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IN THE HIGH COURT OF DELHI
Rajiv Shakdher, J.
Sanjay Gupta - Appellant
Versus
Hariom Gupta - Respondent
C.R.P. 20 of 2021
Decided On : 19-02-2021




The court ruled that an assertion of limitation does not warrant dismissal without trial, emphasizing that factual evidence is crucial for determining limitation in contractual disputes.

Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rule 11 - Revision petition regarding rejection of plaint due to limitation - Delay of 114 days in filing the revision petition acknowledged - The learned Additional District Judge found the case was not time-barred as the plaint attributes a mutual/oral agreement determining the limitation commencement based on the shift of possession - The respondent/plaintiff's claims necessitate evidence and merit consideration through trial. (Paras 2.1, 9, 11)

(B) Limitation - The court held that merely asserting a time-bar does not warrant rejection of the plaint without trial, as determination of limitation hinges on factual evidence pertaining to the completion of construction and conditions of the agreement. (Paras 9, 11)

Facts of the case:
The petitioners are related to the respondent who alleged that he vacated the suit property for construction by a builder, leading to a deposit of Rs.20 lakhs with the petitioners, which he later sought to recover, claiming a delay in return justified his suit filed in 2018.

Findings of Court:
The court upheld the lower court's ruling that the plaint should not be rejected without a trial based on the allegations within it.

Issues: The critical issues included whether the suit was time-barred and if the allegations warranted rejection without further evidence.

Ratio Decidendi: The court emphasized that the argument of limitation requires factual proof and cannot be dismissed merely on assertions without a trial; the respondent's claims require proper examination in court.

Result: Revision petition dismissed.

Table of Content
1. overview of case background and facts (Para 2 , 3 , 4 , 5 , 6)
2. arguments regarding limitation of the suit (Para 7 , 8)
3. court's view on respondents' claims (Para 9)
4. consideration of delay and refusal to intervene (Para 10 , 11)
5. final judgment rendered (Para 12 , 13)

JUDGMENT

[Court hearing convened via video-conferencing on account of COVID-19]

Rajiv Shakdher, J. (Oral)

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, D

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