Citation : 2023 Latest Caselaw 3067 Kant
Judgement Date : 9 June, 2023
-1-
IN THE HIGH COURT OF KARNATAKA,
DHARWAD BENCH
DATED THIS THE 9TH DAY OF JUNE, 2023
BEFORE
THE HON'BLE MRS. JUSTICE K.S.HEMALEKHA
REGULAR SECOND APPEAL NO.539 OF 2005 (SP)
C/W
REGULAR SECOND APPEAL NO. 540 OF 2005 (SP)
IN R.S.A. No.539/2005
BETWEEN
1. SMT. AHALYA BAI
W/O. AMBASA BADI
MAJOR BY AGE,
SINCE DECEASED BY HER LR's.
1(a) AMBA SA S/O. LAKSHMAN SA BADI
MAJOR BY AGE, OCC: BUSINESS,
R/O. JAMKHANDI,
DIST: BAGALKOT - 587 301.
SINCE DECEASED BY HER LR's.
(b) RAM SA S/O. AMBASA BADI
MAJOR BY AGE,
Digitally
YASHAVANT signed by
NARAYANKAR YASHAVANT OCC: BUSINESS
NARAYANKAR
R/O. JAMKHANDI,
DIST: BAGALKOT - 587 301.
(NAME OF 1(a) DELETED AS PER
MEMO DATED 20/02/2013) ... APPELLANTS
(BY SRI V.P. KULKARNI & SRI M.C. HUKKERI, ADVOCATES)
AND
1. ESHWAR
S/O. SANGAPPA SHIDDAREDDY,
AGE: 40 YEARS,
OCC: CONTRACTOR & AGRICULTURIST,
R/O. JAMKHANDI
SINCE DECEASED BY HIS LR's.
-2-
1(a) SMT. KAMALAWWA
W/O. ESHWAR SHIDDAREDDY,
AGE: 40 YEARS,
1(b) SMT. RUPA W/O. RAVI SHIDDAREDDY
AGE: 27 YEARS,
SINCE DECEASED BY HER LR's.
1(b)(a) KUMARI. DIVYA
D/O. LATE RAVI SHIDDAREDDY,
SINCE MINOR RPT. BY
HER NATURAL GRAND MOTHER
SMT. KAMALAWWA
W/O. ESHWAR SHIDDAREDDY,
R/O. K.H.B. COLONY JAMKHANDI,
DIST: BAGALKOT.
(AMENDED CAUSE TITLE CARRIED OUT
AS PER ORDER DATED 11/04/2018)
1(c) SMT. SRIDEVI W/O. GURUNATH PATIL
AGE: 25 YEARS,
ALL ARE R/O. VIDHYAGIRI COLONY JAMKHANDI
TQ: JAMKHANDI, DIST: BAGALKOT.
2. BABA SA
S/O. LAKSHMAN SA BADI
AGE: MAJOR,
OCC: BUSINESS
R/O. BADIGALI, JAMKHANDI,
DIST: BAGALKOT.
SINCE DEAD BY HER LR's
2(a) PARASURAM SA S/O. BABASA BADI
AGE: 40 YEARS,
OCC: MACHANICAL
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD, TQ. & DIST: GADAG.
2(b) VISHNU SA S/O. BABASA BADI
AGE: 38 YEARS,
OCC: COOLI
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX,
HUBBALLI ROAD,
TQ. & DIST: GADAG.
