Bombay High Court Allows Second Appeal in Property Declaration Suit — Limitation Period Runs from Knowledge of Encroachment, Not from Survey Record Publication. The court held that Article 58 of the Limitation Act, 1963 does not bar a suit for declaration of title when no adverse possession is claimed and the suit is filed within three years of knowledge of encroachment.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The appellant, Pedro do Rosario Fernandes, filed a suit for declaration of title in May 1999, claiming that he obtained a certified copy of survey records in August 1996 and discovered an encroachment. The trial court decreed the suit, but the Lower Appellate Court reversed the decree, holding that the suit was barred by limitation under Article 58 of the Limitation Act, 1963, because the survey records were kept for objection and the suit was not filed within three years thereof. The appellant filed a second appeal in the Bombay High Court at Goa. The High Court framed two substantial questions of law: whether the Lower Appellate Court misconstrued Article 58 to hold the suit barred by limitation when no adverse possession was claimed, and whether the finding that the appellant failed to identify the suit property was perverse given that the respondents did not deny the plaint averments. The appellant argued that the limitation period runs from the date of knowledge of encroachment, not from the publication of survey records, and that the plaint averments were not disputed. The respondents supported the appellate judgment. The High Court allowed the appeal, set aside the impugned judgment, and remanded the matter to the Lower Appellate Court for fresh disposal on merits, holding that the suit was not barred by limitation and that the finding on identification was perverse.

Headnote

A) Limitation Act - Article 58 - Declaration of Title - Suit for declaration of title is not barred by limitation merely because survey records were published for objection; limitation runs from the date of knowledge of encroachment or when the right to sue accrues, not from the date of publication of survey records. The Lower Appellate Court misconstrued Article 58 by holding that the suit was barred by limitation when no adverse possession was claimed by the respondents. (Paras 2-3)

B) Civil Procedure - Perverse Findings - Non-denial of Plaint Averments - Where the respondents did not deny the contents of paragraphs 1 and 2 of the plaint in their written statement, the finding of the Lower Appellate Court that the appellant failed to identify the suit property is perverse. (Para 2)

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Issue of Consideration

Whether the Lower Appellate Court misconstrued Article 58 of the Limitation Act, 1963 to hold that the suit for declaration of title was barred by limitation when no claim of adverse possession was raised by the respondents; Whether the finding that the appellant failed to identify the suit property is perverse in view of the fact that the contents of paragraphs 1 and 2 of the plaint were not denied by the respondents in their written statement.

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Final Decision

The appeal is allowed. The impugned judgment of the Lower Appellate Court is set aside. The matter is remanded to the Lower Appellate Court for fresh disposal on merits in accordance with law. The parties are directed to appear before the Lower Appellate Court on 17.02.2014.

Law Points

  • Limitation for declaration of title runs from date of knowledge of encroachment
  • not from survey record publication
  • Article 58 Limitation Act
  • 1963
  • Suit for declaration of title not barred by limitation when no adverse possession claimed
  • Perverse findings when plaint averments not denied
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Case Details

2014 LawText (BOM) (01) 170

Second Appeal No. 82 of 2007

2014-01-17

F. M. Reis

2014:BHC-GOA:122

J. E. Coelho Pereira (Senior Advocate) with V. Korgaonkar for Appellant; C. A. Coutinho with Shailesh Redkar for Respondent no. 1

Pedro do Rosario Fernandes alias Pedro Antonio Miguel Fernandes

Wilfredo Xavier Jose Monteiro and others

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Nature of Litigation

Second appeal against judgment of Lower Appellate Court reversing decree of declaration of title.

Remedy Sought

Appellant sought declaration of title to suit property and consequential relief.

Filing Reason

Appellant claimed that survey records showed encroachment on his property, and he filed suit for declaration of title.

Previous Decisions

Trial court decreed the suit; Lower Appellate Court reversed the decree holding suit barred by limitation and appellant failed to identify property.

Issues

Whether the Lower Appellate Court misconstrued Article 58 of the Limitation Act, 1963 to hold that the suit for declaration of title was barred by limitation when no claim of adverse possession was raised by the respondents. Whether the finding that the appellant failed to identify the suit property is perverse in view of the fact that the contents of paragraphs 1 and 2 of the plaint were not denied by the respondents in their written statement.

Submissions/Arguments

Appellant argued that limitation runs from date of knowledge of encroachment (August 1996) and suit filed in May 1999 is within time; plaint averments not denied by respondents. Respondent supported the appellate judgment, arguing that suit was barred by limitation as survey records were published for objection and suit not filed within three years.

Ratio Decidendi

The limitation period under Article 58 of the Limitation Act, 1963 for a suit for declaration of title runs from the date when the right to sue accrues, which is when the plaintiff has knowledge of the encroachment, not from the date of publication of survey records. The suit is not barred by limitation merely because survey records were kept for objection, especially when no adverse possession is claimed by the defendants. Additionally, findings based on non-denial of plaint averments are perverse.

Judgment Excerpts

Whether the Lower Appellate Court has misconstrued the provisions of the Limitation Act of Article 58 to the effect that the suit for declaration of title is barred by the law of limitation when there was no claim of adverse possession raised by the Respondents herein? Learned Senior Counsel further pointed out that merely because the survey records were kept for objection, by itself does not mean that the Appellant/owners of the properties have to file a suit for declaration of title within a period of three years therefrom.

Procedural History

The appellant filed a suit for declaration of title in May 1999. The trial court decreed the suit. The respondents appealed to the Lower Appellate Court, which reversed the decree. The appellant then filed a second appeal in the Bombay High Court at Goa, which was admitted on 16.07.2010 on substantial questions of law. The High Court heard the appeal and delivered judgment on 17.01.2014.

Acts & Sections

  • Limitation Act, 1963: Article 58
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