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2024 Supreme(Bom) 580

IN THE HIGH COURT OF BOMBAY
Sandeep V. Marne, J.
Devoo Ambo Patil (Since Deceased) Through Its Legal Representatives & Ors. - Appellants
Versus
Hiren Venilal Sevak & Ors. - Respondents
Second Appeal No. 350 of 2022 with Interim Application No. 2526 of 2022 in Second Appeal No. 350 of 2022 with Second Appeal No. 353 of 2022 with Interim Application No. 17807 of 2023 in Second Appeal No. 353 of 2022
Decided On : 16-04-2024

Advocates appeared:
Mr. Ashutosh Kumbhakoni, Senior Advocate with Mr. Sandesh D. Patil and Ms. Anusha P. Amin i/b. Mr. Chintan Shah for the Appellant in SA/350/2022., Mr. Ranjit Thorat, Senior Advocate with Mr. Pradeep Thorat, Mr. D.Y. Chitnis, Mr. Abhilesh Chitre, Ms Sonali Dalvi, Mr. Rehan G & S.P. Singh i/b. M/s. Deepak Chitnis Chiparikar and Co. for the Appellants in SA/353/2022., Mr. Vineet Naik, Senior Advocate with Mr. Sukand Kulkarni and Mr. Amit Shaligram i/b. Mr. Govind B. Solanke for the Respondents.

The suit for specific performance was barred by limitation as per Articles 54 and 58 of the Limitation Act, requiring a specific challenge to the termination notice for maintainability.

Headnote:(A) Specific Relief Act, 1963 - Sections 20 and 54 - Limitation Act, 1963 - Article 54 and Article 58 - Appeal against decree of specific performance and related issues - Plaintiff sought specific performance for land sale agreement dated 11 January 1988; Trial Court dismissed the suit, citing that the suit was barred by limitation; Appellate Court decreed specific performance, directing Defendants to execute a Conveyance Deed; Defendants contended that suit was time-barred and relief for specific performance could not be granted without challenging the notice of termination dated 3 December 1990; key issues involved were whether the suit was maintainable given the limitations and whether the termination notice needed specific challenge for the suit to proceed. (Paras 12, 30, 66)

(B) Limitation - Court held that the suit was indeed barred by the Limitation Act as limitation began from the notice of refusal dated 3 December 1990. Key findings pointed that Plaintiff's suit was filed beyond the prescribed period outlined in Article 54 and Article 58, which was confirmed by the original documentation and explicit acknowledgment by the Plaintiff. (Paras 34, 66)

Findings of Court:
The suit filed by Plaintiff regarding specific performance and the associated declaration was found to be barred by limitation. The first Appellate Court's judgment was thus set aside.

Result: Appeals allowed; judgment of the first Appellate Court is reversed.

Table of Content
1. challenge to original judgment and decree. (Para 1 , 2 , 3)
2. background of the case and agreements involved. (Para 4 , 5 , 6 , 7)
3. transfer of interests in relevant land parcels. (Para 9 , 10 , 11)
4. limitations and claims concerning specific performance. (Para 14 , 15 , 16 , 18 , 19)
5. arguments regarding the limitation period were pivotal in evaluating the suit's maintainability. (Para 21 , 22)
6. court's overview on limitation issues. (Para 25 , 26 , 29 , 30 , 31)
7. discussion regarding the validity of termination notice. (Para 40 , 41 , 42)
8. arguments against maintainability of appeals. (Para 59 , 63 , 64 , 65)
9. the decree's validity is contingent on the ownership status of the property being disputed. (Para 60)

JUDGMENT

A. The Challenge

1. These appeals are filed challenging the Judgment and Decree dated 15 January 2022 passed by the learned District Judge-2, Thane in Regular Civil Appeal No. 188 of 2012, by which the appeal has been allowed and the Judgment and Decree dated 30 March 1998 passed by the Civil Judge Senior Division, Thane in Special Civil Suit No. 454 of 1994 is set aside. The first Appellate Court has decreed Special Civil Suit No. 454 of 1994 holding that the Plaintiff is entitled to specific performance of the Agreement for Sale dated 11 January 1988. It has directed Plaintiff to deposit the balance amount of consideration of Rs. 4,30,850/- with further directions to Defendant Nos. 1 to 9 to execute Conveyance Deed in Plaintiff's favour in respect of the suit lands. Defendants are further restrained by an order of permanent injunction from alienating, transferring and /or creating third party interests in respect of the suit lands.

2. In the Special Civil Suit No. 454 of 1994, original Defendant Nos. 1 to 9 were vendors, who had executed Agreement for Sale dated 11 January 1988 in Plaintiff's favour. After dismissal of the Suit by the Trial Court on 30 March 1998, M/s. Everest Land Developers (Everest) purchased land bearing Survey No. 62 Hissa No. 6 from Defendant Nos.1 to 9 on 13 May 2009. Therefore, Everest came to be impleaded as Respondent No. 10 in Regular Civil Appeal No. 188 of 2012. On 2 August 2012, Everest sold the land bearing Survey No. 62 Hissa No. 6 to M/s Harmony Lifestyle Structures Private Limited (Harmony), who was not impleaded in the appeal before the first Appellate Court.

3. The impugned decree of the first Appellate Court directs original Defendant Nos. 1 to 9 (vendors) to execute Conveyance Deed in respect of the suit lands bearing Survey No. 62 Hissa No. 2 and Survey No. 62 Hissa No. 6 in Plaintiff's favour. Out of original Defendant Nos.1 to 9, only original Defendant Nos.1, 3 to 5, 8 and 9 have filed Second Appeal No. 350 of 2022 alongwith Everest, who was impleaded as Respondent No. 10 in Regular Civil Appeal No. 188 of 2012. The original Defendant Nos. 2, 6 and 7 are impleaded as Proforma Respondents to Second Appeal No. 350 of 2022. On the other hand, Harmony, who purchased part of the suit land on 2 August 2012 and who was not impleaded either before the Trial or the first Appellate Court has filed Second Appeal No. 353 of 2022. By order dated 21 August 2023 this Court (Coram: N.R. Borkar, J.) has granted leave to Harmony to file appeal challenging the Judgment and Decree of the first Appellate Court.

B. Factual Matrix

4. Defendant Nos. 1 to 9 are the original owners in respect of to agricultural lands bearing Survey No. 62 Hissa No. 2 admeasuring 1267.28 square yards, equivalent to 1060 square meters and Survey No. 62 Hissa No. 6 admeasuring 4567.75 square yards equivalent to 3820.60 sq.meters at village-Ovale, Taluka and District -Thane. This is the suit property described in the Plaint.

5. On 11 January 1988, the original owners i.e Defendant Nos. 1 to 9 executed unregistered agreement for sale in Plaintiff's favour agreeing to sell the suit property for consideration of Rs. 641,850/-. The agreement records that the consideration was fixed at Rs.

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