Karnataka High Court

Subhas Mahadu Koli vs Bhagawwa W/O. Bhimappa Chimmad on 19 November, 2024

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                                                      NC: 2024:KHC-D:16810
                                                     RSA No. 5863 of 2013
                                               C/W RSA No. 100172 of 2014



                         IN THE HIGH COURT OF KARNATAKA,
                                  DHARWAD BENCH
                    DATED THIS THE 19TH DAY OF NOVEMBER, 2024
                                       BEFORE
                  THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
                   REGULAR SECOND APPEAL NO. 5863 OF 2013 (SP)
                                     C/W
                    REGULAR SECOND APPEAL NO. 100172 OF 2014

            IN RSA NO.5863/2013
            BETWEEN:

            1.    SHRI.ANNAPPA LAKKAPPA BIRADAR PATIL,
                  AGE: 65 YEARS, OCC: AGRICULTURE,
                  R/O. TEERTHA, TQ: ATHANI
                  DIST: BELAGAVI
                  R/BY HIS GPA HOLDER
                  SHRI. IRFAN MUSA NIPANI,
                  AGE: 29 YEARS, OCC: AGRICULTURE,
                  R/O: TERDAL, TQ: JAMKHANDI,
                  DIST: BAGALKOT
                  NOW R/AT: ATHANI - 591304.
                  DIST: BELGAUM.

            2.    APPASAHEB DHARIGOUDA PATIL,
                  SINCE DECEASED REP. BY HIS LRS
GIRIJA A
BYAHATTI          (V/O/DTD: 07.03.2018)

            2A.   SMT. LAXMIBAI
                  W/O. DHARIGOUDA PATIL,
Location:         AGE: 77 YEARS, OCC: HOUSEHOLD,
HIGH
COURT OF          R/O: TEERTH-591 304,
KARNATAKA         TQ: ATHANI, DIST: BELAGAVI.

            2B.   KUMARI. AKSHATA D/O. APPASAHEB PATIL,
                  AGE: 17 YEARS, OCC: STUDENT,
                  R/O: TEERTH-591 304,
                  TQ: ATHANI, DIST: BELAGAVI.
                  BEING MINOR REPRESENTED BY
                  HER NEXT FRIEND - NATURAL
                  GRANDMOTHER SMT. LAXMIBAI
                  W/O. DHARIGOUDA PATIL -
                  APPELLANT NO. 2A.
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                                         RSA No. 5863 of 2013
                                   C/W RSA No. 100172 of 2014



2C.   KUMARI. ANUSHA D/O. APPASAHEB PATIL,
      AGE: 15 YEARS, OCC: STUDENT,
      R/O: TEERTH-591 304,
      TQ: ATHANI, DIST: BELAGAVI.
      BEING MINOR REPRESENTED BY
      HER NEXT FRIEND - NATURAL
      GRANDMOTHER SMT. LAXMIBAI
      W/O. DHARIGOUDA PATIL -
      APPELLANT NO. 2A.

2D. KUMARI. LAVANYA D/O. APPASAHEB PATIL,
    AGE: 09 YEARS, OCC: STUDENT,
    R/O: TEERTH-591 304,
    TQ: ATHANI, DIST: BELAGAVI.
    BEING MINOR REPRESENTED BY
    HER NEXT FRIEND - NATURAL
    GRANDMOTHER SMT. LAXMIBAI
    W/O. DHARIGOUDA PATIL -
    APPELLANT NO. 2A.
                                                  ...APPELLANTS
(BY SRI. SIDDAPPA S SAJJAN, ADVOCATE)

AND:

1.    SMT. BHAGAWWA
      W/O. BHIMAPPA CHIMMAD,
      AGE: 60 YEARS,
      OCC: AGRICULTURE & HOUSEHOLD WORK,
      R/O. CHIMMAD GALLI,
      ATHANI - 591304
      DIST: BELAGAVI.

