Karnataka High Court

Sri Harisha P vs Sri Sandeep Singh on 16 April, 2024

Author: S.G.Pandit

Bench: S.G.Pandit

                                                   -1-
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                                                          RFA No. 500 of 2023




                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                            DATED THIS THE 16TH DAY OF APRIL, 2024
                                               PRESENT
                              THE HON'BLE MR JUSTICE S.G.PANDIT
                                                 AND
                            THE HON'BLE MR JUSTICE C.M. POONACHA
                          REGULAR FIRST APPEAL NO. 500 OF 2023 (SP)
                   BETWEEN:

                   1.    SRI HARISHA P
                         S/O LATE PANDU RAO
                         AGED ABOUT 28 YEARS,

                   2.    SMT. SHWETHA BAI
                         W/O SRI HARISHA P
                         AGED ABOUT 27 YEARS,

                         BOTH ARE R/AT MASARAHALLI,
                         BARANDUR POST,
                         BHADRAVATHI
                         SHIMOGA-577 301

                         PERMANENT ADDRESS
                         #1, 14TH D CROSS,
                         AGRAHARA DASARAHALLI,
Digitally signed         BANGALORE-560079.
by A K
CHANDRIKA                                                         ...APPELLANTS
                   (BY SRI. B. SIDDESWARA, ADV.)
Location: HIGH
COURT OF
KARNATAKA          AND:

                   1.    SRI SANDEEP SINGH
                         S/O LATE RAJMAN SINGH
                         AGED ABOUT 31 YEARS,
                         R/AT NO.315,
                         BEHIND SAINT MARRY'S SCHOOL,
                         T.DASARAHALLI,
                         BANGALORE-560 057.

                   2.    SMT. S.SHOBHA
                         D/O LATE SHANTHARAJ
                              -2-
                                        NC: 2024:KHC:15157-DB
                                           RFA No. 500 of 2023




    AGED ABOUT 42 YEARS,
    R/AT NO.A-1, 426,
    "KENDRIYA VIHAR"
    6TH FLOOR, B.B.ROAD,
    YELAHANKA,
    BENGALURU-560 064.
                                                ...RESPONDENTS
(BY SRI. PRANESH CHANDRA, ADV. FOR R1
 SRI SANJAY MUTNAL, ADV. FOR R2)

      THIS APPEAL IS FILED UNDER SECTION 96 OF CPC 1908
AGAINST THE JUDGMENT AND DECREE DATED 24.02.2020 PASSED
IN OS.NO.1424/2015 ON THE FILE OF THE I ADDITIONAL SENIOR
CIVIL JUDGE, BANALORE RURAL DISTRICT, BANGALORE AND ETC.

      THIS APPEAL, COMING ON FOR ORDERS,            THIS     DAY,
S.G. PANDIT J., DELIVERED THE FOLLOWING:

                          JUDGMENT

Learned counsel for the appellants and learned

counsel for the respondents present.

Appellants No.1 and 2 and Respondents No.1 and 2

are present and they are identified by their respective

counsel.

This appeal is filed against the judgment and decree

dated 24.02.2020 in O.S.No.1424/20215 on the file of I

Additional Senior Civil Judge, Bangalore Rural District,

Bangalore by which, the plaintiff's suit is decreed partly,

directing refund of advance sale consideration of

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Rs.14,00,000/- and liquidated damages of Rs.14,00,000/-

with interest.

2. By order dated 31.01.2021, the appeal was referred

for mediation before the Karnataka Mediation Center, the

parties have settled the matter and entered into

memorandum of settlement under Section 89 of the Code

of Civil Procedure, 1908 read with Rules 24 and 25 of the

Karnataka Civil (Mediation) Rules, 2005.

3. The settlement entered into between the parties

reads as follows:

I. The Second Respondent (Smt. Shobha) was the absolute owner of a residential apartment bearing number 426/426, Block A-1 in the residential K complex known as "Kendriya Vihar", Yelahanka Amanikere Village, Bangalore North Taluk, more fully described in the Schedule hereunder and hereinafter referred to as the SCHEDULE PROPERTY.

II. The Second Respondent (Smt. Shobha) executed an agreement of Sale dated 10.1.2014 with the First Respondent (Sandeep Singh) under which she agreed to sell the SCHEDULE PROPERTY in favor of the First Respondent (Sandeep Singh).

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III. Consequent upon the failure of the Second Respondent (Smt. Shobha) to execute a sale deed in respect of the SCHEDULE PROPERTY in favor of the First Respondent (Sandeep Singh) the First Respondent filed a suit in O.S. 1424/2015 in the First Additional Senior Civil Judge, Bengaluru Rural District seeking specific performance of the agreement of sale dated 10.1.2014. However, during the pendency of the aforesaid suit in O.S. 1424/2015, the Second Respondent (Smt. Shobha) had sold the SCHEDULE PROPERTY jointly in favor of both the First and Second Appellant, (namely Sri. Harisha and Smt. Shwetha Bai) under a sale deed dated 5.2.2016. An additional relief was sought in the suit namely, for a declaration that the sale deed dated 5.2.2016 executed by the Second Respondent (Smt. Shobha) in favor of both the Appellants herein (Sir. Harisha and Smt. Shwetha) in respect of the SCHEDULE PROPERTY was illegal.

IV. The Hon'ble Trial Court, by its judgment and decree dated 24.02.2020 decreed the above suit filed by the First Respondent (Sandeep Singh) against the Second Respondent (S. Shobha) but rejected the claim for specific performance. Instead, it directed the Second Respondent (Smt. Shobha) to return the advance amount of Rs.14,00,000/- with interest.

