Supreme Court Sets Aside High Court Judgment on Limitation Act Application Due to Lack of Good Faith. Plaintiffs' Claim for Exclusion of Time Under Section 14 of the Limitation Act Fails as They Were Aware of Non-Joinder of Necessary Party.

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Case Note & Summary

The case involved an appeal by the defendant against a High Court judgment that allowed the plaintiffs' appeal regarding the exclusion of time under the Limitation Act. The appellant, Deena, had mortgaged land and sought redemption, which was accepted by the Collector. The plaintiffs filed a suit declaring the Collector's order void, which was decreed by the trial court but later challenged by the defendant. The plaintiffs withdrew the suit with permission to file a fresh one, leading to the current litigation. The core legal issue was whether the plaintiffs were entitled to exclude the period from 21.3.1980 to 15.2.1982 under Section 14 of the Limitation Act. The trial court found against the plaintiffs, stating they did not act in good faith due to the non-joinder of a necessary party. The appellate court initially reversed this decision, but the Supreme Court reinstated the trial court's ruling, emphasizing that the plaintiffs' actions did not meet the good faith requirement for exclusion of time. The appeal was allowed, and the High Court's judgment was set aside, restoring the trial court's decision.

Headnote

A) Limitation Act - Exclusion of Time - Good Faith Requirement - Limitation Act, 1963, Section 14 - The court held that the plaintiffs did not prosecute the previous suit in good faith as they were aware of the non-joinder of a necessary party and chose to proceed with the suit. Therefore, they were not entitled to exclusion of the period under Section 14 of the Limitation Act (Paras 5-6).

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Issue of Consideration

Whether the plaintiffs were entitled to exclusion of the period from 21.3.1980 to 15.2.1982 under Section 14 of the Limitation Act, 1963 for computation of the period of limitation for filing the suit.

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court's judgment, and restored the trial court's decision, ruling that the plaintiffs were not entitled to exclusion of the period under Section 14 of the Limitation Act.

Law Points

  • Limitation Act
  • good faith
  • exclusion of time
  • jurisdiction
  • withdrawal of suit
  • due diligence
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Case Details

2002 LawText (SC) (07) 9

Appeal (civil) 2965 of 1992

2002-07-29

D.P. Mohapatra, K.G. Balakrishnan

Shri Mahabir Singh, Shri P.C. Jain

Deena (Dead) Through LRS

Bharat Singh (Dead) Thr. LRS & Ors.

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Nature of Litigation

Civil appeal regarding the application of the Limitation Act.

Remedy Sought

The plaintiffs sought exclusion of time for filing a suit.

Filing Reason

The plaintiffs claimed they were prosecuting the previous suit in good faith.

Previous Decisions

The trial court and first appellate court ruled against the plaintiffs on the issue of good faith.

Issues

Entitlement to exclusion of time under Section 14 of the Limitation Act Good faith in prosecuting the previous suit

Submissions/Arguments

The plaintiffs argued they acted in good faith and were entitled to exclusion of time. The defendant contended that the plaintiffs were aware of the non-joinder of a necessary party and thus did not act in good faith.

Ratio Decidendi

The court emphasized that the plaintiffs did not prosecute the previous suit in good faith due to their awareness of the non-joinder of a necessary party, thus failing to meet the requirements for exclusion of time under Section 14 of the Limitation Act.

Judgment Excerpts

The court held that the plaintiffs did not prosecute the previous suit in good faith. The judgment of the High Court is clearly unsustainable.

Procedural History

The appeal was filed against the High Court's judgment reversing the trial court's decision, which had ruled against the plaintiffs on the issue of limitation.

Acts & Sections

  • Limitation Act, 1963: Section 14
  • Code of Civil Procedure, 1908: Order XXIII
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