RAJENDRA BAJORIA vs. HEMANT KUMAR JALAN

Case Type: Civil Appeal

Date of Judgment: 21-09-2021

Preview image for RAJENDRA BAJORIA vs. HEMANT KUMAR JALAN

Full Judgment Text

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION  CIVIL APPEAL NOS. 5819­5822  OF 2021 [Arising out of SLP(C) Nos. 2779­2782 of 2019] RAJENDRA BAJORIA AND OTHERS        ...APPELLANT(S) VERSUS HEMANT KUMAR JALAN AND OTHERS    ...RESPONDENT(S) J U D G M E N T B.R. GAVAI, J. 1. Leave granted. 2. These appeals challenge the judgment and order passed th by the Division Bench of the High Court of Calcutta dated 14 September 2018, thereby allowing the appeals being APO Nos. 491   and   520   of   2017   filed   by   the   respondents­defendants, challenging the order passed by the Single Judge of the High nd Court of Calcutta dated 22   September 2017.   Vide the said nd order   dated   22   September   2017,   the   Single   Judge   had 1 dismissed G.A. Nos.1688 and 1571 of 2017 filed by the original defendants,   seeking   dismissal   of   the   suit,   alternatively   for rejection of the plaint as well as for revocation of the leave granted under Clause 12 of the Letters Patent in the instant suit being C.S. No.79 of 2017. 3. A   partnership   firm   namely   ‘Soorajmull   Nagarmull’ (hereinafter   referred   to   as,   ‘the   partnership   firm’)   was th constituted under a Deed of Partnership dated 6   December 1943.   Baijnath   Jalan,   Mohanlal   Jalan,   Babulal   Jalan, Sewbhagwan   Jalan,   Keshabdeo   Jalan,   Nandkishore   Jalan, Deokinandan   Jalan,   Chiranjilal   Bajoria   and   Kishorilal   Jalan were the partners in the partnership firm.  It is not in dispute that none of the partners are alive.  Plaintiff Nos. 1, 2 and 3 are st the sons of Late Chiranjilal Bajoria, who died on 31  December 1981.  Plaintiff Nos. 4 and 5 are the sons of Late Deokinandan th Jalan, who died on 12  July 1997.  Plaintiff No. 6 is the son of st Late   Mohanlal   Jalan,   who   died   on   1   May   1982.     The defendants are the legal heirs of the other original partners in the partnership firm. 2 4. A civil suit being C.S. No. 79 of 2017 came to be filed by the plaintiffs before the Calcutta High Court seeking,  , inter alia the following reliefs:­ “(a)  Decree for declaration that the plaintiffs along with the defendants are entitled to the assets and properties of the firm "Soorajmull Nagarmull" as the heirs of the   original   partners   of   the reconstituted   firm   under   the th partnership  deed  dated  6   December, 1943, in the share of the said original partners as mentioned in paragraph 3 above;  (b)  Decree for declaration that the plaintiffs along   with   the   defendants   are consequently entitled to represent the firm   in   all   proceedings   before   the concerned   authorities   of   the   State   of Bihar   for   the   acquisition   of   its Bhagalpur land;  (c)  Decree   for   perpetual   injunction restraining the defendant No.1 or any of the   other   defendants   from   in   any manner   representing   or   holding themselves   out   to   be   the   authorised representative   of   the   firm   or   the repository of all its authority, moneys assets and properties or from seeking to represent the firm in its dealings and transactions   in   respect   of   any   of   its assets   and   properties   including   the acquisition   proceeding   of   the   firm's Bhagalpur land or from receiving any monies on behalf of the firm, whether 3 on   account   of   compensation   for   its Bhagalpur land or otherwise;  (d)  Decree   for   mandatory   injunction directing   the   defendant   No.   1   to disclose   full   particulars   of   all   assets and   properties   of   the   firm,   full particulars   of   all   its   dealings   and transactions   including   any   dealing   or transaction   concerning   any   asset   or property of the firm, and full accounts of   the   firm   for   the   purpose   of   its dissolution; (e)  Decree for the dissolution of the firm Soorajmull   Nagarmull   and   for   the winding up of its affairs upon realising the assets and properties of the firm, collecting all moneys due to the firm, applying the same in paying the debts of the firm, if any, in paying the capital contributed   by   any   partner   and thereafter   by   dividing   the   residue amongst   the   heirs   of   the   original partners   in  the   shares   to  which  they were entitled to the profits of the firm in th terms of the Partnership Deed dated 6 December, 1943." 5. In   the   said   suit,   the   defendants   filed   two   applications being  G.A. Nos.  1688  and  1571  of  2017,   inter alia ,  seeking dismissal of the suit, or in the alternative, rejection of the plaint on the ground that the plaint does not disclose any cause of action, and the  relief as  claimed in the  plaint  could not be granted.  