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2025 Supreme(Online)(Kar) 41475

THE HIGH COURT OF KARNATAKA
MRS. K.S. HEMALEKHA, J
HABIB KHAN – Appellant
Versus
MOHAMMAD PEER – Respondent
REGULAR FIRST APPEAL NO.2679 OF 2024 (SP)



Advocates:
For the Appellants/Petitioners: SRI H.S. SANTHOSH
For the Respondents: SRI S.V. PRAKASH

The plea of bar under Order II Rule 2 CPC prohibits a second suit for specific performance if based on the same cause of action previously omitted, and the suit is also barred by limitation under Article 54.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 and Order II Rule 2 - Limitation Act, 1963 - Article 54 - Specific performance of contract - Plaintiff's appeal against dismissal of suit for specific performance on grounds including prior suit barred by limitation and failure to prove agreement and readiness to perform - Defendants' objections regarding earlier litigation and denial of agreement considered - Suit for specific performance dismissed as being barred both by limitation and due to Order II Rule 2 CPC, which prohibits splitting of claims. (Paras 8, 9, 10, 12, 18, 19)

(B) Limitation - The limitation for specific performance is three years from the date of refusal of performance, which the plaintiff had since 2015. (Paras 16, 18)

Facts of the case:
The plaintiff entered into an agreement of sale for a property, alleged receipt of an advance, but defendants denied execution and claimed the suit was based on a previous, dismissed action for injunction. (Paras 2, 10)

Findings of Court:
The trial court found plaintiff failed to establish a valid agreement and that the suit was barred by limitation. (Para 19)

Issues: Whether the trial Court justified dismissal of the specific performance suit, and if the suit was barred by limitation and Order II Rule 2 CPC? (Paras 8, 9)

Ratio Decidendi: The court upheld that a plaintiff cannot sue on same cause of action excluded in prior suit under Order II Rule 2, affirming the trial Court's dismissal as valid based on limitation and procedural grounds. (Paras 10, 12, 19)

Result: Regular First Appeal is dismissed.

Table of Content
1. validity of the agreement and readiness to perform (Para 2 , 3)
2. lack of evidence for execution and readiness (Para 4)
3. arguments for and against specific performance (Para 6 , 7)
4. consideration of prior suits and limitations (Para 8 , 9)
5. order ii rule 2 cpc implications (Para 10 , 11)
6. conclusion on limitation and res judicata (Para 14 , 15 , 16 , 18)
7. dismissal of the appeal and confirmation of the trial court's decision (Para 19)

ORAL JUDGMENT

The present Regular First Appeal preferred by the plaintiff is directed against the judgment and decree dated 01.10.2024 passed in OS No. 177 of 2019 on the file of the Principal Senior Civil Judge and CJM, Shivamogga, whereby the suit filed by the plaintiff for specific performance of contract came to be dismissed.

Plaint averments

2. The plaintiff contends that the defendants are the owners in possession of the suit schedule property and they offered to sell the same to him. After negotiations, the parties agreed for a sale consideration of Rs.14,62,500/-. On 09.04.2014, the defendants executed a registered agreement of sale in his favour by receiving an advance of Rs.8,00,000/- agreeing to execute a regular sale deed upon payment of balance of Rs. 6,62,500/-

within 3 months after furnishing the original documents of title. It is further averred that at the time of agreement, defendant Nos. 3 to 6 were minors and therefore defendant No. 1 as their natural guardian executed the agreement. The plaintiff asserts that the suit schedule property was represented to be free from encumbrances, loan or liabilities. He has always been ready and willing to perform his part of contract. Despite repeated requests, the defendants kept postponing the execution of the sale deed. Plaintiff caused legal notice dated 18.06.2019 calling upon the defendants to receive the balance consideration and to execute the sale deed. However, in spite of the service of the said notice, the defendants neither complied with the demand nor sent any reply. Hence the suit seeking a decree for specific performance of the agreement of sale deed dated 09.04.2014 by directing the defendants to execute a regular registered sale deed in his favour.

Written statement averments

3. The defendants, on the other hand, denied averments of the plaint. They contended that the plaintiff had earlier instituted OS No. 327 of 2015 on the very same agreement of sale dated 09.04.2014 for permanent injunction which was dismissed for default on 11.06.2018. Therefore, the present suit filed in 2019 on the basis of the same agreement is not maintainable being barred both by limitation and by the provisions of Order II Rule 2 of the CPC . It is their specific case that the alleged agreement of sale is fabricated and created document, brought into existence at the instance of one Mohammed Hafizulla, who is related to the parties. The defendants assert that they had no intention to sell the suit property which is not the exclusive property but a part of a joint family estate. In fact partition suits in OS No. 95 of 2011 and 96 of 2011 were filed and now the matter is before this Court in RFA 1720 of 2017. The defendants further denied having received any earnest money of Rs. 8,00,000/-. They claimed that the plaintiff under the guise of assisting in revenue clearance, obtained certain documents and took them to the Sub Registrar's Office, where, the alleged agreement came into existence. It is specifically averred that the family of the defendants are fully dependent on the suit schedule property for their livelihood.

4. The trial Court, upon consideration answered issue Nos. (1) and (2) in the negative holding that, the plaintiff-PW1 gave contradictory statements at one stage saying that he paid cash 3 to 4 days prior to the agreement, at another stage relying on the cheque in Exhibit P1. The cheque mentioned was never encashed, and the plaintiff admitted that the defendants did not get the amount credited in their account. Th

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