Limitation Act, 1963; Article 54 – Specific Performance – As per agreement to sell, the sale deed was to be executed and registered within one month i.e. up to 16.01.1990- Agreement to sell also incorporated a clause stating that the said agreement would be valid for five years. Since the sale deed was not executed, a suit for specific performance of the contract was filed in September, 1993- Trial Court dismissed the suit as barred by limitation – High Court allowed appeal and decreed the suit – Allowing appeal, SC observed: The limitation under Article 54 of the Limitation Act, 1963 for instituting a suit for specific performance of a contract would be 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- 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. What was the reason for incorporating this clause of validating the agreement for five years is not spelled out in the agreement, but in any case, it does not change the date fixed for the performance-As such, the suit was liable to be dismissed on the ground of limitation alone. (Para 10-11)
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