Limitation for Specific Performance of Contract under the Limitation Act
1. Introduction
Specific Performance is a remedy under contract law where the court directs a party to perform their contractual obligations instead of merely paying damages.
However, like all civil remedies, the right to approach the court for specific performance is subject to limitation under the Limitation Act, 1963.
2. Relevant Provisions of the Limitation Act
The limitation period for filing a suit for specific performance is mainly governed by Section 20, 21, 22, 23, 24, 25, and 34 of the Limitation Act, 1963, read with the Schedule of the Act.
Period prescribed: 3 years from the date fixed for the performance of the contract, or if no date is fixed, when the plaintiff has notice of the breach of contract.
Reference from the Limitation Act, 1963 (Schedule Entry 7):
Nature of suit: Suit for specific performance of a contract.
Period of limitation: Three years
Date from which limitation runs: From the date fixed for performance, or when the plaintiff has notice of breach.
3. Key Points
Date of Performance Fixed in Contract
If the contract specifies a date of performance, the limitation starts from that date.
No Date Fixed
If the contract does not fix a date, the limitation starts from the date the plaintiff knew of the defendant’s refusal or breach.
Extension for Disabilities
Sections 12–15 of the Limitation Act provide extension in cases of minority, unsound mind, or legal disability.
Effect of Time-Bar
If the suit is filed after 3 years, the court may refuse specific performance, though it may still allow compensation in damages.
4. Important Case Laws
1. Balkrishna Mahadeo vs Narayan Govind (AIR 1962 SC 71)
Facts: Plaintiff filed suit for specific performance after a considerable delay.
Held: Court held that limitation period for specific performance is 3 years, starting from the date of fixed performance or notice of breach.
2. State of Rajasthan vs G. Chinnaswamy (AIR 1977 SC 1363)
Principle: Limitation runs from the date when the plaintiff has notice of breach, not from the date of contract execution if no date is fixed.
3. Gajanan Moreshwar vs Balaji (AIR 1966 Bombay 45)
Observation: Courts can refuse specific performance if the suit is barred by limitation, even if the contract is valid.
5. Practical Notes
Specific performance is discretionary: Even within limitation, the court may refuse if performance is impossible or inequitable.
Damages alternative: If limitation bars specific performance, plaintiff can still claim damages for breach (Section 73, Indian Contract Act).
Registration matters: For immovable property contracts, registration under Registration Act is mandatory for enforceability.
Summary Table
| Aspect | Limitation |
|---|---|
| Period | 3 years |
| From when | Date fixed for performance or notice of breach |
| Governing Law | Limitation Act, 1963 (Schedule, Entry 7) |
| Extension | Minor, unsound mind, or legal disability (Sections 12–15) |
| Consequence of Delay | Court may refuse specific performance; damages still possible |
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