High Court of Karnataka Dismisses Appeal in Specific Performance Suit — Appellant Fails to Prove Agreement to Sell. Trial court's finding that no agreement was executed and no advance paid upheld; appeal dismissed with costs.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The appellant, Mr. Jagadish Poonja, filed a Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908, against the judgment and decree dated 30.01.2009 passed by the II Additional Senior Civil Judge, Mangalore, in O.S. No. 131/2005. The suit was for specific performance of an alleged agreement to sell dated 01.08.1994, wherein the appellant claimed that the respondents agreed to sell suit schedule property for Rs. 3,50,000/- and received an advance of Rs. 1,00,000/-. The trial court dismissed the suit, holding that the appellant failed to prove the execution of the agreement and payment of advance. The High Court, after hearing the parties, affirmed the trial court's findings. The court noted that the appellant did not examine any attesting witness to the agreement, nor did he produce any receipt for the alleged advance payment. The appellant's own witness, the GPA holder, admitted that he was not present at the time of execution. The court also observed that the appellant failed to prove his readiness and willingness to perform his part of the contract, as he did not produce any evidence of financial capacity to pay the balance consideration. Consequently, the appeal was dismissed with costs.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and willingness - Burden of proof - The plaintiff must prove readiness and willingness to perform his part of the contract throughout the suit. The court held that the appellant failed to prove his readiness and willingness as he did not produce any evidence of financial capacity to pay the balance consideration. (Paras 15-20)

B) Evidence Act, 1872 - Section 68 - Proof of execution of document - Attesting witness - Where a document is required by law to be attested, it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution. The court noted that the appellant did not examine any attesting witness to the agreement, and the scribe was not examined, leading to failure in proving execution. (Paras 12-14)

C) Contract Act, 1872 - Section 2(d) - Consideration - Payment of advance - The appellant claimed payment of Rs. 1,00,000/- as advance, but no receipt was produced and the alleged payment was not supported by any independent evidence. The court held that the payment of advance was not proved. (Paras 10-11)

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Issue of Consideration

Whether the appellant proved the execution of the agreement to sell dated 01.08.1994 and payment of advance consideration of Rs. 1,00,000/- to the respondents?

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Final Decision

Appeal dismissed with costs. The judgment and decree of the trial court dated 30.01.2009 in O.S. No. 131/2005 are confirmed.

Law Points

  • Specific performance
  • Agreement to sell
  • Proof of execution
  • Payment of consideration
  • Burden of proof
  • Section 16(c) Specific Relief Act
  • 1963
  • Section 20 Specific Relief Act
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Case Details

2015 LawText (KAR) (03) 55

R.F.A.No.438 OF 2009

2015-03-12

N.Kumar, B. Sreenivase Gowda

K. M. Nataraj, Senior Counsel a/w Sachin B.S. for appellant; S. Shaker Shetty for R.14

Mr. Jagadish Poonja

The South Canara Hotel Complex Pvt. Ltd. & Ors.

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Nature of Litigation

Civil suit for specific performance of an agreement to sell immovable property.

Remedy Sought

Decree for specific performance of the agreement to sell dated 01.08.1994 directing the respondents to execute the sale deed in favour of the appellant.

Filing Reason

Appellant claimed that respondents agreed to sell suit property for Rs. 3,50,000/- and received Rs. 1,00,000/- as advance, but failed to execute the sale deed.

Previous Decisions

Trial court dismissed the suit on 30.01.2009 in O.S. No. 131/2005, holding that appellant failed to prove the agreement and payment of advance.

Issues

Whether the appellant proved the execution of the agreement to sell dated 01.08.1994? Whether the appellant proved payment of advance consideration of Rs. 1,00,000/-? Whether the appellant proved his readiness and willingness to perform his part of the contract?

Submissions/Arguments

Appellant argued that the agreement was executed and advance paid, and that the trial court erred in disbelieving the evidence. Respondents contended that no such agreement was executed and no advance was paid; the suit was barred by limitation and the appellant failed to prove readiness and willingness.

Ratio Decidendi

In a suit for specific performance, the plaintiff must prove the execution of the agreement, payment of consideration, and readiness and willingness to perform his part. Failure to examine attesting witnesses and produce evidence of financial capacity leads to dismissal.

Judgment Excerpts

The appellant has not examined any attesting witness to the agreement. The scribe has also not been examined. Therefore, the execution of the agreement is not proved. The appellant claims to have paid Rs. 1,00,000/- as advance, but no receipt is produced. The GPA holder admitted that he was not present at the time of payment. Hence, the payment is not proved. The appellant has not produced any evidence to show that he had the financial capacity to pay the balance consideration. Therefore, he has failed to prove his readiness and willingness.

Procedural History

The appellant filed O.S. No. 131/2005 before the II Additional Senior Civil Judge, Mangalore, seeking specific performance. The trial court dismissed the suit on 30.01.2009. Aggrieved, the appellant filed R.F.A.No.438/2009 before the High Court of Karnataka, which was heard and dismissed on 12.03.2015.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96
  • Specific Relief Act, 1963: Section 16(c), Section 20
  • Indian Evidence Act, 1872: Section 68
  • Indian Contract Act, 1872: Section 2(d)
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