Citation : 2022 Latest Caselaw 5151 Kant
Judgement Date : 22 March, 2022
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 22ND DAY OF MARCH, 2022
BEFORE
THE HON'BLE MR.JUSTICE R.NATARAJ
REGULAR SECOND APPEAL NO.1860 OF 2015 (POS)
BETWEEN:
1 . H G SOMASHEKAR
AGED ABOUT 61 YEARS,
S/O. H.C. GOPALACHAR,
2 . S. SARVAMANGALA
AGED ABOUT 58 YEARS,
W/O. H.G. SOMASHEKAR
BOTH ARE RESIDENTS OF
GOKUL JEWELLERY WORKS,
KOTHARI COMPLEX,
CHIKKABASTHI ROAD,
HASSAN - 571 112.
...APPELLANTS
(BY SRI. G.S. ARUNA, ADVOCATE FOR
SRI. SHANMUKHAPPA, ADVOCATE)
AND:
1 . B M HARISH
AGED ABOUT 37 YEARS,
S/O. B.S. MALLESHAPPA,
R/AT SHIVAGANGA KRUPA,
1ST MAIN, HEMAVATHINAGAR,
HASSAN 571 112.
2
2 . SRI. KANNIKAPARAMESHWARI
CO-OPERATIVE BANK LTD,
B.M. ROAD,
HASSAN - 571 112
REPRESENTED BY ITS SECRETARY
...RESPONDENTS
(BY SRI. L.M.CHIDANANDAYYA, ADVOCATE FOR
RESPONDENT NO.1
SRI. Y.S. MURUGENDRA, ADVOCATE FOR RESPONDENT
NO.2)
THIS REGULAR SECOND APPEAL IS FILED UNDER
SECTION 100 OF THE CODE OF CIVIL PROCEDURE, 1908
AGAINST THE JUDGMENT AND DECREE DATED
27.07.2015 PASSED IN R.A NO.281/2013 ON THE FILE OF
THE PRINCIPAL DISTRICT JUDGE, HASSAN, DISMISSING
THE APPEAL AND CONFIRMING THE JUDGMENT AND
DECREE DATED 26.08.2013 PASSED IN O.S NO.15/2010
ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE,
HASSAN.
THIS APPEAL COMING ON FOR ADMISSION THIS
DAY, THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
This appeal is filed by the defendant Nos.1 and 2 in
O.S. No.15/2010 challenging the concurrent finding of fact
recorded by both the Courts that the plaintiff is entitled to
recover possession of the suit schedule property from
defendant Nos.1 and 2.
2. The parties will henceforth be referred to as
they were arrayed before the Court of the Principal Senior
Civil Judge, Hassan (henceforth referred to as the 'Trial
Court'). The appellants were the defendant Nos.1 and 2
and the respondent Nos.1 and 2 were the plaintiff and
defendant No.3 respectively before the Trial Court.
3. The suit in O.S. No.15/2010 was filed for
recovery of possession of the suit property and for
damages at the rate of Rs.5,000/- per month. The plaintiff
claimed that the defendant Nos.1 and 2 had availed a loan
from the defendant No.3 and had mortgaged the suit
property. Due to the default in repayment of the loan, the
defendant No.3 initiated action for recovery of the loan by
proceeding against the mortgaged property. The plaintiff
claimed to be the successful bidder at a public auction
conducted by the Sales Officer and the plaintiff purchased
the suit property for a total sale consideration of
Rs.20,20,000/-. He claimed that the sale was confirmed
on 11.12.2008 and a sale certificate was registered on
15.12.2008. The defendant No.3 who was under an
obligation to recover possession and deliver it to the
plaintiff failed to do so and allowed defendant Nos.1 and 2
to continue in unauthorized possession of the suit schedule
property. Hence, the plaintiff sought for recovery of
possession and for mesne profits.
4. The defendant Nos.1 and 2 contested the suit
and denied the default on their part to repay the loan to
defendant No.3. They also denied auction of the suit
schedule property and its purchase by the plaintiff. They
claimed that there were several irregularities in the
conduct of auction and in that regard, they filed an appeal
before the Deputy Registrar of Co-operative Societies,
Hassan, challenging the validity of the sale. They also
claimed that the suit was bad for non-joinder of necessary
parties and the sale was not legal.
5. The defendant No.3 admitted the contentions
of the plaintiff and also the proceedings running up to the
sale of the suit property in favour of the plaintiff.
6. Based on these rival contentions, the Trial
Court framed the following Issues:
"1. Whether the plaintiff proves that, he is the absolute owner of the suit schedule property?
2. Whether the plaintiff proves that defendant No.1 and 2 are in unlawful possession of suit schedule property?
3. Whether the plaintiff proves that, he is entitled for the possession of the schedule property from defendant No.1 and 2?
4. Whether the plaintiff proves that, he is entitled for damages of Rs.5,000/- per month with interest at the rate of 18% p.a., from defendant No.1 and 2 from the date of suit till handling over of the possession of the suit schedule property?
5. Whether defendant No.1 and 2 proves that suit of the plaintiff is not maintainable for non-joinder of necessary parties?
