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2025 Supreme(Kar) 1686

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
V. SRISHANANDA, J.
Sri. A. Papanna, S/o Late Sri. Annaiah – Appellant 
Versus 
Sri. Mojjaiah, S/o Late Sri. Bolaiah @ Bachaiah – Respondent 
Regular Second Appeal No. 714 of 2022 (SP)
Decided on : 04-08-2025

Advocates Appeared:
For the Appellant :SRI. H.P. MAHADEVA SWAMY, ADVOCATE FOR SRI. B. ROOPESHA, ADVOCATE)
For the Respondent:SRI. M. KRISHNAPPA, SRI. YASHWANTH NETHAJI N.T, ADVOCATE FOR SRI. K.V. NARASIMHAN, ADVOCATE

The courts upheld that an agreement for the sale of property without the seller's title cannot be enforced, but the plaintiff is entitled to a refund of consideration paid.

Headnote:(A) Specific Relief Act, 1963 - Section 10 - Specific performance of contract - A suit for specific performance was dismissed due to the first defendant's lack of ownership over the property - Despite findings on execution and readiness to perform by the plaintiff, the appeal was rejected - The first defendant failed to challenge the trial court's recognition of plaintiff's rights - The court directed return of consideration paid. (Paras 10-20)

(B) Jurisdiction - Appellate court’s mandate - An appellate court cannot interfere with a trial court's decision unless there is a substantial question of law that merits consideration. (Paras 15-18)

Facts of the case:
The appellant entered agreements to sell immovable property to which the first defendant had no title, and his suit was dismissed after a similar appeal was also rejected.

Findings of Court:
The trial court's dismissal was upheld, entitling the plaintiff to a return of the sale amount; the first defendant was deemed bound under unjust enrichment principles.

Issues: The primary issues involved whether the courts erred in denying specific performance based on property title and whether provided the evidentiary basis sufficed to resolve the controversy.

Ratio Decidendi: The court held that since the first defendant had no title to the property, the suit for specific performance could not succeed, despite plaintiff's readiness to perform.

Result: Appeal allowed in part; dismissal confirmed but ordered return of the sale consideration with interest.

Table of Content
1. details of agreement and property contested. (Para 2 , 3)
2. challenging court decisions and proceedings. (Para 6 , 8)
3. cite established findings on agreements and property. (Para 9 , 10 , 11 , 13)
4. recognition of payment due and interest. (Para 20)
5. court order to return sale consideration. (Para 21)

KKJJUjudg

JUDGMENT :

V. SRISHANANDA, J.

Heard Sri. H.P Mahadevaswamy, learned counsel for the appellant, Sri. M. Krishnappa, learned counsel for Caveator/respondent No.2 and Sri. Yashwanth Nethaji N.T. for Sri. K.V. Narasimhan, learned counsel for respondent No.10.

2. Appellant is the agreement holder in respect of the immovable property bearing Sy.No.79/2 measuring 1 acre 10 guntas situated at Hinkal Village, Kasaba Hobli, Mysore Taluk, bounded on the East by : Land of Mojjaiah and Karali Bolaiah, West by : Land of Malluraiah, North by : Land of Bolaiahna Mariyamma and on the South by : Land of Chikkamma.

3. There was a refusal to execute the sale deed by the first defendant and after exchange of notices, suit came to be filed for specific enforcement of the agreement to sell dated 02.02.1996. Suit on merits came to be dismissed holding that even though agreement, consideration, readiness and willingness came to be proved by the plaintiff, the land which was subject matter of the agreement was not belonging to the first defendant, suit was dismissed.

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4. An appeal came to be filed before the First Appellate Court by the unsuccessful plaintiff in RA No.173/2019.

5. The learned Judge in the First Appellate Court after securing the records heard the arguments of the parties and after re-appreciation of the factual and legal aspects, dismissed the appeal and decree of dismissal passed in O.S.No.62/2002 was confirmed.

6. Thereafter, the present appeal is filed by the unsuccessful plaintiff on the following grounds:

It was highly erroneous on the part of The First Appellate Court when it held that the documents produced by Plaintiff/Appellant did not establish the factum of handing over of physical possession of plaint schedule property to the Plaintiff/Appellant. The findings and observation of The Hon'ble First Appellate Court as well as The Hon'ble Trial Court are perse erroneous and devoid of sound judicial principles.

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The Hon'ble First Appellate Court in unequivocal terms held that Plaintiff/Appellant succeeded in proving Exhibits P1 and P2 i.e., Registered Agreement to sell dated 02-02-1996 and further agreement dated: 20-07-1996 respectively. The Hon'ble First Appellate Court concurred with findings of The Hon'ble Trial Court in accepting Execution of Ex. P1 and P2. However, overlooked to appreciate that in Ex. P2 proven agreement comprised profound element of handing over of seisin/physical possession of plaint schedule property in the name and favour of Plaintiff/Appellant. In the presence of such findings, The Hon'ble First Appellate Court ought to have answered points for consideration in affirmative. Likewise, The Hon'ble Trial Court ought to have answered additional Issue No. 2 in affirmative rather partly affirmative. The findings of The Hon'ble First Appellate Court as well as Trial Court are in dichotomy and contract.

It was highly erroneous on the part of The First Appellate Court when it held that Defendants No.1 to 3/Respondents No.1 to 3 did not have right to enter into agreement to sell with Plaintiff/Appellant. The Hon'ble First Appellate Court lost sight in visualizing prolific and profound factual and legal propositions which added impregnable fillip to the claim of the Plaintiff and Ex. P1 and P2. Mysore Urban Development Authority issued notification of acquisition in the year 1984. The Plaint schedule property was vested with the Government when notification of acquisition was formulated by MUDA. Therefore, plaint schedule property was not Beelu at the time of execution of Ex, P1 and P2. The tag of Beelu attached to plaint schedule property got evaporated and decimated the moment dominion of plaint

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