IN THE HIGH COURT OF BOMBAY
Bharat P. Deshpande, J.
Veronica Pimento - Appellant
Versus
Desmond Furtado - Respondent
Civil Revision Application No. 2214 of 2022 (F)
Decided On : 12-06-2023
LIMITATION - SPECIFIC PERFORMANCE - Limitation Act, Article 54; CPC, Order VII Rule 11 - The court discussed the provisions of Article 54 of the Limitation Act, which governs the limitation period for suits for specific performance, emphasizing that if no time is fixed for performance in the agreement, the limitation period begins when the plaintiff notices refusal of performance. The court also interpreted Order VII Rule 11 of the CPC, which allows for rejection of a plaint if it does not disclose a cause of action. The court concluded that the plaint did disclose a cause of action and was within the limitation period, as the refusal was only noticed in August 2021, thus influencing the decision to reject the defendants' application.
Fact of the Case:
The plaintiffs filed a suit for specific performance of a sale agreement dated 14/11/1990, claiming possession of a property sold by Late Jaime Antonio Pimenta. The defendants challenged the suit, arguing it was barred by limitation and lacked a cause of action, as the agreement did not specify who was to obtain necessary NOCs for the sale deed.
Finding of the Court:
The court found that the plaint did disclose a cause of action and was within the limitation period. It noted that the agreement did not specify a time limit for performance, and the refusal to execute the sale deed was only noticed by the plaintiffs in August 2021, which was within the three-year limitation period under Article 54 of the Limitation Act.
Issues: Whether the plaint discloses a cause of action and whether the suit is barred by limitation.
Ratio Decidendi: The court held that under Article 54 of the Limitation Act, if no time is fixed for performance, the limitation period begins when the plaintiff notices refusal of performance. The court emphasized that the issue of limitation is a mixed question of fact and law, requiring evidence to determine when the refusal was noticed.
Final Decision: The revision application by the defendants was rejected, and the court ruled that the suit was not barred by limitation and did disclose a cause of action.
JUDGMENT/ORDER
1. Admit.
2. Heard Shri R.G. Ramani, learned Senior Advocate for the applicants and Shri C.A. Coutinho, learned Counsel for the respondents.
3. The matter was heard finally at the admission stage itself, with the consent of the respective parties and as pointed out in the order dtd. 18/10/2022.
4. In a nutshell, by present revision, the applicants/original defendants are hereby challenging the impugned order dtd. 17/09/2022 passed by the learned Civil Court, Margao thereby dismissing the application under Order VII Rule 11 CPC.
5. The learned Senior Counsel Shri Ramani strongly contended that on a meaningful reading of the plaint, it is clear that the suit filed for specific performance is hopelessly barred by law of limitation. He further submitted that there is no cause of action for filing of the suit since the agreement of sale is silent as who has to obtain NOC's from the concerned departments. He invited attention to the impugned order and submitted that the Court below committed an error in rejecting such an application. He placed reliance on the following decisions:
2. Shri Vinayak Shankar Bawane and others v/s. Shri Tilakraj s/o. Indrajeet Chaddha, CRA No. 136 of 2019.
6. Per contra, Mr Coutinho appearing for the respondents/plaintiffs would submit that the Trial Court rightly considered Article 54 of the Limitation Act and on that basis concluded that limitation starts only from the date when the plaintiffs had noticed that the performance of the contract is refused. In this respect, he would submit that the plaint if read as a whole would clearly disclose a specific cause of action in paragraph 13 and accordingly a suit is also within limitation. He further submitted that earlier there was no specific refusal to perform their part of a contract. In the alternative, Mr. Coutinho submitted that when the matter comes under the second part of Article 54 of the Limitation Act, the issue of limitation being a mixed question of fact and law is to be decided only on adducing evidence. He placed reliance on the following decisions:
2. Urvashiben and Ors v/s. Krishnakant Manuprasad Trivedi, (2019) 13 SCC 372.
7. A short question which cropped up in the present revision is whether the plaint discloses a cause of action and that it is within limitation.
8. For the sake of convenience, parties are hereinafter referred to as plaintiffs and defendants as they arrayed before the Trial Court. The applicants herein are the original defendants whereas respondents are plaintiffs.
9. The plaintiffs filed suit for specific performance and other reliefs under Sec. 34 of the Specific Relief Act. It is their specific contention that Late Jaime Antonio Pimenta, the predecessor of the defendants was the sole owner of the suit property wherein the mundkarial house was situated. Late Jaime Antonio Pimenta sold part of the respective properties to respective mundkars. Vide an agreement for sale with possession dtd. 14/11/1990 said Jaime Antonio Pimenta had agreed to sell an area of 1195 sq. mtrs. of his property to the father /father-in-law of the plaintiffs for a consideration paid of Rs.6000.00. The plaintiffs disclosed the boundaries of the said plot in paragraph 8 of the plaint. It is further claimed that at the time of execution of an agreement of sell total consideration of Rs.6, 000.00 was paid to Late Jaime Antonio Pimenta by the father/father-in-law of the plaintiffs with due acknowledgement and accordingly possession was handed over to the father/father-in-law of the plaintiffs. Since then the predecessor of the plaintiffs and thereafter the plaintiffs are in possession and enjoyment of the suit plot without any objection or disturbance.
10. It is further case of the plaintiffs that the father/father-in-law of the plaintiffs and also Jaime Antonio Pimenta expired leaving
Ahmmadsahab Adbul Milla (Dead) By Proposed Lrs vs. Bibijan
In cases of specific performance where no time for performance is fixed in the agreement, the limitation period begins when the plaintiff notices refusal of performance, and the issue of limitation i....
The main legal point established in the judgment is that the suit for Specific Performance of an Agreement to Sell was clearly barred by the law of limitation as per Article 54 of the Limitation Act,....
The suit for specific performance was within the limitation period as per the notice of refusal, and the defendants failed to prove cancellation of the agreement.
Agreement to Sell – Suit for Specific Performance cannot be decreed after termination of sale agreement by defendant.
The issue of limitation for specific performance of a contract is a mixed question of fact and law, and the plaint cannot be rejected solely based on the averments in the plaint.
The absence of a fixed date for performance in a contract for sale means that the limitation period for filing a suit for specific performance begins when the plaintiff receives notice of refusal, ma....
A sale agreement signed solely by the vendor is enforceable, and no fixed date of performance in an agreement allows suit filing within three years of notice of refusal.
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