Case Note & Summary
The case involves two Letters Patent Appeals filed by Santosh Rani Arora and Dharmeshkumar Arora against the order of a Single Judge of the Bombay High Court, Nagpur Bench, dated 17.1.2012, which dismissed their writ petitions and upheld the order of the Maharashtra State Cooperative Appellate Court dated 1.7.2011. The appellants were members of the Mamta Cooperative Housing Society Ltd. and were allotted plots, with sale deeds executed on 7.8.1987. A correction deed was executed between the parties on 12.8.2008. On 14.1.2011, the respondent society filed two disputes (Dispute No. 24/2011 and 25/2011) seeking quashing of the sale deeds and direction to the appellants to surrender the plots. The appellants raised a preliminary objection that the disputes were barred by limitation under the Limitation Act, 1963, and filed an application under Order 7 Rule 11 of the Code of Civil Procedure, 1908. The Cooperative Court allowed the preliminary objection and dismissed the disputes as time-barred on 23.5.2011. The society appealed to the Maharashtra State Cooperative Appellate Court, which reversed the order on 1.7.2011, holding that the disputes were not barred by limitation. The appellants then filed writ petitions before the High Court, which were dismissed by the learned Single Judge on 17.1.2012. The appellants filed the present Letters Patent Appeals. The Division Bench heard the appeals and considered the issue of limitation. The court noted that the sale deeds were executed in 1987, but a correction deed was executed in 2008, which created a fresh cause of action. The court held that the limitation period under Article 58 of the Limitation Act, 1963, begins from the date of the correction deed, and therefore the disputes filed in 2011 were within limitation. The court found no error in the order of the Appellate Court or the Single Judge and dismissed the appeals with no order as to costs.
Headnote
A) Limitation - Cause of Action - Article 58 of Limitation Act, 1963 - The dispute for cancellation of sale deeds was filed in 2011, but the cause of action arose from the correction deed executed in 2008, which created a fresh cause of action - The court held that the dispute was not barred by limitation as the limitation period begins from the date of the correction deed (Paras 2-5).
B) Cooperative Law - Dispute Resolution - Sections 91, 96 of Maharashtra Cooperative Societies Act, 1960 - The society sought cancellation of sale deeds and surrender of plots - The Cooperative Court dismissed the dispute as time-barred, but the Appellate Court reversed, holding that the correction deed gave a fresh cause of action - The High Court upheld the Appellate Court's order (Paras 2-6).
Issue of Consideration
Whether the dispute filed by the respondent society for cancellation of sale deeds executed in 1987 was barred by limitation, given that a correction deed was executed in 2008.
Final Decision
Both Letters Patent Appeals are dismissed. No order as to costs.
Law Points
- Limitation Act
- 1963
- Article 58
- Order 7 Rule 11 CPC
- cause of action
- cooperative society dispute
- sale deed cancellation
- correction deed
Case Details
2015 LawText (BOM) (01) 143
Letters Patent Appeal No. 73 of 2012 and Letters Patent Appeal No. 74 of 2012
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 Cooperative Appellate Court and dismissal of the disputes as barred by limitation.
Filing Reason
Respondent society filed disputes in 2011 seeking cancellation of sale deeds executed in 1987 and surrender of plots; appellants contended disputes were time-barred.
Previous Decisions
Cooperative Court dismissed disputes as time-barred on 23.5.2011; Cooperative 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 for cancellation of sale deeds executed in 1987 was barred by limitation under Article 58 of the Limitation Act, 1963.
Whether the correction deed executed in 2008 gave a fresh cause of action for filing the dispute.
Submissions/Arguments
Appellants argued that the sale deeds were executed in 1987 and the disputes filed in 2011 were beyond the period of limitation.
Respondent society argued that the correction deed executed in 2008 created a fresh cause of action, and the disputes were within limitation.
Ratio Decidendi
The limitation period for filing a dispute for cancellation of a sale deed begins from the date when the cause of action arises. In this case, the correction deed executed in 2008 created a fresh cause of action, and the disputes filed in 2011 were within the period of limitation under Article 58 of the Limitation Act, 1963.
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.
a correction deed was executed betweens the appellants and the respondent on 12.8.2008.
Two disputes came to be filed by respondent society on 14/01/2011, inter alia praying for quashing and setting aside the Sale Deeds dated 07/08/1987 and directing the present appellants to surrender Plot No. 1 & 2, admeasuring 4059 sq. fts. (Dispute No.25/2011 and Plot No. 3 & 4 admeasuring 3600 Sq. Fts. (Dispute No. 24/2011).
Procedural History
Sale deeds executed on 7.8.1987; correction deed executed on 12.8.2008; respondent society filed disputes on 14.1.2011; Cooperative Court dismissed disputes as time-barred on 23.5.2011; Cooperative Appellate Court reversed on 1.7.2011; Single Judge dismissed writ petitions on 17.1.2012; present Letters Patent Appeals filed; heard and dismissed on 20.1.2015.
Acts & Sections
- Limitation Act, 1963: Article 58
- Code of Civil Procedure, 1908: Order 7 Rule 11
- Maharashtra Cooperative Societies Act, 1960: Sections 91, 96
