Suit for Specific Performance of Contract – Limitation for filing – Determination of:
Held: The limitation under Article 54 of the Limitation Act, 1963 for instituting a suit for specific performance of a contract is three years from the date fixed for the performance, or, if no such date is fixed, when the plaintiff has notice that performance is refused – In the agreement dated 17.12.1989, it is specifically mentioned that the sale deed would be executed within one month from the date of the said agreement – The period of one month would expire on 16.01.1990, and once there is a specific date fixed for performance, the limitation period would be three years from the said date, which would expire on 16.01.1993 – The First Appellate Court and the High Court went on the consideration that the agreement further recorded that it would remain valid for a period of five years from date of the execution of the agreement to sell – Placing reliance on this clause is totally irrelevant – The performance was to take place within one month – The validity of the agreement is something different and does not change the date of performance – As such, the suit was liable to be dismissed on the ground of limitation alone – Accepting that the plaintiffs-respondents paid an amount of Rs. 80,000/- to the defendant-appellant, and there being no relief claimed for refund of this money, in order to do complete justice between the parties, the amount of Rs. 80,000/- be returned to the plaintiffs along with 12% simple interest by the appellants within three months. [Paras 8, 9, 10, 11 and 12]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Adeeba Mujahid, Hony. Associate Editor (Verified by: Liz Mathew, Sr. Adv.). Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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