Case Note & Summary
The Goa Industrial Development Corporation (GIDC) filed a Civil Revision Application under Section 115 CPC challenging the trial court's order dated 26.02.2021 dismissing their application under Order VII Rule 11 CPC for rejection of the plaint. The respondent, M/s Tulsyan NED Limited, had filed a suit in 2017 seeking declaration and permanent injunction against GIDC's order dated 20.04.2017 directing them to hand over possession of a plot. GIDC argued that the suit was barred by Section 52A of the Goa Industrial Development Act, 1965, which requires a two-month notice before instituting a suit against the Corporation. They contended that no such notice was served prior to the suit, and therefore the plaint should be rejected. The respondent argued that a notice under Section 52A was indeed served on 20.10.2016, and the suit was filed after the cause of action arose on 20.04.2017. The High Court examined the language of Section 52A and held that the provision does not bar the institution of a suit but only restricts the grant of interim relief until the notice period expires. The court noted that the respondent had already issued a notice prior to the suit, and the suit was filed after the cause of action. Therefore, the plaint could not be rejected under Order VII Rule 11 CPC. The court dismissed the revision application, upholding the trial court's order.
Headnote
A) Civil Procedure - Rejection of Plaint - Order VII Rule 11 CPC - Barred by Law - The court considered whether a suit filed without prior statutory notice under Section 52A of the Goa Industrial Development Act, 1965 is liable to be rejected as barred by law. The court held that the requirement of notice under Section 52A is not a condition precedent for filing a suit; it only bars the grant of interim relief without notice. Since the suit was filed after the cause of action arose and the plaintiff had already issued a notice prior to the suit, the plaint cannot be rejected. (Paras 1-24) B) Industrial Development - Statutory Notice - Section 52A Goa Industrial Development Act, 1965 - Interim Relief - The court interpreted Section 52A to mean that no suit shall be instituted against the Corporation in respect of any act done in pursuance of the Act until the expiration of two months after notice in writing has been served. However, the court clarified that this provision does not bar the institution of the suit itself but only restricts the grant of interim relief until the notice period expires. (Paras 10-15) C) Civil Procedure - Cause of Action - Order VII Rule 11 CPC - The court examined whether the plaint disclosed a cause of action and whether the suit was barred by law. It held that the plaint clearly disclosed a cause of action arising from the order dated 20.04.2017 directing possession, and the suit was not barred by Section 52A as the notice requirement was not a condition precedent for filing the suit. (Paras 16-20)
Issue of Consideration
Whether the plaint is liable to be rejected under Order VII Rule 11 CPC for non-compliance with Section 52A of the Goa Industrial Development Act, 1965, which requires a statutory notice before filing a suit against the Corporation.
Final Decision
The Civil Revision Application is dismissed. The impugned order dated 26.02.2021 passed by the learned Trial Court is upheld.
Law Points
- Order VII Rule 11 CPC
- Section 52A Goa Industrial Development Act 1965
- statutory notice
- rejection of plaint
- cause of action
- mandatory requirement
