IN THE HIGH COURT AT CALCUTTA
BISWAROOP CHOWDHURY, J.
M/s Pentagon – Appellant
Versus
Sankari Basu – Respondent
C.O. 795 of 2022
Decided on : 05-07-2024
Limitation - Money Suit - Order 8 Rule 6A, Order 7 Rule 11 - The court emphasized the importance of timely filing of counterclaims and the necessity to consider limitation laws, ultimately ruling that the trial court failed to address the limitation issue adequately.
Fact of the Case:
The petitioner challenged a trial court's order that accepted a counterclaim from the defendant, arguing it was barred by limitation as the cause of action expired in 2002, while the counterclaim was filed in 2005.
Finding of the Court:
The court found that the trial court did not properly consider the limitation aspect of the counterclaim and failed to treat the rejection application as one under Order 7 Rule 11, leading to an erroneous decision.
Issues: Whether the counterclaim was barred by the law of limitation and if the trial court erred in its acceptance without addressing this issue.
Ratio Decidendi: The court held that a counterclaim must be filed within the limitation period and that the trial court's failure to consider this aspect constituted a material irregularity.
Result: The order of the trial court was set aside and the matter was remitted for reconsideration under the correct legal provisions.
JUDGMENT :
Biswaroop Chowdhury, J.
1. The petitioner before this Court is a plaintiff in a money suit, and is aggrieved by the Order dated March 05, 2021 passed by Learned Civil Judge (Senior Division) 4th Court at Alipore District – South 24 Parganas in M.S. No. 33 of 2000 refusing the prayer of the petitioner for rejection of the counter claim of the opposite party/defendant. The petitioner being aggrieved by the order of learned trial Judge has come up before this Court with an application under Article 227 of the Constitution of India.
2. The case of the petitioner before the learned court below for rejection of counter claim may be summed up thus.
2. It will be evident from the allegations made in the written statement that defendant’s right to claim for the purported counter claim and cause of action for the same expired long back in the year 2002, but the defendant filed her written statement with counter claim on or about 4th October 2005. Thus the counter claim is hopelessly barred by the law of limitation.
3. That the defendant has no right to set up her counter claim after expiry of period of limitation. As such the counter claim of the defendant be rejected without taking trouble for trial or for evidence on such counter claim.
3. The defendant/opposite party contested the petition of the petitioner/plaintiff by filing within objection, denying the allegations of the petition. It is the contention of the defendant/opposite party that the application for rejection of counter claim is not maintainable in law and facts. It is further contended that the defendant came to know about the institution of the suit from a letter of Sri Rajat Chowdhury, Advocate dated 25-05-2005 enclosing a copy of the plaint in which the plaintiff admitted receipt of Rs 73,000/-from the defendant. Hence the defendant’s counter-claim is not barred by Law of Limitation. It is also contended that direction was issued upon the Sheristadar to submit report in respect of whether the Court fees on the counter-claim filed by the defendant which already paid is correct or not. Accordingly dates were fixed on 13-12-2005, 20-02-2006 and 26-04-2006. Subsequently learned trial Court was pleased to accept the said counter claim filed by the defendant against which the plaintiff did not raise any objection. It is contended that the defendant’s counter claim is required to be adjudicated upon taking evidences and not to be thrown out at this stage on the alleged ground of Law of Limitation.
4. Upon considering the petition for rejection of counter claim and the objection filed therein the learned court below was pleased to dispose the said petition with the following observation
Ramesh Chand Ardawatiya Vs Anil Panjwani
Ashok Kumar Kalra Vs Wing CDR. Surendra Agnihatri and others [reported in (2020) 2 SCC 394
AI
The judgment establishes that counterclaims can be accepted based on when the defendant gains knowledge of the relevant facts, emphasizing that procedural rules should not obstruct justice.
A counter claim must be filed within the limitation period applicable to plaints, and failure to do so results in rejection of the claim.
A counterclaim must be raised before issue framing begins; late submissions risk disrupting judicial efficiency and violate procedural rules.
The court confirmed a counter claim must be filed within the stipulated limitation, treating it akin to a plaint, and dismissed the appeal as the claim was time-barred.
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.