Escalation Of Price Is Not A Ground To Deny Specific Performance Of Agreement To Sell: Karnataka High Court
|The Karnataka High Court observed that the escalation of price is not a ground to deny specific performance of agreement to sell.
The Dharwad Bench observed thus in a First Appeal challenging the judgment and decree of the Trial Court, decreeing the suit of the plaintiffs.
A Division Bench of Justice E.S. Indiresh and Justice Ramachandra D. Huddar remarked, “Insofar as the arguments advanced by the learned counsel appearing for the appellants relating to fact that, schedule property fetch more value than the amount specified in the agreement of sale and also pleaded about the escalation of price, it is relevant to mention the Judgment of Hon’ble Supreme Court in the case of Narinderjit Singh Vs. North Star Estate Promoters Limited, reported in (2012) 5 SCC 712, wherein it is held that, escalation of price is not a ground to deny specific performance of agreement to sell.”
Advocate N. Dinesh Rao appeared for the appellants while Senior Advocate Gurudas S. Khannur appeared for the respondents.
Brief Facts -
A man had purchased a land near hospital as per the registered sale deed in 2002 and thereafter, the schedule property was converted for non-agricultural purpose. The defendants constituted joint family and as such, a registered partition deed was entered between the members of the joint family. The defendants, on account of their legal necessity, offered to sell the property in favour of the plaintiffs and as such, after negotiation between the parties, they agreed to sell the same for Rs. 87,90,500/-. As such, the plaintiffs paid Rs. 18 lakhs towards earnest money and the parties reduced the terms and conditions of their negotiation as per the Registered Agreement of sale.
Pursuantly, the defendants executed Registered Confirmation deed in 2010, agreeing to execute the registered sale deed in favour of plaintiffs. It was the case of plaintiffs that they were ready and willing to perform their contractual obligations but the defendants did not show any interest to complete the transactions. Resultantly, the plaintiffs issued legal notice to them to complete the sale transaction, however, they did not respond to the same. Hence, the plaintiffs filed a suit, seeking relief of specific performance of the contract. The Trial Court decreed the said suit and therefore, the defendants approached the High Court, seeking dismissal of the suit.
The High Court in view of the above facts noted, “Recently, Hon’ble Supreme Court in the case of C. Haridasan Vs. Anappath Parakattu Vasudeva Kurup and others reported in 2023 (1) Ker L.J. 532, held that if the intending purchaser proves the transaction relating to the execution of the agreement of sale and also if he establish through cogent evidence that, he was ready to perform his part of contract, then it is the bounden duty of the Court to grant relief of specific performance of agreement.”
The Court said that the point for determination favour the plaintiffs as the plaintiffs, on oral and documentary evidence, proved the execution of the registered agreement of sale and their obligation to complete the terms and conditions stipulated thereunder and the trial Court after appreciating the material on record, rightly arrived at a conclusion, decreeing the suit of the plaintiffs with a direction to the defendants to execute the registered sale deed in respect of the suit schedule property by receiving balance sale consideration of Rs. 69,90,500/-.
Accordingly, the Court refused to entertain the appeal.
Cause Title- Nagendra & Ors. v. Chandrakannt & Anr.
Appearance:
Appellants: Advocates N. Dinesh Rao and V.S. Kalasurmath.
Respondents: Senior Advocate Gurudas S. Khannur and Advocate Sharanabasavaraj C.