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2023 Supreme(Kar) 1056

IN THE HIGH COURT OF KARNATAKA
H.P. Sandesh, J.
Sanjeevappa – Appellant
Versus
Nagamma – Respondent
R.S.A. No. 1310/2018 (SP)
Decided On : 21-04-2023

Advocates appeared:
A.V.Gangadharappa, Advocate, Sarojamma, Advocate, G.S.Venkatasubba Rao, Advocate

For a plaintiff to succeed in a suit for specific performance, they must prove the existence of a valid sale agreement and demonstrate continuous readiness and willingness to perform their contractual obligations, as mandated by Section 16(c) of the Specific Relief Act.

Headnote:

SPECIFIC PERFORMANCE - SALE AGREEMENT - SPECIFIC RELIEF ACT, SECTION 16(c) - The court discussed the provisions of the Specific Relief Act, particularly Section 16(c), which requires the plaintiff to prove readiness and willingness to perform their part of the contract. The court interpreted this section to mean that the plaintiff must demonstrate continuous readiness to fulfill the contract terms, which was established through the issuance of a legal notice within the stipulated time frame. The court concluded that the sale deed executed in favor of the second defendant was nominal and void, affirming the plaintiff's right to specific performance based on the valid sale agreement.

Fact of the Case:

The plaintiff entered into a sale agreement with defendant No.1 for a property, paying an advance of Rs.5,000. Defendant No.1 later refused to execute the sale deed, demanding a higher price, and instead executed a nominal sale deed to defendant No.2. The plaintiff filed a suit for specific performance after the defendants failed to comply with the agreement.

Finding of the Court:

The Trial Court found in favor of the plaintiff, confirming the existence of the sale agreement and ruling that the sale deed to defendant No.2 was void. The First Appellate Court upheld this decision, stating that both courts had properly assessed the evidence and the legal implications of the case.

Issues: Whether there was a valid sale agreement in favor of the plaintiff, whether the defendants proved the plaintiff forged the signature, and whether the plaintiff was ready and willing to perform her part of the contract.

Ratio Decidendi: The court emphasized that the plaintiff's issuance of a legal notice within the three-month period stipulated in the sale agreement demonstrated her readiness and willingness to perform the contract, satisfying the requirements of Section 16(c) of the Specific Relief Act. The court also noted that the defendants failed to substantiate their claims of forgery regarding the sale agreement.

Final Decision: The appeal was dismissed, affirming the lower courts' decisions to grant specific performance in favor of the plaintiff.

JUDGMENT

1. This matter is listed for admission. I have heard the learned counsel for the appellants and learned counsel for the caveator-respondent No.1.

2. The factual matrix of the case of the plaintiff before the Trial Court is that, defendant No.1 is the absolute owner of the suit schedule property and he had acquired the suit schedule property under a registered sale deed dtd. 12/1/1995 and defendant No.1 has offered to sell the suit schedule property and the plaintiff agreed to purchase the same for a sale consideration of Rs.63, 000.00 and accordingly, the defendant No.1 received the advance amount of Rs.5, 000.00 and executed sale agreement in favour of the plaintiff. In the agreement of sale, it was mentioned that the plaintiff shall get the registered sale deed within three months by paying balance sale consideration amount of Rs.58, 000.00. The plaintiff, after securing the balance consideration, approached the defendant No.1 to execute the sale deed, but, the defendant No.1 demanded more consideration and refused to execute the sale deed. Hence, the plaintiff got issued the legal notice dtd. 24/12/1999 asking the defendant No.1 to be present in the Sub-registrar office on 10/1/2000. The defendant No.1 refused to execute the sale deed. On the other hand, the defendant No.1, colluding with defendant No.2, who in his wife's name conducting civil disputes for the last 20 years against the plaintiff and inspite of knowledge of agreement in favour of the plaintiff, got executed nominal sale deed dtd. 10/1/2000. As on that date, the defendant No.1 had no saleable interest and by virtue of sale deed, no right, title and possession passed to defendant No.2. On coming to know about nominal sale deed, the plaintiff got issued notice to both the defendants to execute the sale deed in her favour. The defendants failed to execute the sale deed and defendant No.1 had not taken the notice but, defendant No.2 though received the notice, has not given any reply. Hence, filed the suit seeking the relief of specific performance.

3. Pursuant to the suit summons issued to both the defendants, they appeared through their counsel and filed the written statement and in their written statement, except admitting that defendant No.1 was the owner, all other averments are denied. It is their contention that, defendant No.1 has not at all executed any agreement in favour of the plaintiff and her signatures have been forged and the alleged agreement has been concocted. It is contended that, on 17/8/1999, the defendant No.1 entered into an agreement with defendant No.2 to sell the suit property for a sum of Rs.55, 000.00 and received advance amount of Rs.5, 000.00 and pursuant to the said agreement, executed sale deed on 1/1/2000 and put defendant No.2 in possession. By virtue of the sale deed, the mutation has been accepted in the name of defendant No.2 and RTC entries have been changed to his name and he is in enjoyment of the suit schedule property. Since, the alleged agreement in favour of the plaintiff false, there was no need to reply. Hence, prayed the Court to dismiss the suit.

4. Based on the pleadings, the Trial Court has framed the issues with regard to whether there was a sale agreement in favour of the plaintiff and received earnest money of Rs.5, 000.00 and whether defendant No.1 has executed nominal sale deed in favour of defendant No.2 and the sale deed is null and void and the same is not binding. In view of the defence taken by the defendants in the written statement, issues are also framed with regard to whether the defendant proves that the plaintiff has forged the signature of defendant No.1 on the alleged agreement of sale as contended and whether the plaintiff has been and is still ready and willing to perform her part of the contract and whether the plaintiff is entitled for the relief of specific performance.

5. In support of the contention of the plaintiff, she examined the power of attorney holder as P.W.1 and other thr

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