Citation : 2022 Latest Caselaw 1177 Kant
Judgement Date : 27 January, 2022
IN THE HIGH COURT OF KARNATAKA
DHARWAD BENCH
DATED THIS THE 27TH DAY OF JANUARY 2022
BEFORE
THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
RSA.NO.6128/2011 (SP)
BETWEEN
G VENKATA KRISHNA RAO
@ G.V. KRISHNA RAO S/O. LATE KOTAIAH
AGE: MAJOR, OCC: AGRICULTURE,
R/O. SADASHIVA NAGAR,
SIRUGUPPA, DIST: BELLARY.
... APPELLANT
(BY SRI.GANGADHAR J.M. & SRI.S.K.DESHPANDE, ADVS.)
AND
1. RAMANIVAS ASWA
SINCE DECEASED BY HIS LRS,
a. MOHANLAL ASWA,
b. PARASURAM ASWA
c. PURUSHOTHAM ASWA
d. GOVINDA NARAYANA ASWA
R1(a) TO (d) ARE MAJORS, OCC: BUSINESSMEN,
R/O. 52, WARD NO. XI, BELLARY.
e. LAKSHMI BAI ASWA,
SINCE DECEASED BY HER LRS,
e(i) SAVITRAI BAI SONI W/O SONI
2
e(ii) . SHANTHA BAI DARAK,
W/O. DARAK
e(iii). PADMA BAI MANIYAR
W/O. MANIYAR
e(iv). KANTA BAI LOYA,
W/O. LOYA
e(v). LEELA TOSANI WALA
W/O. TOSANIWALA
e(vi). RAMAVALLABHA ASWA
S/O. RAMACHANDRA ASWA
R1(e) TO e(vi) ARE MAJORS,
R/O. FLOWER STREET, BRUCEPET, BELLARY
... RESPONDENTS
(BY SRI.SRINAND A.PACHHAPURE, ADV. FOR R1(b & c),
R1(a) HELD SUFFICIENT, R1e(i TO v HELD SUFFICIENT,
R1(d) SERVED; R1e(vi) ABATED
THIS APPEAL IS FILED UNDER SECTION 100 OF CPC PRAYING
TO ALLOW THE APPEAL AND THE JUDGMENT AND DECREE OF THE
PRL. SENIOR CIVIL JUDGE, BELLARY IN O.S.NO.381/2000 DATED
06.12.2008 AND THAT OF FAST TRACK COURT-II, BELLARY DATED
19.08.2011 IN R.A.NO.16/2009 BE SET ASIDE AND THE SUIT OF THE
PLAINTIFF/ APPELALNT BE DECREED FOR SPECIFIC PERFORMANCE.
THIS APPEAL COMING ON FOR ADMISSION THIS DAY, THE
COURT DELIVERED THE FOLLOWING:
3
JUDGMENT
The captioned regular second appeal is filed by the
plaintiff questioning the judgment and decree of the first
appellate court wherein the first appellate court has partly
allowed the appeal filed by the present plaintiff and has
ordered for refund of earnest money of Rs.75,000/- with
interest at 8% p.a. from the date of execution of the suit
agreement.
2. Brief facts of the case are that:
The appellant/plaintiff filed a suit for specific
performance of contract in O.S.No.381/2000. The
appellant/plaintiff contended that one Ramavallabha Aswa
husband of defendant No.1E, father of defendant Nos.1B to
E and brother of defendant No.1E(vi) executed agreement
of sale on 03.12.1991 for sale consideration of Rs.80,000/-
in respect of 4.80 acres and paid earnest money of
Rs.75,000/-. The appellant/plaintiff specifically contended
that he was ever ready and willing to perform his part of
contract and the time stipulated was 11 months to enable
the defendants to demarcate the boundary and also to
clear income tax and thereafter, it was agreed that vendor
would execute a sale deed by receiving balance sale
consideration of Rs.5,000/-. The appellant/plaintiff has also
contended that, it was also agreed under the suit
agreement that possession has to be delivered on the date
of execution of the sale deed. The grievance of the
appellant/plaintiff is that original agreement holder i.e.,
husband of defendant No.1E did not take any steps to clear
the income tax and necessary permission was also not
sought. This compelled the appellant/plaintiff to issue legal
notice on 27.07.1999 calling upon the defendants to
execute the sale deed. Therefore, he filed the suit in
O.S.No.381/2000. Pending suit, original executant died and
the present respondents/defendants being his legal heirs
were brought on record.
3. Respondents/defendants contested the
proceedings by filing written statement and stoutly denied
the entire averments made in the plaint.
Respondents/defendants specifically contended that the
relief sought by the plaintiff is barred by time and
executant of agreement of sale was not the absolute owner
of the property and it was executed only by way of
security. Respondents/defendants also contended that
value of the property as on the date of agreement was
more than Rs.3,00,000/- per acre and therefore,
contended that suit is liable to be dismissed.
4. The trial court having assessed oral and
documentary evidence answered issue Nos.1 to 3 in the
negative by holding that appellant/plaintiff has failed to
prove due execution of suit agreement and payment of
earnest money of Rs.75,000/-. The trial court also recorded
a finding that appellant/plaintiff has failed to prove his
readiness and willingness to perform his part of contract.
While answering issue No.4, the trial court recorded a
finding that suit filed by the appellant/plaintiff is barred by
time. On these set of reasoning, the trial court proceeded
to dismiss the suit.