2.    SHRI. SURESH BHIMAPPA CHIMMAD,
      AGE: 38 YEARS, OCC: AGRICULTURE,
      R/O. CHIMMAD GALLI,
      ATHANI - 591304
      DIST: BELAGAVI.

3.    KUMARI AKKAWWA
      D/O. BHIMAPPA CHIMMAD,
      AGE: 37 YEARS, OCC: AGRICULTURE,
      R/O. CHIMMAD GALLI,
      ATHANI - 591304
      DIST: BELAGAVI.
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                                        RSA No. 5863 of 2013
                                  C/W RSA No. 100172 of 2014



4.   SHRI. DUNDAPPA SIDDAPPA TALAWAR
     @ KOLI
     DECEASED
     (LRS IMPLEADED AS RESP. NO.12-15
     V/O/DTD: 06.12.2018)

5.   SHRI. SUBHAS MAHADU KOLI,
     AGE: 38 YEARS, OCC: AGRICULTURE,
     R/O. SAMBARAGI - 591501.
     TQ: ATHANI
     DIST: BELAGAVI.

6.   SHRI. RAJABAI W/O. MAHADU KOLI,
     AGE: 62 YEARS,
     OCC: AGRICULTURE,
     R/O. SAMBARAGI - 591501.
     TQ: ATHANI
     DIST: BELAGAVI.

7.   SMT. ANUSUYA
     W/O. LAXMAN TALAWAR @ KOLI,
     AGE: 60 YEARS, OCC: HOUSEHOLD,
     R/O: C/O: RAJABAI KOLI,
     SAMBARGI - 591 232,
     TALUKA: ATHANI,
     DIST: BELAGAVI.

8.   SHRI. GOPAL LAXMAN TALAWAR @ KOLI,
     AGE: 50 YEARS, OCC: AGRICULTURE,
     R/O: OPPOSITE DATT COLLEGE,
     KURANDWAD - 416 106,
     TALUKA: SHIROL,
     DIST: KOLHAPUR,
     MAHARASHTRA STATE.

9.   SHRI. MAHAVEER LAXMAN TALAWAR @ KOLI,
     AGE: 40 YEARS, OCC: AGRICULTURE,
     R/O: C/O: RAJABAI KOLI,
     SAMBARGI - 591 232,
     TALUKA: ATHANI,
     DIST: BELAGAVI.

10. SHRI. SANTOSH LAXMAN TALAWAR @ KOLI,
    DECEASED
    (LRS IMPLEADED AS RESP. 16-19
    V/O/D:06.12.2018)
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                                        RSA No. 5863 of 2013
                                  C/W RSA No. 100172 of 2014



11. SMT. SAMPATTA
    D/O. LAXMAN TALAWAR @ KOLI,
    AGE: 36 YEARS, OCC: HOUSEHOLD,
    R/O: C/O: RAJABAI KOLI,
    SAMBARGI - 591 232,
    TALUKA: ATHANI,
    DIST: BELAGAVI.
    (R7 TO R11 BROUGHT ON RECORD
    AS LRS OF DECEASED DEFT. 1
    LAXMAN SIDAPPA TALAWAR @ KOLI
    V/O/DTD: 07.03.2018)

12. SMT. AKKATAI
    W/O. DUNDAPPA KOLI @ TALAWAR,
    AGE: 62 YEARS, OCC: HOUSEHOLD,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

13. SHRI. DILIP
    S/O. DUNDAPPA KOLI @ TALAWAR,
    AGE: 48 YEARS, OCC: AGRICULTRE,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

14. SHRI. ASHOK
    S/O. DUNDAPPA KOLI @ TALAWAR,
    AGE: 44 YEARS, OCC: AGRICULTRE,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

15. SHRI. RAJU S/O. DUNDAPPA KOLI @ TALAWAR,
    AGE: 48 YEARS, OCC: AGRICULTRE,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

16. SMT. UMA
    W/O. SANTOSH KOLI @ TALAWAR,
    AGE: YEARS, OCC: HOUSEHOLD,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

