DEVARAJ Vs. DAYARATHINI MAJOR

JUDGEMENT

(1.) The XI Additional City Civil Judge, Bengaluru dismissed the suit O.S.No.934/1982 for specific performance by his judgment dated 09.12.2004 and hence the plaintiff is in appeal before this Court.

(2.) Given a brief account of the pleadings, it is the case of the plaintiff that on 21.06.1980, he entered into an agreement with the defendants for purchasing a property measuring East to West 100 feet and North to South 50 feet in Sy.No.60/4 of Yediyuru village, Corporation Division No.34, Bengaluru City (referred to as 'suit property' herein after). The sale consideration fixed was Rs. 1,47,075/-. The defendants received Rs.15,000/- from the plaintiff towards advance sale consideration or the earnest money, and agreed to execute the sale deed by receiving the balance of Rs. 1,32,075/- after obtaining requisite permission from the competent authorities. Instead of taking action for obtaining permission, the defendants went on postponing the performance of their part of contract. The plaintiff became suspicious about bonafides of the defendants and got issued a legal notice on 12.06.1981 demanding of them specific performance of the agreement. The defendants issued a reply denying the execution of the agreement in favour of the plaintiff and therefore he brought a suit for specific performance. Of course, in the plaint he stated that he was always ready and willing to perform his part of the contract.

(3.) The defendants, in their written statement, denied to have entered into any agreement with the plaintiff on 21.06.1980. Their specific contention is that the plaintiff approached the husband of the first defendant and represented to him that one Colonel Mannam Samuel who was the Territorial Commander of an organization called 'The Salvation Army', Madras and Andhra Territory, was interested in purchasing the suit property for the benefit of their Church. After several rounds of negotiations, the defendants agreed to sell the suit property to 'The Salvation Army' for Rs. 1,47,075/- and in this regard there came into existence an agreement on 21.06.1980. The defendants admit to have received Rs.15,000/- being the earnest money and agreed to execute a registered sale deed by receiving balance of Rs. 1,32,075/-. This agreement provided for obtaining permission from a competent authority before execution of a proper deed of conveyance. The plaintiff was actually acting on behalf of the purchaser, viz., Colonel Mannam Samuel, who in fact laid foundation stone formally on 22.06.1980. But the successor of Colonel Mannam Samuel did not approve the site in question and he dropped the idea of purchasing the suit property. There was no transaction between them and the plaintiff. But having noticed steep rise in the value of immovable property in and around Bengaluru, and having been encouraged by some persons who wanted to knock off the suit property, he took undue advantage of his knowledge about the transaction between them and Colonel Mannam Samuel. They contended that they never entered into any agreement with the plaintiff. They also amended the written statement to state that the market value of the suit property on the date of agreement was actually Rs. 3,00,000/- and therefore it was highly impossible that they agreed to sell their property for Rs.1,47,075/- and they also stated that because of steep inflation and fall in the rupee value, the value of the suit property increased manifold. It is stated that in case the relief of specific performance is granted, it would be unfair in the light of these circumstances.