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2025 Supreme(GUJ) 147

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 2133 of 2025 =============================================
IMRAN KUMELAHMED KHAN LEGAL HEIR OF LATE KUMELAHMED ABDULHAMID KHAN Versus STATE BANK OF INDIA & ANR.
=============================================
Appearance:
MR NAYAN D PAREKH(5010) for the Petitioner(s) No. 1 GUPTA LAW ASSOCIATES(9818) for the Respondent(s) No. 1 PARITOSH R GUPTA with NANCY SONI (7583) for the Respondent(s) No. 1 =============================================
CORAM: HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL and HONOURABLE MR. JUSTICE PRANAV TRIVEDI Date : 06/03/2025

Petitioner Advocates:MR NAYAN D PAREKH(5010) ,Respondent Advocate: PARITOSH R GUPTA(7583)

The court upheld the trial court's decision to reject the application for dismissal of the plaint, emphasizing the necessity for a detailed inquiry into the petitioner's liability as both a legal heir and a firm proprietor.

Headnote:(A) Constitution of India - Article 227 - Civil Procedure Code, 1908 - Order VII Rule 11 - Petition challenging rejection of application for rejection of plaint for recovery of debt - Petitioner impleaded as defendant in dual capacity as legal heir and proprietor of a firm - Trial court found no grounds for dismissal under Order VII Rule 11, requiring detailed inquiry during trial. (Paras 2-5)

(B) Muslim Law - Debt left by a Muslim is not heritable property - No privity of contract between the petitioner and the plaintiff Bank - However, the petitioner’s dual role necessitates examination of liability. (Paras 4-5)

Facts of the case:
The petitioner, as defendant no.2, challenged the trial court's order rejecting his application to dismiss a suit for debt recovery, arguing non-liability under Muslim law and lack of privity of contract.

Findings of Court:
The trial court's findings that the original borrower obtained hypothecation as proprietor of M/s. S.K. Textiles require detailed inquiry, and the petitioner retains the right to defend during trial.

Issues: The main issues were the applicability of Muslim law regarding debt inheritance and the privity of contract between the petitioner and the plaintiff Bank.

Ratio Decidendi: The court held that the trial court's decision to not dismiss the plaint was justified, as the issues raised necessitate a full trial and examination of evidence.

Result: Petition dismissed.

ORDER :

SUNITA AGARWAL, C.J.

1. Heard learned counsel for the petitioner and perused the record.

2. The present petition invoking the extraordinary jurisdiction of this Court under Article 227 of the Constitution of India has been filed challenging the order dated 27.11.2024 passed by the 4th Additional Senior Civil Judge, Surat, in rejecting the application exhibit ‘12’ filed under Order VII Rule 11 CPC for rejection of the plaint for recovery of debt against the borrower.

3. The petitioner herein has been impleaded as defendant no.2 in the said suit in the capacity of legal heir of the original borrower being his son. The defendant no.2, namely the present petitioner herein has also been joined in the capacity of proprietor of M/s. S.K. Textiles and has filed his written statement vide exhibit 9. It is noted by the trial court that in the application under Order VII Rule 11 exhibit 12, the petitioner has not stated that he has nothing to do with the aforesaid proprietorship firm. It is further recorded that all documents vide exhibit 3 filed with the plaint apparently prove that the original borrower had obtained hypothecation in the capacity of proprietor of M/s. S.K. Textiles. Taking note of the above facts, the contentions made by the learned counsel for the applicant/petitioner herein that he cannot be made liable for the debt of his father as per Muslim law and that he was living separately and independently from his father since long, had been rejected.

4. It is sought to be argued by the learned counsel for the petitioner that as per Chapter XIV Synopsis 19 of the Muslim law, any debt left by a Muslim is not a heritable property. It was further argued that there is no privity of contract between the applicant/petitioner herein and the plaintiff Bank. The trial was required to dismiss the suit considering the grounds of bar under the Muslim law and there being no privity of contract.

5. However, the fact remains that the petitioner has been impleaded as defendant no.2, both in the capacity of the legal heir of the borrower and being the proprietor of M/s. S.K. Textiles, the findings returned by the trial court that the original borrower had obtained hypothecation in the capacity of M/s. S.K. Textiles is required to be examined. Both the questions pertaining to the contention made by the learned counsel for the petitioner/defendant no.2 would require a detailed inquiry during the course of trial and this aspect of the matter is also taken care of by the trial court while observing that the defendant no.2, viz. the petitioner herein has liberty to take all defence available to him during trial. In any case, the suit cannot be dismissed by invoking the provisions of Order VII Rule 11 CPC as none of the grounds of Rule 11 are attracted in the facts and circumstances of the case. The issues raised by the petitioner seeking for rejection of the plaint, in our considered opinion, require framing of issues and adjudication by leading evidence.

6. In view of the above, no infirmity can be found in the order passed by the trial court. The present petition is dismissed accordingly.

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