Law: Specific Relief Act, 1877

Section: 12

Specific Relief Act (I of 1877)--- ----S. 12--- Suit for specific performance of agreement to sell, filing of---Limitation period, commencement of---Doctrine of imputing intention---Scope---Original owners of subject property entered into an agreement with the petitioner to sell the property---While the transaction under the said agreement was yet to be completed, the petitioner on 10.07.1986 entered into an agreement-with buyers to sell a portion of the subject property that was yet to be transferred in the name of the petitioner---At the time of execution of said agreement, the buyers paid earnest money and the period for paying the remaining amount was extended upto 16.09.1986, by which time it was expected that the property under the earlier agreement would stand transferred in the name of the petitioner---Original owners, however, did not transfer the property to the petitioner on the basis of agreement with him, therefore the petitioner in turn could not transfer the same to the buyers---Petitioner filed a suit for specific performance of the agreement executed with the original owners, wherein the buyers were also arrayed as plaintiffs, however, during the pendency of the suit, the buyers were deleted from the array of the plaintiffs vide order dated 29.01.1991, and the buyers were directed to secure their rights under their agreement with the petitioner by filing a separate suit---Subsequently in the suit filed by the petitioner against the original owners a compromise settlement agreement was reached and a compromise decree was passed in favour of the petitioner on 21.12.1994---While execution of the compromise decree was yet to be carried out, the buyers filed a suit against the petitioner on 27.10.1996 seeking specific performance of their agreement with the petitioner---Petitioner on the basis of compromise decree passed in his suit eventually got the property transferred in his name on 02.03.2000---Suit filed by the buyers against the petitioner continued and was finally decreed---Petitioner challenged the decree in appeal on the ground that the suit filed by buyers on 27.10.1996 was barred by time, and that the limitation period of three years for…

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