High Court of Karnataka Dismisses Second Appeals in Bank Suit Rejection Case — Plaint Rejected Under Order 7 Rule 11 CPC for Non-Disclosure of Cause of Action. Appellant's Suits for Declaration and Injunction Against Bank's Auction Notice Held Barred by Limitation and Lack of Cause of Action.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Prosecution
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Case Note & Summary

The appellant, Yashavant S/o Laxman Sable, filed a series of Regular Second Appeals under Section 100 of the Code of Civil Procedure, 1908 (CPC) against orders dated 26.02.2010 passed by the Principal Civil Judge (Sr. Dvn.) & JMFC, Hospet, in various Regular Appeals. The appeals arose from suits filed by the appellant for declaration and permanent injunction against the respondent, Senior Manager, A.B.N. Amro Bank N.V., New Delhi. The trial court had rejected the plaints under Order 7 Rule 11 read with Section 151 CPC, holding that the suits were barred by limitation and did not disclose a cause of action. The first appellate court confirmed these orders. The appellant challenged these decisions in the High Court. The core issue was whether the plaint disclosed a cause of action and whether the suit was barred by limitation. The appellant argued that the bank's auction notice was illegal and that the suit was within time. The respondent contended that the auction notice was issued in 2002 and the suit filed in 2009 was clearly barred by limitation. The High Court, after examining the plaint averments, found that the suit was based on an auction notice issued in 2002, and the suit filed in 2009 was beyond the period of limitation. The court also noted that the plaint did not disclose any cause of action. Consequently, the High Court held that no substantial question of law arose and dismissed all the second appeals, confirming the rejection of the plaints.

Headnote

A) Civil Procedure Code - Rejection of Plaint - Order 7 Rule 11 CPC - Cause of Action - The court examined whether the plaint disclosed a cause of action and whether it was barred by limitation. The appellant filed suits for declaration and injunction against the bank's auction notice. The trial court rejected the plaint under Order 7 Rule 11 CPC, which was confirmed by the first appellate court. The High Court held that the plaint did not disclose a cause of action and was barred by limitation, as the auction notice was issued in 2002 and the suit was filed in 2009. (Paras 1-10)

B) Civil Procedure Code - Second Appeal - Section 100 CPC - Substantial Question of Law - The court considered whether the second appeal involved a substantial question of law. It held that no substantial question of law arose as the findings of the courts below were based on proper appreciation of the plaint averments and the law. (Paras 1-10)

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Issue of Consideration

Whether the courts below were justified in rejecting the plaint under Order 7 Rule 11 CPC for non-disclosure of cause of action and being barred by limitation.

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Final Decision

All the Regular Second Appeals are dismissed. The orders of the courts below rejecting the plaints under Order 7 Rule 11 CPC are confirmed.

Law Points

  • Order 7 Rule 11 CPC
  • Section 100 CPC
  • Limitation Act
  • 1963
  • Cause of Action
  • Rejection of Plaint
  • Second Appeal
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Case Details

2013 LawText (KAR) (03) 42

Regular Second Appeal No.5317/2010 (DEC/INJ) and connected appeals

2013-03-01

A.N. Venugopala Gowda

Sri. V P Kulkarni (for appellant), Sri. Mahabaleshwar G.C. (for respondent)

Yashavant S/o Laxman Sable

Senior Manager, A.B.N. Amro Bank N.V.

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Nature of Litigation

Civil suits for declaration and permanent injunction against bank's auction notice.

Remedy Sought

Appellant sought declaration that the auction notice was illegal and injunction restraining the bank from auctioning the property.

Filing Reason

Appellant claimed that the bank's auction notice was illegal and that he had a right to the property.

Previous Decisions

Trial court rejected plaint under Order 7 Rule 11 CPC; first appellate court dismissed appeal confirming rejection.

Issues

Whether the plaint disclosed a cause of action? Whether the suit was barred by limitation?

Submissions/Arguments

Appellant argued that the auction notice was illegal and the suit was within time. Respondent contended that the auction notice was issued in 2002 and the suit filed in 2009 was barred by limitation and no cause of action was disclosed.

Ratio Decidendi

A plaint can be rejected under Order 7 Rule 11 CPC if it does not disclose a cause of action or is barred by limitation. The court must examine the plaint averments and if the suit is clearly barred by limitation, the plaint is liable to be rejected.

Judgment Excerpts

The plaint does not disclose a cause of action and the suit is barred by limitation. No substantial question of law arises for consideration in these appeals.

Procedural History

The appellant filed suits for declaration and injunction in 2009. The trial court rejected the plaints under Order 7 Rule 11 CPC. The appellant filed first appeals which were dismissed on 26.02.2010. The appellant then filed these second appeals under Section 100 CPC.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100, Order 7 Rule 11, Section 151
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High Court High Court of Karnataka Dismisses Second Appeals in Bank Suit Rejection Case — Plaint Rejected Under Order 7 Rule 11 CPC for Non-Disclosure of Cause of Action. Appellant's Suits for Declaration and Injunction Against Bank's Auction Notice Held Barr...
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