It was also urged on behalf of the defendants that the 4 suit was filed beyond the period of limitation, and as such, was also liable to be rejected on the said ground.  The Single Judge nd vide judgment and order dated 22  September 2017, dismissed the   said   applications.   Insofar   as   the   ground   with   regard   to limitation is concerned, the Single Judge found that the issue of limitation was a mixed question of fact and law and did not consider the prayer of the defendants on that ground.   Being aggrieved thereby, the original defendants filed appeals being APO Nos. 491 and 520 of 2017 before the Division Bench of the High   Court.     The   Division   Bench   of   the   High   Court   by   the th impugned judgment and order dated 14  September 2018 held that the reliefs, as claimed in the plaint, could not be granted, and therefore, while allowing the appeals, rejected the plaint being   C.S.   No.   79   of   2017.     It,   however,   observed   that,   as provided under Order VII Rule 13 of the Civil Procedure Code (hereinafter referred to as the “CPC”), the order of rejection of the plaint shall not of its own force preclude the plaintiffs from presenting a fresh plaint in respect of the same cause of action. Being aggrieved thereby, the present appeals. 5 6. We have heard Shri Gopal Jain, learned Senior Counsel appearing on behalf of the appellants, Dr. A.M. Singhvi, learned Senior Counsel appearing on behalf of the respondent No.1, and Shri   K.V.   Viswanathan   and   Shri   Gopal   Sankaranarayanan, learned Senior Counsel appearing on behalf of the respondent Nos. 2, 3, 7 to 9, 11, 12 and 16 to 21. 7. Shri   Gopal   Jain,   learned   Senior   Counsel   appearing   on behalf of the appellants, submitted that the Division Bench of the High Court of Calcutta has grossly erred in allowing the appeals and reversing the well­reasoned judgment and order passed by the Single Judge of the High Court of Calcutta.  Shri Jain   submitted   that   the   Single   Judge,   after   reading   the averments in the plaint, had rightly come to the conclusion that the plaint discloses cause of action, and as such, could not be rejected under Order VII Rule 11 of CPC.  He submitted that the Division   Bench,   in   the   impugned   judgment   and   order,   has almost conducted a mini­trial to find out as to whether the relief as claimed in the plaint could be granted or not. He submitted that such an  exercise  is  impermissible  while  considering an 6 application under Order VII Rule 11 of CPC.  The learned Senior Counsel, relying on the judgment of this Court in the case of Dahiben   v.   Arvindbhai   Kalyanji   Bhanusali   (Gajra)   Dead 1 Through Legal Representatives and Others ,   submitted that the power conferred on the court to terminate a civil action is a drastic   one.   He   submitted   that   such   a   power   cannot   be routinely exercised. The learned Senior Counsel submitted that for finding out as to whether the cause of action exists or not, it is necessary to read the averments made in the plaint in their entirety and not in piecemeal.  Shri Jain, therefore, submitted that the impugned judgment and order is not sustainable and is liable to be set aside. Dr. Singhvi, learned Senior Counsel appearing on behalf of 8. the respondent No.1, submitted that if the averments made in the   plaint   were   read   in   juxtaposition   with   the   provisions   of Sections 40, 42, 43, 44 and 48 of the Indian Partnership Act, 1932 (hereinafter referred to as “the said Act”) read with clauses th in the   Partnership   Deed   dated   6   December   1943,  it  would 1 (2020) 7 SCC 366 7 reveal that none of the reliefs, as claimed in the plaint, could be granted. He submitted that as per Section 40 of the said Act, a firm can be dissolved only with the consent of all the partners or in accordance with the contract between the partners.   He submitted that, though under Section 42 of the said Act, a firm could be dissolved on the death of a partner, however, this is subjected to a contract between the partners.   He submitted th that, a perusal of clause 4 of the Partnership Deed dated 6 December 1943 would show that it specifically provides that upon the death of any partner, the partnership shall not be automatically dissolved.  As such, the submission in that regard is without merit.  He submitted that Section 44 of the said Act provides that the dissolution of the firm could be maintained on the ground specified therein, only if the suit is at the instance of the partners.  