-3-
2(c) VASANT SA S/O. Babasa BADI
AGE: 36 YEARS, OCC: COOLI
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
2(d) NAGARAJ SA S/O. BABASA BADI
AGE: 34 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
2(e) MANJNATH SA S/O BABASA BADI
AGE: 32 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
2(f) RAJAKUMAR SA S/O. BABASA BADIS
AGE: 30 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
2(g) PRAKASH SA S/O BABASA BADI
AGE: 28 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
(AMENDED CAUSE TITLE CARRIED OUT
AS PER ORDER DATED 30/05/2022) ... RESPONDENTS
(BY SRI ANIL KALE, ADVOCATE FOR R-1(a & c) & R-1(b)(i);
R-1(b) - DECEASED
R-2(a), R-2(b), R-2(d), R-2(e), R-2(f), R-2(g) ARE SERVED;
R-2(c) - HELD SUFFICIENT)
THIS RSA IS FILED UNDER SECTION 100 R/W ORDER 41 R 1
OF CPC AGAINST THE JUDGEMENT & DECREE DATED 18.12.2004
PASSED IN R.A. NO.177/2001 ON THE FILE OF THE PRESIDING
OFFICER, FAST TRACK COURT NO.I, BAGALKOT, ALLOWING THE
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APPEAL AND SETTING ASIDE THE JUDGEMENT AND DECREE DATED
20.12.1996 PASSED IN O.S.NO.279/1987 ON THE FILE OF THE
PRL.CIVIL JUDGE, JAMKHANDI TRIAL COURT DECREED THE SUIT.
APPELLATE COURT ALLOWED THE APPEAL.
IN R.S.A. No.540/2005
BETWEEN:
1. SMT. AHALYA BAI
W/O. AMBASA BADI
MAJOR BY AGE,
SINCE DECEASED BY HER LR's.
1(a) AMBA SA S/O. LAKSHMAN SA BADI
MAJOR BY AGE, OCC: BUSINESS,
R/O. JAMKHANDI,
DIST: BAGALKOT - 587 301.
SINCE DECEASED BY HER LR's.
(b) RAM SA S/O. AMBASA BADI
MAJOR BY AGE, OCC: BUSINESS
R/O. JAMKHANDI,
DIST: BAGALKOT - 587 301.
(NAME OF 1(a) AMENDED/DELETED
AS PER MEMO DATED 20/02/2013) ... APPELLANTS
(BY SRI V.P. KULKARNI & SRI M.C. HUKKERI, ADVOCATES)
AND:
1. ESHWAR
S/O. SANGAPPA SHIDDAREDDY,
AGE: 40 YEARS,
OCC: CONTRACTOR & AGRICULTURIST,
R/O. JAMKHANDI
SINCE DECEASED BY HIS LR's.
1(a) SMT. KAMALAWWA
W/O. ESHWAR SHIDDAREDDY,
AGE: 40 YEARS,
1(b) SMT. RUPA
W/O. RAVI SHIDDAREDDY,
AGE: 27 YEARS,
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1(b)(a) KUMARI. DIVYA
D/O. LATE RAVI SHIDDAREDDY,
SINCE MINOR RPT. BY
HER NATURAL GRAND MOTHER
SMT. KAMALAWWA
W/O. ESHWAR SHIDDAREDDY,
R/O. K.H.B. COLONY JAMKHANDI,
DIST: BAGALKOT.
(AMENDED CAUSE TITLE CARRIED OUT
AS PER ORDER DATED 11/04/2018)
1(c) SMT. SRIDEVI W/O. GURUNATH PATIL
AGE: 25 YEARS,
ALL ARE R/O. VIDHYAGIRI COLONY JAMKHANDI
TQ: JAMKHANDI,
DIST: BAGALKOT.
2. BABA SA
S/O. LAKSHMAN SA BADI
AGE: MAJOR, OCC: BUSINESS
R/O. BADIGALI, JAMKHANDI,
DIST: BAGALKOT.
SINCE DEAD BY HER LR's
2(a) PARASURAM SA S/O. BABASA BADI
AGE: 40 YEARS, OCC: MACHANICAL
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD, TQ. & DIST: GADAG.
2(b) VISHNU SA S/O. BABASA BADI
AGE:38 YEARS OCC: COOLI
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX,
HUBBALLI ROAD, TQ. & DIST: GADAG.
2(c) VASANT SA S/O. BABASA BADI
AGE: 36 YEARS, OCC: COOLI
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD, TQ. & DIST: GADAG.
2(d) NAGARAJ SA S/O. BABASA BADI
AGE: 34 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD, TQ. & DIST: GADAG.
