Full Judgment Text
1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 14807 OF 2024
(Arising out of SLP (C) No.18977 of 2016)
SHRI MUKUND BHAVAN TRUST AND ORS ... APPELLANT(S)
VERSUS
SHRIMANT CHHATRAPATI UDAYAN RAJE
PRATAPSINH MAHARAJ BHONSLE AND ANOTHER ... RESPONDENT(S)
J U D G M E N T
R. MAHADEVAN, J.
1. Leave granted.
2. This appeal is filed by the Defendant No.1 viz. , Shri Mukund Bhavan Trust
and its trustees, against the Order dated 26th April 2016 passed by the High Court of
1
Judicature at Bombay in the Civil Revision Application No.904 of 2014, whereby the
High Court dismissed the said application preferred by the appellants challenging the
2
Order dated 29th April 2009 passed by the 7th Joint Civil Judge, Senior Division, Pune .
Signature Not Verified
By the said order, the trial Court rejected the application filed by the appellants under
Digitally signed by
CHANDRESH
Date: 2024.12.20
17:19:46 IST
Reason:
1 Hereinafter referred to as “the High Court”
2 Hereinafter referred to as “the trial Court”
2
3
Order VII Rule 11(d) of the Civil Procedure Code, 1908 for rejection of plaint being
barred by limitation.
3. The Respondent No.1 / plaintiff filed a Special Civil Suit No.133 of 2009
against the appellants and the State of Maharashtra, inter alia for the following reliefs:
(a) to declare that the plaintiff is the absolute owner of the suit lands more
particularly described in schedule of the plaint;
(b) to declare that other than the Plaintiff, no other person is entitled to deal
with, alienate and create any third-party interest in respect of suit lands;
(c) to restrain the appellants / defendants permanently, from in any manner
holding themselves as owners or representing themselves as owners of the said suit
lands;
(d) to declare that the compromise decrees passed in Special Civil Suit
Nos.152/1951 and 1622/1988 and Civil Appeal No.787/2001, Pune, are void ab-initio,
null and void and to set aside the same;
(e) to direct the appellants / defendants to vacate and hand over the possession
of the suit lands to the Plaintiff.
4. Pending the aforesaid suit, the appellants took out an application under Order
VII Rule 11(d) of CPC r/w Articles 58, 59 and 65 of the Limitation Act, 1963, seeking
rejection of the plaint as the reliefs sought in the suit were barred by limitation. The said
application was seriously resisted by the Respondent No.1 / plaintiff by stating inter alia
3 For short, “the CPC”
3
that the issue of limitation is a mixed question of facts and law and it has to be
adjudicated only in the trial.
5. The trial Court by order dated 12.10.2009, rejected the aforesaid application
filed by the appellants under Order VII Rule 11(d) of CPC. Aggrieved by the same, the
appellants preferred Civil Revision Application No.731 of 2009 before the High Court,
which set aside the order dated 12.10.2009 and remanded the matter to the trial Court for
considering the application filed under Order VII Rule 11(d) of CPC afresh.
6. After remand, the trial Court vide order dated 29.04.2014, rejected the
application filed by the appellants under Order VII Rule 11(d) of CPC, observing inter
alia that the issue of limitation is a mixed question of law and facts, for which, the
parties will have to lead evidence. Challenging the same, the appellants preferred Civil
Revision Application No. 904 of 2014, which was dismissed by the High Court, by order
dated 26.04.2016 impugned in this appeal.
7. The learned counsel for the appellants, at the outset, submitted that on a bare
perusal of the averments made in the plaint disclosed that the reliefs sought in the plaint
were barred by limitation. However, the High Court erroneously dismissed the Civil
Revision Application on the ground that the question of whether the suit is barred by
limitation is for the trial Court to independently decide considering the evidence led
before it by the parties as the limitation is a mixed question of law and facts which
cannot be decided based on the pleadings alone. Adding further, it is submitted that the
4
High Court could have examined the maintainability and sustainability of the revision
proceedings initiated by the appellants under Order VII Rule 11 (d) of CPC.
7.1. Elaborating further, on facts, the learned counsel for the appellants submitted
th
that the Defendant No.1 – Trust had purchased 3/4 share of the suit lands mentioned in
the Schedule in an auction sale conducted by the Civil Court, Pune, in the year 1938
from the previous Inamdar Gosavis family and the same was duly registered; and they
th
had also purchased the remaining 1/4 share in the suit lands in the year 1952 by another
registered sale deed. Till then, the subject lands were in possession of the Government.
Thereafter, the Defendant No.1 Trust became entitled to the suit lands in pursuance of
the compromise decree dated 05.01.1990 passed in Civil Suit No.1622 of 1988, and they
entered into several agreements with third parties, who constructed buildings in the suit
lands. While so, without any right, title and interest, the Respondent No.1 preferred
Special Civil Suit No.133 of 2009 claiming declaration and possession over t he suit
lands. According to the learned counsel, the Respondent No.1 by filing the said suit, has
attempted to question the correctness of various orders passed by several Courts
including the order passed by this Court. These orders date back to the year 1953.
Further, this exercise is done with an oblique motive to set at naught the orders which
have attained finality decades ago and the respondent No.1/Plaintiff and its predecessors
having slept over the orders which conclusively affirmed the title and ownership of the
appellant Trust over the suit lands, cannot now suddenly come up with a suit to overturn
5
the effect of the orders in the guise of there being a fresh cause of action.
7.2. Drawing our attention to paragraphs 34 and 53 of the plaint filed by the
Respondent No.1, the learned counsel for the appellants submitted that the Respondent
No.1 attempted to create an illusion of a cause of action by erroneously stating that the
cause of action to file the suit arose on 02.03.2007 when he came to know that his rights
over the suit properties have been affected by the proceedings between the defendants
and another. Further, the Respondent No.1 relied on the pleadings stated in the writ
petition filed by one Dr.F.Wadia, who claims to be in possession of a portion of the
subject lands. The Respondent No.1, in paragraph 34 of the plaint stated that “ …. One
Advocate Shri Godge had appeared in the said matter. The said Advocate is well
acquainted with the plaintiff. The said Advocate, after reading all the necessary related
proceedings, informed the plaintiff of the mischief committed by the Defendants. The
plaintiff thereafter collected all the necessary information and documents. The plaintiff
then instructed his Advocates to file the present suit ”. However, there is no averment as
to when the Respondent No.1 was intimated by Mr.Godge. Thus, the cause of action
alleged by the Respondent No.1 is purely illusory and has been stated with a view to get
over the bar under Order VII Rule 11(d) of CPC.
7.3. It is also submitted by the learned counsel for the appellants that the limitation
period for seeking cancellation of an instrument as per Article 59 of the Limitation Act,
1963, is 3 years from the date when the existence of document first becomes known to
6
the plaintiff. In case of registered document, the date of registration becomes the date of
deemed knowledge. Accordingly, the Respondent No.1 and his predecessors are deemed
to have implied notice of the contents of the registered sale deeds and as per Article 58,
the period of limitation to obtain any declaration in the suit commences within 3 years
from the date when right to sue accrues. However, the Respondent No.1 by clever
dr afting, attempted to circumvent the provisions of the Limitation Act. That means, the
Respondent No.1 knowing fully well that a challenge to the registered sale deeds of the
years 1938 and 1952 in and by which the Defendant No.1 Trust acquired the title over
the subject lands, would be hopelessly barred by limitation, has attempted to question
the title of the Defendant No.1 Trust by inventing an imaginary cause of action to sustain
his suit.
