Citation : 2025 Latest Caselaw 6068 Kant
Judgement Date : 11 June, 2025
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF JUNE 2025
PRESENT
THE HON'BLE MR. JUSTICE S. G. PANDIT
AND
THE HON'BLE MR. JUSTICE T.M.NADAF
REGULAR FIRST APPEAL NO.2084/2010 (MON)
BETWEEN:
SRI V.K. RAMEGOWDA
S/O LATE KALEGOWDA
SINCE DECEASED BY HIS LR'S
(A) SMT. SOUBHAGYAMMA
W/O LATE V.K. RAMEGOWDA
AGED ABOUT 60 YEARS
(B) SRI R SATISH
S/O LATE V.K. RAMEGOWDA
AGED ABOUT 42 YEARS
(C) SMT. R PUSHPALAKSHMI @ R NANDA
D/O LATE V.K. RAMEGOWDA
W/O KRISHNAMURTHY
AGED ABOUT 39 YEARS
ALL ARE RESIDING AT NO.38
M.I.G., 80 FEET ROAD
2
KENGERI SATELLITE TOWN
BANGALORE-560060.
... APPELLANTS
(BY SRI. RAJESH MAHALE, SR. ADV. A/W
SRI PARIKSHITH MALIYE, ADV. FOR
SRI G NARAYANA RAO, ADV.)
AND:
1. SRI T SHANKARA
S/O SRI CHIKKATHIMMEGOWDA
AGED ABOUT 58 YEARS
2. VIVEK
S/O SRI T SHANKAR
AGED ABOUT 26 YEARS
3. KUMARI. POOJA
D/O SRI T SHANKAR
AGED ABOUT 24 YEARS
4. KUMARI. TEJASWINI
D/O SRI T SHANKAR
AGED ABOUT 18 YEARS
ALL ARE RESIDING AT NO.65
VANIVILAS ROAD
BASAVANAGUDI
BANGALORE-560004.
5. THE SUB-REGISTER
OFFICE OF THE SUB-REGISTER
KANAKAPURA
RAMANAGARA DISTRICT.
...RESPONDENTS
(BY SRI GOPALA GOWDA H.K., ADV. FOR R1 TO R4)
3
THIS APPEAL IS FILED UNDER SECTION 96 OF CPC,
AGAINST THE JUDGMENT AND DECREE DATED 15.08.2010
PASSED IN O.S.92/2008 ON THE FILE OF THE ADDL.
SENIOR CIVIL JUDGE, RAMANAGARA, PARTLY DECREEING
THE SUIT AND REJECTING THE PRAYER FOR RELIEF OF
SPECIFIC PERFORMANCE OF CONTRACT.
THIS APPEAL HAVING BEEN HEARD AND RESERVED
ON 03.06.2025 COMING ON FOR PRONOUNCEMENT THIS
DAY, S.G.PANDIT J., DELIVERED THE FOLLOWING:
CORAM: HON'BLE MR JUSTICE S.G.PANDIT
and
HON'BLE MR JUSTICE T.M.NADAF
CAV JUDGMENT
(PER: HON'BLE MR JUSTICE S.G.PANDIT)
This first appeal by the plaintiff under Section 96
of the Code of Civil Procedure, 1908 is directed
against the judgment and decree dated 15.09.2010 in
O.S.No.92/2008 on the file of Additional Senior Civil
Judge at Ramanagara (for short, 'Trial Court'), by
which, the Trial Court directed refund of Rs.5,00,000/-
with interest at 12% p.a., refusing the relief of specific
performance of contract against the respondents/
defendants.
2. Parties would be referred to as they stand
before the Trial Court. Appellant herein was the
plaintiff and respondents herein were defendants
before the Trial Court.
