Usha Devi vs Ram Kumar Singh

Reportable 2024 INSC 599 IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 8446 OF 2024 (Arising out of SLP (C) No.2997 OF 2023)

USHA DEVI & ORS. …APPELLANT(S)

VERSUS

RAM KUMAR SINGH & ORS. …RESPONDENT(S)

ORDER

1. Leave granted. This is the defendant’s appeal against the

judgment and order dated 14.12.2022, passed by the High Court

of Jharkhand at Ranchi in Second Appeal No. 349 of 2005, Usha

Devi & Ors. versus Ram Kumar Singh & Ors., confirming the

judgment and decree of the First Appellate Court, decreeing the

suit for specific performance filed by the respondents.

2. According to the plaint allegations, the facts are as follows:

2.1 The dispute relates to plot No. 2339, situated at Purulia Signature Not Verified Digitally signed by SONIA BHASIN Date: 2024.08.09 Road, Kumhar Toli, Gali No. 2, Namkum, District Ranchi, which 18:03:22 IST Reason:

belonged to Kisun Ram, the grandfather of the appellants.

CIVIL APPEAL NO. 8446 OF 2024 1 However, the plot was sub-divided amongst the co-sharers, and

plot No. 2339B of Khata No. 252 came into the share of Bihari

Lal, succeeded by the defendants after his death.

2.2 During his lifetime, Bihari Lal is said to have entered into an

agreement with the plaintiff on 22.07.1983, for the sale of the

land along with superstructure for a total sale consideration of

Rs. 70,000/-. Out of the said amount, Rs. 1,000/- was paid in

advance.

2.3 As per the said agreement, the sale deed was to be executed

upon payment of the remaining amount of Rs. 69,000/- within a

period of nine months. The sale deed was not executed within the

time stipulated.

2.4 According to the respondents, the balance amount of Rs.

69,000/- was paid on 20.09.1985, for which an endorsement was

made on the agreement dated 20.09.1985, and it was agreed that

the sale deed would be executed by 30.11.1985. The plaintiffs-

respondents were put in possession of the property at that stage.

2.5 The sale deed was still not executed, and a fresh agreement

came to be executed between the parties on 17.12.1989.

2.6 The land in question, covered by the initial agreement to

sell, was 10 katthas. However, in 1989, a fresh measurement

CIVIL APPEAL NO. 8446 OF 2024 2 exercise was undertaken according to which it came to only 9

katthas, and the price was enhanced from Rs. 7,000/- per kattha

to Rs. 9,000/- per kattha.

2.7 At the time of the execution of the agreement dated

17.12.1989, an initial amount of 10,000/- was paid. Thus, out of

the total sale consideration of 81,000/-, only Rs. 1,000/-

remained as balance to be paid at the time of the execution of the

sale deed.

2.8 As per this agreement to sell, the sale deed was to be

executed and registered within one month i.e. up to 16.01.1990.

It is interesting to note that agreement to sell also incorporated a

clause at the end of the document stating that the said

agreement would be valid for five years. Since the sale deed was

not executed, the respondents instituted a suit for specific

performance of the contract in September, 1993.

2.9 The affidavit filed along with the plaint was sworn and

attested on 13.09.1993.

3. The appellants filed a written statement denying the plaint

allegations.

3.1 According to the defendants, the said agreement to sell was

a forged and fabricated document and did not bear the signatures

CIVIL APPEAL NO. 8446 OF 2024 3 of their father, Bihari Lal, who had since died in 1990.

3.2 The appellants further alleged that the suit was barred by

limitation inasmuch as it was filed beyond the period of three

years from the date of performance of the sale deed as per the

agreement.

3.3 Various other issues were raised which we may not enter

into, as primarily, it is the issue of limitation which will decide

this appeal.

