⏳ Specific Performance of Contract - Limitation Calculator

Limitation Period for Specific Performance of Contract: A Complete Guide for Advocates

Suits for specific performance of contracts — particularly for sale of immovable property — form a significant part of civil litigation in India. The Specific Relief Act, 1963 (amended in 2018) and the Limitation Act together govern these suits. Article 54 of the Limitation Act prescribes 3 years from the date fixed for performance, or from the date the plaintiff first learns of the refusal to perform.

How is the limitation period calculated?

1. Check the contract for any date fixed for performance (e.g., "sale to be completed by March 31, 2024").
2. If a date is fixed: limitation runs from that date — 3 years to file.
3. If no date is fixed: limitation runs from the date the plaintiff first hears of the defendant's refusal to perform.
4. The 2018 amendment to the Specific Relief Act makes specific performance the general rule (not an exception) for immovable property contracts.
5. The plaintiff must show readiness and willingness to perform throughout the limitation period.

Important rules advocates must know

• The plaintiff must plead and prove that they were ready and willing to perform their part of the contract at all times — this is a pre-condition for specific performance.
• Mere negotiation or partial performance does not extend limitation.
• The Supreme Court in A.C. Arulappan v. Ahammedkutty held that readiness and willingness is a continuous obligation — not just at the time of filing.
• If the contract provides for liquidated damages as the sole remedy, a court may refuse specific performance.
• The 2018 amendment restricts courts from refusing specific performance of contracts for immovable property — a significant pro-plaintiff change.

Common mistakes to avoid

• Filing based on the date of execution of the agreement for sale, rather than the date fixed for completion of the sale.
• Not preserving evidence of the plaintiff's readiness and willingness — bank statements, communications with the defendant, and financial capacity documents are essential.
• Assuming that every agreement for sale is specifically enforceable — agreements with conditions that have not been met may not be enforceable.
• Forgetting that limitation is counted from when the plaintiff "first hears" of refusal — delay in becoming aware does not extend limitation automatically.