Case Note & Summary
The case involves a civil revision application filed by the Maharashtra Water Supply and Sewerage Board (defendant) challenging an order of the Civil Judge, Jr. Division, Sangli dated 3 August 2010, which rejected the defendant's application (Exhibit 59) for dismissal of the suit. The plaintiff, Shripati Lakhu Mane, a contractor, had filed Regular Civil Suit No.385 of 1998 against the defendant for accounts. The plaintiff alleged that his tender for a water supply scheme was accepted and a contract was entered into on 6 July 1981. He claimed that he completed most of the work by 1985, but the defendant avoided paying the amount due and illegally claimed damages for delay. The plaintiff sought a decree for taking of accounts and payment of the amount found due. The defendant contested the suit, denying the plaintiff's claims and contending that the suit for accounts was not maintainable. The defendant filed an application under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908 (CPC) for rejection of the plaint on the ground that the suit was barred by law. The trial court rejected the application. In revision, the High Court examined whether a suit for accounts simpliciter is maintainable against a statutory body. The court noted that the plaintiff did not seek a specific sum but only accounts, and there was no contractual right or fiduciary relationship entitling the plaintiff to such a remedy. The court held that a suit for accounts is not maintainable against a statutory body unless there is a specific contractual provision or a fiduciary relationship. The court allowed the revision, set aside the trial court's order, and rejected the plaint under Order 7 Rule 11(d) CPC.
Headnote
A) Civil Procedure - Rejection of Plaint - Order 7 Rule 11(d) CPC - Suit for Accounts - The defendant filed an application for rejection of plaint on the ground that the suit for accounts was barred by law. The trial court rejected the application. The High Court held that a suit for accounts simpliciter is not maintainable against a statutory body unless there is a contractual right or fiduciary relationship. The plaint was rejected. (Paras 1-10)
Issue of Consideration
Whether a suit for accounts simpliciter is maintainable against a statutory body like the Maharashtra Water Supply and Sewerage Board in the absence of a contractual right or fiduciary relationship.
Final Decision
Revision allowed. Order dated 3 August 2010 passed by the Civil Judge, Jr. Division, Sangli is set aside. The plaint in Regular Civil Suit No.385 of 1998 is rejected under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908.
Law Points
- Suit for accounts is not maintainable against a statutory body unless there is a contractual right or fiduciary relationship
- Order 7 Rule 11(d) CPC
- Rejection of plaint for bar by law
