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2024 Supreme(Kar) 1291

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S. G. PANDIT, C.M. POONACHA, JJ.
Sri Raju, S/o. Late Nanjappa, (Dead), By His Lr’s- Jayamma, W/o. Madari Nanjappa and Ors. – Appellants
Versus
Sri Basavaraju, S/o. Basave Gowda and Ors. – Respondents
Regular First Appeal No.1233 of 2016 (SP)
Decided On : 25-04-2024

Advocates Appeared:
For the Appellants : Sri. Basavarajaiah N., Adv.
For the Respondents: Sri. Ningegowda, Adv.

In a suit for specific performance, plaintiffs must prove continuous readiness and willingness to perform their part of the contract, supported by cogent evidence; mere assertions are insufficient.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Specific Relief Act, 1963 - Section 16(c) - Specific performance - Plaintiffs sought specific performance of a sale agreement dated 10.01.2011; Trial Court dismissed the suit, concluding plaintiffs did not prove readiness and willingness to perform the contract. (Paras 1, 8, 12, and 19)

(B) Specific Performance - Readiness and willingness of the party enforcing a contract - Must be averred and proved with cogent evidence; mere averment not sufficient. Court affirms decision where plaintiffs failed to show financial capacity for balance payment. (Paras 12 and 16)

Facts of the case:
The defendants were owners of property sold under an agreement dated 10.01.2011 for a total of Rs.37,25,000/-, with Rs.5,60,000/- paid as an advance. Extended periods for document submission were issued, but defendants failed to provide necessary documents, leading to plaintiffs seeking specific performance.

Findings of Court:
The court confirmed the lower court's conclusion that the plaintiffs did not establish readiness or willingness to perform their part of the contract; thus, they are entitled to recover only the advance amount with interest.

Issues: Determination of plaintiffs' readiness and willingness to perform the contract as per the agreement.

Ratio Decidendi: The plaintiffs must prove continuous readiness and willingness from the date of the agreement to the suit’s conclusion; absence of evidence to show financial capability renders the plaintiffs ineligible for specific performance.

Result: Appeal dismissed, affirming Trial Court's decision.

Table of Content
1. background of the specific performance agreement (Para 1 , 4 , 5)
2. issues framed by the trial court (Para 6 , 7)
3. arguments of both parties in appeal (Para 8 , 9 , 10)
4. criteria for readiness and willingness for specific performance (Para 12 , 13)
5. evidence required to prove readiness and willingness (Para 14 , 16 , 17 , 18)
6. conclusion and dismissal of the appeal (Para 19 , 20 , 21 , 22)

JUDGMENT :

This first appeal is filed under Section 96 of the Code of Civil Procedure, 1908, assailing the judgment and decree dated 27.02.2016 in O.S.No.3/2013 on the file of the Senior Civil Judge and JMFC, Malavalli (for short, ‘Trial Court’) by which, the appellants/plaintiffs’ suit for specific performance of agreement to sell dated 10.01.2011 is dismissed, holding that the plaintiffs are entitled to recover Rs.5,60,000/- with interest at the rate of 12% p.a.

2. Though the appeal is listed for admission, with the consent of learned counsel appearing for both the parties, appeal is taken up for final disposal.

3. The parties to the appeal would be referred to as they stand before the Trial Court. Appellants herein were plaintiffs and respondents herein were defendants before the Trial Court.

4. Brief facts are that, the first defendant is the absolute owner in possession of the suit schedule properties. Defendant No.2 is the wife of first defendant and defendant Nos.3 and 4 are children of defendant Nos.1 and 2. Defendants offered the suit schedule properties for sale and the plaintiffs agreed to purchase the suit schedule properties. Accordingly, plaintiffs and defendants entered into sale agreement dated 10.01.2011 in respect of suit schedule properties. Suit schedule properties consists of 3 acres 22 guntas out of 8 acres in Sy.No.12/C2, 2 acres 28 guntas in Sy.No.11/ and 0.25 guntas in Sy.No.10/1, totally 6 acres 35 guntas, situated in Kabbepura Village, Kiragavalu Hobli, Malavalli Taluk, Mandya District. The total sale consideration was Rs.37,25,000/- out of which, plaintiffs paid a sum of Rs.5,60,000/- as advance to the defendants. It is stated that in terms of the agreement, four months time was prescribed for completion of sale transaction from the date of furnishing required documents including 11-E sketch. As the defendants could not furnish the required documents within time, at the request of defendants, time to complete the sale transaction was extended by another six months on 03.05.2011. In the meantime, first defendant was required to furnish all revenue documents i.e., RTC, survey map, tax paid receipts and 11-E sketch for verification of title and to prepare the absolute sale deed. Even after completion of extended period of six months time, defendants failed to come forward to furnish the required documents and to execute the registered sale deed. Hence, plaintiffs got issued legal notice on 19.10.2011 to the defendants calling upon them to execute the registered sale deed by receiving balance sale consideration. Defendants caused untenable reply dated 02.11.2011. Thereafter, defendants caused another notice dated 07.12.2011 calling upon the plaintiffs to pay the balance sale consideration and to get the sale deed registered. Defendants said to have caused one more notice dated 20.01.2012 calling upon the plaintiffs to pay balance sale consideration and to get the absolute sale deed in their favour. Thereafter, plaintiffs got issued one more legal notice dated 05.04.2012 calling upon the defendants to execute registered sale deed by furnishing the required documents in their favour. Thereafter, plaintiffs said to have issued one more legal notice dated 11.07.2012 calling upon the defendants to receive balance sale consideration of Rs.31,65,000/- and to execute absolute sale deed. Defendants on 31.07.2012 issued untenable reply. As the defendants failed to come forward to execute registered sale deed, plaintiffs filed present suit seeking specific performance of agreement dated 10.01.2011 by receivin

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