3. Brief facts of the case are that, defendant
No.1 is the absolute owner of the agricultural lands
i.e., suit schedule properties and in the month of
February 2006, defendant No.1 approached the
plaintiff with a proposal to sell the suit schedule
properties on his behalf as well as on behalf of
defendant Nos.2 to 4. Accordingly, it is stated that the
plaintiff and defendants entered into sale agreement
dated 27.02.2006 for a sale consideration of
Rs.36,00,000/-, out of which, plaintiff paid to
defendants an amount of Rs.5,00,000/- through
cheque bearing No.597750/- drawn on Canara Bank,
Chamarajapet Branch, Bengaluru dated 24.02.2006,
which was realized by defendant No.1. It is further
stated that the agreement of sale dated 27.02.2006
was signed by plaintiff and defendant No.1 and the
agreement was not signed by defendant Nos.2 to 4.
The plaint averments would further indicate that the
plaintiff in the month of April 2006 requested
defendant No.1 to produce the original documents
pertaining to the suit schedule properties so as to get
the sale deed registered. But, the defendants replied
that the original sale deeds in respect of the suit
schedule properties have been lost and requested him
to proceed further on the basis of certified copies. As
such, the plaintiff got published paper publication in
'Ee Sanje' Kannada daily newspaper on 25.06.2006,
his intention to purchase the properties and with
regard to loss of title deeds by the defendants.
Further, it is stated that a legal notice came to be
issued by defendant Nos.2 to 4 dated 05.08.2006,
informing the plaintiff not to purchase the suit
schedule properties from defendant No.1 since they
have interest in the suit schedule properties.
4. The plaint averments would also state that
the suit schedule properties were acquired by
defendant No.1 in his individual capacity, out of his
self-earnings and it is not the joint family properties
as indicated by defendant Nos.2 to 4 in their legal
notice. At that juncture, plaintiff is said to have asked
defendant No.1 to get the signatures of defendant
Nos.2 to 4 and defendant No.1 expressed his inability
to get the signatures of defendant Nos.2 to 4 on the
sale agreement. It is stated that the plaintiff has not
committed any breach of terms and conditions of the
sale agreement and plaintiff was always ready and
willing to comply with all the terms and conditions of
the sale agreement.
5. Plaintiff further stated that he got issued
legal notice on 10.08.2006 by Registered Post
Acknowledgement Due to defendant Nos.1 to 4 to
perform their part of obligation under the sale
agreement dated 27.02.2006, as the plaintiff is ready
and willing to perform is part of contract. The said
notice returned un-served with postal endorsement
that 'person left the address' and the plaintiff is stated
to have got published notice through paper publication
in 'Ee Sanje' Kannada Daily Newspaper. It is further
stated that the legal notice dated 10.08.2006
categorically states the readiness and willingness of
the plaintiff to take the conveyance deed and it also
states that the defendants have not made available
the relevant documents including title deeds even
after notice. As the defendants tried to alienate the
properties to one Sri.Brahmaiah, plaintiff was
constrained to file a suit in O.S.No.402/2006 on the
file of the Civil Judge (Jr.Dvn)., Kanakapura for
injunction not to alienate the properties during the
subsistence of the agreement to sell the suit schedule
properties. Plaintiff further submits that defendants
were required to produce the title deeds and revenue
records and get the boundaries fixed by the Survey
Department and also to get the necessary rectification
deed which they failed to do. As the defendants failed
to perform their part of the contract, plaintiff filed suit
in O.S.No.92/2008 against the defendants for a
direction to the defendants to execute and register the
absolute sale deed in favour of the plaintiff in respect
of the suit schedule properties.
6. The defendant No.1 on appearance is said
to have filed written statement denying the execution
of sale agreement in favour of the plaintiff, but
admitted the relationship of defendant Nos.2 to 4 who
are his children. It is contended that the plaintiff has
created the agreement of sale in order to knock off
the properties from the defendants.
7. The Trial Court on the basis of the
pleadings of the parties framed the following issues:
1) Does the plaintiff proves that, the defendants have agreed to sell the suit schedule properties for sale consideration of Rs.36 Lakhs and that, defendant No.1 has executed an agreement of sale on 27th February 2006 and received a sum of Rs.5 Lakhs from the plaintiff as stated in the plaint?
2) Does the plaintiff proves that he was ready and willing to perform his part of contract?
3) Whether the plaintiff is entitled for the
relief of specific performance of
contract?
