Citation : 2022 Latest Caselaw 2396 Kant
Judgement Date : 15 February, 2022
IN THE HIGH COURT OF KARNATAKA
DHARWAD BENCH
DATED THIS THE 15TH DAY OF FEBRUARY 2022
BEFORE
THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
R.S.A.NO.5563 OF 2013 (DEC)
C/W
R.S.A.NO.6158 OF 2012
IN R.S.A. NO. 5563/2013
BETWEEN:
LATIF S/O. MOHAMMED GOUSE SAB
AGE: 36 YEARS, OCC: AGRICULTURE,
R/O. 8TH WARD, NEAR RAVIRAJU BUILDING,
BHAGYANAGAR, TQ AND DIST: KOPPAL
... APPELLANT
( BY SRI. B. SHARANABASAVA, ADV.,)
AND
1. SHANKRAPPA S/O. SANGAPPA NINGALABANDI
AGE: 42 YEARS, OCC: PETTI BUSINESS,
R/O. BHAGYANAGAR, TQ AND DIST: KOPPAL
2. ASHOK S/O. GANGADHARASA KALABANJAN
AGE: 42 YEARS, OCC: PETTY BUSINESS,
R/O. BHAGYANAGAR, TQ AND DIST: KOPPAL
... RESPONDENTS
(BY SRI. DEEPAK MAGANUR, ADVOCATE)
THIS RSA IS FILED UNDER SECTION 100 OF CPC PRAYING
TO SET ASIDE THE JUDGMENT AND DECREE DATED 29.02.2012 IN
R.A.NO.39/2011 PASSED BY THE PRESIDING OFFICER, FAST TRACK
COURT-I, KOPPAL AND THE JUDGMENT AND DECREE DATED
2
15.12.2010 IN O.S.NO.8/2009 PASSED BY THE CIVIL JUDGE AND
J.M.F.C., KOPPAL BY ALLOWING THIS REGULAR SECOND APPEAL
AND DISMISSING THE SUIT OF THE PLAINTIFFS, IN THE INTEREST
OF JUSTICE AND EQUITY.
IN R.S.A. NO.6158/2012
BETWEEN
1. SHANKRAPPA S/O SANGAPPA NINGALBANDI,
AGE: 41 YEARS, OCC: PETTI BUSINESS,
R/O: BHAGYANAGAR, TQ AND DIST: KOPPAL,
PIN CODE 583 231.
2. ASHOK S/O GANGADHARASA DALABANJAN,
AGE: 41 YEARS, OCC: PETTI BUSINESS,
R/O: BHAGYANAGAR, TQ AND DIST: KOPPAL,
PIN CODE : 583 231.
... APPELLANTS
(BY SRI. DEEPAK MAGANUR, ADVOCATE)
AND:
LATIF S/O. MOHAMMED GOUSE SAB
AGE: 35 YEARS, OCC: AGRICULTURE,
R/O. 8TH WARD, NEAR RAVIRAJU BUILDING,
BHAGYANAGAR, TQ AND DIST: KOPPAL
... RESPONDENT
( BY SRI. B. SHARANABASAVA, ADV.,)
THIS RSA IS FILED UNDER SECTION 100 OF CPC PRAYING
TO SET ASIDE THE JUDGMENT AND DECREE DATED 29.02.2012 IN
R.A.NO.31/2011 PASSED BY THE PRESIDING OFFICER, FAST TRACK
COURT-I, KOPPAL CONFIRMING THE JUDGMENT AND DECREE
DATED 15.12.2010 IN O.S.NO.8/2009 PASSED BY THE CIVIL JUDGE
AND J.M.F.C., KOPPAL AND DECREE THE SUIT OF THE PLAINTIFFS
3
AS PRAYED FOR BY ALLOWING THIS APPEAL, IN THE INTEREST OF
JUSTICE AND EQUITY.
THESE REGULAR SECOND APPEALS COMING ON FOR
ADMISSION, THIS COURT DELIVERED THE FOLLOWING:
JUDGMENT
These two captioned appeals are filed by plaintiff as well
as defendant. RSA No.5563/2013 is filed by the defendant
questioning the judgment and decree passed in
R.A.No.39/2011 and O.S.No.8/2009 whereas RSA
No.6158/2012 is filed by the plaintiffs questioning the
judgment and decree passed by the Courts below insofar as
relief of declaration, which is negatived by the Courts below.
2. The parties are referred as per their ranks before
the Trial Court.
3. The facts leading to the case are as under:
The plaintiff filed a suit for declaration and injunction in
O.S.No.8/2009. Plaintiff claims that the defendant is the
owner of the property comprising survey No.718/2A
measuring 2 acres 13 guntas. Plaintiff further pleaded that the
defendant intended to develop the suit land and use it for non-
agricultural purposes by forming a layout. On account of
financial constraints, he approached the plaintiff, who rightly
agreed to invest funds for conversion of suit property. As per
mutual agreement, value of the property was fixed at
Rs.1,30,000/- per acre and therefore, the plaintiff agreed to
bear all expenses for conversion. In terms of the investment,
the defendant agreed that they have to share equally from the
sale of plots and after appropriation of amounts spent towards
conversion, all the remaining plots have to be sold and sale
price have to be equally shared by plaintiff-investor and
defendant-owner of the suit land in question. In furtherance,
an agreement also came to be entered on 21.03.1998.
