Citation : 2022 Latest Caselaw 5232 Kant
Judgement Date : 23 March, 2022
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 23RD DAY OF MARCH, 2022
BEFORE
THE HON'BLE MR.JUSTICE R.NATARAJ
REGULAR SECOND APPEAL NO.2072 OF 2018 (SP)
BETWEEN:
SRI. B.E. BASAVARAJAPPA
S/O B.ESHWARAPPA,
AGED ABOUT 56 YEARS
AGRICULTURIST,
BARANDUR VILLAGE,
KASABA HOBLI,
BHADRAVATHI.
PRESENTLY RESIDING AT
SHANKARAGHATTA MAIN ROAD,
SHANTHINAGAR,
BHADRAVATHI TALUK,
SHIVAMOGGA DISTRICT - 577 115.
...APPELLANT
(BY SRI. DAYALU K.N., ADVOCATE)
AND:
1. SRI M. CHANDRAPPA @ CHANDRASHEKHAR
S/O. LATE PATEL RUDRAPPA,
AGED ABOUT 39 YEARS,
AGRICULTURIST,
R/O. MALENAHALLI VILLAGE,
KASABA HOBLI,
BHADRAVATHI TALUK,
SHIVAMOGGA DISTRICT - 577 451
2
2. CHI. ANKITH
S/O. M.R. CHANDRAPPA,
AGED ABOUT 17 YEARS,
MINOR,
REPRESENTED BY NATURAL GUARDIAN
MOTHER, SMT. PUSHPA,
W/O M.R. CHANDRAPPA,
AGED ABOUT 35 YEARS,
AGRICULTURIST,
R/O MALENAHALLI VILLAGE,
KASABA HOBLI,
BHADRAVATHI TALUK,
SHIVAMOGGA DISTRICT -577 451.
...RESPONDENTS
[BY SRI. H.B. RUDRESH AND SRI M. SURENDRA, ADVOCATE
FOR RESPONDENT NOS.1 AND 2 (ABSENT)]
THIS REGULAR SECOND APPEAL IS FILED UNDER
SECTION 100 OF THE CODE OF CIVIL PROCEDURE, 1908
AGAINST THE JUDGMENT AND DECREE DATED 31.08.2018
PASSED IN R.A. NO.40/2013 ON THE FILE OF THE IV
ADDITIONAL DISTRICT AND SESSIONS JUDGE, SHIVAMOGGA,
SITTING AT BHADRAVATHI, DISMISSING THE APPEAL AND
CONFIRMING THE JUDGMENT AND DECREE DATED 15.12.2012
PASSED IN O.S.NO.75/2006 ON THE FILE OF C/C THE
PRINCIPAL SENIOR CIVIL JUDGE AND JMFC., BHADRAVATHI.
THIS APPEAL COMING ON FOR ADMISSION THIS DAY,
THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
This appeal is filed by the unsuccessful plaintiff
challenging the concurrent finding of fact recorded by both
the Courts that the plaintiff is not entitled to the relief of
specific performance of an agreement of sale dated
16.04.2003.
2. The parties will henceforth be referred to as
they were arrayed before the Trial Court. The appellant
herein was the plaintiff while the respondents herein were
the defendants before the Trial Court.
3. The suit in O.S. No.75/2006 was filed for
specific performance of an agreement of sale dated
16.04.2003 whereunder the defendant No.1 had allegedly
agreed to sell the suit schedule property in favour of the
plaintiff for a total sale consideration of Rs.5,00,000/- and
had received a sum of Rs.2,00,000/- as part of the sale
consideration and also agreed to execute the sale deed by
receiving the balance price of Rs.3,00,000/- within three
years. The plaintiff alleged that he was ready and willing
to perform his part of the contract and despite repeatedly
demanding the defendant No.1 to conclude the
transaction, he did not do so without any justifiable
reason. The plaintiff alleged that the defendant No.1 went
on postponing the execution of the sale deed, which
compelled the plaintiff to issue a notice dated 31.03.2006
calling upon the defendant No.1 to conclude the sale
transaction by receiving the balance sale consideration.
