Nagpur Bench of Bombay High Court Adjudicates Appeal Against Trial Court's Dismissal of Suit on Ground of Limitation. The Suit Sought Declarations That a 1946 Will Prohibited Alienation of Property and That a 2012 Sale Deed Was Void.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The matter arose from a civil suit filed by Anand Madanmohan Jaiswal (appellant) against Smt Pratibha w/o Rammohan Jaiswal and M/s Shewalkar Developers Limited (respondents). The appellant claimed an interest in City Survey No. 2213/01, Mohan Nagar, Nagpur, derived from a registered Will dated 4.3.1946 executed by one Jainarayan Jaiswal. The Will bequeathed the suit property to Jainarayan’s son Chandanlal subject to the condition that Chandanlal could not alienate it; in case of breach, the property would vest in Lala Ganeshlal Harnarayan Jaiswal, the appellant’s grandfather. Chandanlal died in 1970, and his wife Laxmibai came into possession. The appellant alleged that respondent no. 1, claiming through Laxmibai, attempted to sell the property. On 18.7.2011, the appellant learnt of such attempt, and through an RTI application received documents including the Will on 26.7.2011. He issued a notice to desist, but respondent no. 1 executed an agreement to sell on 17.3.2012 and a registered sale deed on 11.4.2012 in favour of respondent no. 2. The appellant filed Special Civil Suit No. 39 of 2015 seeking declarations that the Will of 1946 prohibited alienation, that the sale deed was null and void, and for cancellation, possession, and injunction. The respondents resisted and moved an application under Order VII Rule 11 read with Section 9A and Section 151 CPC contending the suit was barred by limitation. The trial court framed a preliminary issue on limitation and, by judgment dated 15.4.2017, dismissed the suit with costs, holding it hopelessly barred. The appellant then preferred the present First Appeal No. 784 of 2017. The High Court admitted the appeal and heard it forthwith. The central legal issue was whether the suit was barred by limitation under Article 58 of the Limitation Act, 1963. The appellant argued that his right to sue accrued only on 17.3.2012 when the agreement to sell was executed, thus the suit filed in 2015 was within the three-year period. He relied on Archana Bhimrao Randaye and Geeta Patkar for the principle that limitation runs from the date of a clear threat to the right, and submitted that only plaint averments should be considered. The respondents contended that the plaint itself stated that the first cause of action arose on 26.7.2011, making the suit filing in January 2015 clearly time‑barred. They further argued that without challenging Laxmibai’s will dated 10.9.1999, the suit disclosed no cause of action, citing Hardesh Ores, Church of Christ, and I.S. Sikandar. The High Court examined the reliefs sought and the rival arguments but the provided text ends during the court’s analysis without a final order or ratio. The judgment discusses the legal principles governing limitation, rejection of plaint, and cause of action.

Headnote

A) Limitation – Declaratory Suits – Article 58, Limitation Act, 1963 – Right to sue accrues only when there is a clear threat to the right asserted – Reliance placed on Archana Bhimrao Randaye v. Dr Kavita Dilip Changole and Mrs Geeta Patkar v. Chandrakant Kantilal Shah & ors – Court observed that limitation begins to run when the right to sue first accrues, which is the point at which the plaintiff becomes aware of a clear and unequivocal threat to or violation of his right (Paras 8-9, 12).

B) Civil Procedure – Rejection of Plaint – Order VII Rule 11, Code of Civil Procedure, 1908 – Scope of inquiry confined to plaint averments – Court reiterated the principle laid down in Sundeep Polymers Pvt Ltd, Mumbai v. Maharashtra State Electricity Distribution Company Ltd., Nagpur and Sushilabai wd/o Bomenshaw Byramji v. Kamlarukh wd/o DPR Cassad and anr that while considering a plea of limitation at the stage of rejection of plaint, the court must look only at the averments in the plaint and cannot travel beyond them (Paras 10, 12).

C) Civil Procedure – Cause of Action – Bundle of facts – Necessity of pleading all essential facts – Reliance on Hardesh Ores (P) Ltd. v. Hede And Company and Church of Christ Charitable Trust And Educational Charitable Society v. Ponniamman Education Trust for the proposition that the plaint must disclose every fact which, if traversed, would need to be proved to obtain relief; also relying on I. S. Sikandar v. K. Subramani & ors to highlight that a suit for specific performance must accompany a challenge to the termination of the agreement (Paras 11-12).

