Tag Archives: Limitation Act Article 54

Specific Performance of Contract – Starting Point of Limitation

Hon’ble Gujarat High Court in the case of Somabhai Kanjibhai Patel v. Abbasbhai Jafarbhai Daginawala, 1993 (2) GLR 1337, has held that in a contract for sale of all seven plots, sale of one plot only would amount to refusal to perform the contract in its entirety. The starting point of limitation would come into play as soon as performance of the contract in its entirety is refused either expressly or by necessary implication evinced by such contract of sale of one plot therefrom. It is held that if the starting point of limitation is not allowed to run on the ground of refusal of performance of the contract in part, no suit could be instituted till the performance of the contract in its entirety is refused. In that case, the suit filed before the entire contract is broken might be branded as premature. It is held that besides, the starting point of limitation cannot be permitted to be postponed indefinitely as in that case. The prescribed period of limitation under Article 54 of the Act is three years from the date performance of the contract is refused to the knowledge of the litigating party. Shetty Associates Pvt. Ltd. v.Samta Builders Private Limited, (2019) 4 Bom CR 735.

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