Since the defendant No.1 failed to comply with the
demand, the suit was filed on 15.04.2006 for specific
performance of agreement of sale.
4. The defendant No.1 entered appearance
through counsel and filed his written statement denying
the execution of the agreement of sale and the receipt of a
sum of Rs.2,00,000/- as part of the sale consideration. He
contended that he was related to the plaintiff, who was in
a dominating position. He alleged that he was not worldly
wise and hence, the plaintiff taking undue advantage,
created a document by misrepresenting that the signature
of the defendant No.1 was required as a witness. The
defendant No.1 claimed that out of good faith, he believed
the plaintiff and signed the documents without knowing its
contents. He also claimed that the plaintiff was doing
financial business at Barandur in Bhadravathi. The
defendant No.1 further contended that the plaintiff used to
get thumb impressions and signatures from innocent
borrowers and used to represent to them that they were
required to maintain accounts and to submit financial
returns to the authorities.
5. During the pendency of the suit, the defendant
No.2, being the son of defendant No.1 was impleaded on
an application filed by his mother and guardian. The
defendant No.2 filed a written statement denying the
execution of the agreement of sale dated 16.04.2003. The
defendant No.2 further contended that the defendant No.1
was addicted to vices and had neglected the welfare of the
defendant No.2 and his mother and borrowed loan for his
illegal and immoral activities. Therefore, defendant No.2
and his mother expressed their intention to separate and
demanded their share in the suit schedule property. The
defendant No.2 had filed O.S. No.17/2008 for partition and
separate possession of their share in the suit property
which was pending consideration before the Court of
Senior Civil Judge, Bhadravathi. It was stated that the
agreement of sale dated 16.04.2003 was neither for any
legal necessity nor for the benefit of the estate and that
the value of the property was worth much more than a
sum of Rs.5,00,000/-. Hence, he claimed that the
agreement of sale for a meagre sum of Rs.5,00,000/- was
unconscionable and unenforceable.
6. After impleadment of defendant No.2 in the
suit, the plaintiff got amended the plaint and contended
that the defendant No.1 had executed an agreement of
sale dated 16.04.2003 on his behalf and also on behalf of
his minor. Defendant No.1 thereafter filed an additional
written statement on 07.06.2011 contending that he had
borrowed loan from the plaintiff and at the request of the
plaintiff, the defendant had executed an agreement of sale
dated 16.04.2003 for security to repay the loan amount.
7. Based on these rival contentions, the Trial
Court framed the following Issues:
"1. Whether the plaintiff proves that on 16.4.2003, defendant no.1 on behalf of himself and on behalf of minor defendant no.2 entered into an agreement of sale of the suit schedule property for consideration of Rs.5,00,000/- as contended in the plaint?
2. Whether the plaintiff proves that on the date of execution of agreement of sale, he had paid Rs.2,00,000/- as advance sale consideration amount to defendant no.1 as contended in the plaint?
3. Whether the plaintiff proves that he is ever ready and willing to perform his part of contract?
4. Whether the plaintiff is entitled for the relief sought for?
5. What Order or decree?"
8. The plaintiff was examined as PW.1 and he
examined two other witnesses as PWs.2 and 3 and marked
documents as Exs.P1 to P15. The defendant No.1 was
examined as DW.1 and two witnesses were examined as
DWs.2 and 3 and marked documents as Exs.D1 to D7.
9. Based on the oral and documentary evidence,
the Trial Court held that the plaintiff had failed to prove
the execution of the agreement dated 16.04.2003. He also
failed to prove the payment of a sum of Rs.2,00,000/- as
advance sale consideration to the defendant No.1 and that
he was ready and willing to perform his part of the
contract.
10. The Trial Court, however, partly decreed the
suit and directed the defendant No.1 to repay a sum of
Rs.2,00,000/- along with interest at 18% per annum from
16.04.2003 till payment in view of his admission in the
additional written statement that he had executed the
agreement of sale dated 16.04.2003 to assure return of a
hand loan taken from the plaintiff.
11. Being aggrieved by the aforesaid Judgment
and Decree, the plaintiff filed Regular Appeal No.40/2013.