7.4. The learned counsel for the appellants further submitted that according to
Article 65 of the Limitation Act, 1963, the right to possess immovable property or any
interest therein, based on title, must be asserted within twelve years from the date, when
the possession of the defendant becomes adverse to the plaintiff. Admittedly, the
Respondent No.1 did not assert any right over the subject lands prior to the year 2008 or
2009. Consequently, the relief sought for possession is also barred by the law of
limitation. Ultimately, it is submitted that the Respondent No.1 being stranger, has no
locus standi to seek a declaration that compromise decrees passed in Special Civil Suit
Nos.152/1951 and 1622/1988 and Civil appeal No.787/2001 are void ab initio , null and
7
void and be set aside. 7.5. Without properly appreciating all these aspects, the trial
Court erred in rejecting the application filed by the appellants under Order VII Rule
11(d) of CPC and the same was also affirmed by the High Court, by the order impugned
herein, which will have to be set aside, according to the learned counsel for the
appellants.
8. Per contra, the learned counsel for the Respondent No.1 submitted that in the
year 1710, Raja Shahu Chhatrapati, the ancestor of the Respondent No.1/Plaintiff gave a
sanad to Guru Shree Jadhavgir Gosavi of all the lands mentioned in the Sanad. The said
Sanad gave rights of revenue grant which was hereditary. The said grant did not confer
any titular rights over the land to the Gosavi family. The descendants of the Gosavi
family though not empowered to create third party rights and interests, created third
party rights. Thus, the said Gosavis who only had Inam grant in their favour entitling
them only to the revenue from the land, had overstepped their authority and had parted
the suit properties to the Defendant No.1 Trust, when they absolutely had no right to sell
the suit properties. It is further submitted that the Defendant No.1 filed Special Civil Suit
No.152/1951 against the State of Bombay and one Sukramgir Chimangir Gosavi in
relation to the lands in village Yerawada, Taluka Haveli. The Defendant Nos.1 and 2
entered into compromise and it was agreed between them that the Yerawada Inam
Village was a grant of soil and the Defendant No. 1 was Nivval Dhumaldars of the
village to the extent of 12 anna share. The Respondent No.l / Plaintiff was not a party to
8
the said suit and without his knowledge, the consent decree was obtained clandestinely.
Therefore, the said sale deeds and compromise are not bin ding on the Respondent No.1.
It is also contended that the parties cannot be permitted to construct and improve the
terms of sanad of the year 1710 in 1950s to their whims and fancies. In any event, the
Court had not given a determinative finding after adjudication, and hence, the
compromise decree of the Court cannot be put against it.
8.1. Continuing further, the learned counsel for the Respondent No.1 submitted
that the Respondent No.1 specifically stated in paragraph 39 of the Plaint that the
defendants have played systematic fraud on various courts and without any judicial
pronouncements have usurped the lands under suspicious compromises arrived at before
the Court. Moreover, in paragraph 44 of the Plaint, the Respondent No.1 stated that the
compromise arrived at in the suits filed in District Court, Pune, appears to be clearly an
attempt to deprive the legal rights of the Plaintiff in respect of the said suit lands.
8.2. It is also submitted that whether the Respondent No.1 is entitled to declaration
as sought for in the Plaint is a matter of trial and that cannot be gone into at the stage of
deciding the application under Order VII Rule 11(d) of CPC. The Respondent No.1 in
paragraph 53 of the Plaint clearly stated that he had come to know about the proceedings
on 2nd March 2007 only when he was informed about Civil Application No. 1562/2006
in Writ Petition No. 3813 of 1996 filed by Dr. F Wadia. The knowledge of the fact that
the Respondent's right in the suit property has been affected by the proceedings between
9
nd
the Defendants and another on 2 March 2007 is the crucial date from which the clock
starts ticking to determine limitation. Thus, well within the period of limitation, he
preferred the Special civil suit against the appellants and another for declaration and
possession of the suit properties.
8.3. That apart, it is submitted by the learned counsel for the Respondent No.1 that
when an issue requires an inquiry into the facts, it cannot be tried as a preliminary issue.
To buttress the same, he placed reliance on the decision in Satti Paradesi Samadhi &
4
Pillayar Temple v. M. Sankuntala , wherein, it was held that ‘ the court has no
jurisdiction to try a suit on mixed issues of law and fact as a preliminary issue’ .
5
8.4. Referring to the decision in Sajjan Sikaria v. Shakuntala Devi Mishra , it is
submitted by the learned counsel for the Respondent No.1 that while dealing with an
application under Order VII Rule 11 of CPC, there is no requirement to consider the
written statement filed by the defendant. That apart, in Saleem Bhai v. State of
6
Maharashtra , it was held by this Court that ‘a perusal of Order VII Rule 11 of CPC
makes it clear that the relevant facts which need to be looked into for deciding an
application thereunder are the averments in the plaint; the pleas taken by the defendant
in the written statement would be wholly irrelevant at that stage; and therefore, a
direction to file the written statement without deciding the application under Order VII
Rule 11 of CPC cannot be procedural irregularity touching the exercise of jurisdiction by
4 (2015) 5 SCC 674
5 (2005) 13 SCC 687
6 (2003) 1 SCC 557
10
the trial Court’.
8.5. Considering all these factors, the High Court rightly dismissed the application
filed by the appellants under Order VII Rule 11(d) of CPC, by observing that the plaint
cannot be rejected at the threshold, as the issue of limitation is a mixed question of facts
and law for which the parties will have to lead evidence. Thus, according to the learned
counsel, there is no requirement to interfere with the order impugned herein and the
appeal filed by the appellants is liable to be dismissed.
9. We have considered the submissions made by the learned counsel appearing
for both sides and perused the materials available on record.
10. The subject matter of the present proceedings is qua lands in S.Nos.14A/1A/1,
144, 145, 95, 90, 129, 191A (part), 160 (Part), 191 (part), 20, 103(part), 120(part), 141,
233, 94(part), 104 and 105 situated in Yerawada, Taluka Haveli, District Pune. The
Respondent No.1 / plaintiff preferred Special Civil Suit No.133 of 2009, for declaration
of his ownership and possession in respect of the suit properties. Seeking rejecting of the
said plaint, the appellants filed an application under Order VII Rule 11(d) of CPC on the
ground that the reliefs sought in the suit were clearly barred by limitation. The trial
Court rejected the application filed by the appellants stating that the issue of limitation is
a mixed question of facts and law, for which, the parties will have to lead evidence. The
revision application filed by the appellants against the said order of the trial Court, was
also rejected by the High Court, by observing that (i) the plaintiff has specifically
11
asserted that Gosavis family had no authority to create third party rights and they were
only entitled to revenue grant; (ii)whether the Plaintiff is entitled to declaration in terms
of prayer clauses (a) and (b) in view of the sale deeds executed in favour of Defendant
No.1, is a matter of trial and that cannot be gone into at the stage of deciding the
application under Order VII Rule 11(d) of CPC; and (iii) the defendants played a
systematic fraud on various courts and without any judicial pronouncements, usurped
the suit lands under suspicious compromise arrived at before the Court. Feeling
aggrieved and being dissatisfied with the rejection orders of the Courts below, the
appellants are before us with the present appeal.
