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2025 Supreme(Telangana) 70

IN THE HIGH COURT FOR THE STATE OF TELANGANA
LAXMI NARAYANA ALISHETTY, J.
Vishwambara Educational Society And Another - Appellants 
Versus
Donti Indrasena Reddy @ Indra Reddy – Respondent
SA.No. 483 of 2023
Decided On : 19-06-2025

Advocates appeared:
For the Appellants : Sri H.Venugopal, learned senior counsel For Sri Nalla Mukund Reddy
For the Respondent: Sri J.Prabhakar, Learned senior counsel for Sri A.Prabhakar Rao

The court ruled that fraud claims, as a mixed question of law and fact, require a full trial and cannot solely determine a suit's rejection based on limitations.

Headnote:(A) Limitation Act - Sections 17 and 59 - Appeal against rejection of plaint - Plaintiff sought cancellation of a nominal sale deed and sought a perpetual injunction - Defendants alleged suit barred by limitation; trial Court rejected plaint for inaction - Appellate Court held fraud allegations require trial; hence, the plaint should not be rejected on grounds of limitation, it being a mixed question of law and fact - The case must be decided on merits, given fraud claims are alleged and dependence on evidence. (Paras 7, 12, 14, 18)

Facts of the case:
Plaintiff filed suit to cancel a nominal sale deed executed under pressure, claiming no possession was transferred and the defendants admitted no rights were conferred. The plaintiff later discovered unauthorized changes in revenue records. The suit was filed years later, raised issues of limitation and fraud. (Paras 3.1, 4)

Findings of Court:
The Appellate Court found that the trial Court incorrectly applied the Limitation Act’s Section 17 leading to wrongful rejection of the plaint by not considering the merits and the underlying fraud. The decision should address underlying fraud and misrepresentation, necessitating a full trial. (Paras 11, 19)

Issues: Whether the suit is barred by limitation or if it qualifies for relief based on fraud and misrepresentation and whether a partial rejection of plaint is permissible. (Paras 6, 18)

Ratio Decidendi: The court emphasized that the question of limitation is mixed law and fact, needing evidence; fraud allegations lead to trial necessity. Therefore, mere claims of delayed filing do not in themselves warrant plaint rejection as legal principles allow for evaluating merits. (Paras 12, 19)

Result: Second Appeal dismissed, with no order as to costs.

Table of Content
1. filing appeal process and participants (Para 1 , 2)
2. background of suit and claims (Para 3)
3. defendants' arguments against plaint (Para 4 , 5)
4. trial court's ruling on plaint rejection (Para 6 , 7 , 8)
5. senior counsel arguments on appeal (Para 10 , 11 , 12)
6. details of plaintiff's claims and legal grounds (Para 13 , 14 , 15 , 16)
7. legal precedent on partial rejection of plaint (Para 17)
8. final court determination and rationale (Para 18 , 19)
9. conclusion of the appeal decision (Para 20)

JUDGMENT:

This Appeal is filed aggrieved by the judgment and decree dated 08.09.2023, passed by the I Additional District Judge, at Warangal, in A.S.No.10 of 2023, whereby and whereunder the order, dated 23.01.2023, passed by the Principal Junior Civil Judge, Warangal, in I.A.No.499 of 2022 in O.S.No.284 of 2012 was set aside.

2. The appellants herein are the defendants and respondent herein is the plaintiff in the suit, before the trial Court. For convenience, hereinafter, the parties are referred to as they are arrayed in the suit.

3. The brief facts of the case are that plaintiff filed suit in O.S.No.284 of 2012 against the defendants, seeking cancellation of the registered sale deed bearing document No.234/2001, dated 14.05.2001 and also for perpetual injunction in respect of the suit schedule property. In the plaint, it is averred that plaintiff is the owner of land in Sy.No.521/B, to an extent of Acs.2.24 gts, situated at Bollikunta Village, Warangal District (hereinafter referred to as ‘suit schedule land’); that defendant No.1-Educational Society is running college which is situated towards eastern side of the suit schedule property; that defendant No.2, who is a relative of plaintiff and Ex-Member of Parliament, approached the plaintiff and requested to execute nominal sale deed in respect of land in Sy.No.521/B, admeasuring Ac.1.00 guntas out of Acs.2.24 gts, belonging to plaintiff, stating that defendant No.1 required to be in possession of Acs.40.00 guntas of land to obtain permission from AICTE to run a college; that initially, plaintiff refused, however, on repeated requests and force of defendant Nos.1 and 2, he executed a nominal sale deed vide Document No.234/2001, dated 14.05.2001, in respect of land in Sy.No.521/B, admeasuring Ac.1.00 guntas, without any consideration and delivery of possession of the land; that on the date of execution of nominal sale deed itself, a precondition was stated that the said nominal sale registered deed would not confer any right or title over the property to the defendants and the defendants agreed to cancel the said deed without fail, whenever the plaintiff demands.

3.1. It is further averred that defendants have executed an Agreement-cum-Undertaking stating that the sale deed vide Document No.234/2001 was only for the purpose of getting permission from AICTE to defendant No.1-Educational Society and admitted that no title or rights are conferred to the defendants; that in pursuance of the nominal sale deed, possession was not delivered to the defendants even after execution of nominal sale deed in favour of the defendants, the name of the plaintiff has been continuing in the revenue records and he has been in occupation and raising crop in the said land.

3.2. While things stood thus, in the year 2008, the plaintiff came to know that defendants, in collusion with revenue authorities, got mutated the name of defendant No.1 in the revenue records in respect of Acs.2.24 gts in the year 2004 without notice to him; that immediately, he filed an application for rectification of the said wrong entries before the Tahsildar, Sangam; that the revenue authorities rectified the wrong revenue entries partly i.e., entries in respect of land admeasuring Ac.1.24 gts was deleted out of Acs.2.24 gts, but did not delete the entries in respect of land admeasuring Ac.1.00; that aggrieved thereby, the plaintiff preferred an Appeal before Joint Collector vide Appeal No.6987/2009 to rectify the sai

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