IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
DEEPAK KUMAR TIWARI, J.
Salma Begum & Anr. - Petitioners
Versus
Jubeda Khatun & Anr. - Respondents
CR No. 37 of 2023
Decided On : 05-03-2024
(A) Code of Civil Procedure, 1908 - Order 7 Rule 11 - Civil suit for specific performance - Application for rejection of plaint dismissed - Court must only consider plaint averments and accompanying documents, not the defendant's defense - The trial court's decision to determine fraud after evidence is appropriate. (Paras 3, 4, 10)
(B) The court reiterated that the plaint must disclose a cause of action, and clever drafting creating an illusion of a cause of action should be rejected at the earliest stage. (Paras 9, 10)
Facts of the case:
The plaintiff filed a suit for specific performance of an agreement to sell dated 15.07.2019, claiming the previous agreement was fraudulent. The defendants argued the suit was barred by law due to the existing agreement.
Findings of Court:
The court upheld the trial court's dismissal of the application to reject the plaint, affirming that the issue of fraud must be determined after evidence is presented.
Issues: Whether the plaint discloses a cause of action and if the suit is barred by law due to a prior agreement.
Ratio Decidendi: The court emphasized that only the plaint and its documents are to be considered under Order 7 Rule 11, and the merits of the case should not be evaluated at this stage.
Result: Revision dismissed.
ORDER :
Deepak Kumar Tiwari, J.
Heard on admission.
2. This Civil Revision has been filed against the order dated 16.02.2023 passed in Case No.6v/2022 by the First Upper District Judge, Ambikapur, District Surguja (C.G) whereby, the application preferred by the applicant/defendant under Order 7 Rule 11(d) of the CPC has been dismissed.
3. Brief facts of the case are that the respondent No.1/plaintiff has filed a civil suit for the specific performance of agreement to sale dated 15.07.2019 and the suit was filed on 01.07.2022. In the said suit, the applicant/defendants have moved an application under Order 7 Rule 11(d) of the CPC, raising the objection that defendant No.1 along with Kausar Jahan and Aftab Alam had already entered into registered agreement and the same was in existence. Subsequently in a fraudulent manner, on 15.07.2019, an agreement was executed and the present suit was filed which was barred by law.
4. Learned trial Court considering the averments made in the application under Order 7 Rule 11 of the CPC has observed that the issue involved in the case is a matter of evidence and the fact whether any fraud has been committed or not can be determined only after recording the evidence and dismissed the application. Hence, this Revision.
5. Learned counsel for the applicants would submit that during existence of the earlier agreement, the subsequent agreement is void and it is also obtained through deception and fraud and the learned trial Court has not considered this aspect and prays to allow the revision and reject the plaint which was barred by law.
6. Heard learned counsel for the applicants and perused the documents annexed with the revision carefully.
7. It is well settled that for determining whether the plaint discloses any cause of action or not, the Court has to see only the averments in the plaint and the accompanying document relied upon in the plaint and the fact elicited from the plaintiff by examining him under Order 10. The Court has to presume the fact stated in the plaint as correct. The Court cannot look into the defence set up by the defendant in their written statement or the application while deciding the application under Order 7 Rule 11 of the Code of Civil Procedure, 1908.
8. Further, in the matter of Kuldeep Singh Pathania Vs. Bikram Singh Jaryal, 2017 (5) SCC 345, the following observations was made in para No.9 to 12:-
10. In the present case, the issue relates to an enquiry under Order 7 Rule 11(a) of the Code, and hence, there is no question of a preliminary issue being tried under Order 14 Rule 2(2) of the Code. The court exercised its jurisdiction only under Section 83(1)(a) of the Act read with Order 7 Rule 11(a) of the Code. Since the scope of the enquiry at that stage has to be limited only to the pleadings of the plaintiff, neither the written statement nor the averments, if any, filed by the opposite party for rejection under Order 7 Rule 11(a) of the Code or any other pleadings of the respondents can be considered for that purpose.
11. In Mayar (H.K.) Ltd. v. Vessel M.V. Fortune Express, 2006 (3) SCC 100, this Court has dealt with a similar issue. To the extent relevant, para 12 reads as follows: (SCC p.115)
"12. From the aforesaid, it is apparent that the plaint cannot be rejected on the basis of the allegations made by the defendant in his written statement or in an application for rejection of the plaint. The court has to read the entire plaint as a whole to find out whether it discloses a cause of action and if it does, then the plaint cannot be rejected by the court exercising the powers under Order 7 Rule 11 o
Kuldeep Singh Pathania Vs. Bikram Singh Jaryal
Dahiben Vs. Arvindbhai Kalyanji Bhanusali (Gajra) Dead through Lrs & Ors.
Mayar (H.K.) Ltd. v. Vessel M.V. Fortune Express
Virender Nath Gautam v. Satpal Singh
Liverpool & London S.P. & I Assn. Ltd. v. M.V.Sea Success I
Hardesh Ores (P.) Ltd. v. Hede & Co.
D. Ramachandran v. R.V. Janakiraman
Saleem Bhai v. State of Maharashtra
Swamy Atmanand v. Sri Ramakrishna Tapovanam
T. Arivandandam v. T.V. Satyapal
The court must only consider the plaint and accompanying documents under Order 7 Rule 11, without evaluating the merits of the case or the defendant's defense.
The court affirmed that a plaint must disclose a cause of action based solely on its averments, and issues of fraud can only be determined after evidence is presented.
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 court affirmed that the rejection of a plaint under Order 7, Rule 11 must solely consider the plaint's averments, and limitation is a mixed question of fact and law requiring evidence.
The court affirmed that a plaint cannot be rejected for lack of cause of action or limitation if no time limit for performance is specified, allowing oral agreements for immovable property.
Plaint not rejected under Order VII Rule 11(d) CPC despite 28-year delay in specific performance suit where fraud, collusion, unilateral cancellation averred, making limitation mixed fact-law issue r....
The court ruled that a cause of action constitutes a bundle of facts which, if proven, entitles a party to maintain an action and that applications under Order VII Rule 11 must not consider the defen....
The rejection of a plaint under Order VII Rule 11 requires strict adherence to conditions, and a claim disclosing some cause of action cannot be dismissed merely due to its perceived weakness.
The main legal point established in the judgment is that mere admission of the existence of a document is not sufficient to presume fraud, and the issue of fraud can be considered at the final stage ....
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