TARLOK SINGHversusVIJAY KUMAR SABHARWAL

                               TARLOK SINGH                                        A
                                         ),',
                                        v.
                       VUAYKUMARSABHARWAL

                               MARCH 25, 199.6

              [K. RAMASWAMY AND G.B. PATTANAiK, JJ.]                               B
      1 Limitation Act, 1963 : '

        Article 54--7-Suit for specific peifom1ancec-Limitatiott-:lnitially suit for
  perpetual injunction instintted-Later, application under Order . 6 Rule 17
  CFC for amendment of the plaint filed to amend the suit as one for specific · C
  peifomzance-Arjreement of sale stipulating that sale deed would be executed
  within 15" days of vacation of injunction by Court-Injunction suit disposed
. of on 223.1986-Amendment application allowed on 218.89-Heltf, the suit
  for specific performance_. in fact was claimed by way of amendpzent-The            ,
  crncial date would be the date on which the amendmeni was ordered by which D
  date, admittedly, the suit is barred by limitation.               ,
                                                        '   '\;I

         CIYfL APPELLATE JURISDICTION : Civil Appeal No. 7020 of
 1996.

      From the Judgment and Order dated 6.7.94 of the Punjab 8i. Haryana . E
 High CiJ11rt in R.S:A. Nq. 2485 of 1993.     ,     . .

         U .R. Lalit, Mahabir Singh and Mridul Agga..WOI for the Appellants.

         Prem Ma_Ihotra for the Respo.ndents.
                                                                                   F
     · The folloWing Order ofthe Court ~as.delivered :
                                                  . '
         Leave granted.

         We have heard· learned counsel on both sides.

        Shorn of all the details regarding diverse litigations that went on · G
 between Jte parties, suffice it to state that the appellant is the o\Vner of
 the lands. The respondent is successor'in-interest. The respondent's father
 admittedly had an agreement of sale ·on December· 21, 1984 executed by
 the 'appellant to alienate the lands. In view of the pending proceedings time
 for conveyance was further extended by agreem~nt ·dated August i8, 1984 H
                                        879
     880                  SUPREME COURT REPORTS                   [1996] 3 S.C.R.

A    stipulating that the appellant shall be required to execute the sale deed
     within 15 days from the date of the order vacating the injunction granted
     in a suit. We are informed that the suit was initially dismissed and there-
     after a review application was also dismissed as withdrawn on March 22,
     1986. Initially, the respondent had instituted the suit on December 23, 1987
     for perpetual injunction. The application under Order 6, Rule 17, CPC
B    came to be filed for converting the suit into one for specific performance
     of agreement dated August 18, 1984. That application was filed on July 17,
     1989. By order dated August 25, 1989, the amendment was allowed. The
     appellant carried the matter in revision to the High Court in C.R. No.
     2724/89. The High Court by order dated November 29, 1989 had held thus:
c            "!do not find any illegality or irregularity in the order passed by
             the trial Judge, However, the vendor will be at liberty to take a
             specific plea in the written statement which he will file pursuant
             to the amended plaint that the suit is beyond limitation and that
             the suit was even beyond·limitation on the date when the applica-
D            tion for amendment was filed. After the amended written state-
             ment is filed the trial Judge will frame proper issues and dispose
             of the same according to law."

           In view of the above directions, the appellant has pleaded that the
E suit was barred by limitation. The t.rial Court negatived it and decreed the
     suit. On appeal, it was confirmed. Second appeal No. RSA No. 2485/93 by
     order dated July 6, 1994, the Punjab & Haryana High Court dismissed it.
     Thus, this appeal by special leave.

           The only question is : whether the suit is barred by limitation?
F Pursuant to the agreement dated December 21, 1984, time was extended
   for specific performance which started running after 15 days from the date
   the stay was vacated. It is now admitted position that review petition was
   dismissed on March 22, 1986. Thus, limitation began to run on April 6,
   1986. The question, therefore, is : whether the suit for specific performance
G is within the limitation? Article 54 of the Schedule to the Limitation Act
  .21 of 1963 reads thus :

             "For specific performance of a contract the period of limitation is
             3 years. The limitation begins to run from the date fixed for the
             performance, or, if no such date is fixed, when the plaintiff has
·H           notice that performance is refused."                     ..,
                   TARLOKSINGHv. V.K.SABHARWAL                              881

        Shri Prem Malhotra, learned
                                  ,,
                                        counsel for
                                                 .
                                                     the
                                                       '
                                                          respondent, contended
                                                                            ....
                                                                                   A·
  that since the respondent had refused performance the suit must be
  deemed to have been filed ori. December 23, 198.7 and, therefore, when the
 amendment was allowed, it 'would relate back to the date of filing the suit
 which was filed within thre~ year from the date of the refusal. Accordingly,
 the suit is not barred by limitation. ShrrU.R. Lalit, learned senior counsel B
 for the appellant, contended that in view of the liberty given by the High
. Court the appellant is entitled to raise. the plea of limitation. The suit filed
  after expiry of 3 years from i986 is barred· by limitation. The question is : ·
  as to when the limitation began to run? In view of the admitted position
 that the contract ·was to be performed withiri 15 days after the. injunction
 was. vacate.d, the limitation began to .run im April 6, 1986. In view of the C
 position t.hat the suit for perpetual injunction was conveited into one for
 specific performance by order dated August 25, 1989, the suit must be
  deemed.to have been instituted on August 25, 1989 andthe suit was clearly
 barred by limitation. We find force in the stand of the appellant. We think
 that parties had, by agreement,· determined the date for performance of D
 the contract. Thereby limitation ·began to run from April 6, 1986. Suit
 mer.ely for injunction laid on December 23, 198i would not be of any avail
 nor the limitation began to run from that date. Suit for perpetual injunction
.is different from suit for specific performance. The suit for specific perfor.-
 mance in fact was claimed by way of amendment appllcatiori filed tinder
  Order 6, Rule 17 CPC on September 12, 1979. It will operate only on the E
 application being ordered. Since the amendment. wa~ ordered on August
 25, 1989 the crucial .date would be the date on which the amendment was
 ordered by which date, admittedly, the suit is barred by limitation. The
 courts below, therefore, were not r~ght in decreeing the suit.

         The appeal is accord~gly allo:-ved. The suit stands dismissed. No        F
costs.

R;P.                                                           Appeal allowed