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2023 Supreme(Kar) 1377

IN THE HIGH COURT OF KARNATAKA
P.S.Dinesh Kumar, C.M. Poonacha, JJ.
Shri P. Devaraj and Ors. - Petitioners
Versus
Smt. Kamalamma and Ors. – Respondents
R.F.A. No.1221 OF 2015 (SP)
Decided On : 09-06-2023

Advocates:
Advocate Appeared:
For the Petitioner:Sri Ravi B Naik, Senior Advocate A/w Sri K B Monesh Kumar, Advocate.
For the Respondent:Sri Jayaprakash, Advocate, Sri K K Vasanth, Advocate, Sri Siddhartha H M, Sri Sunil S Rao, Advocate, Sri Rishab D Desai, Advocate , Sri. Arun Sri Kumar, Advocate,

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 and Order II, Rule 2 - First Appeal filed against the rejection of plaint on grounds of cause of action being the same as in a previous suit. The appeal was dismissed as the Trial Court found the suit barred by law. (Paras 1, 10, 29)

(B) Jurisdiction of Court under Order VII, Rule 11 - Valid grounds for rejecting a plaint include non-disclosure of cause of action and bar of suit under law. The Court held it is permissible to summarily dismiss a plaint without recording evidence. (Paras 27, 29)

(C) Relevance of prior agreements of sale - Court highlighted the significance of the earlier agreement for determining the admissibility of subsequent claims. (Paras 12, 28)

Table of Content
1. contractual obligations regarding property. (Para 1 , 3)
2. legal motions and plaint procedures. (Para 4 , 5)
3. affirmative arguments by plaintiffs. (Para 6 , 7)
4. defendants’ counterarguments. (Para 8 , 9)
5. court's analysis of the legal provisions. (Para 10 , 11 , 12)
6. substantive decision on the case merits. (Para 26 , 29)

JUDGMENT :

C.M. Poonacha, J.

The above First Appeal is filed under section 96 of Code of Civil Procedure, 1908 (for short 'CPC') by the Plaintiffs challenging the order dated 12.08.2015 passed on I.A. No.8 in O.S. No.1216/2013 by the Prl. Senior Civil Judge, Bengaluru Rural District, Bengaluru whereunder I.A. No.8 filed under Order 7, Rule 11 (a), (b), (c) and (d) of CPC has been allowed and the plaint has been rejected.

2. For the sake of convenience, the parties will be referred to as per their rank before the Trial Court.

3. The case of the Plaintiffs, in brief, necessary for consideration of the present Appeal is that, Defendant Nos.1 to 7 are the absolute owners of land bearing Sy. No.115 (new No.142) measuring 4 acres 10 guntas situated at Channasandra, Bidarahalli Hobli, Bengaluru East Taluk, Bengaluru (hereinafter referred to as 'suit property'). That the Plaintiffs entered into an Agreement of Sale dated 15.09.2011 with Defendant Nos.1 to 7 to purchase the suit property for a total consideration of Rs.3,82,50,000/- (Rs.90 lakhs per acre) and an advance of Rs.10 lakhs was paid on the date of the Agreement. That the sale transaction was required to be completed after the revenue records in respect of the suit property was transferred in the name of the Defendants. That although the Plaintiffs were ready and willing to complete the sale transaction, the Defendants stated that the revenue records of the property have not been transferred in their favour and due to pendency of certain litigations, were postponing the execution of the Sale Deed. That after the transfer of the revenue records in the names of Defendants through MRH No.87/2011-12 dated 04.06.2012, the Plaintiffs approached them to receive the balance sale consideration and execute the registered sale deed but they have not come forward. However, on 01.02.2013 when the Plaintiffs went to the suit property, they noticed Defendant Nos. 2 to 4 were negotiating with a 3rd party to sell the suit property.

3.1. That since the Defendants were making attempts to alienate the suit property, the Plaintiffs filed O.S. No.223/2013 for the relief of permanent injunction to restrain Defendant Nos.1 to 7 from alienating the suit property and an order of temporary injunction was passed in the said suit restraining Defendant Nos.1 to 7 from alienating the suit property in favour of 3rd parties vide order dated 04.02.2013. That the Defendants, although being aware of the suit filed by the Plaintiffs, evaded the summons of the said suit.

3.2. It is the further case of the Plaintiffs that subsequent to filing of the suit, they learnt that Defendant Nos.1, 2 and 4 have entered into a registered Agreement of Sale dated 05.10.2012 with Defendant No. 8 showing the market value of the suit property as Rs.3 crores and that the entire sale consideration has been paid as on the said date. The Plaintiffs got issued a legal notice dated 21.05.2013 calling upon the Defendants to receive the balance sale consideration of Rs.3,72,50,000/- and execute a registered Sale Deed in favour of the Plaintiffs within seven days. That Plaintiff Nos.1 and 2 have executed an Assignment Deed dated 30.08.2014 in favour of Plaintiff Nos.3 and 4 to deal with the suit property as they deem fit and received a sum of Rs.20 lakhs from the Plaintiff Nos.1 and 2. That the Defendants have refused to receive the legal notice dated 21.05.2013 and hence, the Plaintiffs have filed a suit seeking for the following reliefs:

    (i) For the relief of specific performance of agreement of sale dt. 15.09.2011 directing the defendants No.1 to 7 to execute proper, valid, registered sale deed in favou

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