11. The law applicable for deciding an application filed under Order VII Rule 11
7
of CPC was outlined by this Court in the decision in Dahiben v. Arvindbhai Kalyanji
8
Bhanusali (Gajra) dead through legal representatives and the same read as follows:
“23.1 …
7 “ 11. Rejection of plaint.– The plaint shall be rejected in the following cases–
(a) where it does not disclose a cause of action;
(b) where the relief claimed in undervalued, and the plaintiff, on being required by the Court to correct the
valuation within a time to be fixed by the Court, fails to do so;
(c) where the relief claimed is properly valued but the plaint is written upon paper insufficiently stamped,
and the plaintiff, on being required by the Court to supply the requisite stamp-paper within a time to be
fixed by the Court, fails to do so;
(d) where the suit appears from the statement in the plaint to be barred by any law;
(e) where it is not filed in duplicate;
(f) where the plaintiff fails to comply with the provisions of rule 9:
Provided that the time fixed by the Court for the correction of the valuation or supplying of the requisite stamp-
paper shall not be extended unless the Court, for reasons to be recorded, is satisfied that the plaintiff was prevent
by any cause of exceptional nature for correction the valuation or supplying the requisite stamp-paper, as the
case may be, within the time fixed by the Court and that refusal to extend such time would cause grave injustice
to the plaintiff.”
8 (2020) 7 SCC 366 : 2020 SCC OnLine SC 562
12
23.2. The remedy under Order VII Rule 11 is an independent and special remedy,
wherein the Court is empowered to summarily dismiss a suit at the threshold, without
proceeding to record evidence, and conducting a trial, on the basis of the evidence
adduced, if it is satisfied that the action should be terminated on any of the grounds
contained in this provision.
23.3. The underlying object of Order VII Rule 11 (a) is that if in a suit, no cause of
action is disclosed, or the suit is barred by limitation under Rule 11 (d), the Court
would not permit the plaintiff to unnecessarily protract the proceedings in the suit. In
such a case, it would be necessary to put an end to the sham litigation, so that
further judicial time is not wasted.
9
23.4. In Azhar Hussain v. Rajiv Gandhi this Court held that the whole purpose of
conferment of powers under this provision is to ensure that a litigation which is
meaningless, and bound to prove abortive, should not be permitted to waste judicial
time of the court, in the following words : (SCC p.324, para 12)
“12. …The whole purpose of conferment of such power is to ensure that a
litigation which is meaningless, and bound to prove abortive should not be
permitted to occupy the time of the Court, and exercise the mind of the
respondent. The sword of Damocles need not be kept hanging over his head
unnecessarily without point or purpose. Even if an ordinary civil litigation,
the Court readily exercises the power to reject a plaint, if it does not disclose
any cause of action.”
23.5. The power conferred on the court to terminate a civil action is, however, a
drastic one, and the conditions enumerated in Order VII Rule 11 are required to be
strictly adhered to.
23.6. Under Order VII Rule 11, a duty is cast on the Court to determine whether the
10
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.
23.7. Order VII Rule 14(1) provides for production of documents, on which the
plaintiff places reliance in his suit, which reads as under:
“14.Production of document on which plaintiff sues or relies.– (1)Where a
9 1986 Supp SCC 315. Followed in Manvendrasinhji Ranjitsinhji Jadeja v. Vijaykunverba, 1998 SCC OnLine
Guj 281 : (1998) 2 GLH 823
10 Liverpool & London S.P. & I Assn. Ltd. V. M.V. Sea Success I, (2004) 9 SCC 512
13
plaintiff sues upon a document or relies upon document in his possession or
power in support of his claim, he shall enter such documents in a list, and
shall produce it in Court when the plaint is presented by him and shall, at
the same time deliver the document and a copy thereof, to be filed with the
plaint.
(2)Where any such document is not in the possession or power of the
plaintiff, he shall, wherever possible, state in whose possession or power it
is.
(3)A document which ought to be produced in Court by the plaintiff when
the plaint is presented, or to be entered in the list to be added or annexed to
the plaint but is not produced or entered accordingly, shall not, without the
leave of the Court, be received in evidence on his behalf at the hearing of
the suit.
(4)Nothing in this rule shall apply to document produced for the cross
examination of the plaintiff's witnesses, or, handed over to a witness merely
to refresh his memory.” (emphasis supplied)
23.8. Having regard to Order VII Rule 14 CPC, the documents filed alongwith the
plaint, are required to be taken into consideration for deciding the application under
Order VII Rule 11 (a). When a document referred to in the plaint, forms the basis of
the plaint, it should be treated as a part of the plaint.
23.9. In exercise of power under this provision, the Court would determine if the
assertions made in the plaint are contrary to statutory law, or judicial dicta, for
deciding whether a case for rejecting the plaint at the threshold is made out.
23.10. At this stage, the pleas taken by the defendant in the written statement and
application for rejection of the plaint on the merits, would be irrelevant, and cannot
11
be adverted to, or taken into consideration .
23.11. The test for exercising the power under Order VII Rule 11 is that if the
averments made in the plaint are taken in entirety, in conjunction with the documents
relied upon, would the same result in a decree being passed. This test was laid down
in Liverpool & London S.P. & I Assn. Ltd. v. M.V.Sea Success I which reads as :
(SCC p.562, para 139)
“139. Whether a plaint discloses a cause of action or not is essentially a
question of fact. But whether it does or does not must be found out from
reading the plaint itself. For the said purpose, the averments made in the
11 Sopan Sukhdeo Sable v. Charity Commr., (2004) 3 SCC 137
14
plaint in their entirety must be held to be correct. The test is as to whether
if the averments made in the plaint are taken to be correct in their entirety,
a decree would be passed.”
12
23.12. In Hardesh Ores (P.) Ltd. v. Hede & Co. the Court further held that it is not
permissible to cull out a sentence or a passage, and to read it in isolation. It is the
substance, and not merely the form, which has to be looked into. The plaint has to be
construed as it stands, without addition or subtraction of words. If the allegations in
the plaint prima facie show a cause of action, the court cannot embark upon an
enquiry whether the allegations are true in fact. D.Ramachandran v.
13
R.V.Janakiraman
23.13. If on a meaningful reading of the plaint, it is found that the suit is manifestly
vexatious and without any merit, and does not disclose a right to sue, the court
would be justified in exercising the power under Order VII Rule 11 CPC.
23.14. The power under Order VII Rule 11 CPC may be exercised by the Court at
any stage of the suit, either before registering the plaint, or after issuing summons to
the defendant, or before conclusion of the trial, as held by this Court in the judgment
14
of Saleem Bhai v. State of Maharashtra . The plea that once issues are framed, the
matter must necessarily go to trial was repelled by this Court in Azhar
Hussain (supra).
23.15. The provision of Order VII Rule 11 is mandatory in nature. It states that the
plaint “shall” be rejected if any of the grounds specified in clause (a) to (e) are made
out. If the Court finds that the plaint does not disclose a cause of action, or that the
suit is barred by any law, the Court has no option, but to reject the plaint.
24. “Cause of action” means every fact which would be necessary for the plaintiff to
prove, if traversed, in order to support his right to judgment. It consists of a bundle
of material facts, which are necessary for the plaintiff to prove in order to entitle him
to the reliefs claimed in the suit.
15
24.1. In Swamy Atmanand v. Sri Ramakrishna Tapovanam this Court held :
“24. A cause of action, thus, means every fact, which if traversed, it would
be necessary for the plaintiff to prove an order to support his right to a
judgment of the court. In other words, it is a bundle of facts, which taken
12 (2007) 5 SCC 614
13 (1999) 3 SCC 267
14 (2003) 1 SCC 557
15 (2005) 10 SCC 51
15
with the law applicable to them gives the plaintiff a right to relief against
the defendant. It must include some act done by the defendant since in the
absence of such an act, no cause of action can possibly accrue. It is not
limited to the actual infringement of the right sued on but includes all the
material facts on which it is founded”
(emphasis supplied)
16
24.2. In T. Arivanandam v. T.V. Satyapal this Court held that while considering an
application under Order VII Rule 11 CPC what is required to be decided is whether
the plaint discloses a real cause of action, or something purely illusory, in the
following words: (SCC p. 470, para 5)
“5. …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 VII, Rule 11 C.P.C. 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 …”
(emphasis supplied)
17
24.3. Subsequently, in I.T.C. Ltd. v. Debt Recovery Appellate Tribunal this Court
held that law cannot permit clever drafting which creates illusions of a cause of
action. What is required is that a clear right must be made out in the plaint.
