Bombay High Court Dismisses Revision Against Rejection of Plaint in Property Suit — Limitation and Cause of Action Are Triable Issues. Court holds that Order VII Rule 11 CPC application cannot be decided on disputed facts regarding knowledge of sale deeds and limitation.

High Court: Bombay High Court
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Case Note & Summary

The Bombay High Court dismissed a Civil Revision Application filed by Defendant No.15 (M/s. Mahabharat Builders) challenging the trial court's order dated 29.11.2023, which rejected their application under Order VII Rule 11 CPC for rejection of the plaint. The suit was filed by the plaintiff (Andrew David Fernandes) seeking declaration that two registered sale deeds dated 20.03.1969 and 15.04.2008 were illegal, null and void, and not binding on him. The suit property was part of a larger property owned by the plaintiff's great grandfather, Domingo Fernandes, who died in 1946 leaving a Will that prohibited transfer outside the family. In 1969, one of the sons sold his share to Shankarrao Parshuram Jadhav, and later in 2008, the legal heirs of Shankarrao sold the property to Defendant Nos.11 to 15. The plaintiff claimed he became aware of these sale deeds only in 2022 when he received notice of a Writ Petition filed by some defendants. The defendants argued that the suit was barred by limitation (54 years delay) and disclosed no cause of action. The trial court dismissed the application, holding that the plaint disclosed a cause of action and that the plaintiff's knowledge was a factual issue. The High Court upheld this view, holding that the plaint cannot be rejected at the threshold when it raises triable issues regarding limitation, knowledge, and fraud. The court emphasized that the power under Order VII Rule 11 must be exercised only when the plaint is manifestly vexatious or without any cause of action. The revision was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Rejection of Plaint - Order VII Rule 11 CPC - Cause of Action - The court considered whether the plaint disclosed a cause of action. Held that the plaint must be read as a whole; if it discloses a cause of action, the application for rejection must fail. The trial court's finding that the plaintiff became aware of the sale deeds only in 2022 was a factual determination that could not be decided at the stage of Order VII Rule 11. (Paras 1-10)

B) Limitation - Declaration Suit - Article 58 Limitation Act, 1963 - The court examined whether the suit for declaration was barred by limitation. Held that the question of limitation is a mixed question of law and fact, and cannot be decided without evidence, especially when the plaintiff pleads knowledge only in 2022. The delay of 54 years is not a ground for rejection at the threshold. (Paras 11-20)

C) Specific Relief - Declaration without Consequential Relief - Section 34 Specific Relief Act, 1963 - The court considered whether the suit for declaration without possession is maintainable. Held that the plaintiff's possession is not disputed, and therefore the suit is not barred under Section 34. (Paras 21-25)

D) Fraud - Pleading - Order VI Rule 4 CPC - The court examined whether the plaint contained sufficient particulars of fraud. Held that the plaint alleged fraud in the execution of the sale deeds, and the details were sufficient for the purpose of Order VII Rule 11. (Paras 26-30)

E) Transfer of Property - Constructive Notice - Section 3 Transfer of Property Act, 1882 - The court noted that the argument regarding constructive notice was a matter for trial and could not be decided at the rejection stage. (Paras 31-33)

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Issue of Consideration

Whether the suit plaint is liable to be rejected under Order VII Rule 11(a) and (d) of CPC on the grounds of no cause of action and being barred by limitation, and whether the trial court erred in dismissing the application.

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Final Decision

The Civil Revision Application is dismissed. The impugned order dated 29.11.2023 passed by the Trial Court rejecting the application under Order VII Rule 11 CPC is upheld. No order as to costs.

