High Court of Karnataka, Gulbarga Bench, hears appeal against part decree in O.S. No. 125/2004 granting specific performance of oral agreement for sale.

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

The dispute arises from a suit for specific performance of an alleged oral agreement for sale of industrial property. The plaintiff (respondent No. 1) sought to enforce an oral agreement dated 10.08.1988, between her deceased husband and the 1st defendant (appellant), for the sale of an industrial plot and structures bearing plot no. 6, Industrial Estate, Jewargi Road, Gulbarga, measuring 17,089 sq. ft., for a total consideration of Rs.9,99,900. The 1st defendant contested the suit, setting up a different case that he had agreed to sell only half the property for Rs.19,99,900 and that possession was given for accommodation of the deceased husband's kept-mistress. The trial court decreed the suit in part on 13.10.2010, directing the 1st defendant to execute a sale deed on receipt of Rs.2,00,000 within 60 days at the plaintiff's cost, and granted perpetual injunction. Aggrieved, the 1st defendant filed this appeal under Section 96 CPC. Background: The plaintiff's late husband (Zameer Ahmed Gola) and the 1st defendant (Jameel Ahmed) were close friends and had a fiduciary relationship. The 1st defendant applied for and was allotted industrial plot no. 6 under a lease-cum-sale agreement with KSSIDC, and he established a proprietary concern 'Agro Needs Castings'. According to the plaintiff, the 1st defendant, facing losses, proposed to sell the entire unit for Rs.9,99,900 to her husband, with her as co-purchaser. The oral agreement was allegedly entered into on 10.08.1988 in the presence of witnesses. Pursuant to the agreement, the plaintiff's husband paid Rs.1,00,000 by cheque on 03.04.1990; later, amounts of Rs.49,094 and Rs.3,00,905 were credited towards the 1st defendant's bank liability on 22.08.1991. After the husband's death on 03.02.1991, the plaintiff made further payments into the 1st defendant's bank account: Rs.1,00,000 on 24.06.1992, Rs.2,00,000 on 27.06.1992, and Rs.50,000 on 19.04.1992. She also paid Rs.46,650 to KSSIDC for cancellation of a proposed road in the suit property. The plaintiff claimed that the entire consideration was paid and that she was in settled possession of the property, leasing it out to various entities (Raziuddin for a school, the Department of Backward Minorities, and later to Jalees Ahmed Khan and Mohammed Maqbul Khan). She stated that she was ever ready and willing to perform her part of the contract. The 1st defendant, on the other hand, denied any agreement to sell the entire property. He alleged that only a portion was agreed to be sold for Rs.19,99,900 and that the deceased husband was permitted to use a part of the building as accommodation for a kept-mistress. He also contended that the property could not be transferred without KSSIDC's written consent under the lease-cum-sale agreement. He asserted that the plot initially measured only 14,875 sq. ft., not 17,089 sq. ft. He denied receiving the alleged consideration and claimed that the plaintiff was not entitled to specific performance. The 1st defendant had earlier filed a suit for permanent injunction (O.S.486/03, later renumbered as O.S.5/06 and withdrawn) and issued a legal notice to the plaintiff to vacate, which prompted the present suit. Legal issues likely included the validity and enforceability of the oral agreement, readiness and willingness of the plaintiff, and whether specific performance could be granted. However, the exact issues framed are not evident from the excerpt. The excerpt provided ends with the pleadings stage and does not contain the High Court's analysis or final decision. The court presumably examined the evidence and submissions, but the outcome remains unknown from the text.

Issue of Consideration

KAHC030011552011_1

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Case Details

2014 LawText (KAR) (12) 28

R.F.A. No. 5005/2011

2014-12-19

A.V. Chandrashekara

Pramod N. Kathavi, N.B. Diwanji for appellant; Sreevatsa for Vinayak Apte for R1; R.S. Patil for R2

Jameel Ahmed S/o Lal Ahmed

Shamsunnisa Begum W/o Late Zameer Ahmed Gola and The Executive Engineer, O & M Division, GESCOM, Gulbarga

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Nature of Litigation

Suit for specific performance of an oral agreement for sale of immovable property and perpetual injunction.

Remedy Sought

Plaintiff sought direction to the 1st defendant to execute a regular sale deed in respect of the suit schedule property and to restrain him from interfering with her possession.

Filing Reason

The plaintiff filed the suit after the 1st defendant had filed a suit for permanent injunction against her (O.S.486/03, later renumbered as O.S.5/06 and withdrawn) and issued a legal notice to vacate the resthouse, and attempted to disconnect electricity supply. She claimed that the 1st defendant failed to execute the sale deed despite the entire consideration being paid.

Previous Decisions

The trial court (Principal Civil Judge (Senior Division), Gulbarga) decreed the suit in part on 13.10.2010, directing the 1st defendant to execute a sale deed on receipt of Rs.2,00,000 within 60 days at the plaintiff's cost, and granted perpetual injunction. The present appeal is filed against this judgment and decree.

Submissions/Arguments

Plaintiff's case: Oral agreement on 10.08.1988 for sale of entire suit property for Rs.9,99,900; part payment of Rs.1,00,000 by cheque on 03.04.1990; further payments by husband and plaintiff towards bank liabilities totaling Rs.7,65,509.15; plaintiff also paid Rs.46,650 to KSSIDC for cancellation of road; possession and lease out by plaintiff; readiness and willingness to complete; defendant not executing sale deed. Defendant's case: Denied any agreement to sell entire property; alleged only agreement for half portion for Rs.19,99,900 and possession given for accommodation of kept-mistress; plot originally measured 14,875 sqft not 17,089 sqft; property could not be transferred without KSSIDC consent; no consideration received as claimed; plaintiff not entitled to specific performance.

Judgment Excerpts

The 1st defendant of an original suit in O.S.125/04 which was pending on the file of Principal Civil Judge (Senior Divn.), Gulbarga, has filed this appeal under Section 96, C.P.C. Suit came to be filed seeking the relief of specific performance on the basis of an oral agreement of sale said to have been entered into by the appellant-1st defendant with the deceased husband of the plaintiff on 10.8.1988 agreeing to sell the entire suit industrial land and the structures put up thereon for a total consideration of Rs.9,99,900.

Procedural History

The plaintiff filed O.S. No. 125/2004 before the Principal Civil Judge (Senior Div.), Gulbarga, seeking specific performance of an oral agreement for sale and perpetual injunction. The suit was contested. On 13.10.2010, the trial court decreed the suit in part, directing the 1st defendant to execute a sale deed on payment of Rs.2,00,000 within 60 days and granted injunction. Aggrieved, the 1st defendant filed the present regular first appeal under Section 96 CPC before the High Court of Karnataka, Gulbarga Bench. The appeal was heard on 19.12.2014.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96
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High Court High Court of Karnataka, Gulbarga Bench, hears appeal against part decree in O.S. No. 125/2004 granting specific performance of oral agreement for sale.
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