Citation : 2022 Latest Caselaw 2657 Kant
Judgement Date : 17 February, 2022
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 17TH DAY OF FEBRUARY, 2022
BEFORE
THE HON'BLE MR.JUSTICE N.S.SANJAY GOWDA
R.S.A. No.1702/2015 (MON)
BETWEEN:
SRI. RAMESH KUMAR
S/O. CHOODAPPA SALIAN
AGED ABOUT 64 YEARS
R/AT "SARASWATHI"
OPP: MANGALA STADIUM
GANDHINAGAR
MANGALURU - 575 003
... APPELLANT
(BY SRI. VIJAYA KRISHNA BHAT, ADV.)
AND:
1. SRI. RAJENDRA S. REVANKAR
S/O. M. SRIPAD S. REVANKAR
AGED ABOUT 52 YEARS
2. SMT. RADHA R REVANKAR
W/O. RAJENDRA S. REVANKAR
AGED ABOUT 42 YEARS
BOTH ARE R/AT 'VIMALESH NIVAS'
BHOJA RAO LANE
MANGALURU - 575 003
... RESPONDENTS
(BY SRI. CYRIL PRASAD PAIS, ADV., FOR R1 AND R2)
THIS APPEAL IS FILED UNDER SECTION 100 OF CPC.,
AGAINST THE JUDGMENT AND DECREE DATED 26.09.2015
2
PASSED IN R.A.NO.126/2015 ON THE FILE OF THE 1ST
ADDL. SENIOR CIVIL JUDGE, MANGALURU, D.K.,
DISMISSING THE APPEAL AND CONFIRMING THE JUDGMENT
AND DECREE DATED 30.05.2015 PASSED IN
O.S.NO.242/2014 ON THE FILE OF THE PRL. CIVIL JUDGE
AND JMFC., MANGALURU, D.K.
THIS APPEAL IS COMING ON FOR ADMISSION, THIS
DAY, THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
This is plaintiff's appeal.
2. The plaintiff filed a suit seeking for the
following prayers:
1) By means of Mandatory Injunction directing the Defendants to execute the gift deed in prescribed format to the City Corporation regarding the portion of the schedule format to the City Corporation site layout approval letter No.3054/11-12 dated 6.3.2012 read with letter dated 14.12.2012 of MUDA, and sketch and present it for registration before the sub Registrar of Mangaluru Taluk within a time to be fixed by this court and in default, to allow the document to be executed through process of this court in execution of decree as per order 21 Rule 32 or CPC.
2) By means of Permanent Injunction restrain the defendants from alienating or encumbering the schedule property in any; manner or
engaging any other person to carry out joint development of construction on the schedule property.
3) By means of declaratory decree uphold the obligation of the parties to this suit as per their mutual agreement dated 23.5.2011 and declare that the parties have to perform the said agreement as per respective obligations undertaken in it, the plaintiff being ready and willing to perform accordingly.
4) Grant cost of this suit and grant such other and further relief's."
3. It was his case that he was a builder and the
defendants were the owners of the property measuring 1
acre 6 guntas bearing Sy.No.69/9 and 69/10. It was
stated that he had entered into an agreement to jointly
develop the land, whereby, the defendants had
permitted him to erect a commercial-cum-residential
structure at his own cost and out of the built up area,
they would share the area available, in the ratio of 45%
and 55% in respect of commercial area and 35% and
65% in respect of residential area.
4. It was stated that a sum of Rs.10,00,000/-
had been paid under the agreement and as required
under the agreement, the plaintiff had approached the
Planning Authority to secure a building licence. It was
stated that the plaintiff had also secured approval from
other departments. It was stated that the defendants
started acting against him and filed a caveat indicating
that they were not willing to abide by the terms of the
contract. It was stated that, the plaintiff informed the
defendants that in order to secure the building license,
they were required to execute a gift deed in favour of
MUDA and the defendants refused to co-operate, which
resulted in filing of the suit.
5. The defendants entered appearance and
contested the suit. It was stated that there can be no
decree of mandatory injunction directing them to
execute a gift deed in favour of Mangalore City
Corporation as there was no such term stipulated in the
contract. It was stated that the plaintiff could not force
the defendants to convey their property to a third party
without there being any stipulation in the agreement.
They also denied the plaint averments and put forth the
contentions that it was infact not a concluded contract.
6. The Trial Court, after considering the evidence
adduced by the parties, came to the conclusion that the
joint development agreement had been entered whereby
the defendants had agreed to develop the property.
However, it came to the conclusion that the plaintiff was
not entitled for a relief of mandatory injunction and
accordingly, proceeded to dismiss the suit. However,
while dismissing the suit, the trial Court also directed the
defendants to return the sum of Rs.13.5 lakhs to the
plaintiff with interest at the rate of 10% per annum from
the date of the agreement.
7. Being aggrieved, the plaintiff preferred an
appeal.
8. The Appellate Court on re-appreciating the
entire evidence on record came to the conclusion that
the reasoning of the trial Court in refusing specific
performance of the agreement could not be found fault
with. The Appellate Court, accordingly, dismissed the
appeal and thereby confirmed the dismissal of the suit.
9. Learned counsel for the appellant contended
that in order to ensure the contract was successfully
performed, it was essential for the defendants to abide
by the statutory rules, which stipulated that a particular
portion of the property was required to be conveyed to
the Planning Authority and if the defendants failed to
convey the property, they were the persons responsible
for the breach of contract and it was therefore
imperative that the Courts ought to have granted decree
of mandatory injunction. He contended that the
requirement of law would have to be complied with in
order to ensure that the contract was successfully
performed and this aspect of the matter had totally been
lost sight of both the Courts.
10. I have considered the submissions of the
learned counsel for the parties and perused the material
on record.
11. As stated above, the prayer of the appellant
was three-fold. Firstly, it was for a mandatory injunction
directing the defendants to execute the gift deed
conveying the portion of the property to the Planning
Authority i.e., MUDA and present the same for
registration. Secondly, it was for a decree of injunction
restraining the defendants from alienating or
encumbering the suit property. Thirdly, it was for a
declaratory decree to uphold the obligation of the parties
to the suit as per their mutual agreement dated
23.05.2011 and further declare that the parties had to
perform the said agreement as per respective
obligations.
12. Admittedly, there was no clause in the joint
development agreement, in which, the defendants had
agreed to convey any portion of their property to the
Planning Authority. If there was no such term, obviously,
the defendants cannot be forced to execute a gift deed in
favour of MUDA. It is to be stated here that the plaintiff
being a builder was conscious of the fact that in order to
secure approved building license, the owner would be
required to convey the road margin portion to the
planning authority and despite being aware of this fact, if
there is no stipulation in that regard was incorporated in
the agreement. In view of the non-stipulation of such a
term, the first prayer made in the suit could not
obviously be granted.
13. The third prayer made by the appellant to
declare that the parties that would have to abide by the
terms of the joint development agreement cannot
obviously be granted, since it is in essence a general
prayer which is incapable of being enforced by the
Courts.
14. The Courts below have taken into
consideration the totality of the facts and found that the
performance of contract was not possible and therefore
directed to refund of the money paid under the joint
development agreement. This conclusion arrived by both
the Courts is just and proper.
In my view, there is absolutely no substantial
question of law arising for consideration in this second
appeal and consequently, the same is dismissed.
Sd/-
JUDGE
RKA
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