-6-
2(e) MANJNATH SA S/O. BABASA BADI
AGE: 32 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD, TQ. & DIST: GADAG.
2(f) RAJAKUMAR SA S/O. BABASA BADIS
AGE: 30 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
2(g) PRAKASH SA S/O BABASA BADI
AGE: 28 YEARS, OCC: COOLI,
R/O. MARUTI AUTO ELECTRICAL
S.S.K. COMPLEX
HUBBALLI ROAD,
TQ. & DIST: GADAG.
(AMENDED CAUSE TITLE CARRIED OUT
AS PER ORDER DATED 30/05/2022) ... RESPONDENTS
(BY SRI ANIL KALE, ADVOCATE FOR R-1(a & c) & R-1(b)(i)
IN (R.S.A. NO.539/2005);
R-1(b) R-2(a), R-2(b), R-2(d), R-2(e), R-2(f), R-2(g) ARE SERVED;
R-2(c) - HELD SUFFICIENT)
THIS RSA IS FILED UNDER SECTION 100 R/W ORDER 41 R 1
OF CPC AGAINST THE JUDGEMENT & DECREE DATED 18.12.2004
PASSED IN R.A. NO.176/2001 ON THE FILE OF THE PRESIDING
OFFICER, FAST TRACK COURT NO.I, BAGALKOT, ALLOWING THE
APPEAL AND SETTING ASIDE THE JUDGEMENT AND DECREE DATED
20.12.1996 PASSED IN O.S. NO.49/1985 ON THE FILE OF THE
PRL.CIVIL JUDGE, JAMKHANDI. TRIAL COURT PARTLY DECREED THE
SUIT. APPELLATE COURT ALLOWED THE APPEAL. SUIT FOR SPECIFIC
PERFORMANCE.
THESE APPEALS HAVING BEEN HEARD AND RESERVED ON
19/04/2023 FOR JUDGMENT AND COMING FOR PRONOUNCEMENT OF
JUDGMENT THIS DAY, THIS COURT PRONOUNCED THE FOLLOWING:
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JUDGMENT
RSA No.539/2005 is preferred by the plaintiff-Ahalya
Bai against the judgment and decree dated 18.12.2004 in
R.A. No.177/2001 on the file of Fast Track Court-I, Bagalkot
reversing the judgment and decree dated 20.12.1996 in
O.S.No.279/1987 on the file of the Principal Civil Judge,
Jamakhandi.
2. RSA No.540/2005 is preferred by the defendant
No.2-Ahalya Bai assailing the judgment and decree dated
18.12.2004 in R.A.No.176/2001 on the file of Fast Track
Court-I, Bagalkot reversing the judgment and decree dated
20.12.1996 in O.S.No.49/1985 on the file of the Principal
Civil Judge, Jamakhandi.
3. For the sake of convenience, the parties are
referred to as per the ranking before the Trial Court in
O.S.No.49/1985, the plaintiff being one Ishwar and the
defendant No.2-Ahalya Bai.
4. This Court while admitting the appeal in RSA
No.540/2005 on 29.06.2005 has framed the following
substantial questions of law:
"Whether the finding of the 1st appellate Court reversing the judgment and decree passed by the trial Court and ordering specific performance in O.S.No.49/1985 is perverse and arbitrary for non- consideration of the material on record and in view of the finding of the trial Court that the agreement had not been proved?"
5. This Court while admitting the appeal in RSA
No.539/2005 on 18.02.2008 has held that relief of
possession in the present appeal is depending upon the relief
of specific performance, if at all to be granted in the
connected appeal and hence, this appeal is admitted to be
heard along with the connected appeal.
6. This Court while hearing the appeal, learned
counsel for the appellant sought to raise the additional
substantial question of law and by separate order an
additional substantial question of law has been framed by
this Court on 19.04.2023, which reads as under:
"1. Whether the First Appellate Court was justified in reversing the judgment and decree of the trial Court merely because an other view was possible and without recording finding that the order of the trial Court was neither illegal or capricious?
