Case Note & Summary
The dispute arose from a suit filed by the respondent against her brother, the appellant, seeking specific performance of a contract of sale dated June 23, 1965, concerning a mortgaged property. The respondent claimed that the appellant agreed to execute a sale deed upon her redemption of the mortgage, which she completed in 1970. Despite repeated demands, the appellant failed to execute the deed, prompting the respondent to serve a notice in July 1984 and subsequently file a suit. The appellant contended that the suit was barred by limitation, arguing that the agreement was executed in 1965 and that the suit was filed after more than 14 years. The trial court ruled in favor of the respondent, a decision upheld by the High Court, which reasoned that the cause of action was contingent upon the mortgage redemption, and no fixed date for performance was stipulated. The Supreme Court, however, allowed the appeal, determining that the limitation period began upon the redemption of the mortgage, which constituted a fixed date for performance under Article 54 of the Limitation Act, 1963. The court distinguished the case from precedents cited by the respondent, emphasizing that the agreement's terms provided a basis for determining the performance date. Consequently, the court dismissed the suit and directed the parties to bear their own costs.
Headnote
A) Limitation Law - Specific Performance - Period of Limitation - Limitation Act, 1963, Article 54 - The period of limitation for specific performance begins from the date fixed for performance or when performance is refused. The court held that the date for executing the sale deed was fixed by the occurrence of the event of mortgage redemption, thus starting the limitation period. (Paras 1-2).
Issue of Consideration
Whether the suit for specific performance was barred by limitation under Article 54 of the Limitation Act, 1963.
Final Decision
The Supreme Court allowed the appeal, set aside the judgments of the High Court and trial court, and dismissed the suit, directing the parties to bear their own costs.
Law Points
- Limitation period
- specific performance
- contingent contract
- redemption of mortgage
