In Brief
The Supreme Court reversed the High Court's decision granting specific performance of a land sale agreement. The agreement dated 17 December 1989 stipulated that the sale deed would be executed within one month (by 16 January 1990). Under Article 54 of the Limitation Act, 1963, a suit for specific performance must be filed within three years of the performance date, making the deadline 16 January 1993. The suit was filed in September 1993, exceeding the limitation period. The Court rejected the argument that a clause in the agreement stating it would remain valid for five years could extend this deadline, holding that validity and performance dates are separate matters. The suit was dismissed but the defendants were ordered to refund Rs. 80,000 paid as advance with 12% interest.
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