High Court of Karnataka Dismisses Revision Petition Challenging Rejection of Plaint Rejection Application in Suit for Specific Performance. Court holds that the plaint discloses a cause of action and the suit is not barred by limitation, as the agreement to sell was executed in 2016 and the suit was filed in 2021 within the period of limitation.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The petitioners, who were defendants No.5 and 6 in the original suit, filed a Civil Revision Petition under Section 115 of the Code of Civil Procedure, 1908 (CPC) challenging the order dated 21.01.2022 passed by the IV Additional Senior Civil Judge, Bengaluru Rural District, Bengaluru, in O.S.No.1966/2021. The Trial Court had rejected I.A.No.III filed by the petitioners under Order 7 Rule 11(d) of CPC seeking rejection of the plaint. The suit was filed by the respondent No.1 (plaintiff) for specific performance of an agreement to sell dated 08.03.2016. The petitioners contended that the suit was barred by limitation as the agreement was executed in 2016 and the suit was filed in 2021, beyond the period of three years. They also argued that the plaint did not disclose a cause of action. The Trial Court rejected the application, holding that the plaint disclosed a cause of action and the suit was not barred by limitation. The High Court, after hearing both sides, upheld the Trial Court's order. The court noted that the agreement was executed on 08.03.2016 and the suit was filed on 22.03.2021. The court observed that the plaintiff had alleged that the defendants failed to perform their part of the contract, and the cause of action arose when the defendants refused to execute the sale deed. The court held that the question of limitation is a mixed question of law and fact and cannot be decided at the stage of rejection of plaint under Order 7 Rule 11(d) of CPC. The court also noted that the plaint clearly disclosed a cause of action. Accordingly, the revision petition was dismissed.

Headnote

A) Civil Procedure Code - Rejection of Plaint - Order 7 Rule 11(d) - Limitation - The court considered whether the plaint should be rejected as barred by limitation. The Trial Court rejected the application, and the High Court upheld that the plaint discloses a cause of action and the suit is not barred by limitation. The agreement to sell was executed in 2016, and the suit was filed in 2021, which is within the period of limitation. (Paras 2-6)

B) Specific Performance - Limitation - Agreement to Sell - The court examined the limitation period for a suit for specific performance. The agreement was executed on 08.03.2016, and the suit was filed on 22.03.2021, which is within three years from the date of refusal to perform, as per Article 54 of the Limitation Act, 1963. (Paras 4-6)

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Issue of Consideration

Whether the Trial Court was justified in rejecting the application filed under Order 7 Rule 11(d) of CPC for rejection of the plaint on the ground that the suit is barred by limitation and does not disclose a cause of action.

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Final Decision

The High Court dismissed the Civil Revision Petition, upholding the Trial Court's order rejecting the application under Order 7 Rule 11(d) CPC. The court held that the plaint discloses a cause of action and the suit is not barred by limitation.

Law Points

  • Order 7 Rule 11(d) CPC
  • Rejection of Plaint
  • Cause of Action
  • Limitation
  • Specific Performance
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Case Details

2023 LawText (KAR) (07) 6

CRP No. 435 of 2022 (IO)

2023-07-04

H.P.Sandesh

Sri Gnanash N.I. for Smt. Vijetha R. Naik for petitioners; Sri S. Kalyan Basavaraj for respondent No.1

Sri Gangadhar and M/s. United Infrastructures

Sri B. Rajendra Reddy @ Rajendra Prasad and Others

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Nature of Litigation

Civil Revision Petition under Section 115 CPC against order rejecting application under Order 7 Rule 11(d) CPC for rejection of plaint in a suit for specific performance.

Remedy Sought

Petitioners (defendants No.5 and 6) sought rejection of the plaint in O.S.No.1966/2021 on the ground that the suit is barred by limitation and does not disclose a cause of action.

Filing Reason

The petitioners contended that the suit for specific performance based on an agreement to sell dated 08.03.2016 was filed on 22.03.2021, beyond the period of limitation, and that the plaint did not disclose a cause of action.

Previous Decisions

The Trial Court (IV Additional Senior Civil Judge, Bengaluru Rural District) rejected I.A.No.III filed under Order 7 Rule 11(d) CPC vide order dated 21.01.2022.

Issues

Whether the Trial Court was justified in rejecting the application under Order 7 Rule 11(d) CPC for rejection of plaint on the ground of limitation? Whether the plaint discloses a cause of action?

Submissions/Arguments

Petitioners argued that the suit is barred by limitation as the agreement was executed in 2016 and the suit was filed in 2021, beyond three years. Petitioners argued that the plaint does not disclose a cause of action. Respondent No.1 (plaintiff) argued that the suit is within limitation as the cause of action arose when the defendants refused to perform, and the plaint discloses a cause of action.

Ratio Decidendi

The question of limitation is a mixed question of law and fact and cannot be decided at the stage of rejection of plaint under Order 7 Rule 11(d) CPC. The plaint must be read as a whole to determine if it discloses a cause of action. In this case, the plaint alleged that the defendants failed to perform their part of the contract, and the suit was filed within three years from the date of refusal, which is within the period of limitation under Article 54 of the Limitation Act, 1963.

Judgment Excerpts

Heard the learned counsel for the petitioners-defendant Nos.5 and 6 and learned counsel for the respondent No.1-plaintiff. This revision petition is filed challenging the order dated 21.01.2022 passed on I.A.No.III in O.S.No.1966/2021 on the file of the IV Additional Senior Civil Judge, Bengaluru Rural District, Bengaluru, rejecting I.A.No.III filed under order 7, Rule 11(d) of CPC for rejection of plaint.

Procedural History

The respondent No.1 (plaintiff) filed O.S.No.1966/2021 for specific performance of an agreement to sell dated 08.03.2016. The petitioners (defendants No.5 and 6) filed I.A.No.III under Order 7 Rule 11(d) CPC seeking rejection of the plaint. The Trial Court rejected the application on 21.01.2022. The petitioners filed the present Civil Revision Petition under Section 115 CPC challenging that order.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Section 115, Order 7 Rule 11(d)
  • Limitation Act, 1963: Article 54
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