He submitted that admittedly the plaintiffs were not the partners, and as such, the suit at their instance was not tenable. The learned Senior Counsel relies on the judgments of this Court in the cases of  T. Arivandandam v. T.V. Satyapal 8 2 and   Another   and   Pearlite   Liners   (P)   Ltd.   v.   Manorama 3 ,  in  support   of   his   submission,   that   if   the   reliefs,   as Sirsi sought in the plaint, cannot be granted, then the only option available to the Court is to reject the plaint. 9. Shri   Viswanathan   and   Shri   Gopal   Sankaranarayanan, learned Senior Counsel appearing on behalf of respondent Nos. 2,   3,   7   to   9,   11,   12   and   16   to   21,   also   made   similar submissions. 10. It will be relevant to refer to Sections 40, 42, 43 and 44 of the said Act:­
40. Dissolution by agreement.—A firm may
be dissolved with the consent of all the
partners or in accordance with a contract
between the partners.
41. …….
42. Dissolution on the happening of certain<br>contingencies.—Subject to contract between<br>the partners a firm is dissolved—
(a) if constituted for a fixed term, by the<br>expiry of the term;
(b) if constituted to carry out one or<br>more adventures or undertakings, by<br>the completion thereof;
2 (1977) 4 SCC 467 3 (2004) 3 SCC 172 9
(c) by the death of a partner; and
(d) by the adjudication of a partner as an<br>insolvent.
43. Dissolution by notice of partnership at<br>will.—Where the partnership is at will, the<br>firm may be dissolved by any partner giving<br>notice in writing to all the other partners of his<br>intention to dissolve the firm.
(2) The firm is dissolved as from the date<br>mentioned in the notice as the date of<br>dissolution or, if no date is so mentioned, as<br>from the date of the communication of the<br>notice.
44. Dissolution by the Court.—At the suit of<br>a partner, the Court may dissolve a firm on<br>any of following grounds, namely:—
(a) that a partner has become of<br>unsound mind, in which case the suit<br>may be brought as well by the next<br>friend of the partner who has become<br>of unsound mind as by any other<br>partner;
(b) that a partner, other than the partner<br>suing, has become in any way<br>permanently incapable of performing<br>his duties as partner;
(c) that a partner, other than the partner<br>suing, is guilty of conduct which is<br>likely to affect prejudicially the<br>carrying on of the business, regard<br>being had to the nature of the<br>business;
(d) that a partner, other than the partner<br>suing, willfully or persistently
10 commits   breach   of   agreements relating   to   the   management   of   the affairs of the firm or the conduct of its   business,   or   otherwise   so conducts himself in matters relating to   the   business   that   it   is   not reasonably   practicable   for   the   other partners to carry on the business in partnership with him; ( e )  that   a   partner,   other   than   the partner,   suing,   has   in   any   way transferred the whole of his interest in the firm to a third party, or has allowed   his   share   to   be   charged under   the   provisions   of   Rule   49   of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), or has allowed it to be sold in the   recovery   of   arrears   of   land revenue or of any dues recoverable as arrears  of  land  revenue   due  by the partner; ( f )  that the business of the firm cannot be carried on save at a loss; or ( g )  on any other ground which renders it just   and   equitable   that   the   firm should be dissolved.” It will also be relevant to refer to Clauses 4, 6 and 7 of the 11. th Partnership Deed dated 6  December 1943: “4. That upon the death of any partner the partnership   shall   not   be   automatically dissolved   but   the   surviving   partners   may admit   the   legal   representative   of   the 11 deceased   unto   the   partnership   by   mutual consent. 5. …… 6.   In   case   of   death   of   any   partner   or retirement   during   the   continuance   of   the partnership   shall   be   deemed   to   exist   only upto to the end of the accounting period of the   year   during   which   the   death   or retirement   occurs   and   the   estate   of   the deceased partner or the retiring partner shall be entitled to receive and be responsible for all profits and losses of the partnership up to the end of the accounting period as the case may be.  7. This Indenture further witnesseth that the said parties hereto hereby mutually covenant and agree that they will carry on the said business   in   partnership   until   dissolution under and in accordance with the provisions and   stipulation   hereinabefore   stated   or st contained in the said Indenture dated the 1 day of September, 1938 so far as the same respectively are now subsisting and capable of taking and are applicable to the altered circumstances   hereinbefore   appearing   And any   dispute   in   relation   to   the   said partnership shall be decided by Arbitration according   to   the   provisions   of   the   Indian Arbitration and for that purpose each of the disputing   parties   may   nominate   one Arbitrator   Provided.   