VidhiSangh

Supreme Court of India · 12/09/2023

A. VALLIAMMAI versus K.P. MURALI AND OTHERS

[2023] 12 S.C.R. 183 · 2023 INSC 823

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court set aside specific performance because the purchaser and his assignees had notice of refusal more than three years before suing. Correspondence and the earlier injunction suit showed that knowledge; the pending partition litigation was not a contractual condition postponing performance, and assignment did not restart limitation. The Court left the separate procedural bars undecided. Under Article 142 it substituted a Rs 50 lakh money decree against the vendor, with conditional interest, and permitted withdrawal of the purchasers’ court deposit.

Issues

  1. When limitation began under the refusal limb of Article 54.
  2. Whether the pending partition suit, correspondence or assignment postponed the limitation period.
  3. What relief should follow setting aside specific performance.

Provisions considered

Held

Result

Purchasers’ appeals allowed and specific-performance decree set aside. Vendor’s appeal allowed to that extent, with a substituted Rs 50 lakh money decree and conditional 8% annual interest on nonpayment within six months. Plaintiffs may withdraw the court deposit with accrued interest. No costs.

Judgment PDF: Supreme Court of India, [2023] 12 S.C.R. 183.