SUPREME COURT OF INDIA
Vikram Nath, Rajesh Bindal, JJ.
Eldeco Housing and Industries Limited - Appellant
Versus
Ashok Vidyarthi and others - Respondents
Civil Appeal No. 7891 of 2023 (Special Leave Petition (C) No. 19465 of 2021)
Decided On : 30-11-2023
Civil Procedure Code, 1908 – Order VII Rule 11(d) and Order II Rule 2 – Rejection of plaint – Suit for injunction against apprehended sale of property to third parties – MoU entered into between parties with reference to House was followed by a registered agreement signed between parties – For invoking clause (d) of Order VII Rule 11 C.P.C., only averments in plaint would be relevant – For this purpose, there cannot be any addition or subtraction – Issue on merits of matter would not be within realm of Court at that stage – Court at that stage would not consider any evidence or enter a disputed question of fact of law – Order passed by High Court in review application cannot be legally sustained – Suit for specific performance was filed by appellant on the basis of MoU – No amount of evidence or merits of controversy can be examined at stage of decision of application under Order VII Rule 11 C.P.C. – Suit for specific performance filed after dismissal of suit for injunction was barred under Order II Rule 2 CPC and deserved to be rejected – However, documents, referred to by respondent in support of his plea for rejection of plaint, cannot be considered at this stage as these are not part of record with Court filed along with plaint – Impugned order of High Court passed in Review Application deserves to be set aside. (Paras 12, 17, 23, 25 and 26)
Facts of the case:
Aggrieved against order passed by High Court in Review Application in Civil Revision , plaintiff is in appeal before this Court. Vide aforesaid order, application filed by respondent No. 1- defendant before Trial Court under Order VII Rule 11(d) C.P.C. was allowed and the suit filed by appellant was dismissed.
Findings of Court:
Trial Court shall proceed with suit. However, if considered appropriate, after pleadings are complete, issue regarding maintainability of suit can be treated preliminary.
Result : Appeal allowed.
JUDGMENT :
RAJESH BINDAL, J.
1. Leave granted.
2. Aggrieved against the order1[Order dated 27.09.2021] passed by the High Court2[High Court of Judicature at Allahabad] in Review Application3[Review Application No. 192 of 2021] in Civil Revision4[Civil Revision No. 28 of 2020], the plaintiff is in appeal before this Court. Vide aforesaid order, the application filed by respondent No. 1- defendant before the Trial Court5[Civil Judge (Senior Division), Kanpur Nagar] under Order VII Rule 11(d) C.P.C. was allowed and the suit filed by the appellant was dismissed.
3. Briefly stating, the facts available on record are that a Memorandum of Understanding6[Hereinafter referred to as ‘MoU’] was entered into between the appellant and respondent No. 1 on 31.08.1998, regarding sale of the property in question. It was specifically mentioned in the MoU that there is a litigation pending between the family members of the respondent No. 1. The sale deed will be got registered immediately after the litigation is over and the right of the vendor is determined. The respondent No. 1 shall inform the appellant when the rights of the parties are finalised. As the appellant came to know that the respondent No. 1 is trying to sell the property to third parties, it filed a suit for injunction7[Original Suit No. 111 of 2009]. The prayer made in the suit was that the defendant (respondent No. 1 herein) be restrained from transferring, selling or alienating the suit property in favour of anyone else except the plaintiff (appellant herein). It was also prayed that he be restrained from creating any encumbrance on the property. In the written statement filed in the aforesaid suit, the stand taken by respondent No. 1 was that he was not selling the property or creating any third-party rights therein. The suit was accordingly dismissed.
4. The appellant was never updated by respondent No. 1 about the status of the litigation between the family members. The petitioner having come to know that respondent No. 1 was again intending to sell the property in question issued two public notices to inform the public at large from not entering into any agreement in respect of the property in question. When it came to the notice of the appellant that respondent No. 1 was again trying to dispose of the property, as the litigation between the family members had been finally resolved by this Court in Shreya Vidyarthi v. Ashok Vidyarthi and others, (2015) 16 SCC 46: 2015:INSC:934, a suit9 [Original Suit No. 751 of 2017] for specific performance was filed seeking enforcement of MoU dated 31.08.1998. It is in the aforesaid suit that application was filed by respondent No. 1 under Order VII Rule 11(d) C.P.C. for rejection of the plaint on the ground that in terms of Order II Rule 2 C.P.C., the suit was barred by law. The relief, as claimed in the suit, was available to the appellant when the suit for injunction was filed by it and a fresh suit was not maintainable. The Trial Court, vide order dated 12.02.2020 rejected the application. The revision filed against the aforesaid order was dismissed by the High Court vide order dated 14.07.2021. However, there being no error apparent on the record of the order, which was a detailed and speaking one, the respondent No. 1 filed Review Application, which was allowed by the High Court and consequently the application filed under Order VII Rule 11(d) C.P.C. was allowed and the suit filed by the appellant was rejected.
5. The argument raised is that for consideration of an application under Order VII Rule 11 C.P.C., it is only the pleadings in the suit which are to be considered and no other material. A plain reading of the plaint shows that there was a cause of action to file the suit which was not time barred. The MoU entered into between the parties clearly mentioned that there was litigation pending between the family members; as and when the rights are finally determined by the Court, the appellant will be informed and subsequent thereto th
Shreya Vidyarthi v. Ashok Vidyarthi and others, (2015) 16 SCC 46: 2015 INSC 934
Gurbux Singh v. Bhooralal, (1964)7 SCR 831
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Suit for specific performance filed after dismissal of suit for injunction is barred under Order II Rule 2 CPC and deserves to be rejected.
A suit for specific performance requires a valid written agreement, and claims must be filed within the limitation period; failure to meet these conditions results in dismissal.
The main legal point established in the judgment is that the rejection of a plaint under Order 7 Rule 11 CPC should be based on the grounds mentioned under the rule, and the suit should not be barred....
The main legal point established in the judgment is that the power to reject a plaint under Order VII, rule 11 CPC is drastic and must be exercised based on a meaningful reading of the plaint and the....
The question of limitation is a mixed question of law and fact and cannot be decided based solely on the averments in the plaint. The court emphasized that such issues require evidence and should be ....
The main legal point established in the judgment is the importance of considering documents filed along with the plaint for deciding the application under Order 7 Rule 11 CPC. The judgment emphasized....
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