Bombay High Court
EMMANUEL RAPHAELversusIQBAL AHMAD ABDUL RAZZAQ SIDDIQUI THR C A AIJAZ AHMED ABDUL RAZZAQ SIDDIQUI
- Decided
- Disposal
- Rejected
Holding
The suit is not barred by limitation; the limitation question is a mixed question of fact and law, and the order dismissing the notice of motion is upheld.
Summary
The plaintiff sued for a declaration that a 2011 Memorandum of Understanding (MoU) for the sale of a flat remained valid and for specific performance, seeking the balance consideration of Rs.12,00,000. The defendant moved to dismiss the suit under Order VII Rule 11 of the CPC, arguing that the contract was to be performed within three months and that the limitation period expired on 30 August 2014. The trial court rejected the dismissal, holding that the limitation issue was a mixed question of fact and law. On appeal, the High Court affirmed this view, noting that the defendant’s assurances in December 2019, a partial payment in January 2020, and a promise to refund with interest indicated the contract had not been terminated, thereby reviving the cause of action. The Court also observed that a suit for specific performance may include a claim for damages and that such a claim does not justify dismissal under Order VII Rule 11. Consequently, the revision application was rejected.
Issues considered
- Whether the suit for specific performance is barred by the limitation period under the Limitation Act, 1963.
- Whether the question of limitation is a mixed question of fact and law requiring factual investigation.
- Whether the defendant’s later conduct (assurances, partial payment, promise to refund) revives the cause of action despite the original contractual deadline.
- Whether Order VII Rule 11 of the CPC can be invoked to dismiss a suit that is allegedly time‑barred.
Legislation cited
- Code of Civil Procedure, 1908 — s. Order VII Rule 11
- Limitation Act, 1963 — s. Article 54
Subjects
- specific performance
- limitation
- contract
- Memorandum of Understanding
- Order VII Rule 11
- mixed question of fact and law
- sale of property
- civil revision
Judgment
18-CRA531-2026.DOC
Santosh
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
CIVIL REVISION APPLICATION NO. 531 OF 2026
Emmanuel Raphael ...Applicant
Versus
Iqbal Ahmad Abdul Razzaq Siddiqui
Through C A Aijaz Ahmed Abdul Razzaq
Siddiqui …Respondent
Mr. Vishal Kanade, a/w Akshay Shah and Harsh Shah, for the
Applicant.
CORAM : N. J. JAMADAR, J.
DATED : 6th OCTOBER, 2026
SANTOSH Order:-
SUBHASH
KULKARNI
Digitally signed
by SANTOSH
SUBHASH
KULKARNI
1. Heard the learned Counsel for the applicant.
Date: 2026.10.08
17:01:19 +0530
2. This revision application is directed against an order dated
19th August, 2026 passed by the learned Judge, City Civil Court,
in Notice of Motion No.3756/2024, whereby the said Notice of
Motion taken out by the applicant-defendant for rejection of the
plaint under the provisions of Order VII Rule 11 of the Code of
Civil Procedure, 1908 (“the Code”), came to be dismissed.
3. The respondent-plaintiff has instituted a suit seeking a
declaration that the Memorandum of Understanding (“MoU”)
dated 30th May, 2011, whereunder the applicant-defendant
agreed to sell flat No.8/6 situated in Assisi Co-operative
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Housing Society Ltd., (“the suit flat”) to the plaintiff for a
consideration of Rs.24,00,000/- was still valid, subsisting and
enforceable in law and for a decree of specific performance of the
said contract by accepting the balance consideration of
Rs.12,00,000/-.
4. The defendant took out the Notice of Motion seeking the
rejection of the plaint on the ground that the suit was ex facie
barred by law of limitation as, in accordance with the terms of
the MoU, the contract was to be performed within a period of
three months, i.e. by 30th August, 2011, and, thus, the period of
limitation expired on 30th August, 2014.
5. The learned Judge, City Civil Court, was not persuaded to
accede to the submission on behalf of the defendant as the
question as to whether the suit was barred by law of limitation,
required investigation into facts and, thus, it appeared to be a
mixed question of facts and law.
6. Mr. Kanade, the learned Counsel for the applicant, took
the Court through the terms of the MoU, especially Clause 9
thereof under which it was stipulated that the said agreement
may be cancelled or terminated by the vendor if he failed to
obtain the NOC from the housing society for the transfer of the
suit flat, and that the vendor would return the part
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consideration alongwith interest at the rate of 15% per month.
Attention of the Court was also invited to an undertaking dated
30th May, 2011, executed by the applicant-vendor, to refund the
said amount of Rs.12,00,000/- alongwith interest at the rate of
15% per month in the event of his failure to obtain the NOC for
transfer from the housing society. Thus, Mr. Kanade would
urge, the case in hand was that of “date fixed” for the
performance of the contract, and, therefore, would fall within
the first part of Article 54 of the Limitation Act, 1963.
7. I am afraid to accede to the aforesaid submissions. It is
trite, at the stage of consideration of the prayer for rejection of
the plaint only the averments in the plaint and the documents
annexed thereto are required to be read and that too in a
meaningful and not formalistic manner. Ordinarily, and in a
majority of cases, the question of limitation is a mixed question
of law and facts. However, where the suit is ex facie barred by
law of limitation, the Court may justifiably exercise the power
under Order VII Rule 11 of the Code to nip in the bud a fruitless
and vexatious litigation. (Dahiben vs. Arvindbhai Kalyanji
Bhanusali (Gajra) dead through Legal Representatives and
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others1 and Shri Mukund Bhavan Trust and others vs. Shriman
Chhatrapati Udayan Raje2).
8. In the case at hand, a meaningful reading of the plaint as
a whole, especially paragraphs 9 and 10 thereof, would indicate
that as late as 19th December, 2019, the defendant assured the
plaintiff that he would execute the sale deed and register the
instrument or refund the part consideration of Rs.12,00,000/-
alongwith interest at the rate of 18% per annum. In fact, a sum
of Rs.3,00,000/- was paid by the defendant to the plaintiff on
16th January, 2020, and allegedly the defendant had agreed to
refund the balance amount alongwith interest at the rate of 18%
per annum by the end of January 2020. Having realized that
the defendant had no intent to refund the amount, the plaintiff
claimed to have instituted the suit.
9. The aforesaid assertions coupled with the fact that in the
month of January 2020, part amount was allegedly refunded by
the defendant, prima facie, justify an inference that, the
defendant had not terminated the contract in accordance with
the stipulation in Clause 9 of the MoU as late as January, 2020,
though the said clause gave option to the defendant to terminate
the contract if he failed to obtain NOC from the housing society.
1 (2020) 7 Supreme Court Cases 366.
2 Civil Appeal/14807/2024, dtd.20/12/2024.
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10. If viewed through the aforesaid prism, the view of the trial
Court that, in the facts of the case, the aspect of limitation was
a mixed question of facts and law appears justifiable.
11. Mr. Kanade attempted to salvage the position by
canvassing a submission that there was no prayer for damages
in the suit. Suffice to note, whether the plaintiff would
eventually succeed in obtaining a decree for specific
performance is not the touchstone on which a prayer for
rejection of the plaint can be appreciated. Moreover, in a suit
for specific performance the plaintiff may claim damages in
addition to the decree for specific performance at any stage.
12. For the forging reasons, this Court does not find that the
impugned order suffers from any jurisdictional error or material
irregularity in the exercise of jurisdiction.
13. The application, thus, stands rejected.
[N. J. JAMADAR, J.]
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