Case Note & Summary
The case involves two Letters Patent Appeals filed by Santosh Rani Arora and Dharmeshkumar Arora against the order of a learned Single Judge of the Bombay High Court, Nagpur Bench, which dismissed their writ petitions and upheld the order of the Maharashtra State Cooperative Appellate Court. The appellants were members of the Mamta Cooperative Housing Society Ltd. and were allotted plots, with sale deeds executed on 7 August 1987. A correction deed was executed between the parties on 12 August 2008. On 14 January 2011, the respondent society filed two disputes (Dispute No. 24/2011 and 25/2011) seeking to quash the sale deeds and direct the appellants to surrender the plots. The appellants raised a preliminary objection that the disputes were barred by limitation and filed an application under Order 7 Rule 11 of the Code of Civil Procedure, 1908. The Cooperative Court allowed the objection and dismissed the disputes as time-barred. However, the Maharashtra State Cooperative Appellate Court reversed that order, holding that the disputes were within limitation. The appellants then filed writ petitions, which were dismissed by the learned Single Judge. In the Letters Patent Appeals, the Division Bench considered whether the disputes were barred by limitation. The court noted that the sale deeds were executed in 1987, and the disputes were filed in 2011, more than 23 years later. The court held that the correction deed executed in 2008 did not extend the limitation period, as the cause of action arose on the date of the original sale deeds. The court also held that the application under Order 7 Rule 11 was maintainable. Consequently, the appeals were allowed, the order of the learned Single Judge and the Appellate Court were set aside, and the order of the Cooperative Court dismissing the disputes as barred by limitation was restored.
Headnote
A) Cooperative Law - Limitation - Correction Deed - The dispute challenging sale deeds executed in 1987 is barred by limitation under Section 91 of the Maharashtra Cooperative Societies Act, 1960, as the correction deed executed in 2008 does not extend the limitation period. The court held that the cause of action arose on the date of the original sale deeds, and the correction deed cannot revive a stale claim. (Paras 2-5)
B) Civil Procedure - Order 7 Rule 11 - Rejection of Plaint - The application under Order 7 Rule 11 of the Code of Civil Procedure, 1908, for rejection of the dispute on the ground of limitation was maintainable. The court held that when the dispute is clearly barred by limitation, it must be rejected at the threshold. (Para 4)
Issue of Consideration
Whether the dispute filed by the respondent society challenging the sale deeds executed in 1987 is barred by limitation, and whether the correction deed executed in 2008 extends the limitation period.
Final Decision
The appeals are allowed. The order of the learned Single Judge dated 17.1.2012 and the order of the Maharashtra State Cooperative Appellate Court dated 1.7.2011 are quashed and set aside. The order of the learned Cooperative Court dated 23.5.2011 dismissing the disputes as barred by limitation is restored.
Law Points
- Limitation period for challenging sale deed runs from date of execution
- not from correction deed
- Correction deed does not revive limitation
- Section 91 Maharashtra Cooperative Societies Act
- 1960
- Order 7 Rule 11 CPC
Case Details
2015 LawText (BOM) (01) 123
LETTERS PATENT APPEAL No. 73 OF 2012 IN WRIT PETITION No. 3549 OF 2011 and LETTERS PATENT APPEAL No. 74 OF 2012 IN WRIT PETITION No. 3548 OF 2011
B.R. Gavai, Mrs. Mridula R. Bhatkar
Shri M.V. Samarth for appellant in both appeals, Mrs. K. Deshpande, AGP for respondent no.1 in both appeals, Shri A.C. Dharmadhikari for respondent no. 2 in both appeals
Smt. Santosh Rani w/o Ramprakash Arora and Dharmeshkumar s/o Ramprakash Arora
The Hon’ble Member, Maharashtra State Cooperative Appellate Court, Mumbai, Bench at Aurangabad and Mamta Cooperative Housing Society Ltd.
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Nature of Litigation
Letters Patent Appeals against order of Single Judge dismissing writ petitions challenging order of Cooperative Appellate Court which reversed Cooperative Court's dismissal of disputes as time-barred.
Remedy Sought
Appellants sought quashing of the order of the learned Single Judge and the Appellate Court, and restoration of the Cooperative Court's order dismissing the disputes as barred by limitation.
Filing Reason
Respondent society filed disputes in 2011 challenging sale deeds executed in 1987, which appellants contended were barred by limitation.
Previous Decisions
Cooperative Court dismissed disputes as time-barred on 23.5.2011; Appellate Court reversed on 1.7.2011; Single Judge dismissed writ petitions on 17.1.2012.
Issues
Whether the dispute filed by the respondent society challenging the sale deeds executed in 1987 is barred by limitation.
Whether the correction deed executed in 2008 extends the limitation period for challenging the original sale deeds.
Submissions/Arguments
Appellants argued that the disputes were filed more than 23 years after the sale deeds, and the correction deed does not revive limitation.
Respondent society argued that the correction deed created a fresh cause of action, making the disputes within limitation.
Ratio Decidendi
The limitation period for challenging a sale deed runs from the date of its execution, and a subsequent correction deed does not extend the limitation period. A dispute filed more than 23 years after the sale deed is clearly barred by limitation, and an application under Order 7 Rule 11 CPC for rejection of the dispute is maintainable.
Judgment Excerpts
The facts in brief giving rise to the present appeals are as under That the appellants being members of the respondent society were alloted plots in the respondent society. Sale deeds in respect of said plots came to be executed on 7.8.1987.
In the said dispute a preliminary objection came to be filed by the present appellants on the ground that the same is barred by limitation.
The learned Cooperative Court allowed the said preliminary objection and dismissed the disputes as barred by limitation.
The learned Appellate Court reversed the order passed by the learned Cooperative Court.
The learned Single Judge dismissed the petitions filed by the present appellants and upheld the order passed by the learned Appellate Court.
Procedural History
Sale deeds executed on 7.8.1987; correction deed on 12.8.2008; respondent society filed disputes on 14.1.2011; Cooperative Court dismissed disputes as time-barred on 23.5.2011; Appellate Court reversed on 1.7.2011; Single Judge dismissed writ petitions on 17.1.2012; present Letters Patent Appeals filed and heard finally on 20.1.2015.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: Section 91
- Code of Civil Procedure, 1908: Order 7 Rule 11