Pursuant to agreement, defendant received a sum of
Rs.30,000/- from the plaintiff. The plaintiff's further claim is
that he has spent a sum of Rs.2,07,790/- for conversion of the
land. After conversion, 78 plots were formed and out of them
around 63 plots were sold by defendant and only around 15
plots are remaining.
4. Plaintiff claims ownership in terms of agreement
dated 21.03.1998. The grievance of the plaintiff is that the
defendant cannot act contrary to the terms of the agreement
detrimental to the interest of plaintiff who has invested money
in securing conversion order pertaining to the suit land and
therefore, plaintiff filed a suit seeking declaration and
consequential relief of injunction.
5. The defendant, on receipt of summons, appeared
and contested the proceedings before the Trial Court. He
stoutly denied the entire averments made in the plaint by
specifically contended that the money received from the
plaintiff was a hand loan and in terms of agreement for having
rendered services, he has already paid the commission to the
plaintiff in respect of plots already alienated. Per contra,
defendant contended that it is plaintiff, who has retracted
from the terms and is acting contrary to the terms of
agreement and therefore, claimed that the present suit filed is
on fictitious grounds and hence, prayed for dismissal of the
suit. The defendant also contended that the alleged agreement
dated 21.03.1998 was not executed out of free will. The Trial
Court having assessed the oral and documentary evidence
answered issue No.1 in negative by holding that agreement
dated 21.03.1998 was executed out of free will and consent
and same binds on defendant/owner of the suit land. The Trial
Court also answered issue No.2 in affirmative holding that the
plaintiff has succeeded in proving that he has paid
Rs.2,07,790/- to the defendant for getting the land converted
into non-agricultural purpose.
6. However, while examining issue No.3, the Trial
Court has answered the same in negative by holding that the
plaintiff is not joint owner of the suit property. Feeling
aggrieved by the finding recorded by the Trial Court on Issue
No.1, the defendant preferred an appeal in RA No.39/2011,
whereas plaintiff preferred an appeal in RA No.31/2011. The
Appellate Court clubbed both the appeals and having
independently assessed the oral and documentary evidence
has proceeded to dismiss both the appeals. It is against these
judgment and decree of both the Courts below, the plaintiff as
well as the defendant have preferred these regular second
appeals.
7. Heard the learned counsel for the plaintiff and the
learned counsel appearing for the defendant. Perused the
judgments under challenge. The plaintiff claims that defendant
has executed an agreement on 21.03.1998 and therefore,
claims that in terms of an agreement, he is entitled for equal
share in the sale proceeds. However, defendant, who is owner
of the suit land claims that he has received a sum of
Rs.2,07,790/- as a hand loan and having repaid the loan, the
question of sharing amount from sale transactions in equal
proportion would not arise as he is absolute owner of the suit
land and therefore, plaintiff is not entitled for any share in the
sale consideration on account of sale of plots. Both the Courts
below have meticulously examined the agreement marked at
Ex.P5 and have come to the conclusion that defendant has
voluntarily executed an agreement and under the agreement
has agreed that after sale of plots, the amount received
towards sale consideration would be equally shared by the
plaintiff and defendant. Having examined this recital, which is
reproduced by the Trial Court at paragraph 10 has come to
the conclusion that defendant is bound by agreement dated
21.03.1998. It is on these set of reasons, the Trial Court has
held that defendant is estopped from denying the right of
plaintiff in claiming half share in the sale transaction on
account of sale of plots. However, while dealing with issue
No.3, has rightly answered it in negative and same is
confirmed by the First Appellate Court. The plaintiff has
acquired a right to claim share in the sale consideration
pursuant to agreement dated 21.03.1998. That itself would
not create right and title in favour of the plaintiff. The plaintiff
based on the agreement dated 21.03.1998 is asserting right
and claiming title over the suit land, which is impermissible in
law. Under the agreement, the plaintiff has invested money
and defendant, who is the owner of the land in question, has
agreed to share sale transaction after selling the plots.
Therefore, by this agreement, the plaintiff cannot assert
ownership over the property in question. Therefore, both the
Courts were justified in denying the relief of declaration in
favour of plaintiff. Therefore, the concurrent findings recorded
by both the Courts below in holding that defendant is bound
by agreement dated 21.03.1998 and also holding that the
plaintiff is only entitled to claim a share in the sale
consideration after selling of plots and not entitled for the
relief of declaration is based on legal evidence on record. Both
the parties are bound by the terms and conditions enumerated
in the agreement dated 21.03.1998 as per Ex.P5. Therefore,
no substantial question of law is involved in both the appeals.
Accordingly, both the appeals stand dismissed being devoid of
merits.
8. In view of disposal of the appeals, pending
interlocutory applications, if any, do not survive for
consideration and are dismissed accordingly.
SD/-
JUDGE YAN
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!