SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Bom) 340

IN THE HIGH COURT OF BOMBAY AT GOA 
SUMAN SHYAM, AMIT S.JAMSANDEKAR, JJ
M/s. Balaji Construction Company - Appellant
Vs.
Mrs. Lira Siraj Shaikh, w/o. Mr. siraj Shaikh - Respondent
First Appeal No. 51 of 2019
Decided On : 27-02-2026

Advocate Appeared:
For the Appellant :Mr. Shivan Desai, Advocate with Ms. Tahira Menezes, Ms. Riya Amonkar and Ms. Aishwarya Thorat, Advocates
For the Respondent:Mr. Sudin Usgaonkar, Senior Advocate with Ms. Tanisha Mashelkar, Ms. Divya Parab and Mr. Aniket Prabhu, Advocates Ms. Seoula Vas, Advocate

Fresh suit for specific performance by registered firm after unregistered firm's suit dismissal is barred by Article 54 limitation if beyond three years from 1993 refusal; SLP leaving questions open creates no new cause of action.

Headnote:(A) Civil Procedure Code, 1908 - Order VII Rule 11(d) - Limitation Act, 1963 - Article 54 - Indian Partnership Act, 1932 - Section 69(2) - Specific performance suit by registered partnership firm after prior suit by unregistered firm dismissed for non-registration - Plaint rejected as barred by limitation from refusal date in 1993 notices - Dismissal of SLP leaving questions open does not create fresh cause of action nor toll limitation - Registration post-notices does not extend period; fresh suit must be within three years. (Paras 16, 17, 18, 21, 22)

(B) Order VII Rule 13 CPC - Rejection of plaint permits fresh plaint on same cause, but subsequent suit remains subject to limitation bar if filed beyond prescribed period. (Paras 20, 22, 23)

(C) Successive suits - Prior suit by unregistered firm and subsequent by registered firm involve different entities for suit competence; limitation assessed independently from plaint averments. (Para 23)

Facts of the case:
Unregistered partnership firm entered sale agreements and memorandum of understanding for plot, paid part consideration, issued performance notices in 1993, filed suit dismissed in 1999 under Section 69(2) for non-registration, appeals and SLP dismissed up to 2012 leaving questions open. Registered firm filed fresh suit in 2012 seeking specific performance or damages, plaint rejected under Order VII Rule 11(d) as time-barred.

Findings of Court:
Cause of action arose in 1993; SLP order does not reset limitation; suit barred under Article 54.

Issues: Whether SLP dismissal created fresh cause of action extending limitation; whether time in prior proceedings excluded for computing limitation in subsequent suit by registered firm.

Ratio Decidendi: Limitation for specific performance runs from contractually stipulated refusal date; prior technical dismissal and appellate proceedings do not pause time for new suit; plaint disclosing bar warrants rejection without trial.

Result: Appeal dismissed.

Table of Content
1. appeal against plaint rejection under order vii rule 11. (Para 1 , 2)
2. sale agreements and gpa executed for suit property. (Para 3 , 4)
3. prior suit dismissed for unregistered firm; slp questions open. (Para 5 , 6 , 7)
4. registered firm files new suit post-slp dismissal. (Para 8 , 9 , 10)
5. contentions on limitation, fresh cause, res judicata. (Para 11 , 12 , 13)
6. cause arose 1993; limitation expired; slp no fresh cause. (Para 14 , 15 , 16 , 17 , 18)
7. o7 r11(d) rejects time-barred plaints despite registration. (Para 19 , 20 , 21 , 22 , 23)
8. evangelical lutheran precedent distinguished and inapplicable. (Para 24 , 25 , 26)
9. appeal dismissed without costs. (Para 27 , 28)

JUDGMENT :

(Per SUMAN SHYAM, J.)

1.This First Appeal is directed against the Judgment and Order dated 05.06.2018, passed by the learned Adhoc IInd Additional Senior Civil Judge, Margao, allowing the application filed by the Respondents-Defendants nos. 25(a) 25(b) and 25(c), under Order VII Rule 11 of the Civil Procedure Code, 1908, (CPC), rejecting the plaint filed by the Appellant-Plaintiff.

2. The facts and circumstances of the case, giving rise to the filing of the present Appeal, shorn of unnecessary details, are as here-under.

3. The defendant no.1-Respondent no.1 had initially entered into an Agreement for Sale of a plot of land dated 03.09.1990, with the Defendant-Respondent nos. 3 to 12 and Maria Luisa Das Neves Ferreira (since deceased), pertaining to property known as “Palmar e varzea Natibata”, admeasuring 11,920 square metres, situated at Borda, Margao, within the Municipal limits of Margao, in the District of South Goa, in the State of Goa. Late Maria Luisa Das Neves Ferreira died on 15.02.1991 leaving behind the Defendant nos. 12 to 15 as legal heirs and representatives. The Appellant-Plaintiff, as an unregistered Partnership Firm, had entered into an Agreement dated 02.02.1991 with the Defendant-Respondent no.1, with the Defendant-Respondent no.2 as confirming party, to buy the suit property. Prior to that, the un-registered firm of Appellant-Plaintiff had also entered into a Memorandum of Understanding dated 26.12.1990 with the Defendant-Respondent no.1 pertaining to the suit property. Accordingly, Maria Luisa Das Neves Ferreira had executed a General Power of Attorney dated 04.04.1990 in favour of the Defendant-Respondent nos. 1 and 2. Under the MoU dated 02.02.1991, it was agreed that on payment of a sum of Rs. 4,00,000/- by the Appellant firm, the Defendant-Respondent no.1 would assign all her rights in respect of the suit property in favour of the Appellant. Accordingly, the Appellant had paid a sum of Rs.1,00,000/- in favour of the Defendant-Respondent no.1. It was also agreed by and between the parties that a Tripartite Agreement would be signed between the Appellant, the Respondent no.1 and the original owners of the land, following which, the Appellant will make payment of the entire amount to the original owners.

4. As noted above, on 04.04.1990, a General Power of Attorney was executed by late Maria Luisa Das Neves Ferreira in favour of Defendant-Respondent nos. 1 and 2. However, there was no compliance of the Agreement of Sale dated 03.09.1990. As such, on 21.04.1993 and then on 14.08.1993, legal notices were sent by the Appellant-firm, to the Defendant-Respondent nos. 1 to 16 demanding performance of the Agreements dated 03.09.1990 as well as 02.02.1991, failing which, appropriate legal proceedings would be instituted against them. It would be significant to note herein that at the relevant point of time, the Appellant-firm was an unregistered Partnership Firm. It was only on 19.08.1993, that the Appellant Firm had made an application for registration of the Partnership Firm in the name and style of ‘Balaji Constructions Company’. On 27.08.1993, one of the partners of the firm viz. Shri Ajit Pangam had retired. Thereafter, on 30.08.1993, the Appellant-Firm, as an unregistered Partnership Firm, had instituted suit bea

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top