However   that   none   of the   parties   hereto   shall   at   any   time   be entitled to apply to any Court of law for the dissolution   of   the   partnership   or   for appointment   of   a   Receiver   over   the partnership or! any portion of its assets.” 12 12. From the perusal of the plaint, it could be gathered that the case of the plaintiffs is that in spite of demise of the three original partners of the partnership firm, through whom the plaintiffs were claiming, the defendants have been carrying on the business of the partnership firm.  It is their case that the accounts of the partnership firm have not been finalized and that the share of the profits of the partnership firm has not been paid to them.  It is also the case of the plaintiffs that the defendants are seeking to represent the partnership firm to the exclusion of the plaintiffs and that the defendants are siphoning off funds of the partnership firm.  It is their case that they along with the defendants are entitled to the assets and properties of the partnership firm as legal heirs of the original partners of the partnership   firm,   reconstituted   under   the   Partnership   Deed th dated 6  December 1943. 13. No  doubt that, it is rightly  contended  on behalf of  the plaintiffs that, only on the basis of the averments made in the plaint, it could be ascertained as to whether a cause of action is 13 made out or not.  It is equally true that for finding out the same, the entire pleadings in the plaint will have to be read and that too, at their face value.  At this stage, the defence taken by the defendants cannot be looked into.   We may gainfully refer to the observations of this Court in 14. the case of  T. Arivandandam v. T.V. Satyapal and Another (supra):  We have not the slightest hesitation in “5. condemning   the   petitioner   for   the   gross abuse of the process of the court repeatedly and   unrepentently   resorted   to.   From   the statement of the facts found in the judgment of the High Court, it is perfectly plain that the   suit   now   pending   before   the   First Munsif's   Court,   Bangalore,   is   a   flagrant misuse of the mercies of the law in receiving plaints.   The   learned   Munsif   must remember that if on a meaningful — not formal   —   reading   of   the   plaint   it   is manifestly   vexatious,   and   meritless,   in the sense of not disclosing a clear right to sue, he should exercise his power under Order 7, Rule 11 CPC taking care to see that   the   ground   mentioned   therein   is fulfilled.   And,   if   clever   drafting   has created the illusion of a cause of action, nip it in the bud at the first hearing by examining   the   party   searchingly   under Order   10,   CPC.   An   activist   Judge   is   the 14 answer to irresponsible law suits. The trial courts   would   insist   imperatively   on examining the party at the first hearing so that bogus litigation can be shot down at the earliest   stage.   The   Penal   Code   is   also resourceful enough to meet such men, (Cr. XI) and must be triggered against them. In this   case,   the   learned   Judge   to   his   cost realised   what   George   Bernard   Shaw remarked on the assassination of Mahatma Gandhi: “It is dangerous to be too good.” [emphasis supplied] 15. It could thus be seen that this Court has held that reading of the averments made in the plaint should not only be formal but also meaningful.  It has been held that if clever drafting has created  the   illusion  of  a  cause  of   action,   and   a  meaningful reading thereof would show that the pleadings are manifestly vexatious and meritless, in the sense of not disclosing a clear right to sue, then the court should exercise its power under Order VII Rule 11 of CPC.  It has been held that such a suit has to be nipped in the bud at the first hearing itself.   15 16. It   will   also   be   apposite   to   refer   to   the   following observations of this Court in the case of   Pearlite Liners (P) Ltd.  (supra):
10.The question arises as to whether in the
background of the facts already stated, such
reliefs can be granted to the plaintiff. Unless
there is a term to the contrary in the
contract of service, a transfer order is a
normal incidence of service. Further, it is to
be considered that if the plaintiff does not
comply with the transfer order, it may
ultimately lead to termination of service.
