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2022 Supreme(SC) 1002

SUPREME COURT OF INDIA
M.R. Shah, Krishna Murari, JJ.
C.S. Ramaswamy - Appellant
Versus
V.K. Senthil & Ors. - Respondents
Civil Appeal No. 500 of 2022
C.S. Ramaswamy - Appellant
Versus
Nanjammal & Ors. - Respondents
Civil Appeal No. 504 of 2022
C.S. Ramaswamy - Appellant
Versus
Shanmugam & Ors. - Respondents
Civil Appeal No. 505 of 2022
C.S. Ramaswamy - Appellant
Versus
Karupannan & Ors. - Respondents
Civil Appeal No. 506 of 2022
C.S. Ramaswamy - Appellant
Versus
K. Palaniappan & Ors. - Respondents
Civil Appeal No. 502 of 2022
C.S. Ramaswamy - Appellant
Versus
N. Kalikrishnan & Ors. - Respondents
Civil Appeal No. 501 of 2022
C.S. Ramaswamy - Appellant
Versus
Nanjammal & Ors. - Respondents
Civil Appeal No. 503 of 2022
Decided On : 30-09-2022

Advocates appeared:
For the Appellant(s) : Mr. A. Mariarputham, Sr. Adv. Mr. Avneesh Arputham, Adv. Ms. Anuradha Arputham, Adv. Dr. Ram Sankar, Adv. For M/S. Arputham Aruna And Co, AOR
For the Respondent(s): Mr. Sushil Kumar Jain, Sr. Adv. Mr. S. Sinnaraj, Adv. Ms. E. R. Sumathy, AOR Mr. A. Parthasarathi, Adv. Ms. Poojashree S., Adv. Mr. Murugesan M., Adv. Ms. Shruti, Adv.

IMPORTANT POINT
Rejection of plaint – Plaintiffs cannot be permitted to bring suits within period of limitation by clever drafting, which otherwise is barred by limitation.

Headnote:

Civil Procedure Code, 1908 – Order VII Rule 11 – Limitation Act, 1963 – Section 17 – Rejection of plaint – Suits for cancellation of sale deed – Bar of limitation – Most of cause of actions alleged are much prior to /prior to execution of registered Sale Deeds – Nothing has been mentioned on which date and how plaintiffs had knowledge that document was obtained by fraud and/or misrepresentation – Nothing has been mentioned when plaintiffs visited suit property – It is not understandable how on visiting suit property, plaintiffs could have known contents of sale deed and/or knowledge about alleged fraudulent sale – Mere stating in plaint that fraud has been played is not enough and allegations of fraud must be specifically averred in plaint – Plaintiffs cannot be permitted to bring suits within period of limitation by clever drafting, which otherwise is barred by limitation – Both Courts below have materially erred in not rejecting plaints in exercise of powers under Order VII Rule 11(d) CPC – Respective suits have been filed after a period of 10 years from date of execution of registered sale deeds – Respective plaints are required to be rejected in exercise of powers under Order VII Rule 11, CPC. (Paras 7.6, 7.7, 7.8, 7.9 and 8)

Facts of the case:

Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by High Court of Judicature at Madras in respective C.R.P. Nos. 1931, 1921, 1973, 1968, 1975, 1976 and 1922 of 2019 by which High Court has dismissed the said civil revision petitions and has confirmed the orders passed by Trial Court rejecting the applications filed under Order VII Rule 11 of Code of Civil Procedure to reject the respective plaints filed by the appellant herein – original defendant, who has preferred the present appeals. Respondents herein – original plaintiffs have filed respective suits before Trial Court for cancellation of sale deed executed by the plaintiffs in favour of appellant – original defendant as null and void and also to declare that the plaintiffs are absolute owners of the suit schedule property and consequently restrain defendant from in any manner alienating the suit schedule property.

Findings of Court:

The respective applications filed by the appellant herein – original defendant to reject the respective plaints on the ground that same are barred by the law of limitation are hereby allowed. The respective plaints are hereby rejected on the ground that the same are barred by limitation.

Result : Appeals allowed.

Judgement Key Points

Key Points: - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!)

What is the scope and proper exercise of Order VII Rule 11(d) CPC in rejecting plaints when suits for cancellation of sale deeds are barred by limitation?

What is the impact of Section 17 of the Limitation Act (discovery of fraud) on the limitation period in suits seeking cancellation of registered sale deeds?

What are the legal criteria for determining whether alleged fraud is specific and credible enough to overcome the bar of limitation in plaints?


JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the High Court of Judicature at Madras in respective C.R.P. Nos. 1931, 1921, 1973, 1968, 1975, 1976 and 1922 of 2019 by which the High Court has dismissed the said civil revision petitions and has confirmed the orders passed by the learned Trial Court rejecting the applications filed under Order VII Rule 11 of Code of Civil Procedure (hereinafter referred to as “CPC”) to reject the respective plaints filed by the appellant herein – original defendant, who has preferred the present appeals.

2. That the respondents herein – original plaintiffs have filed the respective suits before the learned Trial Court for cancellation of the sale deed executed by the plaintiffs in favour of the appellant – original defendant as null and void and also to declare that the plaintiffs are the absolute owners of the suit schedule property and consequently restrain the defendant from in any manner alienating the suit schedule property.

2.1 Having been served with summons of the suit, the original defendant – appellant herein filed applications before the learned Trial Court to reject the respective plaints in exercise of powers under Order VII Rule 11(d) of the CPC mainly on the ground that the respective suits were clearly barred by the law of limitation. The said applications were resisted by the plaintiffs by submitting that the Sale Deeds dated 12.09.2005, 19.09.2005, 22.09.2005, 29.09.2005 and 30.09.2005 for which the relief to cancel the same has been prayed in the suit was obtained by fraudulent misrepresentation and it was obtained by fraud. According to the plaintiffs, by fraudulent misrepresentation of the character of the document, i.e., as if it is a Joint Development Project, the defendant got the sale deeds and the plaintiffs without knowing the contents of the documents have executed the said deeds. According to the plaintiffs, they came to know about the same only in April, 2015 and immediately thereafter they had filed the present suits.

2.2 The learned Trial Court dismissed the applications under Order VII Rule 11 CPC by observing that the issue of limitation is a mixed question of law and facts and therefore, the respective prayers are not required to be rejected at this stage in exercise of powers under Order VII Rule 11(d) of the C.P.C.

2.3 Feeling aggrieved and dissatisfied with the orders passed by the learned Trial Court rejecting the applications under Order VII Rule 11(d) CPC and refusing to reject the plaints, the defendant filed the revision petitions before the High court.

2.4 By the impugned judgment and order, the High Court has dismissed the said civil revision petitions, which has given rise to the present appeals at the instance of the original defendant.

3. Shri Kapil Sibal, learned Senior Advocate has appeared on behalf of the appellant – original defendant and Shri Sushil Kumar Jain, learned Senior Advocate has appeared on behalf of the contesting respondents – original plaintiffs.

4. Shri Sibal, learned Senior Advocate appearing on behalf of the appellant – original defendant has vehemently submitted that in the facts and circumstances of the case, both, the learned Trial Court as well as the High Court have erred in not allowing the applications under Order VII Rule 11(d) CPC and in not rejecting the respective plaints as the same were barred by limitation. It is vehemently submitted that in the present case, the sale deeds, which are now sought to be cancelled were executed in the year 2005 and the sale consideration was paid by demand drafts and the same were credited into the bank accounts of the plaintiffs. It is submitted that the said sale deeds are registered sale deeds. It is submitted that the suits have been filed in the year 2016, i.e., after a lapse of more than 10 years and so the said


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