2. Whether the First Appellate Court was justified in holding that the appellants are not bonafide purchaser in view of the public notice issued vide Ex.P.4 which is inadmissible in evidence?
3. Whether the First Appellate Court was justified in holding that the appellants are not entitled for possession of the property on the ground that the plaintiff was in possession of the property prior to the agreement of sale?"
7. Learned counsel for the appellants and learned
counsel for the respondent have been heard on the
substantial questions of law framed by this Court.
8. Brief facts of the case are that, O.S.No.49/1985
was filed by one Ishwara seeking for specific performance of
the agreement of sale executed by defendant No.1 dated
12.05.1985. It is averred in the plaint that the consideration
at the time of execution of the agreement of sale was
Rs.65,000/- and earnest money of Rs.10,000/- was paid to
defendant No.1 and the time stipulated in the agreement
was by end of 31.07.1985. It is averred that the plaintiff-
Ishwar was in possession as lessee of the suit schedule
property has been confirmed by way of part performance
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under the agreement of sale. It is averred that defendant
No.1 in collusion with the husband of defendant No.2, who is
none other than the brother of defendant No.1 managed to
get two sale deeds in the name of defendant No.2 in respect
of the suit schedule property for consideration of Rs.35,000/-
on 22.05.1985. It is stated that even before the execution of
the sale deed in favour of defendant No.2 the plaintiff-
Ishwar has filed an application to the Sub-Registrar,
Jamakhandi intimating the transaction of agreement of sale
in his favour and requesting not to register or make any
entries in the city survey records in favour of any other
person and also by way of precaution had issued a public
notice in the weekly newspaper. It is further averred that
defendant Nos.1 and 2 in order to deprive the right of the
plaintiff have created the alleged sale deed and hence,
prayed for directing the defendants to execute the sale deed
in respect of the suit schedule property in terms of the
agreement of sale.
9. Pursuant to the summons issued by the Trial
Court, defendants appeared and filed their written
statement.
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10. Defendant No.1 filed written statement inter alia
contending that the suit schedule property is not in
possession of the plaintiff as a lessee. It is further stated
that defendant No.1 was in need of money and hence, has
borrowed a sum of Rs.5,000/- from the plaintiff and the
plaintiff insisted to execute the agreement of sale in respect
of suit schedule property and the alleged the agreement of
sale is nothing but a security towards the loan amount. It is
further stated that the suit schedule property has been sold
to defendant No.2 for valuable consideration vide registered
sale deed.
11. Defendant No.2 contended that she has
purchased the suit schedule property for valuable
consideration of Rs.70,000/- under two different registered
sale deeds and she is a bonafide purchasers without notice of
the agreement of sale in favour of plaintiff.
12. The plaintiff-Ahalya Bai in O.S.No.279/1987
sought for possession and for damages taking the similar
contention as taken in the written statement filed in
O.S.No.49/1985 and the plaintiff-Ishwara in O.S.No.49/1985
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contested the suit defendant in O.S.No.279/1987 and denied
the allegations raising the same pleadings as stated in
O.S.No.49/1985.
13. The Trial Court on the basis of the pleadings,
framed the following issues:
"Issues in O.S.No.49/85:
(1) Whether the Plaintiff proves that the defendant No.1 agreed to sell the suit property to him for Rs.65,000/- as alleged ?
(2) Whether he further proves that Deft.1 took Rs.10,000/- from him as earnest money as alleged?
(3) Whether the Plaintiff proves that he was in possession of the suit property as a lessee and from the date of agreement he is in possession of the suit property in part performance of the agreement of sale as alleged ?
(4) Whether the Plff. proves that the Deft.2 and her husband knew the suit transaction, as such, the sale deed dated: 21-5-85 and 22-5-85 executed in favour of Deft.No.2 in respect of a suit property are not binding on him as alleged ?
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(5) Whether the Plff. proves that he was ready and willing to perform his part of contract as alleged ?
(6) Whether deft.1 proves that the description of the suit property is not correct as stated in his W.S.?
(7) Whether the valuation made and Court fee paid is not correct ?