17. MS. NIKITA D/O. SANTOSH KOLI @ TALAWAR,
    AGE: 24 YEARS, OCC: STUDENT,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.
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                                         RSA No. 5863 of 2013
                                   C/W RSA No. 100172 of 2014



18. MS. NAMRATA
    D/O. SANTOSH KOLI @ TALAWAR,
    AGE: 22 YEARS, OCC: STUDENT,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

19. KUMAR. GURU
    S/O. SANTOSH KOLI @ TALAWAR,
    AGE: 20 YEARS,
    OCC: AGRICULTURE,
    R/O: SAMBARGI-591 232,
    TQ: ATHANI, DIST: BELAGAVI.

                                                ...RESPONDENTS

(BY SRI. SANGRAM S. KULKARNI, ADVOCATE FOR R1 to R3;
SRI. VISHWANATH V. BADIGER, ADVOCATE FOR R5 TO R9 & R11 TO
R19; R4 AND R10 ARE DECEASED.
R12 TO R15 ARE LRS OF DECEASED;
R4 AND R16 TO R19 ARE LR'S OF DECEASED R10)

     THIS RSA IS FILED UNDER SECTION 100 R/W ORDER XLII
RULE 1 CPC., PRAYING TO SET ASIDE THE JUDGMENT AND DECREE
DATED 24.10.2013 PASSED BY THE VII ADDITIONAL DISTRICT &
SESSIONS JUDGE, BELGAUM AT CHIKODI IN R.A.185/2008 AND
ALLOW THIS APPEAL WITH COSTS THROUGHOUT BY DISMISSING
THE SUIT DATED 23.07.2008 IN O.S. 1/1995 ON THE FILE OF CIVIL
JUDGE SR.DN. ATHANI.

IN RSA NO.100172/2014

BETWEEN:

1.    SHRI. SUBHAS MAHADU KOLI,
      AGE: 38 YEARS, OCC: AGRICULTURE,
      R/O. SAMBARAGI, TQ: ATHANI,
      DIST: BELGAUM.

2.    SMT. RAJABAI W/O. MAHADU KOLI,
      AGE: 62 YEARS, OCC: AGRICULTURE,
      R/O. SAMBARAGI,
      TQ: ATHANI, DIST: BELGAUM.

                                                  ...APPELLANTS

(BY SRI. MALLIKARJUNSWAMY B. HIREMATH, ADVOCATE)
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                                        RSA No. 5863 of 2013
                                  C/W RSA No. 100172 of 2014



AND:

1.     SMT. BHAGAWWA
       W/O. BHIMAPPA CHIMMAD,
       AGE: 60 YEARS,
       OCC: AGRICULTURE & HOUSEHOLD WORK,
       R/O. CHIMMAD GALLI,
       ATHANI - 591304
       DIST: BELGAUM.

2.     SHRI. SURESH BHIMAPPA CHIMMAD,
       AGE: 38 YEARS,
       OCC: AGRICULTURE,
       R/O. CHIMMAD GALLI,
       ATHANI - 591304
       DIST: BELGAUM.

3.     KUMARI AKKAWWA
       D/O. BHIMAPPA CHIMMAD
       AGE: 37 YEARS,
       OCC: AGRICULTURE,
       R/O. CHIMMAD GALLI,
       ATHANI-591304
       DIST: BELGAUM.

       LAXMAN SIDDAPPA TALAWAR,
       @ KOLI
       SINCE DECEASED BY HIS LRS

4.     ANUSUYA
       W/O. LAXMAN TALAWAR @ KOLI
       AGE: 60 YEARS,
       OCC: HOUSEHOLD WORK,
       R/O. C/O. RAJABAI KOLI,
       SAMBARGI - 591232
       TQ: ATHANI,
       DIST: BELGAUM.

