Bombay High Court Dismisses Suit as Barred by Limitation in Property Dispute Over Incomplete Building. Plaintiff's claim for declaration of ownership and injunction held time-barred under Article 58 of Limitation Act, 1963 as cause of action arose in 1969 when assignment deed was executed.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, M/s. Foreshore Co-operative Housing Society Ltd., filed a suit in 1999 seeking a declaration that it is the owner of the entire suit land and the building 'Advent', and for injunction against the defendants. The plaintiff claimed ownership based on a registered deed of assignment dated 25th March 1969 executed by the original lessee. The dispute concerned an incomplete building 'Divya Prabha' on part of the land, construction of which was commenced by the first defendant builder in 1966. The plaintiff had earlier filed B.C.C. Suit No. 6734 of 1994 in the City Civil Court in October 1994, based on an apprehension that the Municipal Corporation was considering a proposal to permit completion of the construction. The present suit was filed in the High Court in 1999. The defendant No. 8 raised the preliminary issue of limitation under Section 9A of the Code of Civil Procedure, 1908. The court framed two preliminary issues: (i) whether the suit was barred by limitation, and (ii) whether the suit was maintainable without notice under Section 527 of the Bombay Municipal Corporation Act. The defendant did not press the second issue. On the limitation issue, the court held that the plaintiff's cause of action for declaration of ownership arose on 25th March 1969 when the assignment deed was executed. The suit filed in 1999 was beyond the three-year period prescribed under Article 58 of the Limitation Act, 1963. The court rejected the plaintiff's argument that the cause of action arose later when the defendants disputed its title, as the right to sue first accrued on the date of the deed. The suit was dismissed as barred by limitation.

Headnote

A) Limitation Act - Article 58 - Suit for Declaration - Cause of Action - The plaintiff sought declaration of ownership and injunction based on a deed of assignment dated 25th March 1969. The court held that the right to sue first accrued on the date of the deed, and the suit filed in 1999 was beyond the three-year period prescribed under Article 58 of the Limitation Act, 1963. The plaintiff's ignorance of the deed or subsequent events did not extend limitation. (Paras 1-10)

B) Civil Procedure Code - Section 9A - Preliminary Issue - Limitation - The court framed preliminary issues under Section 9A CPC regarding limitation and maintainability. The defendant did not press the issue of notice under Section 527 of the Bombay Municipal Corporation Act. The only contested issue was limitation, which was decided in favor of the defendant. (Paras 1-3)

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Issue of Consideration

Whether the suit as framed and filed is barred by the law of limitation.

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Final Decision

The court answered issue No.1 in the affirmative, holding that the suit is barred by limitation. The Notice of Motion was disposed of accordingly, and the suit was dismissed as barred by limitation.

Law Points

  • Limitation Act
  • 1963
  • Article 58
  • Section 9A CPC
  • Bombay Municipal Corporation Act
  • 1888
  • Section 527
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Case Details

2006:BHC-OS:623

Notice of Motion No.1222 of 2004 in Suit No.2939 of 1999

2006-01-20

D.K. Deshmukh

2006:BHC-OS:623

Mr. S.H. Doctor with Mr. B.B. Saraf, Mr. M.S. Doctor, Ms. Tally i/b S. Mohomedbhai & Co. for Plaintiffs; Mr. Ravi Kadam, Advocate General with Mr. V.B. Naik i/b M.K. Ambalal & Co. for Defendants Nos. 3 & 4; Mr. J. Reis for Defendant No.7; Mr. D.D. Madon with Mr. Cyrus Adreshir i/b Kanga & Co. for Defendant No.8

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Nature of Litigation

Civil suit for declaration of ownership and injunction regarding land and building.

Remedy Sought

Plaintiff sought declaration that it is owner of the entire suit land and building 'Advent', and injunction against defendants.

Filing Reason

Plaintiff claimed ownership based on a deed of assignment dated 25th March 1969 and alleged that defendants were disputing its title.

Previous Decisions

Plaintiff had earlier filed B.C.C. Suit No. 6734 of 1994 in the City Civil Court in October 1994.

Issues

Whether the suit as framed and filed is barred by the law of limitation.

Submissions/Arguments

Defendant No.8 argued that the suit is barred by limitation as the cause of action arose on 25th March 1969 when the assignment deed was executed. Plaintiff argued that the cause of action arose later when the defendants disputed its title.

Ratio Decidendi

The right to sue for a declaration of ownership first accrues on the date of the deed of assignment, and the suit must be filed within three years under Article 58 of the Limitation Act, 1963. Ignorance of the deed or subsequent events does not extend the limitation period.

Judgment Excerpts

The contest between the parties was only on issue No.1. The Plaintiff which is a Co.operative Housing Society claims that the entire land which is the subject matter of the suit was assigned to the Plaintiff/society by registered Deed of Assignment dated 25th March, 1969 by the original lessee of the land.

Procedural History

The plaintiff filed B.C.C. Suit No. 6734 of 1994 in the City Civil Court in October 1994. Subsequently, the plaintiff filed Suit No. 2939 of 1999 in the High Court. Defendant No.8 filed Notice of Motion No. 1222 of 2004 raising preliminary issues under Section 9A CPC. The court framed two preliminary issues on 20th January 2006.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 9A
  • Limitation Act, 1963: Article 58
  • Bombay Municipal Corporation Act, 1888: Section 527
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