An Agreement to Sell was executed for selling a land for Rs. 55 lacs on 10 Dec 2005, and it states that the Buyer will pay Rs. 20 lacs till 10 Dec 2006 and Rs. 15 lacs by taking loan from bank after which the registry of the land will be completed. It also says the rest of the amount will be paid by 10 Dec 2007.
Rs. 2 lacs was paid at time of execution of agreement (Dec 2005) and no further money was paid or bank loan taken. Now the buyer sent a notice and filed a suit for specific performance to get the registry done saying that the seller refused to do registry on April 15, 2011 (a falsely made up date). Is the suit maintainable ?
From the facts stated, it is understood that for the agreement, it is 2 year time. And the time was lapsed.Suit seems barred u/ Limitation Act. For even to recover the advance amount limitation was over. However to assess more correctly, the other attending factual details required.
Dt of agreemnt & advance paymnt is 10 Dec 2005. period of agreemnt is 2 yrs from 10 Dec 2005. ie upto 9 Dec 2007. according to the clauses of agreemnt to do / perform their respective parts is within 2007. The buyer who paid advance has to pay balance is within 2007.and the seller who intents to comply his part of contract also has to demand the other counter part to perform can demand intimating him the deadline of 2007 time limit. The other circumstance that if the buyer didnt pay the rest of the sum but demanding to return the sum from the seller can initiate suit for recovery within 3 yrs from the dt 9 dec 2007.ie 8 dec 2010 is the last day for such a suit.
For all agreements entered where the subject matter is Immoveable property, and even when the parties specifically mentioning that time is of the essence, the court will take a lenient view and no provision of limitation attracts to it (putting forward the factual reasons)