5.     SHRI. GOPAL LAXMAN TALAWAR @ KOLI
       AGE: 50 YEARS,
       OCC: AGRICULTURE,
       R/O. OPP. DATT COLLEGE
       KURANDWAD- 416106
       TQ: SHIROL, DIST:KOLHAPUR,
       MAHARASHTRA STATE.
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                                        NC: 2024:KHC-D:16810
                                       RSA No. 5863 of 2013
                                 C/W RSA No. 100172 of 2014



6.    SHRI. MAHAVEER LAXMAN TALAWAR,
      @ KOLI
      AGE: 40 YEARS,
      OCC: AGRICULTURE,
      R/O. C/O. RAJABAI KOLI,
      SAMBARGI-591232
      TQ: ATHANI, DIST: BELGAUM.

7.    SHRI. SANTOSH LAXMAN TALAWAR
      @ KOLI,
      AGE: 38 YEARS,
      OCC: AGRICULTURE,
      R/O. C/O. RAJABAI KOLI,
      SAMBARGI- 591232
      TQ: ATHANI, DIST: BELGAUM.

8.    SMT. SAMPATTA
      D/O. LAXMAN TALAWAR @ KOLI,
      AGE: 36 YEARS,
      OCC: HOUSEHOLD,
      R/O. C/O. RAJABAI KOLI,
      SAMBARGI-591232
      TQ: ATHANI, DIST: BELGAUM.

9.    SHRI. DUNDAPPA SIDDAPPA TALAWAR
      @ KOLI,
      AGE: 65 YEARS,
      OCC: AGRICULTURE, R/O. ATHANI,
      LATER ON STAYED AT NEAR GODE WELL
      SHIROL-416103, DIST:KOLHAPUR,
      NOW R/AT: KALLUTTI-591304
      TQ: ATHANI, DIST: BELGAUM.

10.   SHRI. ANNAPPA LAKKAPPA BIRADAR
      PATIL,
      AGE: 65 YEARS,
      OCC: AGRICULTURE,
      R/O. TEERTHA - 591304
      TQ: ATHANI
      DIST: BELGAUM.

11.   APPASAHEB DHARIGOUDA PATIL
      SINCE DECEASED BY HIS LRS.,
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                                         RSA No. 5863 of 2013
                                   C/W RSA No. 100172 of 2014



11 A.   SMT. LAXMIBAI W/O. DHARIGOUDA PATIL,
        AGED ABOUT 77 YEARS, OCC: HOUSEHOLD,
        R/O. TEERTHA,
        TQ: ATHANI, DIST: BELGAUM.

12 B.   KUMARI AKSHATA, D/O. APPASAHEB PATIL,
        AGED ABOUT 17 YEARS,
        OCC: STUDENT,
        R/O. TEERTHA, TQ: ATHANI
        DIST: BELGAUM
        BEING REP., BY HER NEXT FRIEND
        NATURAL GRAND MOTHER
        SMT. LAXMIBAI W/O. DHARIGOUDA PATIL

11C.    KUMARI ANUSHA, D/O. APPASAHEB PATIL,
        AGED ABOUT 15 YEARS, OCC:STUDENT,
        R/O: TEERTHA,
        ATHANI TALUK, BELAGAVI DISTRICT,
        BEING REP., BY HER NEXT FRIEND
        NATURAL GRAND MOTHER
        SMT. LAXMIBAI W/O. DHARIGOUDA PATIL.

11D.    KUMARI LAVANYA
        D/O. APPASAHEB PATIL,
        AGED ABOUT 15 YEARS,
        OCC: STUDENT R/O. TEERTHA
        TQ: ATHANI, DIST: BELGAUM
        BEING REP., BY HER NEXT FRIEND
        NATURAL GRAND MOTHER
        SMT.LAXMIBAI W/O. DHARIGOUDA PATIL.