Law Points

  • Order VII Rule 11 CPC
  • Rejection of Plaint
  • Cause of Action
  • Limitation
  • Declaration Suit
  • Article 58 Limitation Act
  • 1963
  • Section 34 Specific Relief Act
  • Order VI Rule 4 CPC
  • Fraud Pleading
  • Constructive Notice
  • Transfer of Property Act
  • 1882
  • Rule Against Perpetuity
  • Pre-emption Right
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Case Details

2024 LawText (BOM) (8) 95

Civil Revision Application No.75 of 2024

2024-08-09

Milind N. Jadhav

2024:BHC-AS:31783

Mr. Yuvraj P. Narvankar a/w. R. R. Kad – Deshmukh for Applicants; Dr. Abhinav Chandrachud a/w. Ms. Unnati Ghia i/by Ms. Dipti Shah for Respondent No.1; Ms. Kinjal Desai for Respondent No.15

Jayesh Dinesh Kadam and Anr.

Andrew David Fernandes through POA, Balkrishna Ashok Shelar and Ors.

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Nature of Litigation

Civil Revision Application against order rejecting application under Order VII Rule 11 CPC for rejection of plaint in a suit for declaration that sale deeds are null and void.

Remedy Sought

Applicants (Defendant No.15) sought rejection of the plaint under Order VII Rule 11(a) and (d) CPC on grounds of no cause of action and suit being barred by limitation.

Filing Reason

Plaintiff filed suit seeking declaration that registered sale deeds dated 20.03.1969 and 15.04.2008 are illegal, null and void, and not binding on him.

Previous Decisions

Trial Court dismissed the application under Order VII Rule 11 CPC by order dated 29.11.2023, holding that the plaint disclosed a cause of action and that the plaintiff became aware of the sale deeds only in 2022.

Issues

Whether the plaint discloses a cause of action for the suit? Whether the suit is barred by limitation under Article 58 of the Limitation Act, 1963? Whether the suit for declaration without consequential relief is maintainable under Section 34 of the Specific Relief Act, 1963? Whether the plaint contains sufficient particulars of fraud as required under Order VI Rule 4 CPC?

Submissions/Arguments

Applicants argued that the plaint does not disclose a cause of action and is barred by limitation as the sale deeds are from 1969 and 2008, and the plaintiff was aware or ought to have been aware. Applicants argued that the plaintiff's plea of knowledge in 2022 is manufactured and that the suit is clearly barred by 54 years delay. Applicants argued that the suit for declaration without possession is not maintainable under Section 34 of the Specific Relief Act. Applicants argued that the plaint lacks particulars of fraud as required under Order VI Rule 4 CPC. Respondent No.1 (Plaintiff) argued that the plaint discloses a cause of action and the question of limitation is a mixed question of law and fact that cannot be decided at the stage of Order VII Rule 11.

Ratio Decidendi

The power under Order VII Rule 11 CPC must be exercised only when the plaint is manifestly vexatious or without any cause of action. The plaint cannot be rejected at the threshold if it raises triable issues regarding limitation, knowledge, and fraud. The question of limitation is a mixed question of law and fact that requires evidence.

Judgment Excerpts

The plaint cannot be rejected at the threshold if it raises triable issues regarding limitation, knowledge, and fraud. The question of limitation is a mixed question of law and fact that requires evidence. The power under Order VII Rule 11 CPC must be exercised only when the plaint is manifestly vexatious or without any cause of action.

Procedural History

Plaintiff filed Special Civil Suit No.281 of 2023 on 02.05.2023. Defendant Nos.11 to 15 filed an application under Order VII Rule 11(a) and (d) CPC for rejection of plaint. Trial Court dismissed the application by order dated 29.11.2023. Defendant No.15 filed Civil Revision Application No.75 of 2024 before the High Court challenging the said order. The High Court reserved judgment on 08.07.2024 and pronounced on 09.08.2024, dismissing the revision.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order VII Rule 11(a), Order VII Rule 11(d), Order VI Rule 4
  • Limitation Act, 1963: Article 58
  • Specific Relief Act, 1963: Section 34
  • Transfer of Property Act, 1882: Section 3
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