C.S. RAMASWAMYversusV. K. SENTHIL & ORS
- Citation
- 2022 INSC 1046
- Decided
- 30 September 2022
- Disposal
- Appeal(s) allowed
- Bench
- M R SHAH
Holding
The plaints are barred by limitation and must be rejected under Order VII Rule 11(d) CPC.
Summary
The plaintiffs filed suits in 2015‑2016 to cancel sale deeds executed in 2005, alleging fraud. The defendant moved to reject the plaints under Order VII Rule 11(d) of the CPC, contending the suits were barred by the 10‑year limitation period. The trial court and High Court refused to reject the plaints, holding that limitation was a mixed question of law and fact. The Supreme Court examined the pleadings and found the fraud allegations vague and unsupported, noting that the cause of action arose on the date of execution of the deeds and that the plaintiffs’ knowledge of any fraud was not specifically pleaded. Applying Section 17 of the Limitation Act and precedents on the exercise of Order VII Rule 11(d), the Court held that the suits were clearly time‑barred and the plaints must be rejected. Consequently, the appeals were allowed and the orders of the lower courts set aside.
Issues considered
- The suitability of rejecting the plaints under Order VII Rule 11(d) CPC on the ground of limitation when fraud allegations are vague.
- Whether Section 17 of the Limitation Act, 1963, can extend the limitation period in the present case.
- Whether the trial and appellate courts erred in refusing to reject the plaints despite the alleged bar of limitation.
Legislation cited
- Code of Civil Procedure, 1908s. Order VII Rule 11(d)
- Limitation Act, 1963s. Section 17
Subjects
Judgment
[2022] 18 S.C.R. 221 221
C.S. RAMASWAMY A
v.
V. K. SENTHIL & ORS.
(Civil Appeal No. 500 of 2022)
SEPTEMBER 30, 2022 B
[M.R. SHAH AND KRISHNA MURARI, JJ.]
Code of Civil Procedure, 1908 – Or.VII r.11(d) – Rejection of
plaint – Limitation Act, 1963 – s.17 – Respondents filed respective
suits in the year 2015/2016 for cancellation of the sale deeds
C
executed in 2005, alleging that the same were obtained by fraud –
Appellant filed applications u/Or.VII r.11(d) for rejection of the
plaints mainly on the ground that the suits were barred by limitation,
dismissed – Revision petitions filed by appellant, dismissed by High
Court – Held: Respective suits were filed after a period of 10 years
from the date of execution of the registered sale deeds – Nothing D
was mentioned on which date and how the plaintiffs had the
knowledge that the document was obtained by fraud and/or
misrepresentation – There were no further averments and allegations
of how the fraud was committed/played – Mere stating in the plaint
that a fraud has been played is not enough – Allegations of fraud
E
must be specifically averred in the plaint, otherwise merely by using
the word “fraud”, by clever drafting the plaintiffs would try to get
the suits within the limitation, which otherwise may be barred by
limitation, as in the present case – Impugned judgment passed by
the High Court and the orders passed by the Trial Court set aside –
Respective suits are rejected being barred by limitation – Fraud. F
Allowing the appeals, the Court
HELD: 1.1 Therefore, even considering the averments and
allegations in the plaints only, it can be seen that even according
to the plaintiffs, the cause of action for the suit arose on
19.09.2005, the date on which the plaintiffs executed the sale G
deed in favour of the defendant. Most of the cause of actions
alleged are much prior to /prior to the execution of the registered
Sale Deeds. Even the averments and allegations with respect to
knowledge of the plaintiffs averred in paragraph 19 can be said
H
221
222 SUPREME COURT REPORTS [2022] 18 S.C.R.
A to be too vague. Nothing has been mentioned on which date and
how the plaintiffs had the knowledge that the document was
obtained by fraud and/or misrepresentation. It is averred that
the alleged fraudulent sale came to the knowledge of the plaintiffs
only when the plaintiffs visited the suit property. Nothing has
been mentioned when the plaintiffs visited the suit property. It is
B
not understandable how on visiting the suit property, the plaintiffs
could have known the contents of the sale deed and/or the
knowledge about the alleged fraudulent sale. Even the averments
and allegations in the plaint with respect to fraud are not supported
by any further averments and allegations how the fraud has been
C committed/played. Mere stating in the plaint that a fraud has been
played is not enough and the allegations of fraud must be
specifically averred in the plaint, otherwise merely by using the
word “fraud”, the plaintiffs would try to get the suits within the
limitation, which otherwise may be barred by limitation.