(8) Whether the Plff. is entitled to get the reliefs claimed ?
Additional Issues:-
(1) Whether Deft.2 proves that she is bonafide purchaser of the suit property for valuable consideration without notice of alleged agreement set-up by the Plaintiff ?
(2) Whether this suit, without the prayer for declaration, that the two sale-deeds dated: 21-5- 85 and 22-5-85 by Deft.1 in favour of Deft.2 are binding on the Plaintiff is not tenable ?
(3) Is Plff. entitle in the alternative for refund of earnest money of Rs.10,000/- allegedly paid to defendant No.1 under the agreement of sale and damages to the tune of Rs.55,000/-? If yes, against whom ?
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Issues in O.S.No.279/1987
(1) Does Plaintiff prove that she is bonafide purchaser of suit property for valuable consideration without notice of any transaction between Defendant No.1 and defendant No.2 ?
(2) Does Plaintiff prove that deft. No.1 gain access to the suit property clandestinely, illegally and high handedly after suit in O.S.No.49/85 on the strength of order of maintaining status-quo ?
(3) Whether Plaintiff proves that she is entitled to damages of Rs.300/- per month ?
(4) Whether Plaintiff is entitled to mandatory injunction directing Deft.1 to remove all his belongings, vacate and put : Plaintiff in possession of the suit property ?"
14. The Trial Court partly decreed the suit in
O.S.No.49/1985 and granted alternative prayer directing
refund of earnest money of Rs.10,000/- with interest at the
rate of 12% p.a. and the prayer for specific performance was
dismissed.
15. The O.S.No.279/1987 for possession is filed by
Ahalya Bai was decreed directing the defendant No.1-
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Ishwara therein to hand over the vacant possession of the
suit schedule property.
16. Aggrieved by the judgment of the Trial Court,
R.A. Nos.176/2001 and 177/2001 were preferred by the
plaintiff in O.S.No.49/1985 and defendant in
O.S.No.279/1987.
17. The first appellate Court framed the following
points for consideration:
"1) Whether the plaintiff Shidaraddi in O.S.No.49/85 proves that defendant No.1 has executed the suit agreement and agreed to execute the registered sale deed on or before 31-7-1985 in respect of the suit property for Rs.65,000/- and put him in possession of the suit property by receiving the earnest money of Rs.10,000/- ?
2) Whether the plaintiff Smt. Ahalyabai in O.S.No.279/87 proves that on 15-3-1985, defendant No.2 executed the agreement as per Exh.D-1 and agreed to sell the suit property for Rs.70,000/- by receiving earnest money of Rs.20,000/- and executed the registered sale deeds dated 21-5-1985 and 22-5-1985 ?
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3) Whether the plaintiff in O.S.No.279/87 proves that she is a bonafide purchaser for valid consideration and without the knowledge of transaction between Iswar Sangappa Shidaraddi plaintiff in O.S.No.49/85, and defendant No.1 Babasa Laxmanasa Badi ?
4) Whether the plaintiff in O.S.No.49/85 was always ready and willing to purchase the suit property by paying the remaining balance consideration and to obtain the registered sale deed?
5) Whether the plaintiff in O.S.No.49/85 is entitled for specific performance ?
6) Whether the plaintiff in O.S.No.279/87 is entitled for the relief of vacant possession of the suit property as prayed for ?
7) Whether the appellant/plaintiff Iswar Sangappa Shidaraddi proves that the judgment of the trial Court is erroneous, illegal, contrary to established principle's of law, facts, oral and documentary evidence on record and it requires interference by this Court ?"
18. The first appellate Court on re-appreciation of the
material on record, held that the plaintiff in O.S.No.49/1985
has proved the execution of the agreement of sale by
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defendant No.1 and directed defendant No.1 to execute the
sale deed in favour of the plaintiff. Further held that the
plaintiff in O.S.No.279/1987 has failed to prove that on
15.03.1985, defendant No.1 executed the agreement and
accordingly, a registered sale deed was executed in favour of
Ahalya Bai and that the plaintiff-Ahalya Bai in
O.S.No.279/1987 has failed to prove that she is a bonafide
purchaser for valuable consideration. Accordingly, decreed
the suit in O.S.No.49/1985 filed by Iswara for specific
performance and dismissed O.S.No.279/1987 filed by Ahalya
Bai for possession. During the pendency of the appeals,
Ahalya Bai and her legal representatives were brought on
record. Aggrieved by the reversal by the first appellate
Court, the present appeal by the legal representatives of
Ahalya Bai.
