Bombay High Court Considers Notice of Motion for Rejection of Plaint in Trust Suit Under Order VII Rule 10A CPC. The Court Examines Whether Non-Compliance with Order VII Rule 10A CPC and Limitation Bar the Freshly Filed Suit.

High Court: Bombay High Court Bench: BOMBAY
  • 5
Judgement Image
Font size:
Print

Case Note & Summary

The matter arose from a Notice of Motion taken out by defendant no.7 in a trust dispute suit pending before the Bombay High Court. The plaintiff claimed to be a beneficiary under a trust deed dated 12 June 1972 and alleged that the defendant trustees had improperly executed a 99-year lease of trust property in favour of defendant nos. 5 to 7 at inadequate rent and later executed a rectification deed to alter the original conveyance. Earlier, in 1991, the plaintiff had filed Suit No. 8783 of 1991 in the City Civil Court, Bombay, seeking accounts and access to trust records against some of the defendants. That court, by order dated 21 June 1998, held that it had no jurisdiction over matters relating to the trust and directed the plaint to be returned to the plaintiff for presentation to the proper court within three weeks. Instead of presenting that plaint, the plaintiff filed a fresh suit, S.C. Suit No. 2393 of 2001, in the High Court on 3 July 2001, which included additional defendants and new reliefs such as a declaration that the lease deed and rectification deed were void, possession, and alternative reliefs. Defendants filed a written statement in April 2004, contending that the suit was barred by limitation because it was filed after 1056 days from the City Civil Court’s order and that the plaintiff had not obtained leave for the delay. Defendant no.7 subsequently filed the present Notice of Motion on 1 April 2011, praying for rejection of the plaint under Order VII Rule 11 CPC, summary dismissal for non-compliance with Order VII Rule 10A CPC, or in the alternative, framing of the limitation issue as a preliminary issue. During arguments, counsel for defendant no.7 conceded that the application did not strictly fall under Order VII Rule 11 but pressed for dismissal based on violation of the direction to present the returned plaint. The plaintiff opposed the motion, arguing that the suit was not barred by limitation as it concerned trust property and that the cause of action was continuing. The court, after hearing the parties, considered the scope of Order VII Rule 10 and 10A CPC and the applicability of the Limitation Act to trust-related claims. Ultimately, the court dismissed the Notice of Motion, holding that Order VII Rule 10A is directory, non-compliance does not attract automatic dismissal, the filing of a fresh suit with wider reliefs and additional parties is permissible, and the suit for recovery of trust property is not barred by limitation under Section 10 of the Limitation Act.

Headnote

A) Civil Procedure - Return of Plaint - Non-Compliance with Order VII Rule 10A CPC - Code of Civil Procedure, 1908, Order VII Rule 10A - Defendant no.7 contended that the plaintiff failed to present the returned plaint in High Court within three weeks as directed by City Civil Court and instead filed a fresh suit after 1056 days, in violation of Order VII Rule 10A, warranting rejection or dismissal of the suit (Paras 7-9).

B) Limitation - Delay in Filing Suit - Suit Barred by Limitation - Limitation Act, 1963, Section not specified - Defendants raised a plea that the suit was filed after a delay of 1056 days from the City Civil Court order without any leave obtained, making the claim hopelessly time-barred (Paras 6-7).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the suit is liable to be rejected/dismissed for non-compliance with Order VII Rule 10A CPC and whether the suit is barred by limitation

Subscribe to unlock Issue of Consideration Subscribe Now

Law Points

  • Order VII Rule 10A CPC is procedural and directory
  • non-compliance does not lead to automatic dismissal of suit
  • fresh suit with additional parties and reliefs is not continuation of returned plaint
  • suit against trustees for trust property not barred by limitation
Subscribe to unlock Law Points Subscribe Now

Case Details

2013 LawText (BOM) (08) 121

Notice of Motion No. 1085 of 2011 in S.C. Suit No. 2393 of 2001

2013-08-22

R.D. Dhanuka, J.

2013:BHC-OS:8409

B. Colabawala with Sachin Kudalkar, instructed by Madekar & Co. for Plaintiff; G.R. Rege with Geetanjali Dutta for Applicant (Defendant No.7)

Imtiaz Akbarali Porbunderwalla (Defendant No.7)

Asif Ahmedally Porbunderwalla

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Application by defendant no.7 seeking rejection of plaint or summary dismissal of suit, alternatively framing of preliminary issue on limitation.

Remedy Sought

Defendant no.7 sought rejection of plaint under Order VII Rule 11 CPC, dismissal for non-compliance with Order VII Rule 10A CPC, or framing of limitation issue as preliminary issue.

Filing Reason

Plaintiff filed suit in High Court after earlier suit was returned by City Civil Court for lack of jurisdiction, with additional defendants and reliefs, concerning trust property.

Previous Decisions

City Civil Court order dated 21 June 1998 in Suit 8783 of 1991 returning plaint for presentation to High Court within three weeks, holding it lacked jurisdiction.

Issues

Whether suit is liable to be rejected/dismissed for non-compliance with Order VII Rule 10A CPC? Whether suit is barred by limitation? Whether limitation issue should be tried as preliminary issue?

Submissions/Arguments

Defendant no.7 contended that plaintiff failed to present the returned plaint within three weeks as directed by City Civil Court, in violation of Order VII Rule 10A CPC, and that the suit filed after 1056 days was hopelessly time-barred and no leave was obtained. Defendant no.7 submitted that the City Civil Court order had become final and binding, and since the fresh suit contained new prayers and parties not in the earlier suit, it was not a continuation, making the delay fatal.

Judgment Excerpts

by an order dated 21st June, 1998 passed by the Additional Principal Judge of the City Civil Court, Bombay, it was held that the said suit filed before the City Civil Court, Bombay was in relation to the trust and therefore City Civil Court had no jurisdiction to entertain and try the said suit and this court would have jurisdiction to entertain and try the said suit. Learned counsel for applicant (defendant no.7) would submit that the plaintiff has not complied with the provisions of Order VII Rule 10(A) by not presenting plaint returned by the City Civil Court in this Court within three weeks from the date of the said order. Those defendants also raised a plea that the plaintiff had not taken leave of this court for such a long delay of 1056 days before filing the present suit and therefore the suit is liable to be dismissed.

Procedural History

In 1991, plaintiff filed Suit 8783 of 1991 in City Civil Court against some defendants for accounts and access to trust records. On 21 June 1998, the City Civil Court returned the plaint for presentation to High Court within three weeks, holding it had no jurisdiction. On 3 July 2001, plaintiff filed Short Cause Suit 2393 of 2001 in Bombay High Court against all defendants with additional reliefs. Defendants filed written statement in April 2004 raising limitation and non-compliance. On 1 April 2011, defendant no.7 filed the present Notice of Motion for rejection of plaint etc. The motion was heard and decided on 22 August 2013.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VII Rule 10, Order VII Rule 10A, Order VII Rule 11
  • Indian Trust Act, 1882:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Considers Notice of Motion for Rejection of Plaint in Trust Suit Under Order VII Rule 10A CPC. The Court Examines Whether Non-Compliance with Order VII Rule 10A CPC and Limitation Bar the Freshly Filed Suit.
Related Judgement
High Court High Court of Judicature at Bombay Dismisses Petition Challenging Cooperative Court's Order on Jurisdiction under Section 9A CPC. Court Holds Section 9A CPC as Inserted by Maharashtra Amendment Act, 1977 is Not Repealed by Central Amendment Acts of 1...