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2025 Supreme(Kar) 2792

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
R. DEVDAS, B. MURALIDHARA PAI, JJ.
Annappaswamy, S/o. Ekambarayya Suttinabhavimath - Appellant
Versus 
M. Vishanaraja, S/o. Sohanaraj Jain – Respondent 
REGULAR FIRST APPEAL NO.100542 of 2023 (SP)
Decided On : 17-11-2025

Advocates Appeared:
For the Appellant :Sri. S.B. Hebballi, Advocate For Sri. Pavan Hebballi, Smt. Chitra M. Goundalkar, Advocate
For the Respondent:Sri. Dinesh M. Kulkarni, Advocate

The court upheld that without explicit provisions for severability in contracts, specific performance can be enforced, provided the plaintiff demonstrates readiness and the contractual agreement is valid.

Headnote:(A) Specific Relief Act, 1963 - Section 20 - Code of Civil Procedure, 1908 - Section 96 - Specific performance of contract - The plaintiff filed suit for specific performance under a registered agreement of sale dated 28.09.2015 regarding commercial property, after part performance occurred. The trial Court ruled in favor of the plaintiff, allowing the suit for the petitioner to execute the deed for the remaining half share. (Paras 4-6, 21)

(B) Principles of Contract Law - Severability of contracts - Court reaffirmed that without explicit provisions for severability, contracts must be performed in totality unless all parties agree otherwise. The agreement was ruled not severable based on complete payment and execution intentions. (Paras 5, 18)

(C) Readiness and Willingness - The court determined that the plaintiff demonstrated readiness and willingness to perform obligations that supported the necessity of specific performance and disallowed claims of inequity due to public interest in contractual respect. (Paras 19-21)

(D) Evidence Act, 1872 - Section 92 - Defendant’s claim regarding payments characterized as loans was rejected due to lack of substantial evidence to counter the validity of the registered agreement. (Paras 14-20)

Findings of Court:
The trial Court's decision was upheld, confirming enforcement of a valid agreement and readiness to execute transactions.

Issues: The key issues involved whether the agreement was severable, whether extraneous claims of loan validity existed, and if the plaintiff proved readiness and willingness.

Ratio Decidendi: The court ruled that the agreement was validly executed with no evidence proving claims of it being a loan, emphasizing upon the principle of readiness and willingness alongside lack of severability without mutual consent.

Result: The regular first appeal is dismissed.

Table of Content
1. understanding the basis of the appeal and the contract. (Para 1 , 2 , 3 , 4)
2. arguments challenging the specific performance claim. (Para 5 , 6 , 7 , 8 , 9 , 10)
3. legal precedents on contract and fraud. (Para 11 , 12 , 13 , 14 , 15)
4. reflections on factual findings supporting the trial court. (Para 16 , 17 , 18)
5. final considerations and judgment validation. (Para 19 , 20 , 21 , 22)

JUDGMENT :

R.DEVDAS, J.

This regular first appeal is filed under Section 96 of the Code of Civil Procedure at the hands of defendant No.4 in O.S. No. 304/2018 on the file of the learned III Addl. Sr. Civil Judge & JMFC, Ranebennur (for short, ‘the trial Court’).

2. For the sake of convenience the parties shall be referred to in terms of their ranking before the trial Court.

3. The plaintiff filed the suit for specific performance of registered agreement of sale dated 28.09.2015, executed by Sri Doddakotreshi, the brother of defendant No.4 and defendant No.4 himself, in favour of the plaintiff. Since Doddakotreshi died subsequently, his wife and children are arrayed as defendants No.1 to 3. In terms of the agreement of sale the vendors agreed to sell and the plaintiff agreed to purchase the suit schedule property which consisted of ground and first floor comprising of ten commercial shops and with open space for a sum of Rs.1,45,00,000/-. Under the agreement the purchaser paid advance amount of Rs.50,00,000/- and the balance amount was to be paid at the time of registration of the sale deed, subject to the condition that within two months time the vendors would get the tenants vacated from the shops. However Doddakotreshi along with his wife and children (defendants No.1 to 3) executed a sale deed in favour of the plaintiff disposing ½ share of the suit schedule property for sale consideration of Rs.72,50,000/- (being half of Rs.1,45,00,000/-, as agreed in the agreement of sale). It is also stated in the said sale deed dated 10.08.2018 that the advance amount of Rs.50,00,000/- paid under the agreement of sale forms part of the sale consideration in the sale deed and after paying the balance sale consideration of Rs.20,50,000/-, the sale deed is executed by Doddakotreshi and his family members in favour of the plaintiff.

4. Thereafter a sum of Rs.45,00,000/- are deposited into the account of the 4th defendant, at the hands of the plaintiff and his son. A notice is issued to the 4th defendant calling upon the 4th defendant to collect the balance sale consideration and execute sale deed in respect of the other half of the suit schedule property. When the 4th defendant did not come forward to execute the sale deed, suit is filed by the plaintiff with a prayer for specific performance of the registered agreement of sale dated 28.09.2015. In the alternative, prayer is also made for refund of earnest money of Rs.45,00,000/- along with damages of Rs.55,00,000/- with interest at the rate of 18% p.a. from the date of agreement till realization. The suit is decreed by the trial Court while directing defendant No.4 to execute registered sale deed in favour of the plaintiff in respect of half share in the suit schedule property, within two months from the date of the order. The plaintiff was also directed to deposit the balance sale consideration of Rs.27,50,000/- before the Court on or before 30.10.2023.

5. Learned counsel Sri S.B. Hebballi appearing for the appellant/ defendant No.4 contended that having regard to the terms and conditions of the agreement, there is no provision for severability of the contract. Therefore, it was not permissible for the plaintiff to have got a sale deed executed at the hands of Doddakotreshi with regard to one half of the suit schedule property. In terms of the agreement, the plaintiff was required to pay the balance sale consideration to the vendors after the vendors got the shop premises vacated from the tenants and till date the tenants have not been vacated. Therefore, it is contended that there is no caus

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