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2025 Supreme(Kar) 981

IN THE HIGH COURT OF KARNATAKA AT DHARWAD
S.R. Krishna Kumar, C.M. Poonacha, JJ.
M. Rafiq S/O. Late M.D.Khaleel Sab - Appellant
Versus
Sathyanarayana Jannu, S/O. Madhukarappa – Respondents
Regular First Appeal No. 100294 of 2024 (SP)
Decided On : 16-09-2025

Advocates Appeared:
For the Appellant :Sri. Shriharsh A.Neelopant, Advocate

Specific performance can be denied if the plaintiff does not demonstrate readiness and willingness to complete the contract within the agreed timeframe.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Specific performance - Appeal filed against the decree of specific performance for a property sale agreement - Plaintiff alleges readiness to perform while defendant argues breach due to plaintiff's delay in transaction. (Paras 4, 24)

(B) Conditions for Specific Performance - The plaintiff must demonstrate readiness and willingness to complete the contract within the stipulated time. (Paras 20, 21)

Facts of the case:
The plaintiff contended that the defendant failed to execute the sale deed despite readiness to pay the remaining consideration following a valid agreement to sell property, with issues arising from the defendant's subsequent sales to third parties. (Paras 3-5)

Findings of Court:
The court found no evidence of the plaintiff’s readiness and deemed the trial court's decree erroneous, concluding the defendant's breach was unsubstantiated with plaintiff's inaction evident. (Paras 22, 24)

Issues: Whether the plaintiff was ready and willing to complete the contract and if the trial court's orders for specific performance were justified. (Paras 14, 26)

Ratio Decidendi: The plaintiff failed to act within the contracted time frame; thus, the trial court's decree for specific performance was set aside. (Paras 22, 27)

Result: Appeal partly allowed; trial court’s order directing specific performance was modified. (Para 27)

Table of Content
1. details of the sale agreement and dispute (Para 1 , 3 , 4 , 5)
2. defendant argues breach by plaintiff (Para 11 , 12)
3. court analyses timeline and actions (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22)
4. final decision and modification of decree (Para 27)

JUDGMENT :

C.M. POONACHA, J.

The present appeal is filed under Section 96 of Code of Civil Procedure, 1908, by the defendant No.1 calling in question the judgment and decree dated 05.03.2024 passed in OS No.49/2020 by the Senior Civil Judge and JMFC, Hagaribommanahalli, [Hereinafter referred to as ‘the Trial Court’], whereunder, the suit for specific performance filed by the respondent No.1/plaintiff has been decreed by the Trial Court.

2. The parties are referred to as per their ranking before the Trial Court for the sake of convenience.

3. It is the case of the plaintiff that the defendant No.1 is the absolute owner of the property bearing Sy.No.388/B measuring 0-95 cents situated at Chintrapalli Village, Ballari District, [Hereinafter referred to as ‘suit property’]. That the defendant No.1 agreed to sell the suit property in favour of the plaintiff for a total sale consideration of Rs.71,00,000/-. Accordingly, the plaintiff and defendant No.1 entered into an agreement of sale dated 11.09.2018, wherein the plaintiff paid an advance of Rs.10,10,000/- and agreed to pay the balance amount of Rs.60,90,000/- within five months from the date of the agreement and agreed to execute the sale deed consequent to receipt of balance sale consideration.

4. It is the further case of the plaintiff that he was ready and willing to complete the sale transaction and, in fact, he was waiting at the Sub-Registrar Office, however, the defendant No.1 did not turn up on the date fixed. That on 16.02.2019, the defendant No.1 issued a notice calling upon the plaintiff to complete the sale transaction, which was duly replied by the plaintiff vide a reply dated 07.05.2019. It is the further case of the plaintiff that, he was ready and willing to pay the balance sale consideration of Rs.60,90,000/-, and that the defendant No.1 has committed breach of agreement. Subsequently, the defendant No.1 has sold sites formed in the suit property to defendant Nos.2 to 4 vide registered Sale Deeds dated 27.06.2019 and 30.06.2019. That the plaintiff got issued a legal notice dated 28.08.2020, calling upon the defendant No.1 to receive the balance sale consideration and complete the sale transaction in terms of the agreement dated 11.09.2018. Since the defendant No.1 failed to comply with the demand vide the legal notice dated 28.08.2020, the plaintiff has filed the suit seeking specific performance of the agreement of sale.

5. The defendant Nos.1 to 4 entered appearance through their counsel and contest the suit by filing their written statement. The execution of the agreement and the receipt of advance amount of Rs.10,10,000/- was admitted. It is the specific case of defendant No.1 that, since he was in urgent need of money, he entered into the agreement of sale dated 11.09.2018, and despite lapse of five months mentioned in the agreement, since the plaintiff did not come forward to pay the balance sale consideration and complete the sale transaction, he got issued a legal notice dated 16.02.2019, despite which the plaintiff did not come forward to pay the balance sale consideration and complete the sale transaction. That having no other option, the defendant No.1 alienated the portions of suit property in favour of defendant Nos.2 to 4. Hence, the defendant No.1 sought for dismissal of the suit.

6. The Trial Court consequent to the pleadings of the parties framed the following issues:

“ISSUES

1) Whether the plaintiff proves that, the 1st defendant being the owner of the schedule property agreed to sell the same for a valuable consideration of Rs.71,00,000/- and executed unregistered agreement of sale dated: 11.09.2018 by receiving an advance consideration amount of Rs.10,10,000/-?

2) Whether the def






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