Therefore, a declaration that the transfer
order is illegal and void, in fact amounts to
imposing the plaintiff on the defendant in
spite of the fact that the plaintiff allegedly
does not obey order of her superiors in the
management of the defendant Company.
Such a relief cannot be granted. Next relief
sought in the plaint is for a declaration that
she continues to be in service of the
defendant Company. Such a declaration
again amounts to enforcing a contract of
personal service which is barred under the
law. The third relief sought by the plaintiff is
a permanent injunction to restrain the
defendant from holding an enquiry against
her. If the management feels that the
plaintiff is not complying with its directions
it has a right to decide to hold an enquiry
against her. The management cannot be
restrained from exercising its discretion in
this behalf. Ultimately, this relief, if granted,
would indirectly mean that the court is
16
assisting the plaintiff in continuing with her
employment with the defendant Company,
which is nothing but enforcing a contract of
personal service.Thus, none of the reliefs
sought in the plaint can be granted to the
plaintiff under the law. The question then
arises as to whether such a suit should be
allowed to continue and go for trial. The
answer in our view is clear, that is, such a
suit should be thrown out at the
threshold. Why should a suit which is
bound to be dismissed for want of
jurisdiction of a court to grant the reliefs
prayed for, be tried at all?Accordingly, we
hold that the trial court was absolutely right
in rejecting the plaint and the lower
appellate court rightly affirmed the decision
of the trial court in this behalf. The High
Court was clearly in error in passing the
impugned judgment whereby the suit was
restored and remanded to the trial court for
being decided on merits. The judgment of the
High Court is hereby set aside and the
judgments of the courts below, that is, the
trial court and the lower appellate court are
restored. The plaint in the suit stands
rejected.”
[emphasis supplied] 17. It could thus be seen that the court has to find out as to whether in the background of the facts, the relief, as claimed in the plaint, can be granted to the plaintiff.  It has been held that if the court finds that none of the reliefs sought in the plaint 17 can be granted to the plaintiff under the law, the question then arises is as to whether such a suit is to be allowed to continue and go for trial.   This Court answered the said question by holding that such a suit should be thrown out at the threshold. This Court, therefore, upheld the order passed by the trial court of rejecting the suit and that of the appellate court, thereby affirming the decision of the trial court.   This Court set aside the order passed by the High Court, wherein the High Court had set aside the concurrent orders of the trial court and the appellate court and had restored and remanded the suit for trial to the trial court. 18. Therefore, the question that will have to be considered is as   to   whether   the   reliefs   as   claimed   in   the   plaint   by   the plaintiffs could be granted or not.  We do not propose to do that exercise, inasmuch as the Division Bench of the High Court has elaborately considered the issue as to whether, applying the provisions of the said Act read with the aforesaid clauses in the Partnership Deed, the reliefs, as claimed in the plaint, could be 18 granted or not.   The relevant discussion by the High Court reads thus: “(31) Let us take the prayers one by one. The first   prayer   is   for   a   declaration   that   the plaintiffs and the defendants are entitled to the assets and properties of the said firm as the legal heirs of the original partners. It is trite   law   that   the   partners   of   a   firm   are entitled only to the profits of the firm and upon dissolution of the firm they are entitled to the surplus of the sale proceeds of the assets and properties of the firm, if any, after meeting   the   liabilities   of   the   firm,   in   the share agreed upon in the partnership deed.  The partners do not have any right, title or interest   in   respect   of   the   assets   and properties of a firm so long as the firm is carrying on business. Hence, the plaintiffs as legal heirs of some of the original partners cannot maintain any claim in respect of the assets and properties of the said firm. Their prayer for declaration of co­ownership of the assets and properties of the said firm is not maintainable in law.  The   second   prayer   in   the   plaint   is   for   a declaration that the plaintiffs along with the defendants are entitled to represent the firm in   all   proceedings   before   the   concerned authorities   of   the   State   of   Bihar   for   the acquisition   of   its   Bhagalpur   land.   