IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Biren Vaishnav, Nisha M. Thakore, JJ.
Mahendra Radheshyam Goyal & Anr. – Appellants
Versus
LH of Patel Hasmukhbhai Harmanbhai & Ors. – Defendants
R/First Appeal No. 1112 of 2024 With Civil Application (For Stay) No. 1 of 2024 In R/First Appeal No. 1112 of 2024
Decided On : 02-07-2024
Limitation - Specific Performance - Limitation Act, Article 54; Code of Civil Procedure, Order VII Rule 11 - The court interpreted the provisions of the Limitation Act and the Code of Civil Procedure, emphasizing the necessity of filing suits within prescribed time limits, leading to the dismissal of the suit as time-barred.
Fact of the Case:
The plaintiffs, a partnership firm, sought specific performance of an agreement to sell land after the defendants failed to obtain non-agricultural permission. The defendants contended the suit was barred by limitation and lacked cause of action.
Finding of the Court:
The court found that the suit was filed beyond the three-year limitation period prescribed by Article 54 of the Limitation Act, as the cause of action arose when non-agricultural permission was denied in 2011.
Issues: Whether the suit for specific performance was maintainable given the bar of limitation and the absence of a valid cause of action.
Ratio Decidendi: The court held that the suit was time-barred as the plaintiffs failed to file within the three-year period from the date of refusal of non-agricultural permission, and the defendants' actions did not create a new cause of action.
Result: The appeal was dismissed as the suit was time-barred.
JUDGMENT :
NISHA M. THAKORE, J.
1. The present appeal is filed by a partnership firm through his administrator partners who were the original plaintiffs in Special Civil Suit preferred by them seeking specific performance of agreement to sell as well as for declaration and permanent injunction in respect of the suit land. The learned Civil Judge while entertaining the application preferred by the present respondents – original defendants at Exh.22, under Order-VII Rule-11(a)(d) of the Code of Civil Procedure, has consequently rejected the suit by order dated 18th January, 2024 passed in Special Civil Suit no.102 of 2021.
2. In nutshell the averments made by the original plaintiff firm, in the plaint are as under :-
2.2 The parties have therefore mutually agreed and fixed the consideration of the suit land @ Rs.1001/- per sq. ft., which was to be paid after the conversion of the suit land into nonagriculture land and subject to measurement. The terms and conditions of the agreement to sell were reduced in writing by executing the agreement to sell dated 12th August, 2011 before the Notary in presence of two witnesses. The aforesaid agreement to sell was executed by original defendant nos.1 and 2 and had also received an amount of Rs.11,11,000/- as acknowledge in the agreement to sell, which was witnessed by the original defendant no.1/2.
2.3 The plaintiff had thereafter approached the defendant nos.1 and 2 and as instructed had paid further amount of consideration by handing over the cheque no.1361 of Dhanlaxmi Bank of an amount of Rs.30,000/- to the son of the defendant no.1 viz. Tusharbhai Patel (defendant no.1/2) and cheque bearing no.953502 of Punjab National Bank of an amount of Rs.20,000/-. The plaintiff had therefore pleaded that total sale consideration of Rs.16,61,000/- which also include an amount of Rs.2,00,000/- given in cash to the defendant no.2 and the expenses of Rs.3,00,000/- incurred for conversion of the land into NA, which was paid in the year 2016 in different parts.
2.4 It was agreed between the parties that the aforesaid amount shall be adjusted towards the final sale consideration amount and remaining amount was to be paid after the conversion of the land into NA land. The plaintiff had at every stage shown his readiness and willingness to fulfill the terms and conditions of the contract since the plaintiff had already made payment of the major part of the sale consideration, the defendants were requested to handover the possession and therefore, the plaintiff claims to be in possession of the suit land. The plaintiff has further pleaded that the appropriate proceedings were also undertaken by the defendants for converting land for NA purpose. However, in the revenue proceedings, the suit land was recognized as Devsthan land and was therefore treated as new tenure land.
2.5 Consequently, the Collector had refused to grant NA permission and had sought payment of premium for such conversion. As per the plaintiff, the defendants have assured to make payment of the premium amount and the plaintiff had relied upon such assurance. However, though the period had expired, the defendants have failed to undertake such exercise.
2.6 The plaintiffs were therefore constrained to issue legal notice dated 15th March, 2016, which was duly served upon the defendant through RPAD. It is pleaded that the defendants have immediately approached the plaintiffs and have
Basawaraj Vs. Land Acquisition Officer
Ghewarchand vs. Mahendra Singh
Popat and Kotecha Property v. SBI Staff Assn. (2005) 7 SCC 510
Pundlik Jalam Patil v. Jalgaon Medium Project (2008) 17 SCC 448: (2009) 5 SCC (Civ) 907
Rajender Singh v. Santa Singh (1973) 2 SCC 705: AIR 1973 SC 2537
The court reaffirmed that suits for specific performance must be filed within the limitation period, and failure to do so results in dismissal.
Court emphasized the impact of pandemic-related extensions on limitation periods, affirming that the suit, filed within the extended timeframe, was not barred by limitation.
The court ruled that the rejection of the plaint was erroneous as it did not consider the merits of the case, emphasizing that the issue of limitation is a mixed question of law and fact.
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,....
An agreement to sell is not void ab initio if it is subject to a condition that the seller will obtain the necessary permission from the authorities to convert the land from new tenure to old tenure ....
An agreement to sell agricultural land without prior permission from the Collector is void and unenforceable under tenancy laws.
A suit for specific performance requires a valid written agreement, and claims must be filed within the limitation period; failure to meet these conditions results in dismissal.
The court ruled that a civil suit for specific performance must be filed within three years from the refusal to perform, reinforcing that delay and lack of sufficient pleading detail bar such claims.
Time is not the essence of a contract for sale of immovable property unless expressly stated; mere delay does not bar specific performance if circumstances justify it.
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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