High Court of Judicature at Bombay
D.Y. CHANDRACHUD & M.S. SONAK, JJ.
Merit Magnum Constructions
Versus
Nand Kumar Anant Vaity & Others
Appeal No.443 of 2013, In Notice of Motion No.1716 of 2010, In Notice of Motion No.3679 of 2007, In Suit No.2715 of 2007
Decided On : 15-10-2013
plaint - rejection under Order 7 Rule 11 (d) of the Civil Procedure Code - [Article 59 of the Limitation Act, 1908, Order 7 Rule 11 of the Civil Procedure Code]
Fact of the Case:
The Plaintiff filed a suit seeking various reliefs including declaration of ownership, perpetual injunction, and specific performance of an agreement in relation to two properties. The plaint was rejected under Order 7 Rule 11 (d) of the Civil Procedure Code in respect of one of the properties, based on the law of limitation.
Finding of the Court:
The court found that the plaint was rejected only in respect of the first property and directed the Defendant to file a written statement with regard to the other issues raised in the plaint. The court held that the rejection of the plaint in relation to the first property was impermissible under Order 7 Rule 11 of the Civil Procedure Code.
Issues: The issues included the permissibility of rejecting a part of the plaint under Order 7 Rule 11 of the Civil Procedure Code, the relevance of defense pleas at the stage of deciding an application under Order 7 Rule 11 (d) of the Civil Procedure Code, and the consideration of the law of limitation in rejecting the plaint.
Ratio Decidendi: The court held that the rejection of only a part of the plaint was impermissible under Order 7 Rule 11 of the Civil Procedure Code. It emphasized that the issue of limitation was a mixed question of law and fact, and the plaint could not have been rejected solely on the basis of the law of limitation at the stage of considering an application under Order 7 Rule 11 (d) of the Civil Procedure Code.
Final Decision: The court set aside the impugned judgment and order, restored the matter to the file of the learned Single Judge for adjudication, and clarified that it had not expressed any view on the merits of the issue as to whether the suit was barred by limitation.
M.S. Sonak, J.
1. Admit. With the consent of the learned Counsel, the appeal is taken up for hearing and final disposal.
2. This Appeal is directed against a judgment and order dated 10 June 2013 as modified by an order dated 17 June 2013 (Notice of Motion No.1716 of 2010 in Suit No.2715 of 2007), rejecting the plaint under Order 7 Rule 11 (d) of the Civil Procedure Code in respect of one of two properties involved in the suit.
3. The Appellant is the original Plaintiff. Respondent Nos.1 to 41 are the original Defendants. Accordingly, the parties shall be referred to by their respective position in the plaint.
4. The Plaintiff instituted Suit No.2715 of 2007, inter alia against Defendant Nos.1 to 39 (hereinafter referred to as Vaitys'), M/s. Shree Anjaneya Estates-Defendant No.40, which is a Partnership Firm represented by four partners, Defendant Nos.40A, 40B, 40C and 40D and Deonar Industrial Premises Cooperative Housing Society Limited, Defendant No.41, seeking inter alia following reliefs:
(a) Declaration that Defendant Nos.1 to 39 are owners in respect of the first property ;
(b) Declaration that Defendant No.41 has no right, title or interest in the first property ;
(c) Perpetual injunction against Defendant Nos.40A to 40D and Defendant No.41 from alienating or taking over possession of the first property ;
(d) Declaration that agreement dated 27 November 2003 in respect of the first and second property is valid, subsisting and binding upon Defendant Nos.1 to 40;
(e) For a decree directing Defendant Nos.1 to 40 to specifically perform agreement dated 27 November 2003;
5. Besides aforesaid, the suit seeks reliefs in respect of second property described under Exhibit-A-2, as also relief of damages in the alternative.
6. The subject matter of the plaint is two properties described in Exhibit-A-1 and Exhibit-A-2 to the plaint. Since the plaint has been rejected in respect of the property described in Exhibit-A-1 (“the first property”), reference is made to the gist of the pleadings concerning the said property:
(a) By agreements dated 29 April 1979 and 24 October 1981, members of the Vaity family (some of whom were then minors) agreed to sell the first property to 17 persons who were promoters of Defendant No.41 which is a Society, which was eventually incorporated in the year 1987;
(b) The Vaitys (including minors) issued a Power of Attorney in favour of three promoters of the Society on 24 October 1981;
(c) Acting on the basis of the Power of Attorney dated 24 October 1981, the three constituted attorneys executed a Deed of Conveyance dated 18 August 1989 purporting to convey the first property to Defendant No.41-Society ;
(d) The two agreements of 1979 and 1981 stipulated that the vendors shall obtain the sanction from the High Court with regard to the sale of the shares of the minors. However, no such sanction was obtained;
(e) On the date of the execution of the Conveyance namely 18 August 1989, vendor Nos.22,24,25 and 41 (Vaitys) had expired and consequently the Power of Attorney dated 24 October 1981 stood revoked. On the basis of such a Power of Attorney, no conveyance could have executed;
(f) The Vaitys by a Declaration-cum-Deed of Cancellation dated 18 December 1995 duly registered with the Sub-Registrar, declared the Conveyance dated 18 August 1989 as cancelled or avoided the same as being 'nonest';
(g) On 4 October 2002, the Vaitys entered into an agreement for development of the first property with Defendant No.40 and executed a Power of Attorney in favour of the partners of Defendant No.40;
(h) By an agreement dated 27 November 2003, Defendant No.40 assigned rights in respect of the first property in favour of the Plaintiff. In pursuance of the agreement, the Plaintiff entered into possession of the first property, made investments to the extent of Rs.7.40 Crores, constructed a sample flat and issued letters of allotment to 84 purchaser (which allotments have subsequently been recalled on account of dis
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.