BINA MANOHAR DUDANI Vs. MAJOR CHARANJITLAL VERMA

JUDGEMENT

(1.) The Appellants are the original Defendants in the above Suit. They were sued upon an unregistered agreement dated 15th April, 1988 executed by them with the Respondents on 15th April, 1988 for purchase of a Flat No.G-30 in Army Welfare Co-operative Society (Organisation), Salunkhe Vihar at Pune for Rs. 3,23,000/ -. The Appellants paid Rs.2,98,000/ -to the Respondents out of the aforesaid consideration. They have been put in possession. They have remained in possession since.

(2.) The Respondent No. 1 is a retired Army Officer. He was allotted the said premises. The said premises could be transferred only to the persons declared eligible for allotment of such dwelling units. It is the case of the Respondents that the Appellants were not eligible but made representation to the Respondents that they were eligible and consequently made members of the Society pursuant to which they executed agreement for sale in their favour. They later found out that the representations made by them were fraudulent. Hence, they sued the Appellants for declaration that the agreement is void and not binding on them and for recovery of the possession of the flat from the Appellants. In the alternative they have prayed for payment of the balance consideration Rs.25,000/ -with interest at the rate of 18% p. a and consequential expenses incurred by them in the execution of the agreement.

(3.) The agreement has been entered into on 15th April, 1988. The Suit was filed on 3rd December, 1998. The Appellants therefore, contend that the suit is barred by limitation. The learned Judge has considered the issue of limitation under Article 65 of the Limitation Act. He has computed the period of 12 years from the date of the agreement as the period available to the Plaintiffs to sue.