (Rupees Thirty lakhs only). It was further contended that the plaintiff had paid the said amount to the defendants by way of cash as well as through the cheque bearing No.600969 dated 10.4.2010 for a sum of Rs.2,00,000/- drawn on Canara Bank, Main Branch, Nehru Road, Shivamogga in favour of defendant No.1 which was acknowledged by him and also on behalf of defendant Nos.2 to 4. In turn, the defendants had also promised to execute the registered Sale Deed within 30.4.2010 in favour of the plaintiff by receiving the balance sale consideration.
4. It was further contended that in view of the terms and conditions of the oral Agreement, the defendants were supposed to deliver all the Title Deeds and other relevant documents to the plaintiff, but they did not deliver any of the required original documents pertaining to the suit schedule property. Later the defendants requested the plaintiff to provide some more time for delivery of the required original documents and for execution of the registered Sale Deed. However, while entering into the oral Sale Agreement, the defendants had delivered photostat copies of some of the documents to the plaintiff. Inspite of repeated requests and demand by the plaintiff to the defendants to deliver all the necessary documents and to execute the registered Sale Deed in his favour after receiving the balance sale consideration of Rs.35,00,000/(Rupees Thirty Five Lakhs), the defendants failed to comply with their contractual obligations. Therefore, the plaintiff issued legal notice, dated 7.6.2010, calling upon the defendants to execute the registered Sale Deed after receiving the balance sale consideration. The said notice was duly served on defendant No.1 on 26.6.2010, but instead of complying with the terms of the legal notice, defendant No.1 issued a reply notice dated 30.6.2010 with vague, untenable and false averments. Though defendant No.1 has admitted the acknowledgement of the amount under the cheque issued by the plaintiffs, falsely contended that it is towards the sale of the dismantled building materials, which cannot even be imagined considering the position of the plaintiff. Defendant Nos.2 to 4 have tactfully avoided the service of the legal notice. The cause of action arose on 10.4.2010 and subsequently, when the plaintiff issued legal notice to the defendants and on failure of the defendants to execute the registered Sale Deed, the plaintiff filed the suit for specific performance.
II Written statement filed by the defendants
5. The defe
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