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2024 Supreme(Sikk) 40

THE HIGH COURT OF SIKKIM : GANGTOK
BHASKAR RAJ PRADHAN, J. 
Phigu Tshering Bhutia, S/o Lt. Tshering Nedup Bhutia – Petitioner
Versus
Shri Karma Samten Bhutia, S/o Lt. Passang Bhutia and Ors. – Respondents
W.P. (C) No. 19 of 2023
Decided On : 02-07-2024

Advocates Appeared:
For the Petitioner:Ms. Laxmi Chakraborty, Mr. Dewen Sharma Luitel and Mr. Bhaichung Bhutia, Advocates
For the Respondents:Mr. Jorgay Namka, Senior Advocate with Ms. Rinchen Ongmu Bhutia, Mr. Avinash Dewan and Mr. Lahang Limboo, Advocates, Mr. S. K. Chettri, Government Advocate.

The Court clarified that mixed questions of fact and law, such as maintainability of a suit based on admissions, cannot be decided as a preliminary issue unless the facts are clear from the pleadings.

Headnote:(A) Constitution of India - Article 227 - Code of Civil Procedure, 1908 - Order XIV Rule 2 - Maintainability of suit as a preliminary issue - Learned Trial Court erred in deciding the maintainability of the suit as a preliminary issue. The issue was deemed a mixed question of fact and law requiring full examination of evidence. The Court clarified that facts must be clear before determining mixed questions as preliminary issues, reaffirming the principles in Nusli Neville Wadia and Sukhbiri Devi cases. (Paras 3, 8, 10, 11)

(B) The learned Trial Court has discretion to decide the question of limitation as a preliminary issue but only when the issue of law is clear. (Para 2)

Facts of the case:
The petitioner challenged the order of the learned Trial Court which ruled on the maintainability of the plaintiffs' suit based on an alleged admission made during cross-examination, regarding knowledge about prior registrations of property.

Findings of Court:
The Court found that the issue of maintainability could not be decided as a preliminary issue and set aside the learned Trial Court's order.

Issues: 1) Can the issue of suit maintainability be determined as a preliminary issue? 2) Was the learned Trial Court justified in its determination based on cross-examination admissions?

Ratio Decidendi: The Court ruled that mixed questions of fact and law, particularly regarding limitation, cannot be decided as preliminary issues unless the relevant facts are unambiguous in the pleadings.

Result: The impugned Order is set aside and the application under Order XIV Rule 2 rejected.

Table of Content
1. challenge to maintainability of suit (Para 1 , 2)
2. preliminary issues and legal precedent (Para 3 , 4)
3. criteria for preliminary issue determination (Para 5 , 6 , 7 , 8 , 9)
4. misapplication of procedural law (Para 10)
5. judgment and rejection of application (Para 11 , 12)

JUDGMENT :

Bhaskar Raj Pradhan, J.

1. This petition under Article 227 of the Constitution of India seek to challenge the Order dated 11.04.2023 passed by the learned Senior Civil Judge, Gangtok (The learned Trial Court) on an application filed by the petitioner herein as (defendant no.1) under Order XIV Rule 2 read with section 151 of the Code of Civil Procedure, 1908 (CPC) for deciding the issue framed on examination of the pleadings i.e. whether the suit of the respondents herein as (plaintiffs) is maintainable in law as a preliminary issue in view of an admission made by plaintiff no.1 during his cross examination in the trial.

2. By the impugned Order the learned Trial Court has examined the rival submissions, the cross examination of plaintiff no.1, the other evidence pointed out by the parties and the judgments referred to and opined that there is no doubt that the court has discretion to decide the question of limitation as a preliminary issue as decided by the Supreme Court in Sukhbiri Devi & Ors. vs. Union of India, 2022 SCC OnLine Delhi SC 1322. Thus, the learned Trial Court decided to take up the issue as sought for by the defendant no.1 as a preliminary issue. Having done so and examined the issue the learned Trial Court decided the same against the defendant no.1 and in favour of the plaintiffs. The defendant no.1 is aggrieved by the impugned order and has approached this Court.

3. In Sukhbiri Devi (supra) the learned Trial Court had framed a preliminary issue on the question of limitation, evidently, upon forming an opinion that the case may be disposed of on an issue of law and that it warrants postponement of settlement of other issues until after the issue has been determined and to deal with the suit in accordance with the decision on that issue. The said preliminary issue was answered in the negative and accordingly the suit was dismissed. The judgment was challenged in an appeal which was also dismissed. The second appeal before the High Court was also dismissed answering the question of law against the appellant. In the appeal before the Supreme Court three substantial questions were determined and considered. The first question whether the issue of limitation can be determined as a preliminary issue under Order XIV Rule 2 (2) of the Code of Civil Procedure, 1908 (the CPC) was answered by holding that “As held by the three Judge Bench in the decision in Nusli Neville Wadia’s Case (supra) the provisions under Order XIV Rule 2 (1) and Rule 2(2) (b) permit to deal with and dispose of a suit in accordance with the decision on the preliminary issue”.

4. In Nusli Neville Wadia vs. Ivory Properties & Ors., (2020) 6 SCC 557 the Supreme Court held:

“51. The provision has been carved out under Section 9-A CPC to decide, question of jurisdiction to entertain, at the stage of deciding the interim application for injunction and the very purpose of enactment of the same was that the suits were being instituted without serving a notice under Section 80, which at the time of initial incorporation of provisions could not have been instituted without serving a notice of two months. There was a bar to institute a suit. It became a practice that after obtaining injunction, suit was allowed to be withdrawn with liberty to file fresh suit after serving the notice. To take care of misuse of the provisions, Section 9-A was introduced in the year 1970 and had been reintroduced again in 1977 to consider question of jurisdiction to entertain at the stage of granting injunction or setting aside. The provision has been inserted having the narrow meaning as at the stage of granting ex parte injunction; the question can be considered. The written stateme

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