NDLI: A. Valliammai Vs. K.p. Murali and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Limitation Act 1963
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Indian Contract Act, 1872 (9 of 1872) Limitation Act, 1963 (36 of 1963)
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Issue for consideration: Whether the suit for specifi c performance was barred by limitation and if the High Court erred in affi rming the judgment and decree of specifi c performance passed by the trial court.Specifi c Performance – No time fi xed for performance of contract – Suit for specifi c performance – Limitation – Limitation Act, 1963 – Article 54 – Applicability:Held: Article 54 of Part II of the Schedule to the Limitation Act stipulates the limitation period for fi ling a suit for specifi c performance as three years from the date fi xed for performance, and in alternative when no date is fi xed, three years from the date when the plaintiff has notice that performance has been refused – In the present case, it is an accepted position that an advance was paid at the time of execution of the agreement to sell dtd.26.05.88, and the balance consideration was required to be paidby 26.05.89 – However, time for payment thereof and execution of the sale deed was extended till 26.11.89 vide endorsement dtd. 26.05.89 – If, 26.11.89 is taken as the date for performance, the suit for specifi c performance fi led on 27.09.95 is barred by limitation – However, the aforesaid time, as fi xed vide the agreement to sell and the endorsement, was not the essence of the contract and therefore, the fi rst part of Article 54 will not be applicable – Instead, the second part of Article 54 will apply – The 3-year limitation period to fi le a suit for specifi c performance commenced as early as when the respondent no.3 had fi led suit for injunction on 15.07.91 – Appellant’s (in C.A.No. 5342 of 2023) reply dtd. 09.08.1991 or reply to rejoinder dtd. 16.09.1991 were again suffi cient written notice to respondent no.3 of her refusal and unwillingness to perform the agreement to sell – The limitation period of three years under the second part of Article 54, which is from the date when the party had notice of the refusal by the other side, had expired when the suit for specifi c performance was fi led on 27.09.1995 – Thus, suit for specifi c performance fi led by respondent no.3’s assignees (‘KPM’ and ‘SPD’) is barred by limitation – Impugned judgment and decree for specifi c performance affi rmed by the Division Bench, set aside – However, on facts, to do substantial justice, a decree of Rs.50,00,000/- is passed in favour of ‘KPM’ and ‘SPD’ against the appellant, on failure to pay the same within 6 months, appellant to pay interest @ 8% – Civil Appeal Nos. 5343, 5344 and 5345 of 2023 fi led by subsequent purchasers of portions of the suit property, allowed – Civil Appeal No. 5342 of 2023 fi led by appellant is allowed to the extent indicated Constitution of India – Article 142 – Contract Act, 1872 – s.63. [Paras 20, 21 and 27-29]
Judge	Hon'ble Mr. Justice Sanjiv Khanna
Neutral Citation	2023 INSC 823
Petitioner	A. Valliammai
Respondent	K.p. Murali And Others
SCR	[2023] 12 S.C.R. 183
Judgement Date	2023-09-12
Case Number	5342

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