24.4. If, however, by clever drafting of the plaint, it has created the illusion of a
cause of action, this Court in Madanuri Sri Ramachandra Murthy v. Syed
18
Jalal held that it should be nipped in the bud, so that bogus litigation will end at
the earliest stage. The Court must be vigilant against any camouflage or
suppression, and determine whether the litigation is utterly vexatious, and an abuse
of the process of the court.
25. The Limitation Act, 1963 prescribes a time-limit for the institution of all suits,
appeals, and applications . Section 2(j) defines the expression “period of limitation”
to mean the period of limitation prescribed in the Schedule for suits, appeals or
applications . Section 3 lays down that every suit instituted after the prescribed
period, shall be dismissed even though limitation may not have been set up as a
defence. If a suit is not covered by any specific article, then it would fall within the
residuary article.
16 (1977) 4 SCC 467
17 (1998) 2 SCC 170
18 (2017) 13 SCC 174
16
26. Articles 58 and 59 of the Schedule to the 1963 Act, prescribe the period of
limitation for filing a suit where a declaration is sought, or cancellation of an
instrument, or rescission of a contract, which reads as under :
| Description of suit | Period of<br>limitation | Time from which period<br>begins to run |
|---|---|---|
| 58. To obtain any<br>other declaration | Three years | When the right to sue<br>first accrues |
| 59. To cancel or set<br>aside an instrument<br>or decree or for the<br>rescission of a<br>contract | Three years | When the facts entitling<br>the plaintiff to have the<br>instrument or decree<br>cancelled or set aside or<br>the contract rescinded<br>first become known to<br>him. |
The period of limitation prescribed under Articles 58 and 59 of the 1963 Act is three
years, which commences from the date when the right to sue first accrues.
19
27. In Khatri Hotels Pvt. Ltd. v. Union of India this Court held that the use of the
word ‘first’ between the words ‘sue’ and ‘accrued’, would mean that if a suit is based
on multiple causes of action, the period of limitation will begin to run from the date
when the right to sue first accrues. That is, if there are successive violations of the
right, it would not give rise to a fresh cause of action, and the suit will be liable to be
dismissed, if it is beyond the period of limitation counted from the date when the
right to sue first accrued.
20
28. A three-Judge Bench of this Court in State of Punjab v. Gurdev Singh held that
the Court must examine the plaint and determine when the right to sue first accrued
to the plaintiff, and whether on the assumed facts, the plaint is within time. The
words “right to sue” means the right to seek relief by means of legal proceedings.
The right to sue accrues only when the cause of action arises. The suit must be
instituted when the right asserted in the suit is infringed, or when there is a clear and
unequivocal threat to infringe such right by the defendant against whom the suit is
instituted. Order VII Rule 11(d) provides that where a suit appears from the
averments in the plaint to be barred by any law, the plaint shall be rejected.”
19 (2011) 9 SCC 126
20 (1991) 4 SCC 1 : 1991 SCC (L&S) 1082
17
12. As settled in law, when an application to reject the plaint is filed, the
averments in the plaint and the documents annexed therewith alone are germane. The
averments in the application can be taken into account only to consider whether the case
falls within any of the sub-rules of Order VII Rule 11 by considering the averments in
the plaint. The Court cannot look into the written statement or the documents filed by
the defendants. The Civil Courts including this Court cannot go into the rival
contentions at that stage. Keeping in mind the legal position, let us examine whether the
suit filed by the Respondent No.1 is barred by limitation, in the light of the averments
contained in the plaint filed by him.
13. The Respondent No.1/Plaintiff claimed title, right and interest over the suit
properties, stating that he is the direct descendent of Chhatrapati Shivaji Maharaj from
the Bhonsale Dynasty and he has inherited the vast lands all over Maharashtra from his
ancestors. He further stated in his plaint that Raja Shahu Chhatrapati gave only the rights
of revenue grant to Guru Shree Jadhavgir Gosavi and the said grant did not give any
rights in the lands to the Gosavi family and hence, they had no right to sell the suit
properties to the Defendant No.1. Though the Respondent No.1 relied on the report of
the Inam Commissioner appointed under the provisions of the Act XI, 1852, which
stated that the grant enjoyed by the Respondent No.1’s ancestors was only a revenue
grant and stated that Gosavis family had no authority to create third party rights in the
suit lands, the same was not substantiated with proper pleadings and documents. It was
18
further stated by the Respondent No.1 that by order dated 17.02.1980, the Government
of Maharashtra was pleased to direct that the Satara Saranjam (Jagir / grant of land) shall
be continued in the name of the Respondent No.1 / plaintiff, but, at that time, he was a
minor. That apart, the Friendship Treaty was continued by the Government of
Maharashtra vide its resolution dated 28.02.1980 and on attaining the age of majority by
the plaintiff, the Maharashtra Government by resolution dated 01.09.1984 continued the
said Saranjam upon the plaintiff. Hence, the Respondent No.1 continues to be the owner
of the suit properties. We are unable to accept these statements. The averments in the
plaint disclose that even prior to the alleged Resolution dated 28.02.1980, a major
th
portion of the property (3/4 share) has been conveyed as early as in 1938 through Court
th
auction and the remaining portion (1/4 share) in 1952. The plaintiff was a minor in
1980 and by 01.09.1984, he claims to have become a major. However, he has not stated
as to when he was born. From the averments, it can be presumed that the plaintiff must
have born in 1965/1966 considering the fact that he was declared as a major in 1984.
The above statements in the plaint imply that the plaintiff was not even born when the
property was sold. What also remains undisputed is the fact that the plaintiff’s
predecessors had not challenged the sale in 1938 and 1952. By the time, the alleged
resolution was passed, the property had already been conveyed. The resolution can
convey any right only over the properties which have not been conveyed. The plaintiff
though has annexed a Family Tree chart along with the plaint, he has not produced any
19
other documentary evidence to the various claims which he has made. In paragraph 10
of the plaint, the plaintiff claims that the estate was attached as there were no natural
heirs. He has narrated many facts in the plaint from paragraphs 11 to 32, which are
adverse to his claim of title. The averments in the plaint relating to grant of Sanad are
vague without any reference to specific date. They, according to us, are baseless and
vague statements, cleverly crafted to create a cause of action. The plaintiff himself avers
st
in paragraph 25 that a suit was filed by the appellant/1 defendant claiming his title
based on the auction purchase against the Government. The averment does not even
disclose that it has come to his knowledge only recently. We feel it strange for the
plaintiff to even plead in paragraph 26 that he was not impleaded as a party in the 1951
suit, compromised in 1953, when he was not even born.
14. The plaintiff, in our wisdom, cannot assert or deny something which was
whether within the knowledge of his predecessor or not, when he was not even born.
Irrespective of the above, the fact that the predecessors of the Respondent No.1/plaintiff,
never challenged the sale of property to the Defendant No.1/appellant by court auction
and the subsequent registration of the deeds, despite constructive notice, would imply
that they had acceded to the title of the appellant, which cannot now be questioned by
the plaintiff after such long time. There is also a presumption in law that a registered
document is validly executed and is valid until it is declared as illegal. In this regard, this
21
Court in Prem Singh v. Birbal , held as under:
21 (2006) 5 SCC 353 : 2006 SCC OnLine SC 522
20
“27. There is a presumption that a registered document is validly executed. A
registered document, therefore, prima facie would be valid in law. The onus of proof,
thus, would be on a person who leads evidence to rebut the presumption. In the
instant case, Respondent 1 has not been able to rebut the said presumption .”