4) What order or decree?
8. The plaintiff examined himself as PW1 and
got marked 23 documents as Ex.P1 to Ex.P23. The
defendants have neither led any evidence or cross-
examined PW1.
9. The Trial Court on appreciation of the
material on record has given a finding that the plaintiff
would not be entitled for the relief of specific
performance of contract since defendant Nos.2 to 4
cannot be called upon to execute the sale deed in the
absence of any contract. Consequently, the Trial Court
directed refund of Rs.5,00,000/- with interest at the
rate of 12% p.a., to the plaintiff from the date of suit
till realization.
10. Learned counsel for the respondents/
defendants submitted that in pursuance of the decree,
the defendants have deposited a sum of Rs.8,05,000/-
before the Trial Court on 03.09.2013 itself.
11. Heard the learned senior counsel Sri.Rajesh
Mahale along with learned counsel Sri.Parikshith
Maliya for Sri.G.Narayana Rao, learned counsel for the
plaintiff, learned counsel Sri.Gopala Gowda.H.K., for
respondent Nos.1 to 4 and learned Additional
Government Advocate Sri.V.Shiva Reddy for
respondent No.5. Perused the entire appeal papers as
well as Trial Court records.
12. Learned senior counsel Sri.Rajesh Mahale
for plaintiff/appellant would submit that the Trial Court
committed grave error in not granting the relief of
specific performance of contract while ordering refund
of earnest money of Rs.5,00,000/- with interest to the
plaintiff. Learned senior counsel would submit that
when the Trial Court has come to the conclusion that
the plaintiff has proved the agreement of sale dated
27.02.2006 (Ex.P1) and also receiving of
Rs.5,00,000/- as advance by defendant No.1 and in
the absence of contest by the defendants except filing
written statement by defendant No.1, the Trial Court
ought to have granted the relief of specific
performance of contract. Learned senior counsel
submits that Ex.P10 and Ex.P11 are placed on record
under which, defendant No.1 had purchased the suit
schedule properties to establish that the suit schedule
properties are the self-earned properties of defendant
No.1 and he is competent to enter into agreement of
sale in respect of the suit schedule properties, who
has signed Ex.P1 agreement of sale. Learned senior
counsel would submit that the Trial Court could not
have refused the relief of specific performance of
contract solely on the ground that the defendant
Nos.2 to 4 have not signed the agreement who
claimed interest in the suit schedule properties.
13. Further, learned senior counsel would
submit that defendant Nos.2 to 4 have not filed any
written statement and have neither led their evidence
nor cross-examined PW1. In the absence of any
material to establish their interest or undivided
interest in the suit schedule properties, the Trial Court
could not have refused the relief to the plaintiff.
Further, it is submitted that defendant Nos.2 to 4
have no manner of right over the suit schedule
properties. Learned senior counsel would invite
attention of this Court to legal notice dated
10.08.2006 (Ex.P13) and submits that the plaintiff got
issued legal notice calling upon the defendants to
come forward to execute the sale deed and that the
plaintiff is ready and willing to perform his part of the
contract. Learned senior counsel would submit that in
the notice, plaintiff has made it clear that the plaintiff
is ready to pay the balance sale consideration amount
of Rs.31,00,000/- and to get the sale deed registered
in respect of the suit schedule properties. When the
plaintiff has clearly indicated in his notice that he is
ready to pay the balance sale consideration amount of
Rs.31,00,000/-, the plaintiff need not further establish
his financial capacity, that too in the absence of
contest or cross-examination in that aspect by the
defendants. Thus, it is prayed to allow the appeal and
to grant the relief of specific performance of
agreement at Ex.P1.
14. On the other hand, learned counsel for the
defendants support the judgment and decree passed
by the Trial Court. Further, learned counsel for the
defendants would submit that the defendant No.1
could not have entered into agreement to sell the suit
schedule properties in favour of the plaintiff and that
defendant Nos.2 to 4 by issuing legal notice to the
plaintiff made it clear that defendant No.1 cannot sell
the suit schedule properties. Further, learned counsel
submits that at any point of time, plaintiff was not
ready and willing to perform his part of the contract.