5. The first appellate court on re-appreciation of
oral and documentary evidence has reversed the finding of
the trial court insofar as due execution of suit agreement is
concerned. The first appellate court having independently
assessed oral and documentary evidence answered point
No.1 in the negative by holding that trial court erred in
disbelieving due execution of the suit agreement as per
Ex.P1 and payment of earnest money of Rs.75,000/-. The
first appellate court on re-appreciation of material on
record was of the view that appellant/plaintiff succeeded in
proving the due execution of the suit agreement and
payment of earnest money. However, while answering
point Nos.1 to 3, the first appellate court has come to the
conclusion that appellant/plaintiff has failed to prove his
readiness and willingness. Even in regard to limitation, the
first appellate court was of the view that claim of
appellant/plaintiff is barred by limitation. The first appellate
court having taken note of the date of suit agreement was
of the view that present suit is filed after 9 years and
therefore, has come to the conclusion that claim of the
appellant/plaintiff is barred by limitation and unenforceable
against the respondents/defendants. However, having
recorded a finding that due execution of suit agreement is
proved, the first appellate court has proceeded to allow the
appeal in part granting lesser relief of refund of earnest
money of Rs.75,000/- with interest at 8% p.a. It is against
these judgments and decree of the courts below, the
appellant/plaintiff is before this court.
6. Heard the learned counsel for the appellant and
learned counsel for the respondents. Perused both the
judgments under challenge.
7. The material on record would clearly indicate
that appellant/plaintiff is asserting right on the basis of
registered agreement to sell executed by husband of
respondent No.1E on 03.12.1991. Under the suit
agreement, husband of respondent No.1E has agreed to
sell 4.80 acres out of 22 acres for sale consideration of
Rs.80,000/- and received earnest money of Rs.75,000/-.
As per the recitals of the suit agreement, the parties
agreed that sale deed has to be executed within a period of
11 months. It was also agreed that vendor would deliver
possession on the date of execution of the sale deed. The
material on record indicates that appellant/plaintiff has
issued a legal notice on 27.07.1999 as per Ex.P2 and the
suit is filed on 27.07.2000, nearly after 1 year after issuing
legal notice. If the materials on record are taken into
consideration, this court would find that the
appellant/plaintiff has approached the court seeking
enforcement of suit agreement vide Ex.P1 after lapse of 9
years. The explanation offered by the appellant/plaintiff is
that respondents/defendants having executed suit
agreement have not taken any steps to get the portion
agreed under the suit agreement demarcated. The
appellant/plaintiff has also contended that defendants have
not secured income tax clearance certificate. If the material
on record is meticulously examined, this court would find
that appellant/plaintiff has not established his readiness
and willingness to perform his part of contract. If the
agreement is of the year 1991, no reasonable explanation
is forthcoming as to what prevented the appellant/plaintiff
to keep quiet for almost 8 years before issuance of legal
notice on 27.07.1999. Having issued legal notice on
27.07.1999, the appellant/plaintiff again kept quiet for
almost 1 year and the suit is filed on 28.07.2000. Even this
1 year period is not properly explained as to what
prevented the appellant/plaintiff from immediately
approaching the court.
8. It is a trite law that appellant/plaintiff has to
establish his readiness and willingness from the date of
execution of the suit agreement till adjudication of his
claim before the competent civil court. His readiness and
willingness should subsist till rights are decided. But
however, the records speak contrary to what is claimed by
the appellant/plaintiff. Even if time is not essence of
contract, the conduct of appellant/plaintiff does not indicate
that he was ever ready and willing to perform his part of
contract. Mere pleading in the plaint would not amount to
compliance of the ingredients of readiness and willingness
to perform his part of contract.
9. The clinching rebuttal evidence let in by the
defendants also goes against the claim of the
appellant/plaintiff. It is the specific case of the defendants
that, as on the date of execution of the suit agreement, the
market value of the suit schedule property was
Rs.3,00,000/- per acre. To substantiate their claim,
respondents/defendants have produced Ex.D1 which is
certified copy of judgment in LAC Nos.3/92 & 3/93. In the
said proceedings, the market value of the land was fixed at
Rs.3,00,000/- was reduced to Rs.2,75,000/- per acre.
Therefore, there is categorical finding of fact recorded by
the trial court that the market value of the suit property
was Rs.3,00,000/-. Though the first appellate court has
reversed the finding recorded by the trial court on suit
agreement and has come to the conclusion that
appellant/plaintiff has established that present transaction
was one for sale consideration and it was not security
document, however, rebuttal evidence on record would
clearly indicate that market value referred to in the suit
agreement appears to be very negligible and minimal. The
possession was also not delivered under the agreement to
sell, then agreement holder cannot be expected not to
insist enforcement of contract by calling upon the vendor to
perform his part of contract. Though substantial amount
was paid and what was pending was negligible amount of
Rs.5,000/-, however, the fact that possession was not
delivered would be an relevant factor and would have a
bearing on the finding on readiness and willingness. If the
agreement holder is not handed over possession of
immovable property which is an agricultural land, no
prudent man could wait for 9 years without seeking
enforcement of contract. All these significant details would
go against the claim of appellant/plaintiff. Therefore, the
finding of both the courts below that appellant/plaintiff has
failed to prove his readiness and willingness and the claim
of appellant/plaintiff is barred by limitation is based on
material on record. Therefore, the judgment and decree of
the courts below does not suffer from any illegality or
infirmity.
10. No substantial question of law arises for
consideration in the present appeal. Accordingly, the
appeal stands dismissed.
Sd/-
JUDGE MBS/-
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