SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2024 Supreme(Online)(KAR) 11337

HIGH COURT OF KARNATAKA
MR ASHOK S. KINAGI, MR RAJESH RAI K, JJ
SHRI. RAJASAB S/O. PEERSAB GONDIHOSALLI – Appellant
Versus
SHRI. HANUMAPPA BARKER S/O. GUNDAPPA BARKER – Respondent
Regular First Appeal No. 100346 of 2018 (SP)



Advocates:
For the Appellants/Petitioners: SRI.MALLIKARJUN S.HIREMATH
For the Respondents: SRI.DINESH M.KULKARNI

A valid and concluded contract for specific performance requires proven readiness and willingness of the plaintiff, and registered agreements are presumed valid unless disproven by the defendant.

Headnote:(A) Specific Relief Act - Section 20 - Agreement of Sale - The plaintiff filed a suit for specific performance of contract against the defendant, who had executed multiple agreements for sale while simultaneously canceling them. The courts must consider whether a valid contract exists, the readiness and willingness of the plaintiff, and whether granting specific performance would result in undue hardship for the defendant. (Paras 8, 26, 31, 34)

(B) Evidence Act - Section 92 - The trial court failed to consider the presumption favoring registered documents, dismissing the suit based on unchallenged financial claims of the defendant. The appellate court found the trial court's rulings unjustified. (Paras 20, 21, 22)

Facts of the case:
The appellant contended that he entered into an agreement to purchase land from the respondent and paid a substantial earnest amount. The defendant's refusal to honor the agreement led to the suit.

Findings of Court:
The appellate court found that the plaintiff had proven the agreement and was willing to perform his part of the contract, rejecting the trial court's dismissal.

Issues: The limitations of evidence regarding the plaintiff's financial capability and other procedural errors were crucial.

Ratio Decidendi: The court affirmed that the plaintiff's readiness and willingness, along with the execution of registered agreements, necessitated the reversal of the trial court's judgment. (Paras 25, 30)

Result: The appeal is allowed, and the trial court's decision is set aside, with the plaintiff entitled to a refund of earnest money with interest.

Table of Content
1. factual background regarding the agreements made and disputes over execution. (Para 4 , 10 , 18)
2. issues concerning evidentiary standards applied in assessing contract execution. (Para 20 , 22 , 25)
3. discretionary principles governing specific performance and hardship evaluation. (Para 31 , 34)

JUDGMENT

This appeal is filed by the appellant challenging the judgment and decree dated 13.07.2018 passed in O.S. No.45/2014 by the learned Senior Civil Judge, Koppal.

2. For the sake of convenience, parties are referred to as per their ranking before the trial court.

3. The appellant is the plaintiff and the respondent is the defendant. The plaintiff filed a suit for specific performance of contract against the defendant.

4. It is the case of the plaintiff that the defendant is the absolute owner of the suit schedule properties. He has offered the plaintiff to purchase the suit lands for consideration. In turn, the plaintiff agreed to purchase the suit schedule lands for the consideration amount. Further, the defendant executed an agreement of sale in favor of one Huggi Galeppa of Benakapur village for a sum of Rs.3,54,000/-, out of which, the defendant received an amount of Rs.3,40,000/- as earnest money and executed registered agreement of sale dated 16.08.2010. On 12.03.2012, Huggi Galeppa had executed registered cancellation deed dated 12.03.2012. The defendant, in continuation of the previous agreement dated 16.08.2010, by suppressing the real facts of the previous agreement of sale so executed in favour of Huggi Galeppa, further executed an agreement of sale in favour of one Allasab in respect of the same suit properties for a sum of Rs.2,72,000/-, out of which, he received a sum of Rs.1,00,000/- as earnest money and executed a registered agreement of sale dated 27.09.2010. The defendant in addition to the agreements of sale, he also executed an agreement of sale in favour of one Gyanappa Bhajantri for consideration of Rs.10,00,000/-, out of which, he received a sum of Rs.9,50,000/- as earnest money as per agreement dated 12.03.2012. The plaintiff approached all the intending purchasers and made enquiry about their intention to purchase the suit schedule properties, in turn, all the intending purchasers stated that previously the defendant approached and pleaded his legal necessity and offered to sell his lands for consideration. Believing the facts and his inability, without verifying, paid earnest money to the defendant, who executed a registered agreement of sale to them. Now due to hike in the price of the lands, he offered them for higher price. As they were unable to pay higher price rather than the real price and, if he gets higher price for his lands, used to sell the lands to others provided that the purchasers should pay their earnest money paid by them. On enquiry made to all elders in the locality as well as the persons referred to above along with the defendant, accepted all the agreements of sale and agreed to repay their earnest money after receiving earnest money from the plaintiff and mutual consideration has been settled between the plaintiff and the defendant for a sum of Rs.20,50,000/- and on 26.07.2012, the plaintiff paid a sum of Rs.20,40,000/- as earnest money in the presence of the witnesses and also on the aforesaid date, the defendant has repaid the earnest amount so received from Allasab and Gyanappa Bhajantri, who in turn have executed cancellation deed of agreement. The defendant agreed to execute a registered sale deed within one year by obtaining Form No.11E as well as the Phodi map from the Revenue Officer and he also executed an acknowledgement on 06.11.2013 for enlargement of time for a period of one year. The plaintiff was/is always ready and willing to perform his part of the contract but in turn, defendant went on postponing and the defendant has committed breach of contract. The plaintiff got issued a legal notice to the defendant on 22.11.2013 calling upon the defendant to

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top