                                               ...RESPONDENTS
(BY SRI. SANGRAM S. KULKARNI, ADVOCATE FOR R1 TO R3;
SRI. VISHWANATH V. BADIGER, ADVOCATE FOR R4 TO R9;
SRI. S.S. SAJJAN, ADVOCATE FOR R10 & R11 (A) TO R11(D)

     THIS RSA IS FILED UNDER SECTION 100 R/W ORDER XLII
RULE 1 CPC., PRAYING TO SET ASIDE THE JUDGMENT AND DECREE
DATED 24.10.2013 PASSED BY THE VII ADDITIONAL DISTRICT &
SESSIONS JUDGE, BELAGAVI AT CHIKODI IN R.A.NO.185/2008 AND
ALLOW THIS APPEAL WITH COSTS THROUGHOUT BY DISMISSING
THE SUIT IN O.S.NO.1/1995 ON THE FILE OF CIVIL JUDGE AND
ASSTT. SESSIONS JUDGE, ATHANI BY SETTING ASIDE JUDGMENT
AND DECREE DATED 23.07.2008.
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                                          NC: 2024:KHC-D:16810
                                         RSA No. 5863 of 2013
                                   C/W RSA No. 100172 of 2014



      THESE APPEALS COMING ON FOR FURTHER HEARING THIS
DAY, THE COURT DELIVERED THE FOLLOWING:

CORAM:   THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

                       ORAL JUDGMENT

1. RSA No.100172/2014 is arising from the divergent

finding in a suit for specific performance. The Trial

Court decreed the suit for alternative relief of refund

of the earnest amount. On an appeal by the

plaintiffs, the first Appellate Court decreed the suit

by allowing the appeal and granted a decree for

specific performance. Hence RSA 100172/2014 is

filed by defendants No.5 and 6. RSA No.5863/2013

is filed by defendants No.3 and 4 in the very same

suit.

2. Certain admitted facts are as under:

2.1. On 02.12.1975, the Land Tribunal, Athani,

granted occupancy right in favour of defendant

No.1-Laxman and his brother Ramappa alias

Ramu. On 12.10.1976, Form No.10 was issued

pursuant to the order passed by the Land

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NC: 2024:KHC-D:16810

Tribunal. On 30.08.1990, husband of plaintiff

No.1 and father of plaintiffs No.2 and 3 entered

into an agreement to purchase the property

from defendants No.1 and 2, for a consideration

of Rs.1,04,000/-. The plaintiffs claim that

advance consideration amount of Rs.50,000/-

was paid at the time of execution of the

agreement. The agreement enabled the

purchasers to purchase the property after

expiry of 15 years non-alienation clause

imposed by the Land Tribunal while issuing

Form No.10.

2.2. The purchaser-Bhimappa Chimmad, the

predecessor of the plaintiffs died on

03.03.1993.

2.3. Defendants No.3 to 6 were later impleaded as

the parties to the proceedings, as they had

purchased the suit property. On 02.08.1994,

appellant No.2/defendant No.4 purchased

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13/16th share out of 8-Acres in Sy.No.167/1

from respondent No.4/defendant No.2 and his

brother Laxman. On the very same day,

appellant No.1/defendant No.3 purchased

3/16th share out of 8-Acres in the very same

survey number from Laxman and his brother

Dundappa (defendant No.2).

2.4. The plaintiffs filed a suit on 02.12.1994 seeking

specific performance of contract against

vendors and the purchasers from the vendors.

The vendors did not file written statement. The

purchasers filed written statement.

2.5. The execution of agreement for sale was

disputed. It was contended that the properties

are already sold to defendants No.3 to 6 and it

is contended that the purchasers are bonafide

purchasers.

2.6. The Trial Court held that execution of

agreement is proved. It is also held that

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NC: 2024:KHC-D:16810

plaintiffs have paid Rs.50,000/- and

Rs.24,000/- is paid by the plaintiffs predecessor

on two different dates to purchase the property.

However, relief for specific performance is not

granted on the premise that plaintiffs were not

ready and willing to perform their part of

contract. The alienation in favour of defendants

No.3 to 6 is also held to be valid and trial Court

granted a decree for refund of the earnest

consideration amount.

