Legal Update | Analysing Limitation Period In A Specific Performance Suit

The Hon'ble Supreme Court recently in the matter of A. Valliammai v. K.P. Murali and Others vide order dated 12 September 2023, clarified the limitation period that is applicable while filing a suit for specific performance of a contract under Article 54 of Part II of the Schedule to the Limitation Act, 1963 (Limitation Act). The Supreme Court held that in the event that there is no time fixed for Specific Performance of a contract, then the limitation period runs from the date on which the plaintiff has notice of the defendant's refusal to perform his part of Contract.

BACKGROUND

A. Valliammai, the appellant, was the owner of 11 acres of land located in Tiruchirapalli district, India. She inherited this land from her late husband, Ayyamperumal. A land sale agreement was made between A. Valliammai and K. Sriram in 1988 for the sale of the 11-acre property. The sale was set at a rate of Rs. 2,95,000 per acre, and an advance payment of Rs. 1,00,000 was made. The