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2025 Supreme(Mad) 5147

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. Sundar, K.Rajasekar, JJ.
Mr.A.C.Raju - Appellant
Versus
Mrs.C.Prema Raju and ors. - Respondents
OSA.No.226 of 2023
Decided On : 29-04-2025

Advocates Appeared:
For the Appellant : Mr.Nithyaesh Natraj for Mr.vaibhav Rangarajan Venkatesh
For the Respondent: Mr.S.S.Rajesh, Mr.Sharath Chandran

The court affirmed the requirement for suits to disclose genuine causes of action, rejecting cases that are manifestly vexatious or rely on clever drafting to circumvent established legal limitations.

Headnote:(A) Code of Civil Procedure, 1908 - Order 7 Rule 11 - Rejection of plaint - Suit filed to declare a Settlement Deed as null and void on grounds of fraud, misrepresentation, and undue influence - The court ruled that the plaint disclosed a cause of action, but was barred by limitation. Reliance on date of knowledge for limitation was found to be cunningly drafted; therefore, the suit is manifestly vexatious and rejected. (Paras 6, 10, 11, 23, 29)

(B) Limitation - The court reiterated that the point of limitation must be established at the time of trial, affirming that a plaintiff cannot escape limitation through clever drafting. (Paras 12, 26, 27)

Facts of the case:
The appellant is the husband of the 1st respondent and father of the 2nd respondent. They executed a Settlement Deed in favor of the 2nd respondent, which the 1st respondent later contested as a fraudulent act, believing it to be a Power of Attorney. This suit was filed nine years post-execution, alleging fraud upon discovering another deed.

Findings of Court:
The suit was deemed vexatious, revealing ulterior motives influenced by the elder son of the plaintiff. The plaint was rejected as it failed to establish a valid cause of action within the legal framework.

Issues: The primary issues discussed were the validity of the Settlement Deed and the timing of the plaintiff's knowledge regarding the alleged fraud.

Ratio Decidendi: The court held that the rejection of the plaint was justified due to the clever drafting and lack of bona fide cause, affirming the stance that legal documents executed by literate individuals are upheld unless overwhelming evidence suggests otherwise.

Result: Appeal allowed; plaint rejected.

Table of Content
1. ownership and execution of the settlement deed. (Para 3 , 4 , 5)
2. allegations of fraud and misrepresentation. (Para 6 , 7 , 8)
3. initial court proceedings and rejection of plaint. (Para 9 , 10 , 11)
4. application of judicial precedents on order 7 rule 11. (Para 13 , 14)
5. assessment of cause of action and limitation. (Para 15 , 16 , 17 , 18 , 19)
6. criteria for rejecting plaint under order 7 rule 11. (Para 20 , 21 , 22 , 23 , 24)
7. conclusion on the merits of the case and plaintiff's credibility. (Para 25 , 26 , 27 , 28)

JUDGMENT :

S.S.SUNDAR, J.

(1)The above appeal is filed by the 2nd defendant in the suit in CS.No.43/2023 as against the order dated 27.09.2023 dismissing the application filed by him in A.No.2143/2023 to reject the plaint in CS.No.43/2023.

(2)Brief facts that are necessary for the disposal of this appeal are as follows:

(3)The parties in this appeal are close relatives. The appellant is the husband of 1st respondent and father of 2nd respondent. It is not in dispute that the appellant and the 1st respondent have two more sons and they are Mr.C.Prakash Kumar and Mr.C.Haribabu who are not parties in the suit or in the appeal. The suit property is a land admeasuring an extent of 3856 sq.ft [1 ground and 1456 sq.ft.] with a residential building consisting of stilt plus two floors situated at Plot No.4206, New Door No.8, T Block, 8th Street, Anna Nagar, Chennai-40.

(4)Originally, the property was purchased by the appellant and the 1st respondent under two Sale Deeds dated 30.03.1994 and 24.02.1994 respectively, thereby getting 50% of the property for each of them. It is admitted that the whole property was jointly enjoyed by them. The building in the property was demolished and a new construction came after obtaining building plan approval from the Chennai Corporation and other statutory authorities in the year 2012. It is now admitted that the new residential building in the property consists of stilt + 2 floors.

(5)The appellant and the 1st respondent jointly executed a Settlement Deed which is registered as Doc.No.3948/2014 in the office of the Sub Registrar, Anna Nagar, in favour of their daughter, the 2nd respondent herein. From the Settlement Deed, it is seen that the appellant and the 1st respondent executed the same in favour of their daughter, the 2nd respondent herein on their own volition and free will and out of love and affection. Though the settlors have covenanted that the settlement is irrevocable, they however reserved / retained life estate. Nine years later, the 1st respondent/wife has filed a suit in CS.No.43/2023 to declare the Settlement Deed dated 11.09.2014 as null and void and for granting a decree for permanent injunction restraining the defendants therein from in any way creating any encumbrance over the suit property.

(6)In the plaint, it is the case of the 1st respondent, the wife of the appellant herein that she and the appellant were carrying out a lot of business and the family is holding a lot of properties in and around Chennai and both of them have sufficient independent means and financial independence. Though it is admitted that the relationship between the appellant and the 1st respondent was very cordial and that she blindly believed all that the appellant would say, it is contended that the appellant defrauded her by getting the document of Settlement registered under the pretext that it was a Power of Attorney Deed authorising the appellant to mobilize funds by applying for Bank loan on the strength of the property as security which is required for completing the new construction in the suit property. Stating that the 1st respondent/plaintiff agreed to execute a Power of Attorney with an intention to complete the construction of a dream home, it is contended that the document was executed by the plaintiff without knowing the contents and the nature of transaction. It is alleged that the appellant fraudulently usurped the plaintiff's share in the suit property by

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