SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Kar) 740

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
ASHOK S. KINAGI, J.
Karnataka Police Employees Housing Building Co-Operative Society Ltd., Represented By Its President Sri. Nanjunde Gowda – Appellant
Versus
Sri. Puttalingaiah, S/o., Late Gangaiahna Lingaiah and Ors. – Respondents
Regular Second Appeal No. 756 of 2016 (SP) 
Decided On : 09-06-2025

Advocates Appeared:
For the Appellant :Sri. K.R. Krishna Murthy, Advocate
For the Respondents:Sri. M.S. Bhagwath, SR. Counsel for Sri. Sathish K., Advocate.

A plaintiff seeking specific performance must demonstrate the existence of a valid contract and show readiness to perform, with the burden of proof resting on them; failure to do so results in dismissal.

Headnote:(A) Karnataka Land Reforms Act, 1961 - Section 109 - Specific Performance of Contract - Plaintiff filed suit for specific performance alleging defendants entered into sale agreement for property; defendants denied execution and sold property to another buyer - Suit dismissed as barred by Limitation and lack of evidence of payment - Court reaffirmed that initial burden lies with plaintiff to establish contract execution and payment - Finding of bona fide purchaser upheld. (Paras 6, 8, 39, 44)

Facts of the case:
Plaintiff (society) alleged defendants executed a sale agreement and accepted advance payment but did not complete the sale, subsequently selling to a third party. The defendants claimed no valid contract existed, and the plaintiff failed to prove payments.

Findings of Court:
The lower court found the sale agreement was not proven as genuine and ruled the suit barred by limitation, thus dismissing the plaintiff's claim for specific performance.

Issues: The court examined whether a valid contract existed, if the suit was maintainable, and if the defendants' actions were protected as bona fide purchasers.

Ratio Decidendi: The court emphasized the plaintiff's failure to demonstrate readiness to perform, establish the existence of a contract, and meet the burden of proof regarding the advance payment - thereby supporting the dismissal of the appeal.

Result: Appeal dismissed.

Table of Content
1. specific performance of a contract. (Para 3 , 4 , 5 , 6)
2. defendants claim limitations and defenses. (Para 17 , 18 , 19)
3. de-notification process and agreements. (Para 24 , 25 , 26 , 27)
4. payments and evidence presentation. (Para 28 , 29 , 30)
5. non-production of crucial document. (Para 37 , 38)
6. burden of proof on plaintiff in specific performance. (Para 41 , 42 , 43 , 44)

JUDGMENT :

(ASHOK S. KINAGI, J.)

This Regular Second Appeal is filed by the appellant challenging the judgment and decree dated 30.01.2016 passed in R.A.No.181/2013 by the learned II Additional District Judge, Mysuru.

2. For convenience, the parties are referred to based on their rankings before the trial Court. The appellant was the plaintiff and the respondents were the defendants.

3. Brief facts, leading rise to the filing of this appeal are as follows :

The plaintiff filed a suit against the defendants for the specific performance of a contract. It is the case of the plaintiff that the defendants are the owners of the land bearing Sy.No.84/1, measuring 2 acres 20 guntas, situated at Lalitadripura Village, Varuna Hobli, Mysuru Taluk. It is contended that defendants No.1 to 3 entered into a sale agreement dated 12.01.2002 with the plaintiff society for alienating the suit schedule property for the sale consideration of Rs.2,15,000/- per acre. At the time of the execution of a sale agreement, defendants No.1 to 3 received a sum of Rs.15,000/- as an advance sale consideration amount and pleaded that they require one year time to complete the sale transaction, as there are valuable Mango and Coconut trees in the said land. After the execution of the sale agreement, defendants No.1 to 3 received the further amount of Rs.15,000/- and Rs.20,000/- on 04.01.2003 and 07.01.2003 respectively from the plaintiff society as a part consideration amount and went on dodging the matter on one or the other pretext. In total, the defendants have received Rs.50,000/- from the plaintiff society. The plaintiff society requested defendants No.1 to 3 to receive the balance sale consideration amount and execute a registered sale deed, but, defendants No. 1 to 3 did not come forward to complete the sale transaction. It is contended that defendants No.1 to 3 have sold the suit schedule property in favour of defendant No.4 illegally on 25.01.2006 for a higher price. Hence, a cause of action arose for the plaintiff to file a suit for the specific performance of a contract. Accordingly, prays to decree the suit.

4. Defendants No.1 to 3 have filed a written statement denying the averments made in the plaint execution of a sale agreement and receiving of part consideration amount regarding suit schedule property. It is contended that the suit property is the joint family property owned and possessed by the family members of defendant No.1 and defendants No.1 to 3 have no right to sell the same in favour of the plaintiff society or execute any sale agreement. It is contended that the plaintiff society obtained the signatures of the few members of defendant No.1 family with a malafide intention. It is contended that the alleged agreement of sale is inoperative and not maintainable, as the plaintiff society has not complied with the terms and the suit filed by the plaintiff society is barred by limitation. It is contended that the suit filed by the plaintiff is not maintainable for mis- joinder and non-joinder of the necessary parties.

5. It is contended that defendants No.1 to 3 have executed a registered sale deed conveying the other joint family properties in favour of the plaintiff society. It is contended that defendants No.1 to 3 have never agreed to sell the suit schedule property in favour of the plaintiff society. It is contended that the alleged Oppanda Patra is a document that does not cast any liability on defendants No.1 to 3, nor have defendants No.1 to 3 executed any such document. Defendants No.1 to 3 have retained the suit schedule property. No negotiations

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top