15. At this juncture, it would be relevant to refer to relevant portion of Section 3
of the Transfer of Property Act, 1882, which reads as under:
“ 3. Interpretation clause……
……
“a person is said to have notice” of a fact when he actually knows that fact, or when,
but for wilful abstention from an enquiry or search which he ought to have made, or
gross negligence, he would have known it.
Explanation I.—Where any transaction relating to immoveable property is required
by law to be and has been effected by a registered instrument, any person acquiring
such property or any part of, or share or interest in, such property shall be deemed
to have notice of such instrument as from the date of registration or, where the
property is not all situated in one sub-district, or where the registered instrument has
been registered under sub-section (2) of section 30 of the Indian Registration Act,
1908 (16 of 1908), from the earliest date on which any memorandum of such
registered instrument has been filed by any Sub-Registrar within whose sub-district
any part of the property which is being acquired, or of the property wherein a share
or interest is being acquired, is situated:
Provided that—(1) the instrument has been registered and its registration completed
in the manner prescribed by the Indian Registration Act, 1908 (16 of 1908), and the
rules made thereunder, (2) the instrument or memorandum has been duly entered or
filed, as the case may be, in books kept under section 51 of that Act, and (3) the
particulars regarding the transaction to which the instrument relates have been
correctly entered in the indexes kept under section 55 of that Act.
Explanation II.—Any person acquiring any immovable property or any share or
interest in any such property shall be deemed to have notice of the title, if any, of any
person who is for the time being in actual possession thereof.
21
Explanation III.—A person shall be deemed to have had notice of any fact if his
agent acquires notice thereof whilst acting on his behalf in the course of business to
which that fact is material:
Provided that, if the agent fraudulently conceals the fact, the principal shall not be
charged with notice thereof as against any person who was a party to or otherwise
cognizant of the fraud.”
16. When a portion of the property has been conveyed by court auction and
registered in the first instance and when another portion has been conveyed by a
registered sale deed in 1952, there is a constructive notice from the date of registration
and the presumption under Section 3 of the Transfer of Property Act, comes into
operation. The possession, in the present case, also has been rested with the appellant
before several decades, which operates as notice of title. This Court in R.K. Mohd.
22
Ubaidullah v. Hajee C. Abdul Wahab , held as follows:
“15. Notice is defined in Section 3 of the Transfer of Property Act. It may be actual
where the party has actual knowledge of the fact or constructive. “A person is said to
have notice” of a fact when he actually knows that fact, or when, but for wilful
abstention from an inquiry or search which he ought to have made, or gross
negligence, he would have known it. Explanation II of said Section 3 reads:
“Explanation II.—Any person acquiring any immovable property or any
share or interest in any such property shall be deemed to have notice of the
title, if any, of any person who is for the time being in actual possession
thereof.”
Section 3 was amended by the Amendment Act of 1929 in relation to the definition of
“notice”. The definition has been amended and supplemented by three explanations,
which settle the law in several matters of great importance. For the immediate
purpose Explanation II is relevant. It states that actual possession is notice of the
title of the person in possession. Prior to the amendment there had been some
uncertainty because of divergent views expressed by various High Courts in relation
to the actual possession as notice of title. A person may enter the property in one
22 (2000) 6 SCC 402 : 2000 SCC OnLine SC 995 at page 410
22
capacity and having a kind of interest. But subsequently while continuing in
possession of the property his capacity or interest may change. A person entering the
property as tenant later may become usufructuary mortgagee or may be agreement
holder to purchase the same property or may be some other interest is created in his
favour subsequently. Hence with reference to subsequent purchaser it is essential
that he should make an inquiry as to the title or interest of the person in actual
possession as on the date when the sale transaction was made in his favour. The
actual possession of a person itself is deemed or constructive notice of the title if any,
of a person who is for the time being in actual possession thereof. A subsequent
purchaser has to make inquiry as to further interest, nature of possession and title
under which the person was continuing in possession on the date of purchase of the
property. In the case on hand Defendants 2 to 4 contended that they were already
aware of the nature of possession of the plaintiff over the suit property as a tenant
and as such there was no need to make any inquiry. At one stage they also contended
that they purchased the property after contacting the plaintiff, of course, which
contention was negatived by the learned trial court as well as the High Court. Even
otherwise the said contention is self-contradictory. In view of Section 19(b) of the
Specific Relief Act and definition of “notice” given in Section 3 of the Transfer of
Property Act read along with Explanation II, it is rightly held by the trial court as
well as by the High Court that Defendants 2 to 5 were not bona fide purchasers in
good faith for value without notice of the original contract.”
17. The next aspect to be considered herein is the cause of action arose for filing
the suit by the Respondent No.1. In this regard, we may quote the following paragraphs
of the plaint:
"34. The Plaintiff says that in Writ Petition No. 3813 of 1996 a Civil Application
No. 1562 of 2006 came to be filed. One Advocate Shri. Godge had appeared in the
said matter. The said Advocate is well acquainted with the Plaintiff. The said
Advocate, after reading all the necessary related proceedings, informed the
Plaintiff of the mischief committed by the Defendants. The Plaintiff thereafter
collected all the necessary information and documents. The Plaintiff then
instructed his Advocates to file the present suit.
35. The Plaintiff says that the present suit has been filed on the latest information
received by the Plaintiff in respect of the lands in possession with the Defendants.
The Plaintiff has accordingly described the suit properties in the schedule annexed
23
as Exhibit "B" hereto. The Plaintiff craves leave of the Hon'ble Court to amend the
plaint in the event any other lands of the Plaintiff are detected and are found. The
Plaintiff may also be permitted to amend the plaint and bring on record the parties
in whose favour the Defendants may have created third party rights.
53. The Plaintiff states and submits that he got the knowledge of the proceedings on
2nd March 2007 only when he was informed about the Civil Application No. 1562
of 2006 in Writ Petition No. 3813 of 1996 filed by Dr. F. Wadia. The said knowledge
gives cause of action for the Plaintiff to file suit. The knowledge that the Plaintiffs
right in the suit Property have been affected by the proceedings between the
Defendants and another the said day i.e. 2nd March 2007 is the date as prescribed
by law for the limitation to start, as he first got the knowledge then. The Plaintiff
has thereafter collected all the information and approached this Hon'ble Court as
soon as possible. There is much more information that the Plaintiff awaits in
respect of the land in Village Yerwada. The Plaintiff is also filing· a separate
application under Order 2 Rule 2 of the Civil Procedure Code reserving right to
seek other additional reliefs against the Defendants".
On a reading of the plaint averments, it is clear that the plaintiff was well acquainted
with the counsel Mr.Godge. If the plaintiff was already acquainted with Mr. Godge,
whom upon verification of the records from the status of the suit, we find to have
th
entered appearance in the suit for the 20 Respondent on 21.07.2005 itself, would have
nd
acquired knowledge much prior to 2 March 2007. We also find that Civil Application
No 1562 of 2006 was not filed by Mr.Godge. Therefore, it is a clear case where the
plaintiff has not approached the Court with clean hands. We have no hesitation to hold
nd
that the 2 March 2007, is a fictional date, created only for the purpose of this suit. As
23
such, the judgment in T.Arivanandam v. T.V.Satyapal squarely becomes applicable.