Except making averment that he is ready to pay the
balance sale consideration, he has not produced any
document to establish his financial capacity to pay the
balance sale consideration. Further, learned counsel
would submit that though the legal notice was issued
in the year 2006 calling upon the defendants to
execute registered sale deed, the suit was filed only in
the year 2008, which itself is sufficient to come to the
conclusion that the plaintiff was not ready and willing
to perform his part of the contract during the relevant
period. Thus, he prays for dismissal of the appeal.
15. Having heard the learned counsel for the
parties and on perusal of the appeal papers as well as
the Trial Court records, the following points would
arise for our consideration:
(i) Whether the plaintiff proves the execution of agreement of sale dated 27.02.2006 (Ex.P1) by defendant No.1 and the payment of Rs.5,00,000/- by plaintiff as advance?
(ii) Whether the plaintiff was ready and willing to perform his part of the contract?
(iii) Whether interference is required with the impugned judgment and decree at the hands of this Court?
15. Answer to the above point No.1 in the
affirmative and point Nos.2 and 3 in the negative, for
the following reasons:
16. Since all the points are interlinked, the
same are taken up together.
17. The plaintiff's prayer is for a direction to
the defendants to execute sale deed in respect of the
suit schedule properties on the basis of agreement of
sale dated 27.02.2006 (Ex.P1) executed by defendant
No.1, the father of defendants No.2 to 4. In terms of
Ex.P1, the sale agreement dated 27.02.2006, the sale
consideration is Rs.36,00,000/- and it also indicates
payment of Rs.5,00,000/- towards advance amount
by way of cheque bearing No.597750 dated
24.02.2006 drawn on Canara Bank, Chamarajapet
Branch, Bengaluru. The said cheque is said to have
been realized by defendant No.1, whereas the plaintiff
was liable to pay balance sale consideration of
Rs.31,00,000/- at the time of registration of sale
deed, on completion of other formalities. Ex.P10 and
Ex.P11/sale deeds would indicate that defendant No.1
purchased the suit schedule properties and it is his
self-acquired property. Defendant Nos.2 to 4 have
admittedly not signed Ex.P1/Agreement of sale, but
they claimed interest in the suit schedule properties.
The defendants 2 to 4 got issued notice dated
05.08.2006 communicating their objection for
sale/purcahse of suit schedule properties by plaintiff.
Admittedly, defendants 2 to 4 have not filed their
written statement and they have also not cross-
examined P.W.1/plaintiff. There is no material
whatsoever to support their contention. Though
defendant No.1 in his written statement denied the
execution of Ex.P1/Agreement of sale, no evidence is
adduced in support of his contention. In the absence
of cross-examination or leading evidence to
substantiate their contentions, the case of the plaintiff
with regard to execution of agreement of sale and
payment of advance amount of Rs.5,00,000/- through
Cheque which is realized by defendant No.1 is to be
believed and it is held that the plaintiff has proved
execution of Ex.P1/agreement of sale dated 27.2.2006
as well as payment of advance amount of
Rs.5,00,000/-.
18. Learned senior counsel for the
plaintiff/appellant contended that the trial court
committed a grave error in not granting specific
performance of agreement, directing the defendants
to execute the sale deed in favour of the plaintiff. It is
also submitted that only on the ground that
defendants No.2 to 4 have not signed the agreement,
the trial Court could not have denied the relief of
specific performance.
