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2013 Supreme(J&K) 50
JAMMU & KASHMIR HIGH COURT
M.M.Kumar; CJ, Hasnain Massodi, JJ.
Pushpa Devi -Appellant
Versus
Dharam Chand & Ors. -Resopndent
LPAC No. 95 of 2001
Decided On : 01-02-2013
For the Respondents:K.S. Johal, Sr. Adv. Amit Gupta, Advocates.
The main legal point established in the judgment is the interpretation of the cause of action and the time limit for filing a suit under the J & K Limitation Act.
Headnote:
Fraud - Life Insurance Policy - J & K Limitation Act - [Article 120, J & K Limitation Act] - The court discussed the cause of action and the time limit for filing a suit under the J & K Limitation Act. It highlighted the interpretation of the cause of action and the erroneous conclusions drawn by the lower courts. The court ultimately allowed the appeal and set aside the judgments of the lower courts, decreeing in favor of the appellant.
Fact of the Case:
The appellant, as a nominee of her deceased husband, received an amount from a life insurance policy and deposited it under a joint FDR with her father-in-law. She later alleged that she was fraudulently induced to do so and sought a decree declaring her entitled to the maturity value of the FDR.
Finding of the Court:
The trial court and the first appellate court dismissed the suit as time-barred, citing the cause of action as the date when the appellant came to know of the fraud. However, the High Court found the conclusions drawn by the lower courts to be erroneous and allowed the appeal, decreeing in favor of the appellant.
Issues: The main issue was the interpretation of the cause of action and the time limit for filing a suit under the J & K Limitation Act.
Ratio Decidendi: The court held that the cause of action would arise when the fraudulent promise made to the appellant was refused or when she was informed that she was not to be accepted in the family, not at the time when she was turned out of her marital house. The court found the lower courts' conclusions to be erroneous and allowed the appeal.
Final Decision: The appeal was allowed, the judgments of the lower courts were set aside, and the suit was decreed in favor of the appellant.
1. Dharam Chand R/o Nekowal P.O. Sai Tehsil R.S. Pura, a member of the armed forces, breathed his last on 1984. He was amongst other survived by his wife Smt. Pushpa Devi present appellant and his father Shri Dharam Chand respondent No. 1 herein.
2. The appellant as a nominee of her deceased husband received an amount of Rs. 60,000/- from Life Insurance Corporation of India on account of life insurance policy taken by her deceased husband. She deposited the amount in her bank account. However, an amount of Rs. 50,000/- out of the deposited amount was drawn by her and deposited under a joint FDR No. QDQ/913109 dated 8-3-1991 in her and her father-in-laws name.
3. The appellant commenced a suit in the High Court on 09-10-1991. The suit was transferred to District Court, Jammu and was registered on 21st September 1993. The appellant pleaded that she was fraudulently induced by the respondent to deposit the amount under joint FDR on a false promise that her marriage would be solemnized to Baghwan Dass brother of her deceased husband and son of the respondent No. 1.
4. The appellant’s case was that once she fell in a trap and deposited the amount under joint FDR, she was harassed by her in-laws and a few months thereafter turned out of her marital house; that the respondent No. 1 further refused to marry his younger son to her. The appellant on the strength of averments made in the complaint sought a decree declaring her entitled to receive Rs. 1,01,225/- i.e. maturity value of FDR No. QDQ/913109 dated 8-3-1991, to the exclusion of respondent No. 1. The appellant also prayed for a decree of mandatory injunction commanding the respondent No. 2 to release the amount in her favour.
5. The trial Court dismissed the suit on 06-03-1995, on the ground that in terms of Article 120, J & K Limitation Act, suit was to be filed within six years from the date, cause of action accrued to the appellant. The trial Court took the view that cause of action had accrued to the appellant in March, 1985 and suit ought to have been filed by or before March 1991. To arrive at the conclusion, the learned trial Judge referred to Paras 6 and 7 of the plaint that according to learned trial Court spelt out facts that constituted cause of action.
6. The appellant aggrieved with the trial Court Judgment and decree dated 06-03-1995, preferred an appeal registered as Civil First Appeal No. 21/1995. The appeal also met the same fate. The Appellate Court recorded agreement with the conclusions drawn by learned trial Court that cause of action had accrued when the appellant came to know of the fraud played on her. The argument advanced by learned counsel for the appellant before the Appellate Court that cause of action would accrue on the date marriage of Baghwan Dass was solemnized or on the date of maturity of FDR, did not find favour with the 1st Appellate Court.
7. The First Appellate Court Judgment in questioned in the Letters Patent Appeal on hand on a variety of grounds set out in the appeal.
8. We have gone through the appeal as well as record received from the First Appellate Court and the trial Court. We have heard learned counsel for the appellant.
9. The trial Court held the appellants’s suit time barred on the ground that cause of action to file the suit had arisen in March, 1985 and in terms of Article 119, Jammu and Kashmir Limitation Act, the suit was to be filed within six years from the date cause of action had arisen. The trial Court to arrive at the conclusion that cause of action had arisen in March, 1985, placed reliance on para 6 of the plaint.
“After the joint FDR in the name of the plaintiff and defendant No. 1 was executed with defendant No. 2 for the amount of Rs. 50,000/-, the plaintiff was made to realize by defendant No. 1 that this was done only with a view to take away half of the amount deposited by way of FDR by defendant No. 1. The plaintiff also reluctantly submitted to her fate and believed honestly that she would be rehabili
