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
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
Shakuntala (Smt) Vs. Narayan Gundoji Chavan And Others
Khatri Hotels Private Limited And Another Vs. Union Of India And Another
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.
The court determined that a suit for specific performance may not be dismissed under Order VII, Rule 11 if a valid cause of action is pleaded, allowing the case to proceed to trial.
The main legal point established in the judgment is the requirement to prove readiness and willingness to perform essential terms of the contract within a reasonable time, the significance of the tim....
Evasive denials in pleadings are treated as admissions, impacting the outcome of specific performance claims and recovery of amounts paid.
Decree of suit for specific performance of Agreement - Refund in absence of prayer - Bar under Section 22(2) is against the respondent/plaintiff. But such a bar would not operate against Court and cu....
Time is generally not considered essence in immovable property contracts; refusal to perform requires consideration of readiness alongside equitable claims for refund.
The plaintiff's failure to file the suit within the limitation period and to prove readiness and willingness to perform the contract resulted in dismissal of the specific performance claim.
Time is of the essence of the contract and the plaintiff was not ready and willing to perform its part of the contract in terms of the agreement.
Time is of the essence in contracts for sale of immovable property; failure to act within stipulated time undermines claims for specific performance.
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