No agreement can be for indefinite period. Suit is not maintainable being barred by limitation.
Application of law of limitation for cancellation of agreement
Suit is filed for Specific performance of Contract after 19 years have passed since the date of expiry of contract. Defendants want to file suit for cancelling the contract. Does the limitation period for instituting a suit for specific performance of contract also apply if the defendants now plead for cancelling the agreement? Instant suit is for enforcing an agreement of sale entered into between landlord and tenant in 2005. Agreement was to complete the sale by Aug 2005. Tenant instead of filing a suit for specific performance of contract, sued the landlord and society seeking declaration as member of defendant society and permanent injunction against landlord and defendant society. Plaintiff tenants suit dismissed on trial and still pending in appeal.
Asked 13 days ago in Property Law
Religion: Hindu
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
12 Answers
Claim is barred by limitation
suit should have been filed within period of 3 years ie by August 2008
Filing suit for cancellation amounts to the admission of validity of agreement. Only a valid agreement can be cancelled. You can filed an application for rejection of plaint on the ground of limitation, submit a counter claim for declaration of agreement as invalid or seek framing of preliminary issue on limitation in the pending suit. Filing suit also amounts of admitting that the agreement is in limitation.
Period of limitation can be further extended if there was acknowledgement of the agreement and assurance to honour it by the seller even after expiry of the agreement period.
What is the need for filing suit for cancelling the contract. It already expired and SP suit is barred by limitation
1. From what you have stated, it appears that the Tenant does not have much merit in his case.
2. Was anything about date of completion of the agreement mentioned in the said agreement for sale? The plaintiff hardly has any chance to survive in his appeal.
It will be a time barred suit unless he had knowledge of the said agreement belatedly
- As per the limitation Act, the limitation period for a contract/agreement is 3 years from the date of execution of that agreement.
- Hence, after a long period of 19 , the specific performance suit is not maintainable.
- Further, as the specific performance suit is not maintainable then also a declaration suit for cancelling the agreement/contract is also not maintainable.
The suit for specific performance of contract or to enforce the agreement of sale is very badly barred by limitation beyond three years from he date of expiry of the original sale agreement.
The trial court has rightly dismissed the suit.
You do not have to file any application or a counter claim pleading cancellation of agreement, your silence itself will clearly establish that the suit filed by him is barred by limitation.
You can strongly object his appeal on the same grounds by which you defended your interests as well as on the basis of the judgement in your favor.
defendants suit will also be barred by limitation
if the tenants plaintiff cannot seek specific performance then as a corollary thereto even the defendant cannot seek cancellation of the agreement, since had the agreement been alive, the tenant's suit for specific performance would not have been dismissed
Dear Client,
Under the Limitation Act, 1963, Article 59 prescribes limitation for presentation of a suit for cancellation of an agreement which requires three years from the date when the facts entitling the plaintiff to have the contract rescinded first became known. If the respondents now wish to rescind the contract, they will be required to show that the right to rescind had accrued during the last three years which are heavy because it has already ran into 19 years since when the contract came to an end in the year 2005. Provided however that if they can show a reason for delay in acting in moving within the period or in condoning delay under Section 5 of the Limitation Act on sufficient ground.
Hope that this helps you to solve your problem.