6. Whether defendant No.3 proves that suit of the plaintiff is not maintainable against defendant No.3?
7. What Order or Decree?"
7. The plaintiff was examined as PW.1 and he
marked documents as Exs.P1 to P10. The defendant No.1
was examined as DW.1 and he marked documents as
Exs.D1 to D19 and examined a witness as DW.2.
8. Based on the oral and documentary evidence,
the Trial Court held that the plaintiff had proved his lawful
title over the suit property and consequently, decreed the
suit and directed the defendant Nos.1 and 2 to deliver the
vacant possession of the suit schedule property to the
plaintiff and also quantified the damages payable by the
defendant Nos.1 and 2 to the plaintiff at the rate of
Rs.3,000/- per month with interest at 6% per annum from
the date of suit till the date realization.
9. Being aggrieved by the above, the defendant
Nos.1 and 2 filed Regular Appeal in R.A. No.281/2013.
10. The Court of the Principal District Judge,
Hassan, (henceforth referred to as the 'First Appellate
Court') secured the records of the Trial Court, heard the
learned counsel for the parties and framed the points for
consideration and in terms of its Judgment and Decree
dated 27.07.2015, dismissed the appeal holding that the
plaintiff had proved that he had lawfully purchased the suit
property and that he was entitled to recover possession of
the suit property from the defendant Nos.1 and 2.
11. Being aggrieved by the aforesaid Judgment
and Decree, the present Regular Second Appeal is filed by
the defendant Nos.1 and 2.
12. The learned counsel for defendant Nos.1 and
2/appellants submitted that defendant No.1 had
challenged auction sale in COP. Appeal No.427/2008 and
defendant Nos.1 and 2 filed COP. Appeal No.428/2008
before the Karnataka Appellate Tribunal (KAT) and the said
appeals were dismissed by the KAT as barred by limitation
in terms of two separate Orders of even date i.e.,
31.01.2022. Thereafter, the defendants filed Revision
Petition before the Government. He, therefore, submitted
that the proceedings in the suit were therefore, misplaced
and it was incumbent upon the plaintiff to take recourse to
the remedies provided under the Karnataka Cooperative
Societies Act, 1959 (henceforth referred to as 'the Act of
1959') to recover possession of the suit property.
13. The learned counsel for the respondent No.1 -
plaintiff, on the other hand, submitted that the appeal filed
by the defendant Nos.1 and 2 before the Karnataka
Appellate Tribunal was dismissed and the Order dated
22.06.2018 passed in the Revision Petition
No.CO/31/CAP/2013 filed before the State Government
was also set at naught by this Court in W.P.
No.32210/2018 in terms of the Order dated 15.07.2021.
He, therefore, submitted that the defendant Nos.1 and 2
were unsuccessful in their attempts to challenge the
auction sale and therefore, the defendants were bound to
comply with the Judgment and Decree of the Trial Court.
14. As rightly submitted by the learned counsel for
the plaintiff, the defendant Nos.1 and 2 who had raised a
loan from the defendant No.3 were unable to repay the
loan which perforced the defendant No.3 to initiate action
for recovery by proceeding against the mortgage of an
asset. The defendant No.3 conceded the plaint averments
and claimed that the suit property was indeed sold to the
plaintiff at a public auction and sale certificate was
registered in accordance with law. In that view of the
matter, the plaintiff was justified in filing a suit for
recovery of possession from the defendant Nos.1 and 2
and the Trial Court has considered the material on record
and has held that the plaintiff is entitled to recover the
possession of the suit property from defendant Nos.1 and
2. The First Appellate Court has also applied itself
thoroughly and has upheld the Judgment and Decree of
the Trial Court which is based on acceptable oral and
documentary evidence. Hence, there is no substantial
question of law which arises for consideration in this
appeal and the same is dismissed.
15. Before parting with the case, it is relevant to
note that the Trial Court had awarded damages at the rate
of Rs.3,000/- per month along with interest at 6% per
annum from the date of the suit till the date of realization.
Defendant Nos.1 and 2 had not delivered possession of the
suit property to the defendant No.3 under the mortgage
deed and therefore, defendant Nos.1 and 2 were not liable
to pay the damages as quantified by the Trial Court.
Hence, to this extent, the impugned Judgment and Decree
dated 26.08.2013 of the Trial Court in O.S. No.15/2010 as
well as the impugned Judgment and Decree dated
27.07.2015 of the First Appellate Court in R.A.
No.281/2013 are modified.
16. In addition, the defendant Nos.1 and 2 are
granted six months to quit and deliver vacant possession
of the suit schedule property to the plaintiff subject to the
defendant Nos.1 and 2 filing an affidavit before this Court
within 10 days from today, undertaking to quit and deliver
vacant possession of the suit schedule property to the
plaintiff by or before 30.09.2022 without compelling the
plaintiff to take steps to execute the decree passed by the
Trial Court. They shall undertake to pay rent at Rs.3,000/-
per month from today till 30.09.2022. They shall also
undertake that they will not sub-let or under let or allow
any trespasser to enter into possession of the suit schedule
property. The benefit of this Judgment will not be
available to defendant Nos.1 and 2 if the affidavit as stated
above is not filed within 10 days.
The pending interlocutory applications stand
disposed off.
Sd/-
JUDGE
sma
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