19. Sri. V.P. Kulkarni, learned counsel for the
appellant would contend that the order of the first appellate
Court is not justified as the first appellate Court while
reversing the judgment of the Trial Court has not stated as
to how the order of the Trial Court was capricious and illegal.
Learned counsel would further contend that Ex.P.4-the public
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notice is inadmissible in evidence and placing reliance on the
public notice, by the first appellate Court to come to a
conclusion that the appellants are not bonafide purchasers is
not justifiable. Learned counsel would further contend that
the entire approach of the first appellate Court while
reversing the judgment of the Trial Court is on the face of it
is unsustainable and liable to be set-aside. It is further
contended that the first appellate Court has failed to consider
that before execution of the sale deeds in favour of
defendant No.2, there was an agreement of sale dated
31.07.1985 which is prior to the agreement of sale executed
in favour of the plaintiff-Ishwar.
20. Learned counsel would emphasize that the first
appellate Court has not framed points for consideration in
consonance with the order 41 Rule 31 of CPC. Learned
counsel would further contend that the first appellate Court
has assigned no reasons while re-appreciating the evidence
and comes to a different conclusion. The appellate Court has
not exercised the scope as enunciated under Section 96 of
CPC. Learned counsel would further contend that the first
appellate Court for reversal of the Trial Court is on two
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counts: i.e., Ex.P.4-the public notice is not in accordance
with law and that Ahalya Bai is not a bonafide purchaser of
suit schedule property for valuable consideration. Stating
these grounds learned counsel would contend that the
substantial question of law needs to be answered in favour of
the appellant. In support of his contention, learned counsel
has relied upon the following judgments:
1) Santosh Hazari vs. Purushottam Tiwari,
reported in (2001) 3 SCC 179 [Santosh Hazari]
to contend that the first appellate Court did not
discharge the duty cast on it as the Court of first
appeal.
2) Laliteshwar Prasad Singh vs. S.P. Srivastava,
reported in (2017) 2 SCC 415 [Laliteshwar
Prasad Singh] in regard to the powers and duties
of the first appellate Court.
3) The judgment of the Co-Ordinate Bench of this
Court in RSA No.100824/2014 dated
13.07.2016 in the case of Mallavva vs.
Chandra Bai [Mallavva] to contend that the
approach of the first appellate Court cannot be
cryptic and perverse.
- 20 -
21. Per contra, Sri Anil Kale, learned counsel
appearing for the respondent would contend that the first
appellate Court has passed a well considered order and point
No.7 framed by the first appellate Court evidences that the
point framed for consideration is whether the judgment of
the Trial Court is erroneous, illegal and contrary and would
answer the contention of the appellants that the first
appellate Court has exercised the powers conferred upon the
fact finding Court. Learned counsel would further contend
that the first appellate Court has rightly held that defendant
No.2- Ahalya Bai in O.S.No.49/1985 has failed to prove that
she is a bonafide purchaser for valuable consideration and
without the knowledge of the transaction between the
plaintiff in O.S.No.49/1985 and defendant No.1. Learned
counsel would contend that the substantial question of law
needs to be answered against the appellants.
22. This Court has carefully considered the rival
contention urged by the learned counsel for the parties on
the substantial question of law framed by this Court and
perused the entire material on record.
- 21 -
23. The plaintiff-Ishwar filed a suit for specific
performance against defendant No.1 in respect of the
agreement of sale dated 31.07.1985. Defendant No.1-the
owner of the suit schedule property admitted about the
execution of the sale however contended that the agreement
of sale was executed towards the security of loan amount
having been taken by defendant No.1 from the plaintiff.
