C.S. VENKATESH versus MURTHY (D) BY LRS. & ORS.

C.S. VENKATESH versus MURTHY (D) BY LRS. & ORS.

The sale deed dated 23.04.1975, construed together with contemporaneous documents and surrounding circumstances, was an absolute sale and not a nominal sale/mortgage; additionally, the plaintiff failed to prove continuous readiness and willingness to perform his obligation under the reconveyance agreement as required by Section 16(c) of the Specific Relief Act, 1963, and therefore the High Court’s decree directing reconveyance was set aside and the trial court judgment dismissing the suit was restored.

Parties
Plaintiff (deceased): A.S.C. Murthy; Legal Representative of A.s.c. Murthy/first Respondent: Smt. Jayashree; Defendant No.2/appellant: C.S. Venkatesh; Defendant No.1 (deceased): C. Sethurama Rao; Legal Representative of C. Sethurama Rao/respondent No.2 a: Smt. C.S. Lalithamma; Respondent No.3: Defendant No.3; Respondent No.4: Defendant No.4
Jurisdiction
India
Judgment Date
07 February 2020
Procedural Posture
Civil Appeal / Appeal to Supreme Court From Judgment and Order of the High Court of Karnataka Dated 21.08.2006 in RFA No.626 of 2001
Outcome
Appeal allowed in part: High Court judgment and decree dated 21.08.2006 in RFA No.626 of 2001 set aside; judgment and decree of trial court in O.S. No.3308 of 1988 dated 12.04.2001 restored (suit dismissed).
Legal Topics
Specific Performance, Readiness and Willingness to Perform, Mortgage Vs Conditional/nominal Sale, Reconveyance, Characterisation of Documents
Specific Relief Act, 1963 Transfer of Property Act, 1882 Property Law Specific Performance Readiness and Willingness to Perform Mortgage Vs Conditional/nominal Sale Reconveyance Characterisation of Documents

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Parties

A.S.C. Murthy

Plaintiff (deceased)

Smt. Jayashree

Legal Representative of A.s.c. Murthy/first Respondent

C.S. Venkatesh

Defendant No.2/appellant

C. Sethurama Rao

Defendant No.1 (deceased)

Smt. C.S. Lalithamma

Legal Representative of C. Sethurama Rao/respondent No.2 a

Defendant No.3

Respondent No.3

Defendant No.4

Respondent No.4

Procedural Posture

Civil Appeal / Appeal to Supreme Court From Judgment and Order of the High Court of Karnataka Dated 21.08.2006 in RFA No.626 of 2001

Legal Issues

  1. 1 Whether the sale deed dated 23.04.1975 was a nominal sale executed as security (mortgage) or an absolute sale
  2. 2 Whether the plaintiff proved continuous readiness and willingness to perform his part of the reconveyance agreement as required by Section 16(c) of the Specific Relief Act, 1963
  3. 3 Whether the High Court was right to direct specific performance of the reconveyance agreement

Ratio Decidendi

The sale deed dated 23.04.1975, construed together with contemporaneous documents and surrounding circumstances, was an absolute sale and not a nominal sale/mortgage; additionally, the plaintiff failed to prove continuous readiness and willingness to perform his obligation under the reconveyance agreement as required by Section 16(c) of the Specific Relief Act, 1963, and therefore the High Court’s decree directing reconveyance was set aside and the trial court judgment dismissing the suit was restored.

Court Disposition

Appeal allowed in part: High Court judgment and decree dated 21.08.2006 in RFA No.626 of 2001 set aside; judgment and decree of trial court in O.S. No.3308 of 1988 dated 12.04.2001 restored (suit dismissed).

Orders

  • High Court judgment and decree in R.F.A. No.626 of 2001 dated 21.08.2006 is set aside
  • Judgment and decree of the trial court in O.S. No.3308 of 1988 dated 12.04.2001 is restored