V. In pursuance of the aforesaid judgment and decree dated 24.02.2020 in O.S. 1424/2015, the First Respondent (Sandeep Singh) has filed an execution Petition in Ex Pet No. 15/2020 seeking enforcement of the decree before the I Additional

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Senior Civil Judge, Bengaluru Rural District which is pending adjudication.

VI. The First and Second Appellants (Sri. Harisha P and Smt. Shwetha Bai) have filed this Appeal against the impugned judgment and decree dated 24.02.2020 in O.S. No. 1424/2015 which has been referred to Mediation to the Karnataka Mediation Centre for mediation. As directed by the Hon'ble High Court of Karnataka, in this Appeal, the Appellants (Sri. Harisha and Smt. Shwetha Bai) have deposited an amount of Rs.15,00,000/- (Fifteen lakhs Only) under the head of JUDICIAL DEPOSIT under Demand Draft Number 502693 dated 09.11.2023 drawn on ICICI bank which amount continues to be in a fixed deposit.

VII. All parties along with their respective Counsel appeared and have participated in the Mediation sessions. During the course of Mediation, they have resolved their disputes on the terms and conditions hereafter set out.

TERMS OF SETTLEMENT:

1. The First and Second Appellants (Sri. Harisha and Smt. Shwetha Bai) agree, confirm, and undertake to pay to the First respondent (Sandeep Singh) a total sum of Rs.9,00,000/-

(Nine Lakhs Only) THE SETTLEMENT AMOUNT excluding an amount of Rs.1,98,830/- (One lakh Ninety-Eight Thousand Eight- Thirty Only) which was deducted earlier from First Appellant's salary account and has been deposited in I Additional Senior Civil Judge, Bengaluru Rural District court in Ex No.15/2020 and which has been drawn by

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the First Respondent (Sandeep Singh) in full and final settlement of all his claims in O.S. 1424/2015 and in Execution Petition No. 15/2020.

2. The First and Second Appellant (Sri. Harisha and Smt. Shwetha) agree that the First Respondent (Sandeep Singh) be permitted to withdraw the SETTLEMENT AMOUNT (Rs.9,00,000/-) from out of the amount of Rs.15,00,000/- (Fifteen lakhs Only) deposited by the First and Second Appellant in this Appeal under Demand Draft Number 502693 dated 09.11.2023 drawn on ICICI Bank which amount continues to remain in deposit and available for disbursal. The balance amount with accrued interest be refunded to the first Appellant.

3. The First Respondent (Sandeep Singh) agrees and undertakes to complete prescribed formalities/procedures and withdraw the SETTLEMENT AMOUNT expeditiously. All parties agree and confirm that any interest earned or due and payable on account of the aforesaid deposit shall accrue and belong to both the Appellants herein and no other party shall have any claim in respect thereof. The parties agree that the balance amount remaining after withdrawal of the SETLEMENT AMOUNT by the First Respondent (Sandeep Singh) shall belong to and therefore be withdrawn by the Appellants without any objections from any of the other parties.

4. The First Respondent (Sandeep Singh) hereby confirms and accepts that the sale deed dated

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5.2.2016 executed by the Second Respondent (Smt. Shobha) in favor of the Appellants (Sri. Harisha and Smt. Swetha Bai) registered as document Number MLS-1-03707-2015-16 stored in CD MLSD114 Book I in the Office of the Sub Registrar, Malleswaram, Bengaluru is valid, and confers absolute ownership and title in the SCHEDULE PROPERTY in favor of both the Appellants. The First Respondent (Sandeep Singh) withdraws his challenge to the said sale deed and declares that he has no claim of any nature past, present or future in the SCHEDULE PROPERTY. The First Respondent (Sandeep Singh) further confirms and declares that the agreement of sale dated 10.01.2014 executed by the Second Respondent (Smt. Shobha) in his favor stands void and all rights under such agreement stand fully extinguished.

5. All Parties agree that either of the Appellants and/or any of the Respondents shall be entitled to produce a copy of this settlement in Execution Petition 15/2020 and seek closure of the execution petition by reporting full satisfaction of the decree in O.S. 1424/2015.

6. The Appellants and Respondents agree that upon acceptance of this settlement by the Hon'ble High Court of Karnataka all claims of any nature, past present or future, of the Appellants and the Respondent against each other and or against the SCHEDULE PROPERTY shall stand fully and finally resolved and no claim of any nature shall remain or be enforceable against each other.

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7. The Appellant and Respondent therefore respectfully pray that this Hon'ble Court be pleased to accept this settlement, the terms agreed upon, and modify the judgment and decree of the trial Court in O.S. 1424/2015 in the interests of justice and equity.

8. Parties pray that in view of this Mediation settlement, the entire Court fee paid be refunded to the Appellants.

9. The parties will appear before the Hon'ble High Court of Karnataka on the date the case is posted for hearing.

SCHEDULE PROPERTY

Residential apartment bearing Number 426/426, Block A-1, measuring 589.81 Square feet, in the sixth floor of the residential complex known as "Kendriya Vihar" constructed upon land bearing Survey Number 2/2, 3, 4/1, 4/2, 6 and 7 of Yelahanka Amanikere Village and Survey Number 17/1A, of Venkatala Village, Bangalore North Taluk."

4. The appellants No.1 and 2 and respondents No.1 and

2 are parties to the memorandum of settlement. In terms

of the settlement entered into between the parties, the

appeal stands disposed of.

The Registry is directed to draw the modified decree.

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In terms of the settlement, the Registry is directed to

permit the first respondent to withdraw a sum of

Rs.9,00,000/- out of Rs.15,00,000/- in deposit, in

pursuance of the interim order dated 10.10.2023 and

balance amount of Rs.6,00,000/- with accrued interest

shall be permitted to be withdrawn by appellant No.1.