Bombay High Court
SAPRE
Shrikrishna Keshav Kulkarni - Appellant
Versus
Balaji Ganesh Kulkarni - Respondent
Decided On : 01/13/1975
SPECIFIC PERFORMANCE - CONTRACT - SPLITTING OF CAUSE OF ACTION - LIMITATION - SECTION 12 (1) OF THE SPECIFIC RELIEF ACT, 1963 - ARTICLE 54 OF THE LIMITATION ACT, 1963.
Fact of the Case:
Plaintiff filed a suit for specific performance of a contract of sale of two houses, which were subject to attachment by creditors. The agreement was executed by two brothers, defendants 1 and 3, who were the owners of the houses. The plaintiff paid Rs. 200/- as earnest money and was put in possession of the houses on the date of the agreement. Subsequently, the defendants agreed to sell the houses to one Abdul Gani and received some amount of consideration by way of earnest money. The plaintiff intervened and paid Rs. 250/- to Abdul Gani on behalf of the defendants, and the suit was compromised. Defendant No. 1 sold House No. 384 to defendant No. 2, which led to proceedings under Section 145 of the Code of Criminal Procedure. The plaintiff filed a suit for specific performance of the agreement in respect of House No. 384, but the trial court dismissed the suit. The plaintiff appealed to the District Court, which also dismissed the appeal.
Finding of the Court:
The District Court held that the suit was not maintainable because the plaintiff could not split up the cause of action embodied in the contract and claim relief only against defendants 1 and 2 in respect of House No. 384 without claiming any relief against defendant No. 3 in respect of House No. 383. The court also held that the suit was barred by limitation.
Issues: 1. Whether the suit for specific performance of a part of the contract is maintainable? 2. Whether the suit is barred by limitation?
Ratio Decidendi: 1. The court held that the suit for specific performance of a part of the contract is not maintainable under Section 12 (1) of the Specific Relief Act, 1963. The court observed that the contract was one and the plaintiff could not split up the cause of action embodied in the contract and claim relief only against defendants 1 and 2 in respect of House No. 384 without claiming any relief against defendant No. 3 in respect of House No. 383. 2. The court held that the suit is not barred by limitation. The court observed that the starting point of limitation is when the plaintiff has notice that performance is refused. In the instant case, it was when defendant No. 1 sold house No. 384 to defendant No. 2 on 6th February, 1963, under the registered sale deed that the plaintiff could be posted with the knowledge that the defendants were refusing performance of the contract. The suit was filed on 22nd May, 1964, that is, well within three years from 6th February, 1963, and would be within limitation.
Final Decision: The court dismissed the appeal and upheld the judgment of the District Court.
2. After the agreement was made by defendants 1 and 3 with the plaintiff, they agreed to sell the houses to one Abdul Gani and received some amount of consideration by way of earnest money. Later, Abdul Gani brought Small Cause Suit No. 359 of 1960 against defendants 1 and 3 to recover the consideration paid by him. The plaintiff intervened and paid Rs. 250/- to Abdul Gani on behalf of defendants 1 and 3 and the suit was compromised on 14th February, 1961. Thereafter, defendant No. 1 sold House No. 384 to defendant No. 2 on 6th February, 1963, under a registered sale deed (Ex. 96) for a consideration of Rs. 1,200/-. On the basis of this sale deed, defendant No. 2 tried to dispossess the plaintiff, which led to proceedings under Section 145 of the Code of Criminal Procedure. The plaintiff had, therefore, filed the present suit on 22nd May, 1964. It was initially filed only against defendants 1 and 2. Defendant No. 3 was not joined. On the trial Court expressing the view that the suit was liable to be dismissed if defendant No. 3, who was also a party to the agreement (Ex. 83), was not joined, the plaintiff joined defendant No. 3, but made him no more then a formal party, and claimed no relief against him. It appears that the plaintiff had filed a separate suit against defendant No. 3, being Suit No. 59 of 1964, for specific performance of the agreement in respect of House No. 383 and he had obtained a decree against defendant No. 3 in that behalf.
3. The trial Court decreed the plaintiff's suit, but it directed the plaintiff to deposit the entire amount of consideration mentioned in Ex. 83 and not the proportionate consideration in respect of House No. 384 owned by defendant No. 1, which defendant No. 1 had sold to defendant No. 2. The plaintiff and defendant No. 2 both went in appeal to the District Court, challenging the decree of the trial Court. The District Court dismissed the appeal filed by the plaintiff and allowed the appeal filed by defendant No. 2. It set aside the judgment and decree of the trial Court and dismissed the plaintiff's suit for specific performance of the agreement (Ex. 83) dated 15th October, 1957. This the District Court did for two reasons. The first was that the suit in the present form was not maintainable. The contract (Ex. 83) was one contract and the plaintiff could not split up the cause of action embodied in the contract so as to claim relief only against defendants 1 and 2 in respect of House No. 384 without claiming any relief against defendant No. 3 in respect of House No. 383, both of which houses were the subject-matter of the contract (Ex. 83). The second ground was that the plaintiff's suit was barred by limitation.
4. Mr. Kotwal on behalf of the appellant has challenged both the findings recorded by the District Court against the appellant and the consequential dismissal of the plaintiff's suit for specific performance.
5. The first point that falls for decision is whether the suit in its present
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