19. It is true that when defendant No.1 is the
owner of suit schedule properties, having purchased
under Ex.P10 and Ex.P11 sale deeds, only because
defendants No.2 to 4 have not signed Ex.P1/
agreement to sell, the trial Court could not have
denied the relief of specific performance. But, this
Court being fact finding Court in statutory first appeal
has to examine whether the plaintiff was always ready
and willing to perform his part of the contract and
whether the plaintiff has established his financial
capacity to pay the balance sale consideration. Unless
the plaintiff proves his readiness and willingness to
perform his part of contract by producing cogent
material, the plaintiff would not be entitled for relief of
specific performance. Merely because, the defendants
have not cross-examined the plaintiff on that aspect
and that the defendants have not lead their evidence,
let alone would not entitle the plaintiff for relief of
specific performance in the absence of proving his
readiness and willingness to perform his part of the
contract. In the absence of leading evidence by
defendants and cross-examining PW.1., Court has
responsibility and duty bound to examine as to
whether the plaintiff was ever ready and willing to
perform his party of contract in view of Section 16(c)
of the Specific Relief Act, 1963. In terms of Ex.P1,
agreement to sell dated 27.02.2006, the plaintiff has
paid a sum of Rs.5,00,000/- to defendant No.1 out of
sale consideration of Rs.36,00,000/-. Major amount
of Rs.31,00,000/- was due from the plaintiff to the
defendants towards sale consideration.
20. The plaintiff in his legal notice placed on
record as Ex.P13 has averred that from the date of
sale agreement till issuance of notice at Ex.P13, the
plaintiff is ready to pay the balance sale consideration
amount of Rs.31,00,000/- and to get the sale deed
executed. The plaintiff has not established his
financial capacity or indicated his financial capacity as
on the date of Ex.P13 or subsequently. As held by the
Hon'ble Apex Court, readiness and willingness are not
one, but two separate elements. Readiness means,
capacity of the plaintiff to perform the contract which
would include financial position to pay the purchase
price, whereas the willingness refers to the intention
of the plaintiff, as a purchaser to perform his part of
the contract.
21. In the instant case, except stating that he
is ready to pay the balance sale consideration amount
of Rs.31,00,000/- which is substantial amount as on
2006, the plaintiff has failed to establish his financial
capacity to pay the balance sale consideration. The
plaintiff in his evidence has not uttered a single word
about his financial capacity or placed on record any
document to indicate his financial position.
Establishing financial position or financial capacity
would not mean that the plaintiff shall keep ready the
cash or amount in his account as on the relevant date,
establishing the financial capacity.
22. Financial position would mean that the
plaintiff/purchaser has to establish that he has the
capacity to garner the necessary finance or balance
sale consideration as on the relevant date.
23. The Hon'ble Apex Court in a decision
reported in (2022) 14 SCC 793 in the case of
P.DAIVASIGAMANI VS. S.SAMBANDAN while
considering Section 16(c) of the Specific Relief Act,
1963 explained the meaning of readiness and
willingness. Readiness would mean that capacity of
plaintiff to perform the contract which would include
financial position to pay the purchase price and
willingness refers to the intention of plaintiff as a
purchaser to perform his part of contract including the
conduct of plaintiff/purchaser and attending
circumstances. Relevant paragraphs 21 and 22 of the
above decision reads as follows:
"21. Readiness and willingness are not one, but two separate elements. Readiness means the capacity of the plaintiff to perform the contract, which would include the financial
position to pay the purchase price. Willingness refers to the intention of the plaintiff as a purchaser to perform his part of the contract. Willingness is inferred by scrutinising the conduct of the plaintiff purchaser, including attending circumstances [See para 2 in Ganesh Dassji v. Sita Ram Thapar, (1996) 4 SCC 526]. Continuous readiness and willingness on the part of the plaintiff purchaser from the date the balance sale consideration was payable in terms of the agreement to sell, till the decision of the suit, is a condition precedent for grant of relief of specific performance [See para 5 in N.P. Thirugnanam v. R. Jagan Mohan Rao, (1995) 5 SCC 115. Also see Ardeshir Mama v. Flora Sassoon, 1928 SCC OnLine PC 43 : (1927-28) 55 IA 360 : AIR 1928 PC 208].