4. Based on the pleadings, the Trial Court framed the following

issues:

a) Is the suit as framed maintainable?

b) Have the plaintiffs got any valid cause of action of the suit?

c) Is the suit barred by limitation?

d) Is the suit bad due to non-joinder of necessary parties?

e) Whether so-called agreements were done between the

plaintiffs and late Bihari Lal, husband of defendant No. 1

and whether those agreements are binding on Defendant

Nos. 1,2,4 and 5?

f) Are the alleged agreements forged, fabricated and concocted,

which do not bear the signature of Bihari Lal?

g) Whether at the time of agreement, Bihari Lal was the

CIVIL APPEAL NO. 8446 OF 2024 4 absolute owner in possession of the suit property or

whether the suit property was joint?

h) Is Ashok Kumar-defendant No.3 is the adopted son of Bihari

Lal or the son of Shivlal and whether he has the right to

contest this suit?

i) Whether the plaintiffs are entitled to the reliefs sought in

the plaint and other reliefs?”

5. Both parties led evidence. The Trial Court, vide judgment dated

13.06.2004, dismissed the suit with costs. All the issues except

the issue nos. 1, 2 and 3 were decided in favour of the plaintiffs.

Insofar as issue no.3 is concerned it was held that the suit was

barred by limitation.

6. The plaintiffs-respondents preferred an appeal registered as Title

Appeal No. 50 of 2004. The said appeal came to be allowed, vide

judgment dated 03.09.2005, and the suit was decreed. The

defendants were directed to execute and register the sale deed as

per the terms and conditions of the agreement dated 17.12.1989,

after receiving the balance consideration within 30 days.

7. Aggrieved by the same, the defendants-appellants preferred a

second appeal before the High Court, which has since been

dismissed by the impugned order, giving rise to the present

CIVIL APPEAL NO. 8446 OF 2024 5 appeal.

8. We need not enter into the other issues as we are convinced that

the suit was barred by limitation. The limitation under Article 54

of the Limitation Act, 1963 for instituting a suit for specific

performance of a contract would be three years from the date

fixed for the performance, or, if no such date is fixed, when the

plaintiff has notice that performance is refused. Article 54 of the

Limitation Act, 1963 is reproduced hereunder:

“ *** 54. For Specific Three The date fixed for the performance of Years performance, or, if no such a contract date is fixed, when the plaintiff has notice that performance is refused.

9. Coming to the facts of the present case, we find that in the

agreement dated 17.12.1989, it is specifically mentioned that the

sale deed would be executed within one month from the date of

the said agreement. The period of one month would expire on

16.01.1990, and once there is a specific date fixed for

performance, the limitation period would be three years from the

said date, which would expire on 16.01.1993. The Trial Court

thus held that the suit was barred by limitation as it was filed in

CIVIL APPEAL NO. 8446 OF 2024 6 September 1993.

10. The First Appellate Court and the High Court went on the

consideration that the agreement further recorded that this

agreement would remain valid for a period of five years from

today’s date i.e. date of the execution of the agreement to sell.

Placing reliance on this clause, in our considered opinion, is

totally irrelevant. The performance was to take place within one

month. The validity of the agreement is something different and

does not change the date of performance. What was the reason

for incorporating this clause of validating the agreement for five

years is not spelled out in the agreement, but in any case, it does

not change the date fixed for the performance.

11. As such, the suit was liable to be dismissed on the ground of

limitation alone. The appeal is thus liable to be allowed.

Therefore, we have not entered into the other issues regarding the

agreement to sell being valid or invalid.

12. Accepting that the plaintiffs-respondents paid an amount of Rs.

80,000/- to the defendant-appellant, and there being no relief

claimed for refund of this money, in order to do complete justice

between the parties, we feel it appropriate that the said amount

of Rs. 80,000/- be returned to the plaintiffs along with 12%

CIVIL APPEAL NO. 8446 OF 2024 7 simple interest by the appellants within three months from today.

13. The appeal is accordingly allowed. The impugned order is set

aside, and the suit is dismissed. However, it is directed that the

appellants shall return the advance amount of Rs. 80,000/- with

interest at the rate of 12 % per annum from the date it was paid

to the appellants till the date it is paid. There shall however be no

order as to costs.

……………………………………………………J.

(VIKRAM NATH)

……………………………………………………J.

(PRASANNA BHALACHANDRA VARALE)

NEW DELHI AUGUST 5, 2024

CIVIL APPEAL NO. 8446 OF 2024 8