18. Continuing further with the plea of limitation, the Courts below have held that
23 (1977) 4 SCC 467
24
the question of the suit being barred by limitation can be decided at the time of trial as
the question of limitation is a mixed question of law and facts. Though the question of
limitation generally is mixed question of law and facts, when upon meaningful reading
of the plaint, the court can come to a conclusion that under the given circumstances,
after dissecting the vices of clever drafting creating an illusion of cause of action, the
suit is hopelessly barred and the plaint can be rejected under Order VII Rule 11. In the
present case, we have already held that 02.03.2007 is a fictional date. It is not a case
where a fraudulent document was created by the appellant or his predecessors. The title
of the suit property as observed by us earlier was conveyed in 1938 and 1952, and what
transpired later by way of compromise was only an affirmative assertion by the State.
While so, the prayer (a) made in the suit relates to declaration to the effect that the
Respondent No. 1 is the owner of the suit properties.
19. As per Section 31 of the Specific Relief Act, 1963, a declaration to adjudge
the documents as void or voidable must be sought if it causes a serious injury. In the
present case, the sale deeds undisputably stand adverse to the interest and right of the
plaintiff and hence, a relief to declare them as invalid must have been sought. Though
the plaintiff has pleaded the documents to be void and sought to ignore the documents,
we do not think that the document is void, but rather, according to us, it can only be
treated as voidable. The claim of the plaintiff that the grant is only a revenue grant and
not a soil grant, has not been accepted by the State which entered into a compromise. In
25
paragraph 14 of the plaint, there is an averment that the original sanad was lost and a
new sanad was given to the effect that the inam was a revenue grant based on the report
of the Inam Commissioner. Again, specific dates are not mentioned in the plaint. In
paragraph 25, the plaintiff alleges that third party rights were created by the Gosavi
family without any right. Here also, the details are vague. It can be inferred that such
rights ultimately culminated into court auction, in which, the property was sold to the
appellant. Since the original Sanad was lost, the plaintiff had initiated a suit against the
State which was compromised. It is not in dispute that there was a grant. There is only a
dispute with regard to the contents of the Sanad, which was lost. In the absence of the
original Sanad, it is not possible for any court to determine the contents of the same. The
alleged misrepresentation is neither to the character nor is there any allegation of forgery
or fabrication. It is also settled law that a document is void only if there is a
misrepresentation on its character and when there is a misrepresentation in the contents,
it is only voidable. In the present case, the averments in the plaint make out only a case
for voidabale transaction and not a void transaction. Fraud is merely pleaded without
any specific attributes but based on surmises and conjectures. It will be useful to refer to
24
the judgment of this Court in Ningawwa v. Byrappa Shiddappa Hireknrabar , wherein it
was held as under:
“5. The legal position will be different if there is a fraudulent misrepresentation not
merely as to the contents of the document but as to its character. The authorities
24 1968 SCC OnLine SC 206 : (1968) 2 SCR 797 : (1968) 2 SCJ 555 : AIR 1968 SC 956
26
make a clear distinction between fraudulent misrepresentation as to the character of
the document and fraudulent misrepresentation as to the contents thereof. With
reference to the former, it has been held that the transaction is void, while in the case
of the latter, it is merely voidable. In Foster v. Mackinon [(1869) 4 CP 704] the
action was by the endorsee of a bill of exchange. The defendant pleaded that he
endorsed the bill on a fraudulent representation by the acceptor that he was signing
a guarantee. In holding that such a plea was admissible, the Court observed:
“It (signature) is invalid not merely on the ground of fraud, where fraud
exists, but on the ground that the mind of the signer did not accompany the
signature; in other words, that he never intended to sign, and therefore in
contemplation of law never did sign, the contract to which his name is
appended…. The defendant never intended to sign that contract or any such
contract. He never intended to put his name to any instrument that then was
or thereafter might become negotiable. He was deceived, not merely as to
the legal effect, but as to the ‘actual contents’ of the instrument.”
This decision has been followed by the Indian courts Sanni Bibi v. Siddik
Hossain [AIR 1919 Cal 728], and Brindaban v. Dhurba Charan [AIR 1929 Cal 606].
It is not the contention of the appellant in the present case that there was any
fraudulent misrepresentation as to the character of the gift deed but Shiddappa
fraudulently included in the gift deed plots 91 and 92 of Lingadahalli village without
her knowledge. We are accordingly of the opinion that the transaction of gift was
voidable and not void and the suit must be brought within the time prescribed under
Article 95 of the Limitation Act.”
19.1. In the present case, the right to sue had first accrued to the predecessors of the
plaintiff, when the properties were brought for sale by the court. No challenge was made
to the court auction or to the conveyance in 1952. At this length of time, we can only
assume that the predecessors of the Plaintiff had not initiated any proceedings as
according to them, either it was a grant of soil or during that period, the rights had not
resumed. The plaintiff had become a major by 1984. By virtue of Article 60 of the
Limitation Act, 1963, the plaintiff has a right to seek a declaration that the alienation of a
property in which he had a right, was void within 3 years. Though the Article prima
27
facie looks to be applicable only to cases, where there was an alienation by the guardian,
we feel that the period of limitation would be applicable even when a third party had
alienated the share or property of a minor. Even otherwise, Article 58 would come into
operation and the plaintiff ought to have filed the suit within three years from the date
when he became a major to seek any declaratory relief, as it is the date on which his
right to sue first is deemed to have been accrued. The plaintiff has asserted that by
government resolutions in 1980 and 1984 he has acquired the title over the properties.
Therefore, as a prudent man, he ought to have initiated necessary steps to protect his
interest. Having failed to do so and created a fictional date for cause of action, the
plaintiff is liable to be non-suited on the ground of limitation.
20. As noted in the preceding paragraphs, the court auction was held in 1938 and
sale deed was registered in the year 1952 in favour of the Defendant No.1 in respect of
the suit properties, whereas, the suit was filed only in the year 2008, though the
Respondent No.1 / Plaintiff and his predecessors were aware of the existence of the said
registered sale deed of the suit properties. In fact, there is no averment in the plaint to
the effect that the predecessors were not aware of the transactions. The limitation period
for setting aside the sale deed would start running from the date of registration of the
same and as per Article 59 of the Limitation Act, 1963, after three years of the
registration, the Plaintiff is barred from seeking cancellation of the said registered sale
deed or the decree that was passed before 50 years and the consequential judgements.
28
We have already referred to Section 3 of the Specific Relief Act, 1963. The plaintiff, in
our view, has miserably failed to ascertain the existence of the fact by being diligent.
The question as to when a period of limitation would commence in respect of a
registered document is no longer res integra . In this regard, this Court in Dilboo v.