22. The expression "readiness and willingness" used in Section 16(c) of the said Act, has been interpreted in a catena of decisions by this Court, in the light of facts and circumstances of the cases under consideration for the purpose of granting or refusing to grant the relief of specific performance of a contract. The said expression cannot be interpreted in a
straitjacket formula. In a very apt decision of this Court in Syed Dastagir v. T.R. Gopalakrishna Setty [Syed Dastagir v. T.R. Gopalakrishna Setty, (1999) 6 SCC 337] , a three-Judge Bench of this Court, construing a plea of "readiness and willingness to perform"
in view of the requirement of Section 16(c) and its Explanation, observed as under : (SCC p. 341, para 9)
"9. So the whole gamut of the issue raised is, how to construe a plea specially with reference to Section 16(c) and what are the obligations which the plaintiff has to comply with in reference to his plea and whether the plea of the plaintiff could not be construed to conform to the requirement of the aforesaid section, or does this section require specific words to be pleaded that he has performed or has always been ready and is willing to perform his part of the contract. In construing a plea in any pleading, courts must keep in mind that a plea is not an expression of art and science but an expression through words to place fact and
law of one's case for a relief. Such an expression may be pointed, precise, sometimes vague but still it could be gathered what he wants to convey through only by reading the whole pleading, depending on the person drafting a plea. In India most of the pleas are drafted by counsel hence the aforesaid difference of pleas which inevitably differ from one to the other. Thus, to gather true spirit behind a plea it should be read as a whole. This does not distract one from performing his obligations as required under a statute. But to test whether he has performed his obligations, one has to see the pith and substance of a plea. Where a statute requires any fact to be pleaded then that has to be pleaded may be in any form. The same plea may be stated by different persons through different words; then how could it be constricted to be only in any particular nomenclature or word. Unless a statute specifically requires a plea to be in any particular form, it can be in any form. No specific phraseology or language is required to take such a plea. The language
in Section 16(c) does not require any specific phraseology but only that the plaintiff must aver that he has performed or has always been and is willing to perform his part of the contract. So the compliance of "readiness and willingness"
has to be in spirit and substance and not in letter and form. So to insist for a mechanical production of the exact words of a statute is to insist for the form rather than the essence. So the absence of form cannot dissolve an essence if already pleaded.
(vii). In terms of Section 16-(c) of Specific Relief Act, 1963, readiness and
willingness on the part of the plaintiff is a condition precedent for grant of specific performance of agreement. Unless and until the plaintiff proves by producing cogent evidence that he was always ready and willing to perform his part of the contract from the date of entering into agreement till conclusion of the suit, the plaintiff would not be entitled for relief of specific performance. The readiness and willingness to perform his part of
the contract shall be throughout. The readiness refers to the financial capacity and willingness refers to conduct of the plaintiff to perform his part of the contract."
24. The material on record would not remotely
suggest readiness and willingness on the part of the
plaintiff to perform his part of the contract i.e., to pay
the balance sale consideration. The plaintiff at least
shall show his inclination to get the sale deed
executed by offering to pay the balance sale
consideration by showing his financial status or he had
the capacity to garner required balance sale
consideration. It is not the case of the plaintiff that he
was ready with the balance sale consideration. On the
hand, the only averment in Ex.P13 notice dated
10.08.2006 is to the effect that the plaintiff is ready to
pay the balance sale consideration. However, PW1 has
not adduced anything about the willingness or
financial capacity in his evidence.
25. It is also settled position of law that the
plaintiff has to succeed on his own merits not on the
weakness of the defendant. In the above
circumstances, this Court on the material on record
has come to the conclusion that the plaintiff was not
ready and willing to perform his part of the contract to
pay the balance sale consideration. Moreover,
Ex.P13-notice is dated 10.08.2006 whereas the plaint
is presented before the trial Court only on 24.03.2008,
nearly 2 years later from the date of issuance of legal
notice, which itself shows the plaintiff's interest or
readiness and willingness in getting the sale deed
executed.
26. For the reasons recorded above, there is no
merit in any of the contentions raised by the
plaintiff/appellant. Hence, the following order:
The appeal stands dismissed. The judgment and
decree dated 15.09.2010 in O.S.No.92/2008 on the
file of Additional Senior Civil Judge at Ramanagara
stands confirmed.
Sd/-
(S.G.PANDIT) JUDGE
Sd/-
(T.M.NADAF) JUDGE MPK/NC CT: bms
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