Limitation for refund of advance money depends on breach evidence; statutory charge claims follow Article 62 and a twelve-year period.

A limitation plea in a suit for refund of advance money under Section 55(6)(b) of the Transfer of Property Act could not be finally determined as a preliminary issue because entitlement to refund depended on whether the purchaser improperly refused delivery and which party was in breach, matters requiring evidence. The statutory charge created by Section 55(6)(b) was treated as a charge on immovable property, so Article 62 of the Limitation Act applied and provided a twelve-year period from when the money became due. The earlier finding on limitation was set aside, and the issue was left for decision with the other issues after evidence.

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Issues: Whether the question of limitation, in a suit for refund of advance money under Section 55(6)(b) of the Transfer of Property Act, 1882, could be decided as a preliminary issue and whether the applicable limitation period was three years or twelve years.

Analysis: The entitlement to refund under Section 55(6)(b) depended on whether the purchaser had improperly declined to accept delivery and on which party was in breach of the agreement. Those questions were interlinked with the plea of limitation and required evidence on the contractual defaults of the parties. The statutory charge created by Section 55(6)(b) was treated as a charge on immovable property, and Article 62 of the Limitation Act, 1963 was held to govern enforcement of that charge, giving a twelve-year period from the date when the money became due. The Court held that the trial court was right in not finally deciding limitation as a preliminary issue and that the finding already recorded on limitation had to be set aside, leaving the issue to be decided after evidence along with the other issues.

Conclusion: The finding on limitation was set aside and the issue was remitted to the trial court for fresh decision along with the other issues.

Ratio Decidendi: A limitation plea that turns on determination of breach and improper refusal to accept delivery cannot be finally decided as a preliminary issue without evidence, and enforcement of the statutory charge under Section 55(6)(b) of the Transfer of Property Act, 1882 is governed by Article 62 of the Limitation Act, 1963.

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