25
Dhanraji , held as follows:
“20…… Whenever a document is registered the date of registration becomes the
date of deemed knowledge. In other cases where a fact could be discovered by due
diligence then deemed knowledge would be attributed to the plaintiff because a party
cannot be allowed to extend the period of limitation by merely claiming that he had
no knowledge”
21. It will also be useful to refer to the judgement of this court in Mohd. Noorul
26
Hoda v. Bibi Raifunnisa , wherein the effect of willful abstention from making enquires
was laid down and the following paragraphs are relevant:
“5. Section 55(1) of the Transfer of Property Act, 1882 regulates rights and liabilities
of the buyer and seller. The seller is bound to disclose to the buyer any material
defect in the property or in the seller's title thereto of which the seller is, and the
buyer is not, aware, and which the buyer could not with ordinary care discover. The
seller is to answer, to the best of his information, all relevant questions put to him by
the buyer in respect of the property or the title thereto. The seller shall be deemed to
contract with the buyer that the interest which the seller professes to transfer to the
buyer subsists and that he has power to transfer the same. Section 3 provides that “a
person is said to have a notice of a fact when he actually knows the fact, or when but
for wilful abstention from an enquiry or search which he ought to have made, or
gross negligence, he would have known it”. Explanation II amplifies that “any
person acquiring any immovable property or any share or interest in any such
property shall be deemed to have notice of the title, if any, of any person who is for
the time being in actual possession thereof”. Constructive notice in equity treats a
man who ought to have known a fact, as if he actually knows it. Generally speaking,
25 (2000) 7 SCC 702
26 (1996) 7 SCC 767
29
constructive notice may not be inferred unless some specific circumstances can be
shown as a starting point of enquiry which if pursued would have led to the
discovery of the fact. As a fact it is found that Rafique filed the sale deed dated 1-12-
1959 executed in his favour by Mahangu, in Title Suit No. 220 of 1969 for which the
petitioner claims to have derivative title through Rafique. Rafique had full
knowledge that despite the purported sale, Bibi Raifunnisa got the preliminary
decree passed in 1973 and in 1974 under the final decree the right, title and interest
in the suit property passed on to her. Under Section 55 when second sale deed dated
6-9-1980 was got executed by the petitioner from Rafique, it is imputable that
Rafique had conveyed all the knowledge of the defects in title and he no longer had
title to the property. It is also a finding of fact recorded by the appellate court and
affirmed by the High Court that the petitioner was in know of full facts of the
preliminary decree and the final decree passed and execution thereof. In other
words, the finding is that he had full knowledge, from the inception of Title Suit No.
220 of 1969 from his benamidar. Having had that knowledge, he got the second sale
deed executed and registered on 6-9-1980. Oblivious to these facts, he did not
produce the second original sale deed nor is an attempt made to produce secondary
evidence on proof of the loss of original sale deed.
6. The question, therefore, is as to whether Article 59 or Article 113 of the Schedule
to the Act is applicable to the facts in this case. Article 59 of the Schedule to the
Limitation Act, 1908 had provided inter alia for suits to set aside decree obtained by
fraud. There was no specific article to set aside a decree on any other ground. In
such a case, the residuary Article 120 in Schedule III was attracted. The present
Article 59 of the Schedule to the Act will govern any suit to set aside a decree either
on fraud or any other ground. Therefore, Article 59 would be applicable to any suit
to set aside a decree either on fraud or any other ground. It is true that Article 59
would be applicable if a person affected is a party to a decree or an instrument or a
contract. There is no dispute that Article 59 would apply to set aside the instrument,
decree or contract between the inter se parties. The question is whether in case of
person claiming title through the party to the decree or instrument or having
knowledge of the instrument or decree or contract and seeking to avoid the decree by
a specific declaration, whether Article 59 gets attracted? As stated earlier, Article 59
is a general provision. In a suit to set aside or cancel an instrument, a contract or a
decree on the ground of fraud, Article 59 is attracted. The starting point of limitation
is the date of knowledge of the alleged fraud. When the plaintiff seeks to establish his
title to the property which cannot be established without avoiding the decree or an
instrument that stands as an insurmountable obstacle in his way which otherwise
binds him, though not a party, the plaintiff necessarily has to seek a declaration and
have that decree, instrument or contract cancelled or set aside or rescinded. Section
31 of the Specific Relief Act, 1963 regulates suits for cancellation of an instrument
30
which lays down that any person against whom a written instrument is void or
voidable and who has a reasonable apprehension that such instrument, if left
outstanding, may cause him serious injury, can sue to have it adjudged void or
voidable and the court may in its discretion so adjudge it and order it to be delivered
or cancelled. It would thus be clear that the word ‘person’ in Section 31 of the
Specific Relief Act is wide enough to encompass a person seeking derivative title
from his seller. It would, therefore, be clear that if he seeks avoidance of the
instrument, decree or contract and seeks a declaration to have the decrees set aside
or cancelled he is necessarily bound to lay the suit within three years from the date
when the facts entitling the plaintiff to have the decree set aside, first became known
to him.
7. The question, therefore, is as to when the facts of granting preliminary and final
decrees touching upon the suit land first became known to him. As seen, when he
claimed title to the property as owner and Rafique to be his benamidar, as admitted
by Rafique, the title deed dated 1-12-1959 was filed in Title Suit No. 220 of 1969.
Thereby Rafique had first known about the passing of the preliminary decree in 1973
and final decree in 1974 as referred to earlier. Under all these circumstances, Article
113 is inapplicable to the facts on hand. Since the petitioner claimed derivative title
from him but for his wilful abstention from making enquiry or his omission to file the
second sale deed dated 6-9-1980, an irresistible inference was rightly drawn by the
courts below that the petitioner had full knowledge of the fact right from the
beginning; in other words right from the date when title deed was filed in Title Suit
No. 220 of 1969 and preliminary decree was passed on 2-1-1973 and final decree
was passed on 5-2-1974. Admittedly, the suit was filed in 1981 beyond three years
from the date of knowledge. Thereby, the suit is hopelessly barred by limitation. The
decree of the appellate court and the order of the High Court, therefore, are not
illegal warranting interference.”
22. It will also be useful to refer to the judgment of this Court in Prem Singh v.
27
Birbal , where the scope of the Limitation Act, 1963 and Article 59 was discussed and
held as under:
“ 11. Limitation is a statute of repose. It ordinarily bars a remedy, but, does not
extinguish a right. The only exception to the said rule is to be found in Section 27 of
the Limitation Act, 1963 which provides that at the determination of the period
prescribed thereby, limited to any person for instituting a suit for possession of any
property, his right to such property shall be extinguished.
27 (2006) 5 SCC 353 : 2006 SCC OnLine SC 522
31
12. An extinction of right, as contemplated by the provisions of the Limitation
Act, prima facie would be attracted in all types of suits. The Schedule appended to the
Limitation Act, as prescribed by the articles, provides that upon lapse of the
prescribed period, the institution of a suit will be barred. Section 3 of the Limitation
Act provides that irrespective of the fact as to whether any defence is set out or is
raised by the defendant or not, in the event a suit is found to be barred by limitation,
every suit instituted, appeal preferred and every application made after the prescribed
period shall be dismissed.
13. Article 59 of the Limitation Act applies specially when a relief is claimed on the
ground of fraud or mistake. It only encompasses within its fold fraudulent transactions
which are voidable transactions.
14. A suit for cancellation of instrument is based on the provisions of Section 31 of the
Specific Relief Act, which reads as under:
“31. When cancellation may be ordered.—(1) Any person against whom a
written instrument is void or voidable, and who has reasonable
apprehension that such instrument, if left outstanding may cause him
serious injury, may sue to have it adjudged void or voidable; and the court
may, in its discretion, so adjudge it and order it to be delivered up and
cancelled.
(2) If the instrument has been registered under the Indian Registration Act,
1908 (16 of 1908), the court shall also send a copy of its decree to the
officer in whose office the instrument has been so registered; and such
officer shall note on the copy of the instrument contained in his books the
fact of its cancellation.”
15. Section 31 of the Specific Relief Act, 1963 thus, refers to
both void and voidable documents. It provides for a discretionary relief.
16. When a document is valid, no question arises of its cancellation. When a document
is void ab initio, a decree for setting aside the same would not be necessary as the
same is non est in the eye of the law, as it would be a nullity.
17. Once, however, a suit is filed by a plaintiff for cancellation of a transaction, it
would be governed by Article 59. Even if Article 59 is not attracted, the residuary
article would be.
18. Article 59 would be attracted when coercion, undue influence, misappropriation or
fraud which the plaintiff asserts is required to be proved. Article 59 would apply to the
case of such instruments. It would, therefore, apply where a document is prima
32
facie valid. It would not apply only to instruments which are presumptively invalid.
