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Issues: Whether the suit for refund of advance money paid under an agreement for sale of immovable property was barred by limitation, and whether the buyer's claim was governed by Article 54 or Article 62 of the Limitation Act, 1963 in view of the statutory charge under Section 55(6)(b) of the Transfer of Property Act, 1882.
Analysis: A suit for specific performance is governed by Article 54 of the Limitation Act, 1963, but a suit for refund of advance money after failure of the sale transaction stands on a different footing. Under Section 55(6)(b) of the Transfer of Property Act, 1882, the buyer has a statutory charge on the seller's interest in the property for the purchase money paid and interest thereon. That charge attracts Article 62 of the Limitation Act, 1963, which allows 12 years for enforcement of money secured by a charge on immovable property, running from the date when the money became due. Since the agreement fixed one year for completion and the suit was filed within 12 years from expiry of that period, the claim was within time.
Conclusion: The suit for refund of advance money was not barred by limitation and was governed by Article 62, not Article 54.
Ratio Decidendi: A purchaser under an agreement for sale has a statutory charge under Section 55(6)(b) of the Transfer of Property Act, 1882 for advance money paid and interest, and a suit to enforce that charge for refund of the money is governed by Article 62 of the Limitation Act, 1963.
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