12. The First Appellate Court secured the records
of the Trial Court, heard the learned counsel for the parties
and framed the following points for consideration:
"1. Whether the plaintiff has proved that the defendant No.1 personally as well as guardian of defendant No.2, has executed agreement of sale dated: 16.4.2003 agreeing to sell the suit schedule property for Rs.5,00,000/- and received advance sale consideration of Rs.2,00,000/-?
2. Whether the impugned Judgment and Decree is erroneous and unsustainable and calls for interference of this Court, in view of the reasons assigned in the appeal memo?
3. What order?"
The First Appellate Court in terms of the impugned
Judgment and Decree, dismissed the appeal.
13. Being aggrieved by the aforesaid Judgment
and Decree, the present Regular Second Appeal is filed.
14. The learned counsel for the plaintiff/appellant
submitted that the Trial Court misdirected itself in not
framing an issue that arose for consideration, namely,
whether the defendant No.1 proved that the agreement in
question was executed for the purpose of a loan
transaction. The learned counsel contended that without
framing this relevant issue, the Trial Court and the First
Appellate Court returned a finding that the sale agreement
dated 16.04.2003 was for the purpose of securing the
hand loan allegedly raised by the defendant No.1 from the
plaintiff. He also submitted that the Trial Court committed
an error in allowing an additional written statement to be
filed.
15. The learned counsel also submitted that non-
framing of an issue is a substantial question of law that
needs consideration in the present appeal. The learned
counsel, in this regard relied upon the judgment of the
Hon'ble Apex Court in PRAKASH CHANDRA vs.
NARAYAN [(2012) 5 Supreme Court Cases 403]. He also
submitted that it is not necessary for the plaintiff to
demonstrate that he had the entire amount of sale
consideration in his hands. In this regard, he relied upon
the judgment of the Apex Court in AZHAR SULTANA vs.
B. RAJAMANI AND OTHERS [AIR 2009 SC 2157]. He
also relied upon the Judgment of this Court in ALI SAB,
DECEASED BY HIS LRS., vs. MR. MOHIUDDIN
SHARIFF AND ANOTHER [ILR 2012 KAR 6161] and
contended that unless there is specific pleading, the Court
will not be required to summon itself to enquire into facts
which are not disputed or pleaded by the defendant.
16. The learned counsel for the respondent Nos.1
and 2 is absent and hence, this Court could not have the
benefit of his arguments.
17. I have considered the submissions made by
the learned counsel for the plaintiff/appellant. I have
carefully considered the records of the Trial Court.
18. A perusal of the agreement of sale dated
16.04.2003 discloses that the defendant No.1 was the
owner of the suit property, he having derived it as his
share at a partition dated 07.03.1994. The defendant No.1
had purportedly agreed to sell the suit property as the
kartha of the family to meet the legal necessities, namely,
to meet the expenses of raising the defendant No.2. The
total sale consideration was a sum of Rs.5,00,000/- of
which a sum of Rs.2,00,000/- was paid by the plaintiff and
the balance consideration was payable within three years.
This agreement was registered before the Sub-Registrar,
Bhadravathi on the same day i.e., 16.04.2003. The suit
property was 8.24 acres in Sy.No.3/P3 of Thavaraghatta
village, Kasaba hobli, Bhadravathi Taluk, which apparently
lay abutting the village. The plaintiff caused a notice dated
31.03.2006 demanding conclusion of the transaction. This
was replied by the defendant No.1 who claimed that the
plaintiff was closely related to him and claimed that the
plaintiff took his signatures on the pretext that they were
required to attest a document. In the suit filed by the
plaintiff for specific performance, he pleaded that he was
ready and willing to complete his obligation. He contended
that after the execution of the sale agreement, the
defendant No.1 had raised a loan from the State Bank of
India, Shankarghatta, Bhadravathi.
