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USHA DEVI & ORS. versus RAM KUMAR SINGH & ORS.

Citation: [2024] 8 S.C.R. 501 · Decided: 05-08-2024 · Supreme Court of India · Bench: VIKRAM NATH, PRASANNA BHALACHANDRA VARALE · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2024] 8 S.C.R. 501 : 2024 INSC 599
Usha Devi & Ors. 
v. 
Ram Kumar Singh & Ors.
(Civil Appeal No. 8446 of 2024)
(Arising out of SLP (C) No. 2997 of 2023)
05 August 2024
[Vikram Nath and Prasanna Bhalachandra Varale, JJ.]
Issue for Consideration
Respondents had filed a suit for specific performance in September 
1993 inter alia seeking execution of sale deed on the basis of an 
agreement to sell dated 17.12.1989. As per the said agreement, 
the sale deed was to be executed and registered within one month, 
i.e. up to 16.01.1990. The agreement to sell incorporated a clause 
that the said agreement was valid for five years. The said suit for 
specific performance was dismissed with costs by the Trial Court. 
The first appellate court set aside the order of Trial Court and 
decreed the suit in favour of the Respondents. In second appeal, 
the High Court passed the impugned order confirming the order 
of the First Appellate Court. 
Whether the High Court was justified in upholding the judgment of 
the first Appellate court vide which Respondents’ suit for specific 
performance of contract was decreed in their favour even though 
the suit for specific performance was filed after more than three 
years from the date fixed for the performance of the contract, 
on the basis of a clause in the agreement which stated that the 
agreement will be valid for five years.
Headnotes†
Suit for Specific Performance of Contract – Limitation for 
filing – Determination of:
Held: The limitation under Article 54 of the Limitation Act, 1963 
for instituting a suit for specific performance of a contract is 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 – 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, 
502
[2024] 8 S.C.R.
Digital Supreme Court Reports
the limitation period would be three years from the said date, which 
would expire on 16.01.1993 – The First Appellate Court and the 
High Court went on the consideration that the agreement further 
recorded that it would remain valid for a period of five years from 
date of the execution of the agreement to sell – Placing reliance 
on this clause 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 – As such, 
the suit was liable to be dismissed on the ground of limitation 
alone – 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, the amount of Rs. 80,000/- be returned to the 
plaintiffs along with 12% simple interest by the appellants within 
three months. [Paras 8, 9, 10, 11 and 12]
List of Acts
Limitation Act, 1963.
List of Keywords
Suit for specific performance; Limitation; Article 54 of the Limitation 
Act, 1963; Agreement to sell; Validity period of agreement; Date 
of performance.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8446 of 2024
From the Judgment and Order dated 14.12.2022 of the High Court 
of Jharkhand at Ranchi in SA No. 349 of 2005
Appearances for Parties
Ajay Kumar, Nirmal Kishore, Keshav Maheshwari, Advs. for the 
Appellants.
Rohit Kumar Singh, Abhishek Sharma, Shivam Sharma, Akash 
Kumar, Advs. for the Respondents.
Judgment / Order of the Supreme Court
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 
[2024] 8 S.C.R. 
503
Usha Devi & Ors. v. Ram Kumar Singh & Ors.
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 Road, 
Kumhar Toli, Gali No. 2, Namkum, District Ranchi, which belonged 
to Kisun Ram, the grandfather of the appellants. However, the 
plot was sub-divided amongst the co-sharers, and plot No. 
2339B of Khata No. 252 came into the share of Bihari

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