IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.P. SANDESH, J.
Nasir Khan S/o Late O.Ahamed Khan – Appellant
Versus
Haroon Khan S/o Khalander Khan – Respondent
M.F.A. No.6446 of 2023 (CPC)
Decided on : 12-01-2024
C.P.C. - Specific Performance - 104, Order 43, Rule 1(r) - Order XXXIX, Rule 1 and 2 - O.S.No.155/2023 - O.S.No.187/2017 - O.S.No.190/2022 - Joint Development Agreement - Compromise Decree - Temporary Injunction
Fact of the Case:
The plaintiff entered into sale agreements with defendant Nos.1 to 16 and 17 to 23, seeking specific performance. The defendants delayed the transaction and entered into a Joint Development Agreement with other parties. The plaintiff sought relief for specific performance and to declare the Joint Development Agreement null and void. The defendants also filed a suit seeking enforcement of the Joint Development Agreement.
Finding of the Court:
The Trial Court erred in dismissing the application for temporary injunction, failed to consider the prima facie case, and expressed opinion on the enforceability of the compromise decree. The Court found that the conduct of the defendants was detrimental to the plaintiff's interest and granted the temporary injunction.
Issues: Error in dismissing the application for temporary injunction, consideration of prima facie case, and expressing opinion on the enforceability of the compromise decree.
Ratio Decidendi: The Court must consider the prima facie case and balance of convenience when deciding on a temporary injunction. The Court should not express an opinion on the merits of the case at the temporary injunction stage.
Final Decision: The appeal is allowed, the impugned order is set aside, and the application for temporary injunction is granted.
JUDGMENT :
This miscellaneous first appeal is filed under Section 104 read with Order 43, Rule 1(r) of the Code of Civil Procedure being aggrieved by rejection of application in I.A.No.I filed under Order XXXIX, Rule 1 and 2 of C.P.C. in O.S.No.155/2023.
2. Heard the learned counsel for the appellant/plaintiff and learned counsel for the respondent Nos.1 and 2/defendant Nos.25 and 26.
3. The factual matrix of the case of the appellant herein, who is the plaintiff in O.S.No.155/2023 is that defendant Nos.1 to 23 are the legal representatives of one Badebylu Durgappa @ Durgappa of Urgadur Village, Shivamogga Taluk. Badebylu Durgappa @ Durgappa passed away on 15.06.1974 leaving behind two wives Smt. Sannadurgamma and Smt. Durgamma along with other children and defendants. The defendant Nos.1 to 16 are the legal representatives of Badebylu Durgappa through his first wife Smt. Sannadurgamma and defendant Nos.17 to 23 are the legal representatives through second wife Durgamma. It is the contention of the plaintiff that he entered into an agreement of sale with the defendant Nos.1 to 16 on 08.01.2015 and as per the registered agreement of sale, they have agreed to sell the property for a total consideration of Rs.45,00,000/-and received an advance amount of Rs.20,50,000/-. Similarly, on 10.08.2015, the defendant Nos.17 to 23 executed another registered sale agreement in favour of the plaintiff agreeing to sell the schedule ‘B’ property for a total consideration of Rs.45,00,000/-by receiving an advance amount of Rs.20,00,000/-from the plaintiff. The land owners i.e., defendant Nos.1 to 16 were not in possession of relevant documents and they required time to secure the same and hence, time was not the essence of the contract. In terms of the said sale agreement, the defendants agreed to execute the registered sale deeds after getting all the required documents. When the plaintiff was ready and willing to perform his part of contract of both these agreements, the defendants could not obtain the necessary documents and mutation entries until 10.05.2017. The defendants continued to delay the transaction on one or the other pretext. In the meanwhile, the plaintiff learnt that, despite existence of registered sale agreements, the defendant Nos.1 to 23 have entered into a Joint Development Agreement with the defendant No.18. The plaintiff issued notices to all the defendants i.e., defendant Nos.1 to 23 calling upon them to execute the registered sale deeds and no response was received and the plaintiff came to know that defendant Nos.1 to 23 have executed registered Joint Development Agreement dated 09.10.2017 with defendant Nos.25 and 26. Immediately, the plaintiff has filed the suit for the relief of specific performance in O.S.No.187/2017 and the plaintiff also sought the relief to declare the Joint Development Agreement dated 09.10.2017 as null and void. Thereafter, the Joint Development Agreement holder i.e., defendant Nos.24 to 26 have come forward for settlement, since there was a relief of temporary injunction and subsequently, they have been impleaded as parties to the proceedings. When the defendant Nos.24 to 26 came forward to negotiate, a compromise was entered between the plaintiff and defendant Nos.24 to 26, excluding the original owners and the suit was got dismissed against them and compromise was entered into between them.
4. It is also the contention that defendant Nos.24 to 26 unequivocally acknowledged and executed the registered sale agreements dated 08.01.2015 and 10.08.2015 and the parties have also inter-alia agreed to keep the sale agreements and Joint Development Agreement in subsistence. The plaintiff also agreed to co-operate with the defendant Nos.24 to 26 for conversion of their sites for non-agricultural purpose in terms of the agreement entered into between the parties. In terms of the Joint Development Agreement, the developer is entitled for 46% of the sites and the land owners are entitled for 54% of the sites
C.J. INTERNATIONAL HOTELS LTD. & ORS. VS. N.D.M.C. & OTHERS reported in 2001 (60) DRJ 562
GUJARAT BOTTLING CO. LTD. AND OTHERS VS. COCA COLA CO. AND OTHERS reported in (1995) 5 SCC 545
In joint development agreements involving multiple landowners as shareholders, individual landowners cannot unilaterally withdraw from the agreement without jeopardizing the entire project, and the c....
Joint family properties must be protected in partition suits, ensuring the rights of co-sharers against potential losses during ongoing legal disputes.
The main legal point established is that a fresh cause of action justifies the filing of a separate suit for temporary injunction, and the Court must consider the conduct of the parties and the princ....
The main legal point established in the judgment is that unregistered documents do not confer enforceable rights, and bonafide purchasers cannot be deprived of their ownership rights based on unregis....
A party seeking a temporary injunction must demonstrate a prima facie case and balance of convenience, particularly when joint family property is involved amidst ongoing development agreements.
The court emphasized the need for a careful balance of equities in injunction cases, asserting that blanket injunctions affecting substantial projects must be substantiated with clear justifications.
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