MUNISHAMAPPA Vs. M.RAMA REDDY

JUDGEMENT

(1.) This appeal assails the correctness of the judgment and order dtd. 10/11/2010, passed by the High Court of Karnataka at Bangalore, whereby the Second Appeal preferred by the defendant-respondent was allowed, and the suit for specific performance of contract filed by the appellant was dismissed.

(2.) On 28/5/1990, the appellant and the respondents entered into an agreement to sell, in which the property in question was to be sold for Rs.23,000.00, and the entire sale consideration was paid before the execution of the Agreement to Sell, and possession of the property in question was also handed over to the appellant. It was also agreed that from the time of execution of the Agreement to Sell, the respondents would have no rights left and it would be the appellant who would have all the rights over the property in question. However, due to the prohibition on registration of the sale deed, it was stipulated that the sale deed would be executed once this restriction was lifted. The Agreement to Sell dtd. 28/5/1990 contained all the above facts duly incorporated therein. The prohibition on the sale was due to bar contained in Sec. 5 of the Karnataka Prevention of Fragmentation and Consolidation of Holdings Act, 1996 (hereinafter referred to as the "Fragmentation Act").

(3.) Even at the time of the execution of the Agreement to Sell, there was a serious likelihood of the Fragmentation Act being repealed. Soon thereafter i.e. on 5/2/1991, the Fragmentation Act stood repealed. Thereafter, the appellant claims to have repeatedly requested the respondents to execute the sale deed, which was merely a formality since the entire sale consideration had already been paid by the appellant, and they had taken the possession of the property in question, which they continued to hold. Despite the same, the respondents continued to delay the execution of the sale deed. Ultimately, the appellant sent a legal notice to the respondents on 3/9/2001, according to which the respondents had finally refused to register the sale deed on 28/8/2001.