19. In reply, defendant No.1 denied the averments
of the plaint and contended that the plaintiff was closely
related to him and taking advantage of this, he obtained
signatures on documents under the pretext that they were
needed for attesting documents executed by his customers
who had availed loan from the plaintiff. The defendant
No.2 filed a written statement contending that defendant
No.1 was addicted to vices and taking advantage of this,
the plaintiff had created the sale agreement. He alleged
that since defendant No.1 was not looking after him and
his mother, a suit in O.S.No.17/2008 was filed for partition
and separate possession of his share, before the Court of
Civil Judge (Senior Division), Bhadravathi. He claimed that
there was no legal necessity for the family that compelled
the defendant No.1 to allegedly agree to sell the suit
property. He alleged that the plaintiff was a money lender
and concocted the suit agreement to meet his illegal intent
to deprive the defendant No.1 of the suit property.
20. The defendant No.1 filed an additional written
statement on 07.06.2011 after the plaint was amended on
19.04.2011 in terms of the Order of the Trial Court dated
13.04.2011 wherein he contended that he borrowed loan
from the plaintiff and on his request, the defendant No.1
extended the sale agreement as a security for repayment
of the loan.
21. The above pleadings indicate beyond doubt
that the defendant No.1 had indeed executed the
agreement of sale dated 16.04.2003. The defendant No.1
had taken two different defence. At one stretch, he
claimed that he was tricked into executing the agreement
of sale as it was required for the purpose of attestation, on
the other, he claimed that he executed it as a security for
repayment of a loan raised from the plaintiff.
22. In the light of the above, the Trial Court must
have ideally framed an issue, whether the defendant No.1
proved that the agreement of sale was executed as
security for repayment of a loan. However, the evidence of
the plaintiff and his witnesses shows that both the plaintiff
and defendant No.1 proceeded with the trial in the above
backdrop and have understood each others case.
Therefore, the contention of the learned counsel for the
plaintiff that non-framing of the issue is fatal to the case
cannot be accepted. The judgment of the Apex Court in
PRAKASH CHANDRA's case (referred supra) is
distinguishable as in that case, though the vendor had not
pleaded hardship, yet the First Appellate Court reversed
the decree of specific performance on the ground that the
vendor would be rendered landless while the purchaser, a
businessman would not suffer any hardship. It was in that
context that the Hon'ble Supreme Court held that the
question of hardship cannot be considered without framing
an issue and without giving adequate opportunity to the
parties to adduce evidence.
23. The evidence of the plaintiff, which is relevant
for the purpose of this case is extracted as below:
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24. PW.2 deposed that himself and his wife had
executed an agreement of sale on 31.07.2004 (Ex.D5) in
favour of the plaintiff herein agreeing to sell his land
measuring 20 guntas in Sy.No.153/P for Rs.1,05,000/- and
received advance of Rs.40,000/-. He claimed that this was
a loan transaction. He deposed that later, the agreement
was cancelled on 18.07.2007 and a sum of Rs.40,000/-
was repaid by him to the plaintiff.
25. PW.3 deposed that he is the owner of 01 acre
11 guntas of land in Sy. No.25/1 of Baranduru village and
that the plaintiff had desired to purchase this land and
consequently, an agreement of sale was executed on
14.08.2003 was registered at the office of the Sub-
Registrar. He stated that the plaintiff thereafter cancelled
this agreement and he returned the advance amount
received under the agreement of sale dated 14.08.2003.
PW.3 denied the fact that the plaintiff was into money
lending business and feigned ignorance about it. PW.2 and
PW.3 are not the attesting witnesses to the agreement of
sale (Ex.P1).
26. The evidence of DWs.2 and 3 is clinching in so
far as the money lending business that was undertaken by
the plaintiff. The plaintiff had filed a suit for specific
performance against DW.2 to enforce an agreement of sale
which he had executed as security for repayment of a hand
loan. He deposed that the Court had ordered him to refund
the amount received from the plaintiff. This fact was not
disputed by the plaintiff.
27. DW.2 deposed that the defendant No.1 had
approached the plaintiff for a hand loan and that he had
executed an agreement of sale which was duly registered
on 16.04.2003 and thereafter, the same was cancelled
after he repaid the amount to the plaintiff. That was again
reiterated by DW.3 who also deposed that the defendant
No.1 had raised a loan from the plaintiff and that he had
witnessed the transaction. He deposed that he had seen
the defendant receiving a sum of Rs.2,00,000/- from the
plaintiff as hand loan.
