Law:

Section:

(a) Punjab Town Improvement Act (IV of 1922), S. 98(3)­Interpretation-Special leave to appeal granted by Supreme Court to consider true interpretation of provision of S. 98(3). (b) Punjab Town Improvement Act (IV of 1922), S. 98(3) read with Limitation Act (IX of 1908), S. 15(2)-Plaintiff filing suit after serving notice under S. 98(1) of Act IV of 1922-Plaintiff entitled to exclusion of statutory notice period of two months from prescribed period of limitation. (c) Punjab Town Improvement Act (IV of 1922), S. 98(3)-H entering into agreement with Improvement Trust Jot purchase of plot of land on payment of purchase price in four equal instalments­ Three instalments paid and possession of plot taken but when fourth installment became due and H called for completion of registration of agreement of sale, Improvement Trust, in order to accommodate another person, cancelling allotment-Suit for specific performance of contract of sale coupled with prayer for possession-Held, suit, in circumstances, one for recovery of possession on basis of title flowing from contract and as such not governed by special period of limitation under S. 98(3). H purchased a piece of land from an improvement Trust by entering into agreement with the Trust. He paid Rs. 1,000 as earnest money and the balance purchase price was payable in four equal instalments, H got possession of land and paid three instalments. Before the last instalment fell due H was called upon by the Improvement Trust on 26-5-53 to report within a week for completion of registration of agreement of sale. H made several attempts to comply with this demand but the Improve­ment Trust, in order to accommodate another person, evaded registration. H on learning that the Trust had cancelled his allotment, served a statutory notice to the Trust under section 98 (1) of the Punjab Town Improvement Act, 1922 and thereafter brought a suit on 24-5-54 for specific performance of contract of sale coupled with prayer for possession. The suit was dismissed by Courts below on the ground that it was barred by limitation not having been brought within six months of the cause ,of action which the lower Courts held to have arisen on…

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