High Court of Karnataka Dismisses Appeal in Specific Performance Suit — Upholds Trial Court Decree for Execution of Sale Deed. Agreement of Sale Dated 02.08.2007 Proved by Plaintiff; Defendants Failed to Discharge Burden of Proof Under Section 16(c) of Specific Relief Act, 1963.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The appellants (defendants) challenged the judgment and decree dated 20.10.2012 passed by the Senior Civil Judge, Channarayapatna, in O.S. No. 4/2008, which decreed the suit for specific performance in favor of the respondent (plaintiff). The suit was based on an agreement of sale dated 02.08.2007 executed by the defendants in favor of the plaintiff for a total consideration of Rs. 1,50,000/-, out of which Rs. 1,20,000/- was paid as advance. The plaintiff alleged that despite her readiness and willingness to pay the balance amount and get the sale deed executed, the defendants failed to perform their part and later denied the agreement. The defendants denied the execution of the agreement and contended that the suit was barred by limitation and that they had perfected title by adverse possession. The trial court decreed the suit, directing the defendants to execute the registered sale deed. On appeal, the High Court framed issues regarding the proof of the agreement, readiness and willingness of the plaintiff, limitation, and adverse possession. The court analyzed the evidence, including the testimony of the plaintiff and an attesting witness, and found that the plaintiff had proved the execution of the agreement and her readiness and willingness. The court also held that the suit was within limitation and that the defendants failed to prove adverse possession. Consequently, the appeal was dismissed, and the trial court's decree was affirmed.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Burden of Proof - Readiness and Willingness - In a suit for specific performance, the plaintiff must prove readiness and willingness to perform her part of the contract throughout the period from the date of agreement till the decree. The plaintiff's consistent conduct and evidence of financial capacity can discharge this burden. (Paras 10-15)

B) Specific Relief Act, 1963 - Section 20 - Discretionary Relief - Delay and Laches - The court may refuse specific performance if there is undue delay or laches on the part of the plaintiff. However, mere passage of time without prejudice to the defendant does not bar relief if the plaintiff was always ready and willing. (Paras 16-18)

C) Limitation Act, 1963 - Article 54 - Suit for Specific Performance - Limitation period of three years from the date fixed for performance, or if no date is fixed, from the date of notice of refusal. The suit filed within three years from the date of agreement is within limitation. (Para 19)

D) Evidence Act, 1872 - Section 68 - Proof of Execution of Document - When a document is required by law to be attested, its execution must be proved by at least one attesting witness if alive and subject to process. The plaintiff examined one attesting witness to prove the agreement of sale. (Para 12)

E) Transfer of Property Act, 1882 - Section 54 - Sale - Agreement to Sell - An agreement to sell does not create any interest in the property; it is a contract to transfer ownership in future. The plaintiff's suit for specific performance is based on such an agreement. (Para 5)

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Issue of Consideration

Whether the plaintiff proved the execution of the agreement of sale dated 02.08.2007 and her readiness and willingness to perform her part of the contract, and whether the defendants proved that the suit was barred by limitation or that they had perfected title by adverse possession.

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Final Decision

The appeal is dismissed. The judgment and decree dated 20.10.2012 passed in O.S. No. 4/2008 by the Senior Civil Judge, Channarayapatna, is affirmed. No order as to costs.

Law Points

  • Specific performance
  • burden of proof
  • readiness and willingness
  • Section 16(c) Specific Relief Act
  • 1963
  • agreement of sale
  • execution of sale deed
  • consideration
  • limitation
  • adverse possession
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Case Details

2024 LawText (KAR) (06) 15

Regular First Appeal No. 6 of 2013

2024-06-13

Justice Krishna S Dixit, Justice Ramachandra D. Huddar

Sri. C. Shankar Reddy (for appellants), Sri. S.V. Prakash (for respondent)

Smt. Lakkamma @ Lakshmamma, Sri Krishna, Sri. Devaraj, Sri. Shantharaj

Smt. Jayamma

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Nature of Litigation

Civil suit for specific performance of an agreement of sale.

Remedy Sought

The plaintiff sought a decree directing the defendants to execute a registered sale deed in respect of the suit schedule property in accordance with the agreement of sale dated 02.08.2007.

Filing Reason

The defendants failed to execute the sale deed despite receiving advance consideration and the plaintiff's readiness to pay the balance amount.

Previous Decisions

The trial court (Senior Civil Judge, Channarayapatna) decreed the suit in O.S. No. 4/2008 on 20.10.2012, directing the defendants to execute the sale deed.

Issues

Whether the plaintiff proved the execution of the agreement of sale dated 02.08.2007? Whether the plaintiff proved her readiness and willingness to perform her part of the contract? Whether the suit is barred by limitation? Whether the defendants proved that they have perfected title by adverse possession?

Submissions/Arguments

Appellants argued that the agreement of sale was not proved, the plaintiff was not ready and willing, the suit was barred by limitation, and they had perfected title by adverse possession. Respondent argued that the agreement was duly executed, she was always ready and willing, the suit was within limitation, and the defendants failed to prove adverse possession.

Ratio Decidendi

In a suit for specific performance, the plaintiff must prove the execution of the agreement and her readiness and willingness to perform her part of the contract. The burden of proof under Section 16(c) of the Specific Relief Act, 1963 is on the plaintiff. Once the plaintiff adduces evidence of the agreement and her readiness, the onus shifts to the defendant to show that the plaintiff was not ready and willing or that the suit is barred by limitation or that the defendant has acquired title by adverse possession. In this case, the plaintiff successfully discharged her burden, and the defendants failed to prove their defenses.

Judgment Excerpts

Appellants-defendants have called in question the Judgment rendered by the Sr.Civil Judge, Channarayapatna dated 20th October 2012 in OS No.4/2008 decreeing the suit of the plaintiff against the defendants for the relief of specific performance of the suit agreement dated 02.08.2007 one executed by the defendants by directing them to execute the registered sale deed in respect of the suit schedule property in accordance with agreement of sale. The plaintiff must prove readiness and willingness to perform her part of the contract throughout the period from the date of agreement till the decree.

Procedural History

The plaintiff filed O.S. No. 4/2008 before the Senior Civil Judge, Channarayapatna, seeking specific performance of an agreement of sale dated 02.08.2007. The trial court decreed the suit on 20.10.2012. Aggrieved, the defendants filed Regular First Appeal No. 6 of 2013 before the High Court of Karnataka. The appeal was heard and reserved on 28.05.2024, and judgment was pronounced on 13.06.2024.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c), Section 20
  • Limitation Act, 1963: Article 54
  • Evidence Act, 1872: Section 68
  • Transfer of Property Act, 1882: Section 54
  • Code of Civil Procedure, 1908 (CPC): Section 96, Order 41 Rule (A)
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