Bombay High Court Allows Revision Application and Rejects Plaint in Specific Performance Suit as Time-Barred. Suit for Specific Performance of Agreement to Sell Dated 1985 Filed in 2016 Held Barred by Limitation Under Article 54 of Limitation Act, 1963.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
  • 5
Judgement Image
Font size:
Print

Case Note & Summary

The case involves a civil revision application filed by Naginchand Buccha (applicant/defendant) against Vinod Gupta and others (respondents/plaintiffs) challenging the rejection of his application under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908 (CPC) by the trial court. The respondents had filed a suit for specific performance of contract (R.C.S. No.212/2016) claiming to be legal heirs of deceased Ramkalibai Tarachand Gupta, who had entered into an agreement to purchase two plots admeasuring 2100 sq.ft. out of field survey no.7 at Mouza Shegaon, Amravati. The agreement was dated 26/04/1985 and provided for execution of sale deed latest by 30/12/1986, later extended to 31/03/1989. The sale deed was never executed. Ramkalibai died on 13/11/2011. The respondents claimed they learnt about the agreement in 2015 and demanded specific performance. The applicant filed an application under Order 7 Rule 11(d) CPC contending that the suit was barred by limitation. The trial court rejected the application, holding that the question of limitation was a mixed question of fact and law. The applicant filed the present revision. The High Court examined the plaint allegations and found that the date fixed for performance was 31/03/1989. Under Article 54 of the Limitation Act, 1963, the period of limitation for specific performance is three years from the date fixed for performance. The suit was filed in 2016, clearly beyond the limitation period. The court held that the suit was barred on the face of it and the trial court erred in not rejecting the plaint. The revision application was allowed, the impugned order was set aside, and the plaint was rejected under Order 7 Rule 11(d) CPC.

Headnote

A) Limitation Act, 1963 - Article 54 - Specific Performance of Contract - Suit Barred on Face of It - The suit for specific performance was filed in 2016 based on an agreement dated 26/04/1985 with extended date for performance up to 31/03/1989. The court held that the suit was clearly barred by limitation as the period of three years from the date fixed for performance had expired long before filing. The plaint was liable to be rejected under Order 7 Rule 11(d) CPC. (Paras 4-10)

B) Civil Procedure Code, 1908 - Order 7 Rule 11(d) - Rejection of Plaint - Limitation - Where the plaint on its face shows that the suit is barred by limitation, the court must reject the plaint. The court found that the suit was instituted beyond the prescribed period of limitation and no plausible explanation was offered for the delay. (Paras 8-10)

C) Limitation Act, 1963 - Article 54 - Commencement of Limitation - Date Fixed for Performance - The agreement fixed 30/12/1986 as the date for execution of sale deed, later extended to 31/03/1989. Limitation began to run from the extended date. The suit filed in 2016 was beyond three years from that date and thus time-barred. (Paras 5-7)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the suit for specific performance of contract is barred on the face of it by limitation.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The revision application is allowed. The impugned order dated 09/02/2017 passed by the Civil Judge, Senior Division, Amravati in R.C.S. No.212/2016 is set aside. The plaint in R.C.S. No.212/2016 is rejected under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908.

Law Points

  • Limitation for specific performance of contract
  • Article 54 of Limitation Act
  • 1963
  • Suit barred on face of it
  • Order 7 Rule 11(d) CPC
  • Rejection of plaint
Subscribe to unlock Law Points Subscribe Now

Case Details

2017 LawText (BOM) (09) 163

Civil Revision Application No. 104/2017

2017-09-26

S.B. Shukre, J.

Shri M.P. Khajanchi for applicant, Shri P.M. Pande for respondent nos.1 to 4

Naginchand S/o Devichand Buccha

Vinod S/o Tarachand Gupta and others

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil revision application against rejection of application under Order 7 Rule 11(d) CPC in a suit for specific performance of contract.

Remedy Sought

Applicant sought rejection of plaint on ground that suit was barred by limitation.

Filing Reason

Respondents filed suit for specific performance of agreement to sell dated 26/04/1985 with extended date 31/03/1989; suit filed in 2016.

Previous Decisions

Trial court rejected applicant's application under Order 7 Rule 11(d) CPC holding limitation is mixed question of fact and law.

Issues

Whether the suit for specific performance of contract is barred on the face of it by limitation.

Submissions/Arguments

Applicant argued that the suit was clearly barred by limitation as the agreement fixed 31/03/1989 as the date for performance and suit was filed in 2016, beyond three years. Respondents contended that limitation is a mixed question of fact and law and cannot be decided at the stage of Order 7 Rule 11.

Ratio Decidendi

Under Article 54 of the Limitation Act, 1963, the period of limitation for a suit for specific performance of contract is three years from the date fixed for performance. Where the plaint on its face shows that the suit is filed beyond this period, the plaint must be rejected under Order 7 Rule 11(d) CPC, even if the plaintiff alleges ignorance of the agreement.

Judgment Excerpts

This revision application involves a question, as to whether or not the present suit, filed for specific performance of contract, is barred on the face of it by limitation. The agreement was of 26/04/1985 and it provided for execution of the sale deed, latest by 30/12/1986. This date was extended to 31/03/1989. The suit is clearly barred by limitation and the trial court ought to have rejected the plaint under Order 7 Rule 11(d) of the CPC.

Procedural History

Respondents filed R.C.S. No.212/2016 for specific performance. Applicant filed application under Order 7 Rule 11(d) CPC. Trial court rejected application on 09/02/2017. Applicant filed Civil Revision Application No.104/2017 in High Court. High Court allowed revision and rejected plaint.

Acts & Sections

  • Limitation Act, 1963: Article 54
  • Code of Civil Procedure, 1908: Order 7 Rule 11(d)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Quashes Restriction Order Against Foreign National in Fatal Accident Case — Para 11(2) of Foreigners Orders, 1948 Cannot Be Used to Impose Bail-Like Conditions After Grant of Bail. The restriction order requiring the petitioner to...
Related Judgement
High Court High Court of Karnataka Dismisses Writ Petition Challenging Labour Court's Order Condoning Delay in Industrial Dispute Claim. The court held that the three-year limitation under Section 2A(3) of the Industrial Disputes Act, 1947 is not a bar to condo...