The limitation period for a suit for specific performance of an agreement to sell land starts from the date of the agreement, and not from the date of sanction of mutation.

G.C.Garg, J.

1. Kaushalya Devi respondent herein inherited property in dispute from her mother. She by agreement dated 2nd June, 1980 agreed to sell 104 Kanals and 12 marlas of land in favour of the plaintiff-appellant. A sum of Rs. 3,000/- was paid to her as earnest money. The landlady further postulated that the sale deed qua 52 kanals and 6 marlas of land shall be executed on or before 1st June, 1981 and for the remaining land measuring 52 kanals and 6 marlas on or before 31st August, 1981. The agreement further provided that in case the purchaser failed to get the sale deeds executed by the date fixed the agreement shall stand cancelled and the earnest money forfeited. Undisputedly, the sale deed was not executed by Kaushalya Devi in favour of Phool Chand plaintiff either on or before 1st June, 1981 or 31st August, 1981. Mutation of inheritance in favour of Kaushalya Devi was sanctioned on 14th June, 1986. The plaintiff thereafter filed a suit for specific performance of agreement on 10th March, 1987.

Defendant-Kaushalya Devi resisted the suit and during the pendency of the. suit, she sold the property in question in favour of Vandna and Dhan Devi defendant Nos. 2 and 3 respectively. The defendants contested the suit, inter alia, on the ground that the suit is barred by time. Trial Court relying on the fact that mutation had been sanctioned on 14th June, 1986, came to the conclusion that the suit filed on 2nd March, 1987 was within limitation and consequently decreed the suit. On appeal, learned lower appellate Court came to the conclusion that the clauses in the agreement provided for registration of sale deeds on 1st June, 1981 and 31st August, 1981 and irrespective of the fact that mutation was sanctioned on 14th June, 1986, the earlier clauses in the agreement were to prevail and, therefore, the period of limitation of three years is to be counted from 31st August, 1981 and not from 14th June, 1986. The appellate Court thus concluded that the suit is barred by time. It consequently allowed the appeal and set aside the judgment and decree of the trial Court. It is in this situation, the plaintiff has filed the present appeal.

2. Upon notice of motion, the defendant-respondents have put in appearance.

3. Learned counsel for the appellant submitted that in the facts and circumstances of this case, the suit filed on 10th March, 1987 seeking specific performance of the agreement dated 2nd June, 1980 was within limitation as the period of limitation is to start from 14th June, 1986, the date when mutation was sanctioned in favour of Kaushalya Devi. The argument was raised/on the strength of a sentence appearing in the concluding portion of the agreement which, when translated-into English, would read, "I promise that I shall get the mutation to the estate of Lila Wati sanctioned at an early date and execute sale deed after sanctioning of mutation". The contention in my opinion has no merit and has rightly been rejected by the lower appellate Court. The agreement, as already noticed, is dated 2nd June, 1980. The earlier part of the agreement specifically and categorically provides that the sale deed in respect of land measuring 52 kanals and 6 marlas shall be executed on or before 1st June, 1981 and sale deed for the balance land measuring 52 kanals and 6 marias shall be executed on or before 31st August, 1981. The agreement further provides that qua the first sale deed which was to be executed on or before 1st June, 1981, the entire sale consideration shall be received at the time of execution of the sale deed and the earnest money shall be adjusted at the time of execution of the second sale deed, and in case the purchaser fails to get the sale deed executed by 1st June, 1981, the execution shall stand cancelled and the earnest money shall also stand forfeited. In the presence of the above clause in the agreement, it is difficult to conclude that the sale deeds were to be got executed after sanctioning of the mutati