28. The Trial Court has considered this oral
evidence and held that it was probable that the agreement
in question was executed to secure the hand loan that the
defendant No.1 had raised from the plaintiff. Hence, it
held that the plaintiff had failed to prove that the
defendant No.1 had agreed to sell the suit property in
terms of the agreement of sale dated 16.04.2003 and that
he had received Rs.2,00,000/- as part of the agreed sale
consideration. In view of the above, the Trial Court held
that the question of considering the issue regarding
readiness and willingness of the plaintiff to conclude the
transaction did not arise. Nonetheless, it observed that the
plaintiff caused a notice to the defendant No.1 on
31.03.2006 (Ex.P3) almost at the end of three years from
the date of agreement. He failed to demonstrate the steps
taken by him to obtain a conveyance from the defendant
No.1. The Trial Court, therefore, partly decreed the suit
and directed the defendant No.1 to refund the plaintiff a
sum of Rs.2,00,000/- along with interest at 18% per
annum from 16.04.2003 till the date of payment.
29. The First Appellate Court considered the oral
and documentary evidence and held that under Ex.D3
(agreement dated 14.08.2003), the land measuring 01
Acre 11 guntas was agreed to be sold by PW.3 and another
in favour of the plaintiff for a sum of Rs.1,60,000/- and 20
guntas of land was agreed to be sold by PW.2 and his wife
in favour of the plaintiff for Rs.1,05,000/- under Ex.D5.
However, in terms of the agreement in question (Ex.P1),
the suit property measuring 08 acres 24 guntas, was
agreed to be sold in favour of the plaintiff at a sum of
Rs.5,00,000/-. The First Appellate Court, therefore, held
that the evidence of PWs.2 and 3 coupled with the
insufficient consideration agreed upon by the plaintiff
under Ex.P1 created a doubt about the legitimacy of the
agreement of sale.
30. The First Appellate Court, therefore, did not
proceed further to adjudicate upon the issue regarding
readiness and willingness on the part of the plaintiff to
perform his part of the contract and went on and held that
the defendant No.1 was liable to pay a sum of
Rs.2,00,000/- in view of the statement made by him that
Ex.P1 was executed towards security for the hand loan he
took from the plaintiff. The First Appellate Court therefore
confirmed the Judgment and Decree of the Trial Court.
31. Though as rightly contended by the learned
counsel for the plaintiff/appellant that the Trial Court must
have framed an issue based on the contentions urged by
the defendant No.1 in his written statement, but yet the
evidence on record clearly indicated that the plaintiff was a
money lender and that the evidence of PW.2, DW.2 and
DW.3 made it more than apparent that the plaintiff was in
the habit of obtaining agreements of sale to secure hand
loans. In the case on hand, as rightly observed by the
Trial Court, the suit property lay very close to Kuvempu
University and therefore, it was impossible that the same
could have been sold at a sum of Rs.5,00,000/- which is
less than about Rs.50,000/- per acre. Even otherwise, it is
seen from the records that the plaintiff except producing
the documents such as notice calling upon the defendant
No.1 to comply his part of the contract and a gazette
notification indicating the guidance value of the property in
Thavaraghatta village, did nothing to establish his
willingness to complete his part of the contract. The land
in question measures 08 acres 24 guntas and the
consideration that was allegedly agreed upon by the
plaintiff under Ex.P1 in the year 2003 was Rs.5,00,000/-.
The plaintiff made no attempt to pay a sum of
Rs.3,00,000/- from the year 2003 till date and therefore,
compelling the defendant No.1 to conclude the sale
transaction by receiving a sum of Rs.3,00,000/- now would
be causing hardship to the defendant No.1.
32. In that view of the matter, even if discretion
under Section 20 of the Specific Relief Act, 1923 is
exercised, the plaintiff is not entitled to the relief of
specific performance. There is no substantial question of
law that arises for consideration in this appeal.
Hence, this Appeal fails and is accordingly dismissed.
The pending interlocutory application stands
disposed off.
Sd/-
JUDGE
sma
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