Defendant No.2 contended that she is a bonafide purchaser
for a valuable consideration for having purchased the suit
schedule property under the registered sale deeds dated
21.05.1985 and 22.05.1985. The plaintiff in order to prove
the agreement of sale has got examined himself as P.W.1
and got marked document Ex.P.1-the agreement of sale
dated 12.05.1985 Ex.P.4-the paper publication and the
property extracts.
24. The defendant on the other hand, examined
himself as D.W.1 and got marked document as Ex.D.1-the
agreement of sale executed by defendant No.1 in favour of
defendant No.2 and Ex.D2-the registered sale deeds.
Defendant No.2 is none other than the wife of brother of
defendant No.1, defendant No.2 has not entered the witness
- 22 -
box. The Trial Court holds that the plaintiff in
O.S.No.49/1985 has failed to prove that defendant No.1 has
agreed to sell the suit schedule property and holds that
defendant No.2 is a bonafide purchaser.
25. The first appellate Court while answering the
point for consideration has held that the agreement of sale in
favour of the plaintiff is proved and as on the date of
agreement and during the subsistence of the agreement, the
vendor has sold the property to Ahalya Bai. The said Ahalya
Bai is the wife of brother of defendant No.1 and is/are
residing at Jamakhandi. Ex.P.4 is the paper publication
having issued in respect of agreement of sale executed in
favour of the plaintiff. Materials also reveal that the plaintiff
had informed the Sub-Registrar about the execution of the
agreement of sale in favour of the plaintiff. It is very unlikely
that defendant No.2 gets a sale deed executed in her favour
without getting possession and without enquiring about the
earlier transaction when admittedly the plaintiff is in
possession of the suit schedule property. In a suit for specific
performance when the sale deed executed by the vendor in
favour of 3rd person the plaintiff only needs to seek for
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specific performance of contract and defendant No.2 needs
to join along with defendant No.1 for the execution of the
sale deed.
26. Though the learned counsel for the appellant
would vehemently contend that the first appellate Court
while reversing the judgment of the Trial Court has not
appreciated the evidence and no reasons have been given
while reversing the judgment of the Trial Court. Point No.7
framed by the first appellate Court under the points for
consideration, which reads as under:
"7) Whether the appellant/plaintiff Iswar Sangappa Shidaraddi proves that the judgment of the trial Court is erroneous, illegal, contrary to established principle's of law, facts, oral and documentary evidence on record and it requires interference by this Court ?"
27. While answering the points raised, the first
appellate Court has held that the judgment and decree of the
Trial Court is erroneous and illegal and requires to be
interfered. The other contention of the learned counsel is
that the first appellate Court has not framed proper points
for determination is not acceptable since the first appellate
- 24 -
Court has carefully considered and re-appreciated the entire
material and evidence on record and rightly come to the
conclusion that the plaintiff is entitled for specific
performance of contract and defendant is not a bonafide
purchaser of suit schedule property for valuable
consideration.
28. The judgments relied by the learned counsel for
the appellant in the case of Santhosh Hazari, (stated
supra) is under circumstances where the first appellate Court
has not discharged the duty casted on it as a Court of first
appeal. The perusal of the judgment of the first appellate
Court would not establish that the first appellate Court has
not taken into consideration the findings of the Trial Court,
on the other hand, by a reasoned order has held that the
judgment of the Trial Court needs to be set-aside. The
proposition of law as stated in Santhosh Hazari,
Laliteshwar Prasad Singh and Mallavva (stated supra)
relied by the learned counsel for the appellant, this Court is
in full agreement, but the same is not applicable to the facts
and circumstances of the present case.
- 25 -
29. Accordingly, the substantial questions of law
needs to be answered against the appellants and this Court
pass the following:
ORDER
i. RSA No.539/2005 and RSA No.540/2005 are hereby
dismissed.
ii. The judgment and decree of the first appellate Court
hereby stands confirmed.
No order as to costs.
Sd/-
JUDGE
MBM
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