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2021 Supreme(Del) 1774

IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, J.
Sanjay Gupta & Ors. - Appellants
Versus
Hariom Gupta - Respondent
Civil Revision Petition No. 20 of 2021
Decided On : 19-02-2021

Advocates appeared:
Parth Awasthi, Advocate

The main legal point established is that a suit should not be rejected based on limitation without a trial if the assertions in the plaint and the need for further evidence warrant a trial.

Headnote:

Limitation - Civil Procedure - CPC - Order VII Rule 11 - IPC Section 506 - [CIVIL PROCEDURE CODE, 1908 - Order VII Rule 11, INDIAN PENAL CODE - Section 506]

Fact of the Case:

The case involved a dispute where the petitioners claimed that the suit was time-barred and should be rejected under Order VII Rule 11 of the CPC. The respondent sought the return of Rs. 20 lakhs deposited with the petitioners as security during construction on a property.

Finding of the Court:

The court found that the suit should not be rejected without a trial as the refund of Rs. 20 lakhs was contingent upon the respondent shifting from the concerned shop, and the limitation commencement required evidence.

Issues: The main issue was whether the suit was time-barred and should be rejected under Order VII Rule 11 of the CPC.

Ratio Decidendi: The court held that the assertions made in the plaint and the fact that the respondent was yet to prove the case warranted a trial before rejecting the suit based on limitation.

Final Decision: The court dismissed the revision petition and interlocutory applications, upholding the impugned order of the learned ADJ.

JUDGMENT

Rajiv Shakdher, J. - CM No.6832/2021

    1. Allowed, subject to just exceptions.

      C.R.P. 20/2021 & CM APPL. Nos.6831, 6833/2021

      2. At the outset, one, notices that there is a delay of 114 days, even according to the petitioners, in filing the instant revision petition. The order, which is sought to be challenged, is dated 23.07.2019, passed by the learned Additional District Judge [in short "ADJ"].

        2.1. The impugned order was passed on an application, filed by the petitioners i.e. the original defendants, under Order VII Rule 11 of the Code of Civil Procedure, 1908 [in short "CPC"]. This application was pivoted on the ground that the underlying suit was barred by limitation, and therefore, the plaint should be rejected.

          2.2. The learned ADJ disagreed with the contention advanced on behalf of the petitioners/defendants. The petitioners/defendants claimed that the case set up by the respondent/plaintiff is that he vacated the suit property for construction to be carried out by the builder pursuant to which Rs. 20 lakhs was deposited by the builder with the petitioners/defendants to secure his interest.

          3. The petitioners/defendants, admittedly, are related with the respondent/plaintiff. The respondent/plaintiff, during the period, when the builder was carrying on the construction on the suit property, had occupied a shop which, apparently, is owned by the petitioners/defendants.

          4. Once the construction of the suit property was completed by the builder, the respondent/plaintiff sought return of Rs.20 lakhs, which was deposited by the builder with the petitioners/defendants.

          5. The construction on the suit property, it appears, was completed in April 2014.

          6. Since the demand made by the respondent/plaintiff for return of money did not bear fruit, police complaints were lodged. As per the assertions made in the plaint, the police complaints were lodged on 23.05.2014, 02.07.2014, 03.07.2014, 28.08.2014, 21.07.2014 & 28.05.2015.

            6.1 It appears that based on the complaints lodged by the respondent/plaintiff, ultimately, an FIR was registered on 21.02.2015 under Section 506 of the Indian Penal Code [in short "IPC"] against the petitioners/defendants.

              6.2. In the interregnum, the respondent/plaintiff, it appears, had served a legal notice dated 06.01.2014 on the petitioners/defendants.

                6.3. It is also the case of the respondent/plaintiff that, the fact, that the builder had deposited Rs. 20 lakhs with the petitioners/defendants, is borne out from an affidavit handed over by the builder to the respondent/plaintiff in December 2016.

                  6.4. The respondent/plaintiff it appears became apprehensive, when he received a notice of eviction in 2016 from the petitioners/defendants, in respect of the shop that he had occupied. Apparently, the notice was followed with lodgement of a suit for eviction against the respondent/plaintiff qua the concerned shop, in respect of which, summons were received, by the respondent/plaintiff.

                  7. Given the aforesaid circumstances, the petitioners/defendants claimed that the suit is patently time barred as it was instituted in 2018 whereas the cause of action, if any, arose in 2014 i.e. on 23.05.2014 when the respondent/plaintiff filed a complaint with the police for the first time.

                  8. The learned ADJ has considered these assertions, and rejected the application based on the assertions made in paragraph 7 of the plaint which reads as follows:

                    "That the defendant no.1, 2 and 3 came to the plaintiff and influenced that plaintiff that till time of construction he can use the shop of the defendant i.e. 245/26, Kalyan Marg, Mandawali, Delhi - 92 but in return the defendants will keep Rs.20,00,000/- as the security from Rs.41,00,000/- and further assured that no rent will be charged for using the shop of defendants and thereafter builder paid the Rs.20,00,000/- to the defendants and during that mutual/oral agreement it was agreed that when the plot got ready and plaintiff shift his shop and defendants will return the security amou

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