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2021 Supreme(Kar) 486

IN THE HIGH COURT OF KARNATAKA
B. VEERAPPA, RAVI V HOSMANI, JJ.
C. Vasudevamurthy – Appellant
Versus
S.S. Amarnath – Respondent
Regular First Appeal No. 119 of 2013
Decided On : 16-04-2021

Advocates:
Advocate Appeared:
T. Sheshagiri Rao, M. Ashwathnarayan Reddy, S. Keshava Rao Mohithe, Sathya Raj M.N.

Headnote:

Code of Civil Procedure, 1908 - Section 96 - Specific Relief Act, 1963 - Sections 16(c), 20 and 22(2) - Indian Evidence Act, 1872 - Sections 3, 59 ,60 and 61 - Suit for specific performance to enforce agreement - Sale Dee – Possession - Respondents/plaintiffs filed the suit for specific performance to enforce agreement executed by the defendant, contending that defendant being the owner in possession of the suit schedule property entered into an agreement of sale to sell suit schedule property for a total sale consideration of Rs. 15,18,750/- and received Rs. 3,00,000/- as advance on the date of the agreement and further agreed to receive the balance sale time of execution of registered sale deed, and took three months' time to procure all required documents and complete the sale transaction. Accordingly, at end of June 2006, plaintiffs approached the defendant urging him to execute registered sale deed in their favour stating that they are ready and willing to perform their part of contract - Plaintiffs approached defendant expressing their readiness and willingness to get sale deed registered in their favour, by paying balance sale consideration - Plaintiffs issued legal notice, calling upon defendant to perform his part of contract by executing registered sale deed within fifteen days from the date of receipt of the notice. The defendant, though admitted execution of the agreement of sale and receipt of advance amount, sent untenable - Held, Plaintiffs was a case where during pendency of the suit for specific performance, there was a direction by the Trial Court directing the plaintiffs to deposit the balance sale consideration to verify the bonafide and the plaintiff deposited the said amount during pendency of the suit. Admittedly, in the present case, from the date of agreement to sell till decreeing of the suit, plaintiffs have not produced any material documents to prove before the Court that they are having financial capacity to pay the balance sale consideration of Rs. 12,18,750/-. Merely because the plaintiffs deposited the balance sale consideration within the time stipulated in the decree cannot be a ground to hold that the plaintiffs fulfilled the ingredients of the provisions of Section 16(c) Explanation 1 and 2 of the Specific Relief Act, 1963 - Regular First Appeal allowed

JUDGMENT :

B. VEERAPPA, J.

1. This is defendant's Regular First Appeal against judgment and decree dated 20.11.2012 made in O.S.No.265/2007 on the file of the Senior Civil Judge, Doddaballapura, decreeing the suit of the plaintiffs for specific performance to enforce the agreement dated 29.03.2006 entitling the plaintiffs for getting the sale deed registered with respect to the suit lands from the defendant by paying balance sale consideration within 60(sixty) days from the date of the judgment.

For the sake of convenience, parties are referred to as per their ranking before the Trial Court.

I. FACTS OF THE CASE:

2. The respondents/plaintiffs filed the suit for specific performance to enforce the agreement dated 29.03.2006 executed by the defendant, contending that defendant being the owner in possession of the suit schedule property entered into an agreement of sale dated 29.03.2006 to sell the suit schedule property for a total sale consideration of Rs. 15,18,750/- and received Rs. 3,00,000/- as advance on the date of the agreement and further agreed to receive the balance sale consideration of Rs. 12,18,750/- at the time of execution of the registered sale deed, and took three months' time to procure all required documents and complete the sale transaction. Accordingly, at the end of June 2006, plaintiffs approached the defendant urging him to execute the registered sale deed in their favour stating that they are ready and willing to perform their part of contract. But, the defendant was not ready and sought time till November 2006 stating that the required documents for the purpose of execution of sale deed have not been secured and sought some more time. Though the plaintiffs were ready and willing to perform their part of the contract, believing the representation made by the defendant, agreed to wait till November 2006. Again, in November 2006, the plaintiffs approached the defendant expressing their readiness and willingness to get the sale deed registered in their favour, by paying the balance sale consideration. But, again, the defendant tried to avoid the plaintiffs and showed unwillingness to perform his part of the contract. Therefore, the plaintiffs issued legal notice dated 29.12.2006, calling upon the defendant to perform his part of contract by executing the registered sale deed within fifteen days from the date of receipt of the notice. The defendant, though admitted execution of the agreement of sale and receipt of advance amount, sent untenable reply. It was further contended that in the reply, the defendant revealed that he is not ready and willing to execute the registered sale deed in favour of the plaintiffs and further, they came to know that the defendant was trying to sell the suit schedule property in favour of third parties. Therefore, the plaintiffs filed the suit for specific performance.

3. After service of suit summons, the defendant appeared through his counsel, filed written statement admitting the execution of agreement of sale dated 29.03.2006 in favor of plaintiffs and receipt of advance amount of Rs. 3,00,000/- and his undertaking to procure all necessary documents within three months from the date of the agreement. The defendant further contended that the suit is hopelessly barred by time and time was essence of contract. Three months' time was fixed for execution of registered sale deed and the plaintiffs have utterly failed to get the registered sale deed executed well within the time stipulated in the agreement. Hence, the plaintiffs are not entitled to any relief.

II. ISSUES FRAMED BY THE TRIAL COURT

4. In view of the rival pleadings urged by the parties, the Trial Court framed the following issues:

    (i) Whether plaintiffs prove that defendant had agreed to sell the suit schedule property for consideration amount of Rs. 15,18,750/- and received an amount of Rs. 3,00,000/- as advance, thereby executed agreement for sale on 29.03.2006?

(ii) Whether plaintiffs prove that they are always ready and

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