2.7. In an appeal in R.A.No.185/2008 on the file of

VII Additional District Belagavi (sitting at

Chikkodi), by allowing the appeal First

Appellate Court concluded that plaintiffs are

entitled to a decree for specific performance

and accordingly, decree passed by the trial

Court is modified and decree for specific

performance is granted.

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NC: 2024:KHC-D:16810

2.8. Aggrieved by the aforementioned judgment and

decree, defendants-purchasers are before this

Court.

2.9. Since, there are two different purchasers, two

appeals are filed before this Court.

3. These appeals are admitted on 29.09.2020 to

consider the following substantial question of law.

i) Whether the first appellate Court was justified in reversing the order of the trial Court and directing the execution of the sale deed notwithstanding the agreement entered into between the parties on 30.08.1990 was hit by the rigorous of sub-Section (1) and (3) of Section 61 of the Karnataka Land Reforms Act, 1961, which imposes statutory bar on all kinds of alienation, during the non-alienation period of a granted land of 15 years from the date of grant, which was 12.12.1976?

ii) Whether the first appellate Court was justified in directing registration of the

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sale deed in favour of the plaintiffs reversing the judgment of the trial Court, contrary to Section 16(c) of the Specific Relief Act, 1963?

iii) Whether the agreement of sale entered into between the parties on 23.11.1990 during the subsistence of the non-alienation clause was opposed to public policy and unenforceable, as it was hit by Section 23 of the Indian Contract Act, 1872 and contrary to Section 61 of the Karnataka Land Reforms Act, 1961?

4. Learned counsel appearing for defendants-

purchasers in both appeals jointly submit that Land

Tribunal granted occupancy right in respect of the

subject matter of the suit on 02.12.1975. Section 61

of the Karnataka Land Reforms Act, 1961 ('Act of

1961' for short) prohibited alienation of the property

for 15 years from the date of the order of Land

Tribunal. 15 years non-alienation period would expire

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on 01.12.1990. However, plaintiffs are claiming right

to purchase the property under the agreement dated

30.08.1990, executed within 15 years from the date

of order of Land Tribunal. The agreement being

illegal is not enforceable.

5. Learned counsel for the appellants would place

reliance on the judgment of Hon'ble Apex Court in

the case of Narayanamma and Another Vs.

Govindappa and Others (2019 SCC Online SC

1260).

6. On 16.11.2021, an application in I.A.1/2021 is filed

in RSA No.5863/2013 to frame thee additional

substantial questions of law, which are as under:

IV] Whether entering into agreement of sale during alienation period could amount transfer of granted land in violation restrictions-imposed under section 61(1) of the Karnataka Land reforms Act the said agreement shall become invalid whereby the suit property shall vest in the state government automatically the state

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government can dispose off the same section 77 of Karnataka Land Reforms Act, 1961?

V] Whether agreement of sale with or without possession confers any title or transfers any interest in the immovable property and fulfill all the requirements of sections 54 & 55 the Transfer of Property Act?

VI] Whether agreement of sale transactions are transfers or sales and that such transactions can be treated as completed transfers or conveyances when the only right available to the agreement holder is to seek the relief of specific performance in terms of the agreement?

7. Sri.Sangram S. Kulkarni, learned counsel appearing

for the plaintiffs would contend that, the agreement

for sale is not a transfer. What is prohibited under

Section 61 of the Act of 1961 is only a transfer of the

property before expiry of 15 years. This agreement

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for sale is no violation of Section 61 of the Act of

1961.

8. It is also urged that in case the agreement is held to

be hit by Section 61 of the Act of 1961, by operation

of Section 61(3) of the Act, of 1961 the property

should vest with the State and the appellants will

also not acquire any right over the property.

