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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 15^TH DAY OF JUNE, 2021

PRESENT

THE HON9BLE MR.JUSTICE ARAVIND KUMAR

AND

THE HON9BLE MR.JUSTICE N.S.SANJAY GOWDA

R.F.A.No.66/2021(DEC)

BETWEEN:

M/S SAMPADA ENTERPRISES,

REGISTERED PARTNERSHIP FIRM

HAVING ITS OFFICE AT

G-16, RAVI HILL VIEW LAYOUT,

ITTAMADU, BSK III STAGE,

BENGALURU 3 560 085

REPRESENTED BY ITS PARTNER,

J.PRAVEEN KUMAR SINGH,

SON OF SRI. G.JAYAPAL SINGH,

AGED ABOUT 47 YEARS,

RESIDING AT No.FF-1,

SUMUKHA ENCLAVE,

No.1, 1^ST MAIN, 1^ST CROSS,

VIVEKANANDA NAGAR,

BENGALURU 3 560 085.

& APPELLANT

(BY SRI. ASHOK HARANAHALLI, SENIOR COUNSEL FOR

SRI. VENKATESH S.ARABATTI, ADV.)

AND:

M/S TGS CONSTRUCTION PRIVATE LIMITED,

HAVING ITS OFFICE AT No.142,

GROUND FLOOR, 5^TH AVENUE,

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5^TH MAIN, 6^TH SECTOR, HSR LAYOUT,

BENGALURU 3 560102

REPRESENTED BY ITS MANAGING DIRECTOR,

DR. MANDEEPKAUR.

& RESPONDENT

(VIDE ORDER DATED:24.02.2021, NOTICE TO

RESPONDENT IS DISPENSED WITH)

THIS APPEAL IS FILED UNDER SECTION 96 OF THE

CPC, AGAINST THE JUDGMENT AND DECREE DATED

15.10.2020 PASSED IN O.S.No.1546/2019 ON THE FILE OF

THE

V

ADDL.

CITY

CIVIL

AND

SESSIONS

JUDGE

BENGALURU,

PARTLY

DECREEING

THE

SUIT

FOR

DECLARATION AND DAMAGES.

THIS APPEAL COMING ON FOR DICTATING JUDGMENT

THIS

DAY,

SANJAY

GOWDA,

J.,

DELIVERED

THE

FOLLOWING:

JUDGMENT

1.

The appellant is the plaintiff.

2.

The appellant filed a suit seeking for a declaration

that the registered Joint Development Agreement (JDA)

dated 09.11.2015 executed by the plaintiff in favour of the

defendant as cancelled. A declaration was also sought for

that plaintiff was the absolute owner of the suit schedule

property and a direction to the defendant to pay damages

in a sum of `95,00,000/- was also sought for. Lastly, the

appellant sought for a declaration that all the agreements

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entered into by the defendant in respect of the suit

schedule property were not binding on the plaintiff.

3.

The facts stated in the plaint was that the plaintiff, a

registered Partnership Firm was the owner of the property

bearing No.21/2 formed in Sy.No.21 measuring 18,833 sq.

ft.

situated

at

Pattanagere

Village,

Kengeri

Hobli,

Bengaluru South Taluk. It was stated that the plaintiff

had purchased the said property under a registered Sale

Deed dated 07.10.2013. It was also stated that permission

had been obtained from the Deputy Commissioner for

using the land for non-agricultural purposes.

4.

It was stated that the plaintiff had decided to develop

the suit property by way of a joint development with the

defendant, whereby a multistoried residential complex was

agreed to be constructed by the defendant and the plaintiff

and defendant would share the apartments in the ratio of

42% and 58%. In other words, the plaintiff was to be given

constructed area of 42%, while the defendant, who would

undertake to construct the complex at its own cost, would

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get 58% of the constructed area. In addition, it was stated

that under the agreement, the defendant had paid the

plaintiff a sum of `52,00,000/- as goodwill and it had also

paid a sum of `45,00,000/- as refundable security deposit.

In other words, a total sum of `97,00,000/- was paid by

the defendant to the plaintiff as per the averment in the

plaint. It was stated that the terms of the JDA were

recorded in writing and also registered as a Joint

Development Agreement dated 09.11.2015.

5.

It was stated that though a sanctioned plan had been

obtained from the BBMP and handed over to the defendant

and a General Power of Attorney (GPA) had also been

executed in favour of the defendant as per the terms of the

JDA, defendant did not undertake any work except some

excavation work. It was stated that since the defendant

failed to start the development of the property, the plaintiff

was forced to issue numerous reminders asking him to

discharge its obligations under the JDA. However, the