Bombay High Court Allows Second Appeal in Property Suit, Remands for Fresh Consideration on Issue of Possession and Limitation. Court holds that the first appellate court failed to frame proper points for determination under Order 41 Rule 31 CPC, and that the suit for declaration of title and injunction was not barred by limitation under Article 58 of the Limitation Act, 1963.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The appellants (original plaintiffs) filed a suit for declaration of title and permanent injunction in respect of a property in Goa. They claimed that the property belonged to their father, Dharma Falari, and after his death, they and the respondent (their brother) were in joint possession. The respondent allegedly attempted to dispossess them in 1998, leading to the suit in 1999. The trial court decreed the suit, holding that the appellants had proved their title and that the suit was within limitation. The first appellate court reversed the decree, holding that the suit was barred by limitation under Article 58 of the Limitation Act, 1963, and that the appellants failed to prove possession. The appellants filed a second appeal. The High Court framed substantial questions of law regarding the first appellate court's compliance with Order 41 Rule 31 CPC and the applicability of Article 58. The High Court found that the first appellate court did not frame proper points for determination and did not adequately consider the issue of possession and limitation. The High Court held that the suit for declaration and injunction was not necessarily barred by limitation, as the right to sue accrues only when there is a clear denial of title. The court also noted that the first appellate court failed to consider the evidence on possession. Consequently, the High Court allowed the appeal, set aside the first appellate court's judgment, and remanded the matter for fresh disposal in accordance with law.

Headnote

A) Civil Procedure Code, 1908 - Order 41 Rule 31 - Duty of First Appellate Court - Points for Determination - The first appellate court must frame points for determination arising from the grounds of appeal and must decide each point with reasons. Failure to do so vitiates the judgment. (Paras 12-13)

B) Limitation Act, 1963 - Article 58 - Suit for Declaration - Limitation Period - For a suit for declaration of title and injunction, the limitation of three years under Article 58 runs from the date when the right to sue first accrues. The right to sue accrues when there is a clear and unequivocal threat or denial of the plaintiff's title. Mere possession by the defendant without denial does not start limitation. (Paras 14-15)

C) Specific Relief Act, 1963 - Section 34 - Suit for Declaration - Possession - A suit for declaration of title and injunction is maintainable even if the plaintiff is not in possession, provided the plaintiff seeks consequential relief. The court must examine whether the plaintiff's possession was disturbed within 12 years prior to the suit. (Paras 16-17)

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Issue of Consideration

Whether the first appellate court's judgment was vitiated for non-compliance with Order 41 Rule 31 CPC; whether the suit for declaration of title and injunction was barred by limitation under Article 58 of the Limitation Act, 1963.

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Final Decision

The High Court allowed the second appeal, set aside the judgment and decree of the first appellate court, and remanded the matter to the first appellate court for fresh disposal in accordance with law, after framing proper points for determination and considering the issues of possession and limitation afresh.

Law Points

  • Order 41 Rule 31 CPC
  • Article 58 Limitation Act 1963
  • Section 34 Specific Relief Act 1963
  • adverse possession
  • limitation for declaratory suits
  • duty of first appellate court
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Case Details

2023 LawText (BOM) (08) 157

Second Appeal No.103 of 2010

2023-07-28

M. S. Sonak, J.

Mr Sudin Usgaonkar, Senior Advocate with Mr Shukr Usgaonkar and Ms Vinita Palyekar, Advocates for the Appellants; Mr A.D. Bhobe with Ms Annelise Fernandes, Advocates for Respondent Nos.1(a) to 1(f); Mr Prayash Shirodkar, Advocate for Respondent No.2.

Bappa Dharma Falari and others

Shriram Dharma Falari (since deceased) through heirs and another

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Nature of Litigation

Second appeal against the judgment of the first appellate court reversing the trial court's decree in a suit for declaration of title and permanent injunction.

Remedy Sought

The appellants (original plaintiffs) sought a declaration of their title to the suit property and a permanent injunction restraining the respondent from interfering with their possession.

Filing Reason

The respondent allegedly attempted to dispossess the appellants from the suit property in 1998, prompting the appellants to file the suit in 1999.

Previous Decisions

The trial court decreed the suit in favor of the appellants. The first appellate court reversed the decree, holding the suit barred by limitation and the appellants failed to prove possession.

Issues

Whether the first appellate court's judgment was vitiated for non-compliance with Order 41 Rule 31 CPC? Whether the suit for declaration of title and injunction was barred by limitation under Article 58 of the Limitation Act, 1963?

Submissions/Arguments

Appellants argued that the first appellate court failed to frame proper points for determination and did not consider the evidence on possession and limitation correctly. Respondents argued that the suit was barred by limitation as the right to sue accrued in 1998 when the respondent denied the appellants' title, and the suit was filed in 1999, beyond three years from the date of accrual.

Ratio Decidendi

The first appellate court must comply with Order 41 Rule 31 CPC by framing points for determination and deciding each point with reasons. For a suit for declaration of title and injunction, the limitation under Article 58 of the Limitation Act, 1963, runs from the date when the right to sue first accrues, which is when there is a clear and unequivocal threat or denial of the plaintiff's title. Mere possession by the defendant without denial does not start limitation.

Judgment Excerpts

The first appellate court is under a duty to frame points for determination arising from the grounds of appeal and must decide each point with reasons. Failure to do so vitiates the judgment. For a suit for declaration of title and injunction, the limitation of three years under Article 58 runs from the date when the right to sue first accrues. The right to sue accrues when there is a clear and unequivocal threat or denial of the plaintiff's title.

Procedural History

The appellants filed a suit for declaration of title and permanent injunction in 1999. The trial court decreed the suit. The respondent appealed to the first appellate court, which reversed the decree. The appellants then filed the present second appeal before the High Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 41 Rule 31
  • Limitation Act, 1963: Article 58
  • Specific Relief Act, 1963: Section 34
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