9. This Court has considered the judgment in

Narayanamma (supra). In the said case, the

Hon'ble Apex Court has dealt with Section 61 of Act

of 1961 and has held that, agreement for sale

executed before expiry of 15 years non-alienation

clause contemplated under Section 61 of Act of

1961, is illegal agreement and a party relying on the

illegal agreement cannot seek equitable relief of the

specific performance of contract.

10. Though, the agreement for sale without possession is

not a transfer of property, under the agreement the

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plaintiffs claims to have taken possession. Thus, the

plaintiffs cannot urge that the agreement is not an

agreement evidencing transfer. This being the

position, this Court is of the view that the substantial

question of law relating to validity of the agreement

for law under Section 61 of the Act of 1961 is

squarely covered in terms of the law laid down in the

case of Narayanamma (supra). And the Court need

not answer other questions.

11. Defendant No.5 has purchased the portion of the

property on 02.08.1994 and defendant No.5 has

purchased another portion of the property on

13.08.1996. The first sale deed would reveal that

the property is purchased after the permission is

granted by the Assistant Commissioner, Chikkodi,

vide order dated 29.07.1994, It is also relevant to

note that, once 15 year non-alienation period under

Section 61 of the Reforms Act expires, there is no

need to obtain any permission. Nevertheless there is

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already a permission in favour of defendant No.3 to

purchase portion of the suit property.

12. This being the position, this Court is of the view that the

contention of the plaintiffs that, in case the Court holds

that the agreement of sale is invalid because of violation

of Section 61 of the Act, 1961 then the properties should

vest in the Government cannot be accepted. The alleged

agreement of sale in favour of the plaintiffs was not

within the knowledge of the Government and the same

was also not within the knowledge of the purchasers.

Added to that, the Government itself has granted

permission to defendant No.3 to purchase the property.

Hence, the contention relating to vesting of land because

of violation under Section 61 of the Reforms Act cannot

be accepted to penalise the purchasers who had no

knowledge of the agreement for sale.

13. Though the agreement is held to be invalid because

of Section 61 of the Reforms Act, in view of the law

laid down in the case of Narayanamma (supra),

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what is also required to be noticed is execution of the

agreement for sale is proved. The agreement would

reveal that the plaintiffs have paid the advance

consideration amount as specified in the agreement

and defendants No.1 and 2 have received the

aforementioned consideration amount. Accordingly,

defendants No.1 and 2 have to refund the

consideration amount along with interest.

14. It is forthcoming that Rs.74,000/- is paid by the

plaintiffs to defendants No.1 and 2. It is also noticed

that the plaintiffs have deposited the balance

consideration amount before the Trial Court. Since

the suit for specific performance is not maintainable

in view of the law laid down in the case of

Narayanamma (supra), the plaintiffs are entitled for

refund of the amount deposited before the Trial

Court along with interest if the same is kept in a

bank deposit.

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15. The plaintiffs are also entitled to refund of advance

consideration amount of Rs.74,000/- along with

interest at the rate of 18% p.a. from the date of

agreement till payment.

16. Defendants No.1 and 2 are also liable to pay cost of

the suit as well as the appeal.

17. Hence the following:

ORDER

i. Both the appeals are allowed.

ii. The judgment and decree dated 24.10.2013

passed in R.A.No.185/2018 on the file of the

VIII Additional District and Sessions Judge,

Belagavi, reversing the judgment and decree

dated 23.07.2008 passed by the Senior Civil

Judge, Athani in O.S.No.1/1995, are set

aside.

iii. The suit of the plaintiffs is decreed in part.

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NC: 2024:KHC-D:16810

iv. Plaintiffs are entitled to receive Rs.74,000/-

from defendants No.1 and 2 along with

interest at the rate of 18% p.a. from the

date of agreement. Plaintiffs are also

entitled to cost of the suit as well as this

appeal from the Legal Representatives of

defendants No.1 and 2.

v. The Trial Court shall release the amount

deposited by the plaintiffs in favour of the

plaintiffs, along with interest if the amount is

kept in a bank deposit.