(See Unni v. Kunchi Amma [ILR (1891) 14 Mad 26] and Sheo Shankar Gir v. Ram
Shewak Chowdhri [ILR (1897) 24 Cal 77].)
19. It is not in dispute that by reason of Article 59 of the Limitation Act, the scope has
been enlarged from the old Article 91 of the 1908 Act. By reason of Article 59, the
provisions contained in Articles 91 and 114 of the 1908 Act had been combined.
20. If the plaintiff is in possession of a property, he may file a suit for declaration that
the deed is not binding upon him but if he is not in possession thereof, even under
a void transaction, the right by way of adverse possession may be claimed. Thus, it is
not correct to contend that the provisions of the Limitation Act would have no
application at all in the event the transaction is held to be void.
21. Respondent 1 has not alleged that fraudulent misrepresentation was made to him
as regards the character of the document. According to him, there had been a
fraudulent misrepresentation as regards its contents.
22. In Ningawwa v. Byrappa [(1968) 2 SCR 797 : AIR 1968 SC 956] this Court held
that the fraudulent misrepresentation as regards character of a document is void but
fraudulent misrepresentation as regards contents of a document is voidable stating:
(SCR p. 801 C-D)
“The legal position will be different if there is a fraudulent misrepresentation
not merely as to the contents of the document but as to its character. The
authorities make a clear distinction between fraudulent misrepresentation as
to the character of the document and fraudulent misrepresentation as to the
contents thereof. With reference to the former, it has been held that the
transaction is void, while in the case of the latter, it is merely voidable.”
In that case, a fraud was found to have been played and it was held that as the suit
was instituted within a few days after the appellant therein came to know of the fraud
practised on her, the same was void. It was, however, held: (SCR p. 803 B-E)
“Article 91 of the Limitation Act provides that a suit to set aside an
instrument not otherwise provided for (and no other provision of the Act
applies to the circumstances of the case) shall be subject to a three years'
limitation which begins to run when the facts entitling the plaintiff to have the
instrument cancelled or set aside are known to him. In the present case, the
trial court has found, upon examination of the evidence, that at the very time
of the execution of the gift deed, Ext. 45 the appellant knew that her husband
prevailed upon her to convey Surveys Plots Nos. 407/1 and 409/1 of
Tadavalga village to him by undue influence. The finding of the trial court is
based upon the admission of the appellant herself in the course of her
33
evidence. In view of this finding of the trial court it is manifest that the suit of
the appellant is barred under Article 91 of the Limitation Act so far as Plots
Nos. 407/1 and 409/1 of Tadavalga village are concerned.”
………
28. If a deed was executed by the plaintiff when he was a minor and it was void, he
had two options to file a suit to get the property purportedly conveyed thereunder. He
could either file the suit within 12 years of the deed or within 3 years of attaining
majority. Here, the plaintiff did not either sue within 12 years of the deed or within 3
years of attaining majority. Therefore, the suit was rightly held to be barred by
limitation by the trial court.”
23. Further, in the aforesaid suit, the Respondent No.1 also sought possession of
the suit properties based on title. As per Article 65 of the Limitation Act, 1963, the
possession of immovable property or any interest therein, based on title can be sought
within twelve years. From the records, it is evident that the possession of the subject
properties was initially with the Government of Maharashtra, then with the Gonsavis
and thereafter with the Defendant No.1 and it can be safely said that at least for a
century, the Respondent No.1 nor his predecessors have been in possession of the
properties after the grant of Inam. The plaintiff has failed to sue the appellant/defendant
or the State for possession within twelve years. We have already held that the title claim
of the plaintiff is barred by limitation and therefore, the claim for possession is also
barred and consequently, the relief of recovery of possession is also hopelessly barred by
limitation.
24. Moreover, the Plaintiff has not produced any documentary evidence to show
34
that he is entitled for the relief of declaration of ownership of the suit properties except
by way of reliance of the resolutions of the government, which has lost its force in view
of the decree of the Civil Court and subsequent compromise decrees. The decrees had
also attained finality as the neither the plaintiff nor his ancestors have challenged the
same in time. It is also evident on the face of record that the Plaintiff is a stranger to the
suit properties; on the contrary, the Defendants are the owners of the suit properties. It is
a settled principle of law that the owners cannot be restrained from dealing with their
own properties at the instance of a stranger. The said relief is again a consequential relief
to the claim of title, which has been non-suited on the ground of limitation. Hence, the
prayer (c) made in the plaint is not maintainable.
25. Regarding the averments made in the plaint relating to fraud played on the
plaintiff by the defendants in relation to the compromise decrees obtained in their
favour, we are of the view that they are vague and general, besides baseless and
unsubstantiated. Rather, no case can be culled out from the averments made in the plaint
in this regard. The plea of fraud is intrinsically connected with the nature of Inam. We
have already discussed the plea of fraud in the preceding paragraphs. We are also of the
view that the plea has been raised only to overcome the period of limitation. Admittedly
the Plaintiff is a stranger to the suits which ended in compromise. Therefore, in view of
the direct bar under Order XXIII Rule 3A of CPC, he cannot seek a declaration ‘that the
compromise decrees passed in Spl. Civil Suit Nos.l52/1951 and 1622/1988 and Civil
35
Appeal No.787/2001, Pune are void ab initio , null and void and the same are liable to be
set aside’. The law on this point is also already settled by this Court in Triloki Nath
28
Singh v. Anirudh Singh . The bar under Order XXIII Rule 3A of CPC is applicable to
third parties as well and the only remedy available to them would be to approach the
same court. In the present case, such an exercise is also not possible in view of the bar of
limitation. Hence, we find the suit to be unsustainable.
26. At this juncture, we wish to observe that we are not unmindful of the position
of law that limitation is a mixed question of fact and law and the question of rejecting
the plaint on that score has to be decided after weighing the evidence on record.
However, in cases like this, where it is glaring from the plaint averments that the suit is
hopelessly barred by limitation, the Courts should not be hesitant in granting the relief
and drive the parties back to the trial Court. We again place it on record that this is not a
case where any forgery or fabrication is committed which had recently come to the
knowledge of the plaintiff. Rather, the plaintiff and his predecessors did not take any
steps to assert their title and rights in time. The alleged cause of action is also found to
be creation of fiction. However, the trial Court erroneously dismissed the application
filed by the appellants under Order VII Rule 11(d) of CPC. The High Court also erred in
affirming the same, keeping the question of limitation open to be considered by the trial
Court after considering the evidence along with other issues, without deciding the core
28 (2020) 6 SCC 629 : (2020) 3 SCC (Civ) 732
36
issue on the basis of the averments made by the Respondent No.1 in the Plaint as
mandated by Order VII Rule 11 (d) of CPC. The spirit and intention of Order VII Rule
11(d) of CPC is only for the Courts to nip at its bud when any litigation ex facie appears
to be a clear abuse of process. The Courts by being reluctant only cause more harm to
the defendants by forcing them to undergo the ordeal of leading evidence. Therefore, we
ho ld that the plaint is liable to be rejected at the threshold.
27. In fine, this appeal stands allowed by setting aside the orders so passed by the
Courts below and the application filed by the appellants under Order VII Rule 11(d) of
CPC is allowed by rejecting the plaint in Special Civil Suit No.133 of 2009 filed by the
Respondent No.1. However, there is no order as to costs. Pending application(s), if any,
shall stand disposed of.
.....................................J
[J.B. Pardiwala]
.....................................J
[R. Mahadevan]
NEW DELHI
DECEMBER 20, 2024.