The framing of this prayer shows that this is a consequential relief claimed by the plaintiffs which can only be granted if the first prayer is allowed. Since, in our opinion, prayer (a) of the plaint cannot be granted in law, prayer 19 (b) also cannot be granted. Prayer (c) is also a consequential relief. Only if the plaintiffs were entitled to claim prayer (a), they could claim prayer (c). We are not on whether or not the plaintiffs will succeed in obtaining prayer (a). According to us, the plaintiffs are not even entitled to pray for the first relief indicated   above   as   the   same   cannot   be granted   under   the   law   of   the   land. Consequently,   prayer   (c)   also   cannot   be granted.  Prayers (d) and (e) both pertain to dissolution of   the   firm.   Prayer   (e)   is   for   a   decree   of dissolution and for winding up of the affairs of the firm. Prayer (d) is for full accounts of the   firm  for   the  purpose  of   its  dissolution (emphasis is ours). However, it is settled law that   only   the   partners   of   a   firm   can   seek dissolution   of   the   firm.   Admittedly,   the plaintiffs are not partners of the said firm. Sec. 39 of the Partnership Act provides that the   dissolution   of   partnership   between   all the   partners   of   a   firm   is   called   'the dissolution of the firm'. Sec. 40 provides that a firm may be dissolved with the consent of all   the   partners   or   in   accordance   with   a contract   between   the   partners.   Sec.   41 provides   for   compulsory   dissolution   of   a firm.   Sec.   42   stipulates   that   happening   of certain contingencies will cause dissolution of   a   firm   but   this   is   subject   to   contract between the partners. A partnership­at­will may   be   dissolved   by   any   partner   giving notice in writing to the other partners of his intention to dissolve the firm, as provided in Sec.  43  of the  Act. Sec. 44 empowers the Court   to   dissolve   a   firm   on   the   grounds mentioned therein on a suit of a partner.  20 Thus, it is clear that it is only a partner of a firm who can seek dissolution of the firm. The dissolution of a firm cannot be ordered by   the   court   at   the   instance   of   a   non­ partner. Hence, the plaintiffs are not entitled to   claim   dissolution   of   the   said   firm. Consequently, they are also not entitled to pray   for   accounts   for   the   purpose   of dissolution of the firm. (32) What should the Court do if it finds that even taking the averments in the plaint at face value, not one of the reliefs claimed in the plaint can be granted? Should the Court send the parties to trial? We think not. It will be an exercise in futility. It will be a waste of time,   money   and   energy   for   both   the plaintiffs   and   the   defendants   as   well   as unnecessary consumption of Court's time. It will not be fair to compel the defendants to go through the ordinarily long drawn process of   trial   of   a   suit   at   huge   expense,   not   to speak of the anxiety and un­peace of mind caused   by   a   litigation   hanging   over   one's head like the Damocles's sword. No purpose will be served by allowing the suit to proceed to trial since the prayers as framed cannot be allowed on the basis of the pleadings in the plaint. The plaintiffs have not prayed for leave to amend the plaint. When the court is of the view just by reading the plaint alone and   assuming   the   averments   made   in  the plaint to be correct that none of the reliefs claimed   can   be   granted   in   law   since   the plaintiffs   are   not   entitled   to   claim   such reliefs, the Court should reject the plaint as disclosing   no   cause   of   action.   The   reliefs claimed in a plaint flow from and are the culmination of the cause of action pleaded in 21 the plaint. The cause of action pleaded and the prayers made in a plaint are inextricably intertwined. In the present case, the cause of action  pleaded   and   the   reliefs   claimed   are not recognized by the law of the land. Such a suit   should   not   be   kept   alive   to   go   to trial…..” We are in complete agreement with the findings of the 19. High Court.  Insofar as the reliance placed by Shri Jain on the judgment of this Court in the case of  Dahiben  (supra),   to which one of us (L. Nageswara Rao, J.) was a member, is concerned, in our view, the said judgment rather than supporting the case of   the   plaintiffs,   would   support   the   case   of   the   defendants. Paragraphs 23.3, 23.4, 23.5 and 23.6 in the case of  Dahiben (supra) read thus:
“23.3. The underlying object of Order 7 Rule<br>11(a) is that if in a suit, no cause of action is<br>disclosed, or the suit is barred by limitation<br>under Rule 11(d), the court would not permit<br>the plaintiff to unnecessarily protract the<br>proceedings in the suit. In such a case, it<br>would be necessary to put an end to the<br>sham litigation, so that further judicial time<br>is not wasted.
