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2024 Supreme(Kar) 576

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.P. Sandesh, J.
M/s. Sanjeevini Developers - Appellant
Vs.
Sri. Mohan Das R., Son Of Late G.Rama Varma - Respondent
M.F.A. NO.4659/2022 (CPC)
Decided On : 23-11-2024

Advocates:
Advocate Appeared:
For the Appellant : Smt. S.Susheela, Senior Counsel For Sri Raghava P., Adv.
For the Respondent: Sri Ashok Haranahalli, Senior Counsel For Sri Prasanna B.K., Adv.

The absence of a forfeiture clause and the defendant's failure to obtain necessary approvals are critical in determining the plaintiff's entitlement to specific performance and injunctive relief.

Headnote:(A) Specific Relief Act, 1963 - Section 16(c) - Civil Procedure Code, 1908 - Order 39 Rules 1 and 2 - Temporary injunction - Plaintiff sought specific performance of a sale agreement and a temporary injunction to restrain the defendant from alienating the property - The Trial Court rejected the application, stating the plaintiff did not establish a prima facie case - The appellate court found that the defendant failed to obtain necessary approvals and continued to accept payments after cancellation of the plan, thus requiring a full trial - The appellate court set aside the Trial Court's order and granted the injunction. (Paras 28, 36, 40)

(B) Limitation - The court discussed the implications of the Limitation Act regarding the timing of the suit and the necessity of obtaining approvals as per the agreement. (Paras 22, 39)

JUDGMENT :

H.P. Sandesh, J.

This miscellaneous first appeal is filed against the order of rejection of I.A.No.1 filed under Order 39 Rules 1 and 2 of CPC vide dated 01.06.2022 in O.S.No.1015/2020 by the III Additional Senior Civil Judge, Bengaluru Rural District, Bengaluru.

2. Heard the learned counsel appearing for the respective parties.

3. The factual matrix of the case of the plaintiff/appellant before the Trial Court that the plaintiff and defendant/respondent have entered into an agreement of sale in respect of the suit schedule property bearing Sy.No.6/1 situated at K Gollahalli village, Hemmigepura Dhakale, Kengeri hobli, Bengaluru South taluk to the extent of 5 acres which is morefully described in the schedule of the plaint as well as in IA. The total consideration amount was Rs.10,75,00,000/-. On the date of agreement, the plaintiff paid the advance amount of Rs.1,50,00,000/- and paid another Rs.1,00,00,000/- by way of cash under receipt dated 29.11.2012. It is also contended that also paid the additional amount on different dates i.e., on 26.12.2012, 03.01.2013, 06.01.2013, 12.02.2013 and 23.03.2013 and in all made the payment of Rs.3,35,00,114/-and also invested huge amount for the development of the property including leveling of land, formation of roads, drainage system, tanks and bore wells, water lines, sewage pipes and other civic amenity installations by spending an amount of Rs.75,00,000/-. It is contended that there was a condition to get the plan approval by the defendant and though plan was sanctioned, later it was cancelled and the defendant has kept the plaintiff in dark about the cancellation of the same. When the plaintiff came to know the said fact, he had informed that the defendant had reapplied for sanction. As per the terms of the sale agreement, the plaintiff approached the defendant time and again to know the status of the layout approval and additional payment was also made, but the defendant not heeded to his request and chose to remain aloof without fulfilling his obligations of getting required approval.

4. It is also contended that the plaintiff is ready to pay the balance consideration of Rs.7,39,99,886/-. It is contended that the defendant has issued a legal notice dated 11.11.2016 seeking from the plaintiff firm to pay the balance sale consideration and get the sale deed registered and reply was given on 06.12.2016 for which, the defendant issued a rejoinder on 04.01.2017. In reply, the plaintiff firm issued sur-rejoinder on 10.02.2017. When the defendant fails to perform his part of contract, notice was issued on 20.06.2020 and filed the suit for the relief of specific performance of contract and to declare that the sale agreement is valid and alternatively, direct the defendant to return the advance sale consideration of Rs.3,35,00,114/- and a sum of Rs.75,00,000/- which was invested by the plaintiff for the development of the layout in the schedule property with 18% interest per annum. The plaintiff also filed an application praying the Trial Court to restrain the defendant from alienating or creating encumbrance over the application schedule property and in support of the application, an affidavit is sworn to reiterating the grounds urged in the plaint and prayed the Court to grant the relief.

5. The defendant appeared and filed the written statement admitting the execution of the sale agreement and denied the averments made in the plaint. But admitted the ownership over the suit schedule property and also admitted the fact of entering into the sale agreement. It is contend that only he has received an amount of Rs.1,00,000/- under receipt dated 29.11.2012 apart from the advance received on the date of sale agreement. It is also contended that in terms of clause-2(a) to (e) of agreement of sale, the plaintiff had agreed to pay the balance sale consideration on different dates and within 180 days from the date of approval of layout plan and to obtain registered sale deed at their cost. Th

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