The court upheld the binding nature of a compromise agreement in a specific performance case, allowing for earnest money settlement and court fee refund.

ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI)

The appellants and the respondents along with their respective counsel are present before this court. They are identified by their respective counsel.

2. The appellants and the respondents have amicably settled their dispute and filed the compromise petition under Order 23 Rule 3 of CPC, which reads as under.

1) That, the top Noted Regular First Appeal is filed by the Appellants/Defendants No. 1 and 2 in challenging the Judgment and Decree dated: 21-03-2022 passed in O.S. No.18/2020 by the Senior Civil Judge & JMFC, Raibag, wherein the said Suit filed by the Respondent No.1 herein/plaintiff for the Relief of Specific Performance of Contract in respect of Suit schedule Property comprising of Agricultural Land bearing Sy.No. 114/3 measuring to the extent of 2 Acres 36 guntas situated at Sutatti Village in Raibag Taluka of Belagavi District came to be allowed, by granting the Main Relief to the Respondent No.1 herein. Thus, directing the Appellants herein and the Respondent No.2 herein to receive the alleged Balance Consideration Amount and to Execute the Registered Sale Deed to the Respondent No.1 herein in respect of the Suit Scheduled Property. Hence, this Regular First Appeal by the Defendants No.1 and 3. Now, in this Compromise Petition, the Respondent No.2 has joined with the Appellants herein.

2) That, the Appellants herein were the Defendants No.1 and 3 and the Respondent No.2 was the Defendant No.2 in the Suit filed by the Respondent No.1 herein / Plaintiff for the Relief of Specific Performance of Contract in respect the of the said Suit Schedule Property on the basis said Registered Agreement of Sale dated:28-09-2018 as Executed between them. That, the said Suit Property was offered for Sale by the Appellants and the Respondent No.2 herein and thereby the consideration Amount was fixed at Rs.20,50,000/-. The said Agreement of Sale was to be concluded on or before 28-09-2019 and thereby Possession was to be given at the time of Execution of the Registered Sale Deed to the Plaintiff.

3) That, in view of the said Registered Agreement of Sale dated: 28-09-2018, the Respondent No.1 herein has paid the Earnest Amount of Rs.20,00,000/- by way of Cheque through the KVG, Raibag Branch in the Account as maintained by the Respondent No.2 / Defendant No.2., which was agreed to all parties.

Thus, from 16-09-2018 till 28-09-2018 the said earnest money of Rs.20,00,000/- was paid to the Appellants and the Respondent No.2. However, 11E Sketch was to be got prepared by the Appellants and the Respondent No.2 and so also they have to clear the Bank and Society Loans and thereby time was fixed to Execute the Registered Sale Deed by 28-09- 2019.

4) However, it was alleged that on failure to Execute the said Registered Sale Deed by the Appellants and the Respondent No.2 in favour of the Respondent No.1, the Legal Notice was issued by the Respondent No.1 to perform the Contract and to the same the Appellants herein have issued Reply Notice stating that the said Agreement of Sale was created by the Respondent No.2 with the Respondent No.1 etc. Further, it was purely Hand Loan Transaction and thereby there was no intention on the part of the Appellants to sale the Suit Schedule Property.

5) Thus, the Suit was filed by the Respondent No.1 herein in O.S. No. 18/2020 and after contest by the parties, the Trial Court learned Senior Civil Judge and JMFC, Raibag by the Impugned Judgment and decree dated:21-03-2022 has decreed the Suit by granting the main Relief to the Respondent No.1 herein, directing to Execute the Registered Sale Deed by receiving Balance Consideration Amount of Rs.50,000/-, within 3 months from the date of Decree, failing which the Plaintiff / Respondent No.1 was given liberty to get Executed the Registered Sale Deed through the Court.

6) That, now All the parties have agreed for Compromise in this Appeal before this Hon'ble Court, with the following Terms and Conditions, this Compr