22
23.4. In Azhar Hussain v. Rajiv<br>Gandhi [Azhar Hussain v. Rajiv Gandhi,<br>1986 Supp SCC 315. Followed<br>in Manvendrasinhji Ranjitsinhji<br>Jadeja v. Vijaykunverba, 1998 SCC<br>OnLineGuj281 : (1998) 2 GLH 823] this<br>Court held that the whole purpose of<br>conferment of powers under this provision is<br>to ensure that a litigation which is<br>meaningless, and bound to prove abortive,<br>should not be permitted to waste judicial<br>time of the court, in the following words :<br>(SCC p. 324, para 12)
“12. … The whole purpose of<br>conferment of such powers is to ensure<br>that a litigation which is meaningless, and<br>bound to prove abortive should not be<br>permitted to occupy the time of the court,<br>and exercise the mind of the respondent.<br>The sword of Damocles need not be kept<br>hanging over his head unnecessarily<br>without point or purpose. Even in an<br>ordinary civil litigation, the court readily<br>exercises the power to reject a plaint, if it<br>does not disclose any cause of action.”
 The power conferred on the  court to 23.5. terminate a civil action is, however, a drastic one, and the conditions enumerated in Order 7 Rule 11 are required to be strictly adhered to. 23 23.6.  Under Order 7 Rule 11, a duty is cast on the court to determine whether the plaint discloses a cause of action by scrutinising the   averments   in   the   plaint   [ Liverpool   & London   S.P.   &   I   Assn.   Ltd.  v.  M.V.   Sea Success   I ,   (2004)   9   SCC   512]   ,   read   in conjunction with the documents relied upon, or whether the suit is barred by any law.” 20. It could thus be seen that this Court has held that the power conferred on the court to terminate a civil action is a drastic one, and the conditions enumerated under Order VII Rule 11 of CPC are required to be strictly adhered to.  However, under Order VII Rule 11 of CPC, the duty is cast upon the court to determine whether the plaint discloses a cause of action, by scrutinizing the averments in the plaint, read in conjunction with the documents relied upon, or whether the suit is barred by any law.  This Court has held that the underlying object of Order VII Rule 11 of CPC is that when a plaint does not disclose a cause of action, the court would not permit the plaintiff to unnecessarily protract the proceedings.  It has been held that in such a case, it will be necessary to put an end to the sham litigation so that further judicial time is not wasted. 24 21. We   are   in   agreement   with   the   Division   Bench   of   the Calcutta High Court which, upon an elaborate scrutiny of the averments made in the plaint, the reliefs claimed therein, the provisions of the said Act and the clauses of the Partnership Deed, came to the conclusion that the reliefs as sought in the plaint, cannot be granted.   22. The appeals are found to be without merit, and as such, are   dismissed.     Pending   application(s),   if   any,   shall   stand disposed of.  No costs. …..…..….......................J.     [L. NAGESWARA RAO]       …….........................J. [B.R. GAVAI] NEW DELHI; SEPTEMBER 21, 2021. 25