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2024 Supreme(Kar) 428

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.P. SANDESH, J.
Smt. Lalithamma, D/o. Honnamma & Ors. - Appellants
Versus
Sri A.D. Govindaiah, S/o. Doddathimmaiah - Respondents
Regular Second Appeal No. 681 of 2023 (SP)
Decided On : 01-07-2024

Advocates Appeared:
For the Petitioner: Sri K. Shrihari.
For the Respondent: Sri Gangadharaiah A.N.

IMPORTANT POINT
Substantial compliance with a sale agreement, including significant payment, can justify specific performance even in the face of claims of joint ownership.

Headnote:

Specific Performance - Sale Agreement - Specific Relief Act, Section 16(c) - The court interpreted Section 16(c) of the Specific Relief Act, emphasizing that substantial compliance with the sale agreement and payment of 95% of the sale consideration justified the grant of specific performance despite the defendants' claims of joint ownership.

Fact of the Case:

The plaintiff sought specific performance of a sale agreement executed by the defendants for a property, claiming to have paid 95% of the sale consideration. The defendants contended that the property was ancestral and could not be sold without consent from all family members.

Finding of the Court:

The Trial Court and First Appellate Court found that a valid sale agreement existed, with substantial payment made by the plaintiff, and ruled in favor of specific performance, dismissing the defendants' claims regarding joint ownership.

Issues: Whether the sale agreement was valid and whether the plaintiff was entitled to specific performance despite the defendants' claims of joint ownership and lack of notice prior to the suit.

Ratio Decidendi: The court held that the plaintiff's substantial compliance with the sale agreement and payment of 95% of the sale consideration sufficed to establish entitlement to specific performance, overriding the defendants' objections.

Result: The second appeal is dismissed.

JUDGMENT :

H.P. Sandesh, J.

This matter is listed for admission and I have heard the learned counsel for the appellants and learned counsel for the respondent.

2. This second appeal is filed against the concurrent finding of the Trial Court granting the relief of specific performance and confirming the same by the First Appellate Court.

3. The factual matrix of the case of the plaintiff before the Trial Court is that the defendants are the owners in possession and enjoyment of the suit schedule property. The defendant No.1 executed registered sale agreement dated 29.06.2017 and agreed to sell the schedule property for total consideration of Rs.2,20,000/- and received part sale consideration of Rs.2,10,000/- and agreed to execute the registered sale deed after receiving the balance sale consideration of Rs.10,000/- from him. When the defendant No.1 did not come forward to execute the sale deed, the plaintiff filed the suit for the relief of specific performance.

4. After service of summons, the defendants appeared and filed the written statement contending that the schedule property is ancestral and joint family properties of defendants and originally the said property belongs to father of defendant No.1 and grand-father of defendant No.2 namely, Basavaraju. The said Basavaraju had two wives and defendant No.1 is the daughter of his first wife Honnamma and schedule property has been left by the said Basavaraju for the maintenance of defendant No.1 and her mother Honnamma. The defendants and one Honnamma are in joint possession and enjoyment of schedule property by obtaining documents in their joint names and in the schedule property, except said Honnamma, the defendants have no personal rights to execute the agreement of sale in favour of any others. It is also contended that defendants have not borrowed any loan from anybody. Hence, execution of sale agreement to discharge the loans and also for education purpose of defendant No.2 does not arise, as the said Honnamma herself has looked after the defendants. The defendants have no right to execute the agreement or sell the schedule property and contend that the suit is not maintainable for the relief of specific performance.

5. The Trial Court having considered the pleadings of the parties, framed the issues whether there was sale agreement, readiness and willingness on the part of defendant No.1 and whether the plaintiff is entitled for specific performance.

6. The plaintiff, in order to prove his case, examined himself as P.W.1 and examined one witness as P.W.2 and got marked the documents Exs.P1 to P6. On the other hand, the defendant No.1 examined herself as D.W.1 and examined one witness as D.W.2 and got marked the documents as Exs.D1 to D14.

7. The Trial Court, having considered the material on record, answered the issues as ‘affirmative’ considering the material on record and comes to the conclusion that there was sale agreement and almost entire sale consideration has been paid and the remaining sale consideration payable is only Rs.10,000/- and the same is payable at the time of registration and having taken note of the sale agreement, granted the relief of specific performance.

8. Being aggrieved by the said judgment and decree of the Trial Court granting the relief of specific performance, an appeal is filed before the First Appellate Court in R.A.No.17/2022 and the First Appellate Court also having re-assessed the material on record and also keeping in view the contentions urged in the appeal, formulated the point whether the sale agreement was executed, whether the Trial Court committed an error in granting the relief of specific performance and answered the said points as ‘negative’ and confirmed the judgment of the Trial Court in coming to the conclusion that almost 95% of the sale consideration has been paid and the remaining sale consideration payable is only Rs.10,000/-. Even as per Section 16(c) of Specific Relief Act, averments regarding readiness and willingness, if

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