Bombay High Court Dismisses Appellant's Second Appeal in Specific Performance Counterclaim — Limitation Bar Upheld. Counterclaim for specific performance of contract held barred by limitation under Article 54 of the Limitation Act, 1963 as it was filed beyond three years from the date of refusal to perform the alleged agreement.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The case involves a second appeal by the original defendant no.10, Smt. Tulsabai wd/o Ramkrishna Avatade, against the judgment and order dated 17th July, 2008 passed by the learned District Judge-1 at Pandharakwada in Regular Civil Appeal No.77/2003, which was dismissed. The appeal stems from the judgment and decree dated 3rd September, 2001 passed by the learned Joint Civil Judge, Senior Division, Yavatmal in Special Civil Suit No.95/1991. The plaintiff, Smt. Rajani wd/o Rajkumar Punyani, had instituted the suit for possession, damages and costs on the ground that she is the owner of the land bearing Gat No.53 (Old S.No.34) admeasuring 4H 31R situated at village Khadaki, Taluqa Maregaon, Dist. Yavatmal. The suit land was originally allotted in favour of one Shri Rajkumar Punyani, husband of the plaintiff, in 1967-68 by the Government. After his death, the plaintiff and her son (original defendant no.2) became owners and were cultivating as Class II occupants. The suit land could not be alienated or sold without prior permission of the Government. In 1995, the first defendant's brother was assigned the work of summer season (unhalwai) on payment of charges, but he took disadvantage and cultivated the suit land and inducted the name of the first defendant, who took forcible possession pleading that she had purchased under an agreement to sell. The first defendant contended that there was an oral agreement to sell the suit land for Rs.49,000/-, with Rs.36,000/- paid as earnest money and possession handed over to her, and she agreed to pay Rs.13,000/- at the time of sale deed pursuant to an agreement to sell dated 25.5.1992. Later, on 29.4.1994, it was agreed to obtain permission of the Collector. The substantial question of law framed was whether the counterclaim for specific performance of contract could be said to be barred by limitation. The court held that the counterclaim was barred by limitation as it was filed beyond three years from the date of refusal or from the date fixed for performance, and dismissed the appeal.

Headnote

A) Limitation Act, 1963 - Article 54 - Specific Performance - Counterclaim - Limitation for counterclaim for specific performance of contract is governed by Article 54 of the Limitation Act, 1963, which prescribes a period of three years from the date fixed for performance, or if no such date is fixed, when the plaintiff has notice that performance is refused. In the present case, the agreement to sell was dated 25.5.1992, and the defendant claimed possession was delivered on that date. The suit was filed in 1991, and the counterclaim was filed in 1995. The court held that the counterclaim was barred by limitation as it was filed beyond three years from the date of refusal or from the date fixed for performance. (Paras 1-6)

B) Limitation Act, 1963 - Article 54 - Specific Performance - Counterclaim - Date of Refusal - The court considered that the plaintiff had filed a suit for possession in 1991, which itself indicated refusal to perform the alleged agreement. The defendant's counterclaim filed in 1995 was therefore beyond the limitation period of three years from the date of refusal. The substantial question of law was answered in the affirmative, holding that the counterclaim was barred by limitation. (Paras 4-6)

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Issue of Consideration

Whether the counterclaim for specific performance of contract could be said to be barred by limitation?

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Final Decision

The Second Appeal is dismissed. The judgment and order dated 17th July, 2008 passed by the learned District Judge-1 at Pandharakwada in Regular Civil Appeal No.77/2003 is confirmed. The substantial question of law is answered in the affirmative, holding that the counterclaim for specific performance of contract is barred by limitation. No order as to costs.

Law Points

  • Limitation for counterclaim
  • Specific performance
  • Article 54 of Limitation Act
  • 1963
  • Date of refusal
  • Cause of action
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Case Details

2010 LawText (BOM) (08) 167

Second Appeal No. 440/2008

2010-08-11

A.P. Bhangale

Mr. K.S. Narwade for appellant, Mr. A.M. Deshmukh for respondents

Smt. Tulsabai wd/o Ramkrishna Avatade

Smt. Rajani wd/o Rajkumar Punyani and Gopichand s/o Rajkumar Punyani

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Nature of Litigation

Second appeal against dismissal of appeal in a suit for possession and counterclaim for specific performance of contract.

Remedy Sought

Appellant (original defendant) sought to set aside the dismissal of her appeal and to allow her counterclaim for specific performance of contract.

Filing Reason

Appellant challenged the judgment and order dated 17th July, 2008 passed by the District Judge-1 at Pandharakwada in Regular Civil Appeal No.77/2003, which dismissed her appeal against the judgment and decree dated 3rd September, 2001 in Special Civil Suit No.95/1991.

Previous Decisions

The trial court (Joint Civil Judge, Senior Division, Yavatmal) decreed the suit for possession in favor of the plaintiff and dismissed the counterclaim of the defendant. The first appellate court (District Judge-1) dismissed the appeal.

Issues

Whether the counterclaim for specific performance of contract could be said to be barred by limitation?

Submissions/Arguments

Appellant argued that the counterclaim was within limitation as the agreement to sell was dated 25.5.1992 and the suit was filed in 1991, but the counterclaim was filed in 1995. Respondent argued that the counterclaim was barred by limitation as it was filed beyond three years from the date of refusal or from the date fixed for performance.

Ratio Decidendi

A counterclaim for specific performance of contract is governed by Article 54 of the Limitation Act, 1963, which prescribes a period of three years from the date fixed for performance, or if no such date is fixed, when the plaintiff has notice that performance is refused. In this case, the counterclaim was filed beyond three years from the date of refusal (the filing of the suit in 1991) and was therefore barred by limitation.

Judgment Excerpts

This Second Appeal was admitted on 24th September, 2009 on the following substantial question of law : "Whether the counterclaim for specific performance of contract could be said to be barred by limitation?" The counterclaim for specific performance of contract is barred by limitation.

Procedural History

The plaintiff filed Special Civil Suit No.95/1991 for possession. The defendant filed a counterclaim for specific performance. The trial court decreed the suit and dismissed the counterclaim on 3rd September, 2001. The defendant appealed to the District Court in Regular Civil Appeal No.77/2003, which was dismissed on 17th July, 2008. The defendant then filed the present Second Appeal No.440/2008, which was admitted on 24th September, 2009 on the substantial question of law regarding limitation.

Acts & Sections

  • Limitation Act, 1963: Article 54
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