Pushpa Jagannath Shetty & Ors. v. M/S. Sahaj Ankur Realtors & Ors.

Civil Appeal · 2025 INSC 294Decided 28 Feb 2025
C.A. No.-003160 - 2023
Justice Sanjay Karol · Justice Manmohan

Background

The appellants were tenants of a Mumbai building that its owner decided to redevelop; the owner promised them alternate flats and, when the redevelopment was delayed, executed an "Indemnity-cum-Undertaking" in 2015 promising two specific flats free of cost if approvals weren't obtained within six months, failing which the appellants would get monetary compensation. The flats were eventually put in escrow and released to the appellants only in December 2018 after prolonged correspondence and meetings; the appellants then filed a consumer complaint in February 2019 seeking registration of the flats in their name and related compensation. The National Consumer Disputes Redressal Commission (NCDRC) dismissed the complaint as time-barred, holding the limitation period ran from July 2015, six months after the undertaking, and expired long before the 2019 complaint.

Decision Breakdown

The Supreme Court held that the NCDRC took too rigid a view of limitation by ignoring the parties' continuous efforts (letters, meetings, and dealings with the escrow agent) to resolve the matter, and by ignoring that the escrow flats were only actually released to the appellants in December 2018. It clarified that the relief actually sought (securing registered title to flats already in the appellants' possession, and preventing third-party alienation) was a distinct, continuing cause of action separate from the original 2015 default, so the earlier limitation computation could not be mechanically applied to defeat it. The Court held that limitation is meant to advance justice, not to defeat a substantive right where a claimant has been diligently pursuing a remedy, quashed the NCDRC's order, restored the complaint, and directed the NCDRC to decide it on merits within six months.

Lesson Learnt

Limitation periods should not be applied mechanically to shut out a genuine claim where the claimant has been actively and continuously pursuing the matter. Courts will look at the real nature of the relief sought and the parties' ongoing conduct rather than rigidly counting time from the earliest possible trigger date.

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