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Issue of Consideration

Whether the suit filed by the appellant is barred by limitation?

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Law Points

  • Article 58 of Limitation Act
  • 1963
  • right to sue first accrues
  • clear threat to right
  • Order VII Rule 11 of Code of Civil Procedure
  • 1908
  • plaint averments only
  • cause of action as bundle of facts
  • specific performance
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Case Details

2017 LawText (BOM) (09) 222

First Appeal No. 784 of 2017

2017-09-22

S. B. Shukre, J

Shri R. M. Sharma for appellant; Shri Shyam Dewani, Advocate and Shri K. Dodani, Advocate for respondents

Anand Madanmohan Jaiswal

Smt Pratibha w/o Rammohan Jaiswal and M/s Shewalkar Developers Limited

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Nature of Litigation

Civil suit seeking declarations that a Will dated 4.3.1946 restrained alienation of suit property, that a registered sale deed dated 11.4.2012 was void, cancellation of the sale deed, possession, and injunction.

Remedy Sought

Appellant/plaintiff sought declarations regarding the effect of the 1946 Will, nullification of the 2012 sale deed, cancellation, permanent injunction, and recovery of possession.

Filing Reason

The appellant discovered in July 2011 that respondent no. 1 was attempting to sell the suit property contrary to the condition in the 1946 Will, and subsequently a sale deed was executed in April 2012.

Previous Decisions

Trial court (7th Joint Civil Judge, Senior Division, Nagpur) in Special Civil Suit No. 39 of 2015, by judgment dated 15.04.2017, dismissed the suit on a preliminary issue, holding it barred by limitation.

Issues

Whether the suit filed by the appellant is barred by limitation?

Submissions/Arguments

Appellant argued that the right to sue first accrued on 17.3.2012 when the agreement to sell was executed, making the suit within the three-year period under Article 58; relied on Archana Bhimrao Randaye and Geeta Patkar for the principle that limitation starts from a clear threat to the right; and submitted that only plaint averments should be considered at the stage of Order VII Rule 11 (citing Sundeep Polymers and Sushilabai). Respondents contended that as per the plaint itself, the first cause of action arose on 26.7.2011 and the suit filed in 2015 was beyond limitation; also argued that without challenging the earlier will of Laxmibai, the suit did not disclose a complete cause of action; relied on Hardesh Ores, Church of Christ, and I. S. Sikandar.

Ratio Decidendi

For a suit seeking declarations, limitation under Article 58 commences when the right to sue first accrues, i.e., when the plaintiff faces a clear threat to the asserted right. While deciding a limitation plea under Order VII Rule 11 CPC, the court must restrict itself to the averments in the plaint. A plaint must contain all essential facts constituting the cause of action; failure to plead necessary foundational facts renders the plaint liable to be rejected.

Judgment Excerpts

By this judgment, suit of the appellant/plaintiff has been dismissed with costs of Rs. 5000/ by the trial Court on the ground that it is barred by limitation. Under Article 58 of the Limitation Act, the limitation period prescribed for obtaining declarations of the nature as are sought in the present suit, is of three years and it begins to run when the right to sue first accrues. While considering the ground of limitation for the purpose of rejection of plaint under Order VII, Rule 11 (d) of the Code of Civil Procedure, the Court has to consider only averments in the plaint and it cannot go beyond those averments.

Procedural History

Appellant filed Special Civil Suit No. 39 of 2015 in the Court of the 7th Joint Civil Judge, Senior Division, Nagpur. Respondents filed an application under Order VII Rule 11 read with Section 9A and Section 151 CPC raising the bar of limitation. The trial court framed a preliminary issue on jurisdiction/limitation and, by judgment dated 15.04.2017, dismissed the suit as barred by limitation. Appellant preferred First Appeal No. 784 of 2017 before the High Court of Judicature at Bombay, Nagpur Bench. The appeal was admitted and heard forthwith.

Acts & Sections

  • Limitation Act, 1963: Article 58
  • Code of Civil Procedure, 1908: Order VII Rule 11, Section 9A, Section 151
  • Right to Information Act, 2005:
  • Indian Companies Act, 1956:
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