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Supreme Court of India

VENKAPPA GURAPPA HOSURversusKASAWWA C/O. RANGAPPA KULGOD

Citation
1997 INSC 364
Decided
3 April 1997
Disposal
Dismissed

Holding

Mere issuance of notice does not stop the running of the limitation period; the suit filed after the expiry of three years from the date of knowledge of denial is barred.

Summary

The appellant claimed a sale agreement dated 9 August 1959 and filed a suit for specific performance on 5 November 1972, after the respondent had obtained a possession decree in his favour on 9 November 1971. The appellant issued a notice to the respondent on 22 August 1972, asserting denial of the agreement. The court examined whether the issuance of notice interrupted the limitation period under the Limitation Act, 1963. It held that a notice does not stop the running of limitation; the period begins from the date of knowledge of denial and runs its full course. Since the suit was filed more than three years after that knowledge, it was barred by Article 54 of the Limitation Act. Consequently, the appeal was dismissed and the suit dismissed as time‑barred.

Issues considered

  • Does the issuance of a notice suspend or interrupt the limitation period under the Limitation Act, 1963?
  • When does the limitation period commence for a suit for specific performance where the agreement is denied?
  • Is the suit barred under Article 54 of the Limitation Act, 1963?

Legislation cited

Subjects

limitationspecific performancesale agreementnoticeArticle 54Limitation Act, 1963suit dismissal

Judgment

                      VENKAPPA GURAPPA HOSUR                                      A
                                        v.
                 KASAWWA C/0. RANGAPPA KULGOD

                                APRIL 3, 1997

              [K. RAMASWAMY AND D.P. WADHWA, JJ.]                                 B

        Limitatio11 Ac~ 1963 : Article 54.

       Suit-Dismissal for filing after expi1y of limitation period-Appellant's
claim that he had entered into a sale agreement with respondent on August C
9, 1959-In the mea11while suit filed by respo11de11t for possession of the said
properties-Suit decided in favour of respondent on November 9, 1971-0n
August 22, 1972 appellant issued notice to respondent-Appellant filed suit
on Novembe;· 5, 1972-Respo11dent denied execution of sale agreement-Held
mere issuance of notice does not stop the mnning of limitation period--Once
the same l1as began to nm it mns its full course-Appellant having filed the D
suit after the expily of three years from the date of knowledge of denial the
suit was ban-ed by limitat'0n.

        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2837 of
1986.
                                                                                  E
     From the Judgment and Order dated 30.7.84 of the Karnataka High
Court in R.S.A. No. 646 of 1976.

        Manoj Kumar Mishra for A.S. Bhasme for the Appellant.

        P.R. Ramasesh for the Respondent.                                         F

        The following Order of the Court was delivered :

      This appeal by special leave arises from the judgment of the learned
Single Judge of the Karnataka High court, made on July 30, 1984 in Second G
Appeal No. 646 of 1976.

       The appellant had filed a suit for specific performance of the sale
agreement dated August 9, 1959 in respect of the land in Village Lingaur
for a consideration of Rs. 10,200. It is the case of the appellant that he paid
as part consideration a sum of Rs. 501 on the said date and a further sum         H
                                      579
    580                   SUPREME COURT REPORTS                   [1997] 3 S.C.R.

A of Rs. 700 on March 4, 1960. In the meanwhile, the defendant filed suit
    No. 9/60 for possession of the said properties. The suit was decided in his
    favour on November 9, 1971. The appellant, therefore, issued notice for
    the first time on August 22, 1972. Thereon, the respondent denied execu-
    tion of agreement. Then the appellant filed the suit on November 5, 1972.
B   Thus, according to the plaintiff the suit was filed within limitation. The
    respondent has denied the execution of the agreement of sale, but the
    courts below have found that it is one of money transaction. It is, therefore,
    clear from Suit No. 9/60 itself that he had asserted to be the owner of the
    property and the property is unencumbered property. Therefore, no one
    has a right to interfere with his possession. Thus, it could be seen that the
C   suit document itself was denied as early as in 1960. As a consequence, mere
    issuance of notice dated August 22, 1972 does not stop the running of
    limitation period. Once the same has began to· run, it runs its full course.
    Therefore, the suit having been filed after the expiry of 3 years from the
    date of the knowledge of denial, by operation of Article 54 of the Schedule
D   to the Limitation Act, 1963, the suit is hopelessly barred by limitation. The
    High Court, therefore,. is right in dismissing the suit in the second appeal.

          The appeal is accordingly dismissed. No costs.

    T.N.A.                                                    Appeal dismissed.


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