Specific Relief Act, 1963 – Section 17 – Limitation Act, 1963 – Article 54 – Suit for Specific Performance – Bar of Limitation – Vendor’s Title – Enforceability of Sale Agreement.
Facts: The appellants, legal heirs of the original defendant, challenged the decree for specific performance of a sale agreement (Ext.A3) dated 07.12.1979, executed between the appellants’ predecessor and the respondents’ predecessor for a property under an agreement with the Kerala State Housing Board (Ext.A2). The suit (O.S. No. 314/2005) was filed in 2005, following a refusal notice in 2005, though evidence indicated a prior refusal in 1991. The trial court and first appellate court decreed the suit, holding it was within limitation and enforceable. The appellants contended the suit was time-barred under Article 54 of the Limitation Act, 1963, and unenforceable under Section 17 of the Specific Relief Act, 1963, due to the vendor’s lack of alienable title, as restricted by clause 21 of Ext.A2.
Held: The suit was barred by limitation under Article 54, as the period commenced from the 1991 refusal, not 2005. The agreement (Ext.A3) was unenforceable under Section 17, as the vendor lacked alienable title due to the Housing Board’s restriction on assignment without prior permission. The absence of a privity of contract between the plaintiffs and the Housing Board further rendered the suit unsustainable. The judgments of the lower courts were set aside, and the suit was dismissed.
Key Observations:
- A suit for specific performance must be filed within three years from the date of refusal, as per Article 54, irrespective of the absence of a fixed performance date.
- Under Section 17, a contract to sell property by a vendor without alienable title cannot be specifically enforced.
- Lack of privity of contract with a third party (Housing Board) precludes specific performance claims against them.
Appeal Allowed. No Costs.
Citations: 2025 KER 38594 : 2025 (5) KLR 304 : 2025 KLT OnLine 2143
High Court of Kerala, Easwaran S., J.
RSA No. 1224 of 2013; 30 May 2025