Therefore, even if the submission on behalf of the respondents –
D
original plaintiffs that only the averments and allegations in the
plaints are required to be considered at the time of deciding the
application under Order VII Rule 11 CPC is accepted, in that
case also by such vague allegations with respect to the date of
knowledge, the plaintiffs cannot be permitted to challenge the
E documents after a period of 10 years. By such a clever drafting
and using the word “fraud”, the plaintiffs have tried to bring the
suits within the period of limitation invoking Section 17 of the
limitation Act. The plaintiffs cannot be permitted to bring the
suits within the period of limitation by clever drafting, which
otherwise is barred by limitation. [Paras 7.5-7.8][231-E-F;
F
232-B-H]
Raghwendra Sharan Singh v. Ram Prasanna Singh
(Dead) by Legal Representatives (2020) 16 SCC
601:[2019] 4 SCR 1069 – relied on.
G 1.2 Both the Courts below have materially erred in not
rejecting the plaints in exercise of powers under Order VII Rule
11(d) CPC. The respective suits have been filed after a period of
10 years from the date of execution of the registered sale deeds.
It is to be noted that one suit was filed by the minor, which was
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 223
filed in the year 2006, in which some of the plaintiffs herein were A
also party to the said suit and in the said suit, there was a specific
reference to the Sale Deed dated 19.09.2005 and the said suit
came to be dismissed in the year 2014 and immediately thereafter
the present suits have been filed. Thus, from the averments in
the plaint and the bundle of facts stated in the plaint, by clever
B
drafting, the plaintiffs have tried to bring the suits within the period
of limitation, which otherwise are barred by limitation. Therefore,
considering the decisions of this Court in the case of T.
Arivandandam and other decision of Raghwendra Sharan Singh
and as the respective suits are barred by the law of limitation,
the respective plaints are required to be rejected in exercise of C
powers under Order VII Rule 11 CPC. In view of the above and
for the reasons stated above, all these appeals succeed. The
impugned common judgment and order passed by the High Court
rejecting the revision applications and the orders passed by the
learned Trial Court rejecting the respective applications under
D
Order VII Rule 11 CPC and refusing to reject the plaints in
exercise of powers under Order VII Rule 11 CPC are hereby
quashed and set aside. The respective applications filed by the
appellant herein – original defendant to reject the respective
plaints on the ground that the same are barred by the law of
limitation are hereby allowed. The respective plaints are hereby E
rejected on the ground that the same are barred by limitation.
[Paras 7.9, 8]
T. Arivandandam v. T.V. Satyapal (1977) 4 SCC 467 :
1978 (1) SCR 742 – relied on.
Sopan Sukhdeo Sable & Ors. v. Assistant Charity F
Commissioner & Ors. (2004) 3 SCC 137:[2004] 1 SCR
1004; Srihari Hanumandas Totala v. Hemant Vithal
Kamat & Ors. (2021) 9 SCC 99; Ram Prakash Gupta
v. Rajiv Kumar Gupta & Ors. (2007) 10 SCC 59:[2007]
10 SCR 520; Church of Christ Charitable Trust and G
Educational Charitable Society v. Ponniamman
Educational Trust (2012) 8 SCC 706:[2012] 6
SCR 404; Salim D. Agboatwala & Ors. v. Shamalji
Oddhavji Thakkar & Ors. 2021 SCC Online SC 735
– referred to.
H
224 SUPREME COURT REPORTS [2022] 18 S.C.R.
A Case Law Reference
[2019] 4 SCR 1069 relied on Para 4.3
[2004] 1 SCR 1004 referred to Para 5.3
(2021) 9 SCC 99 referred to Para 5.3
B [2007] 10 SCR 520 referred to Para 5.3
[2012] 6 SCR 404 referred to Para 5.4
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 500 of
2022.
C From the Judgment and Order dated 28.02.2020 of the High Court
of Judicature at Madras in C.R.P. No.1931 of 2019.
With
Civil Appeal Nos. 504, 505, 506, 502, 501 and 503 of 2022.
D Kapil Sibal, A. Mariarputham, R. Balasubramanian, Sr. Advs., C.
Thirumaran, Avneesh Arputham, Ms. Anuradha Arputham, Dr. Ram
Sankar, R. N. Amarnath, Adit Subramanian Pujari, Praveen Kr. Singh,
Ankit Sharma, M/s Arputham Aruna and Co., Advs. for the Appellant.
Sushil Kumar Jain, Sr. Adv., S. Sinnaraj, Ms. E. R. Sumathy, A.
E Parthasarathi, Ms. Pooja Shree S., Ms. Murugesan M., Ms. Shruti, Advs.
for the Respondents.
The Judgment of the Court was delivered by
M.R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned common
F
judgment and order passed by the High Court of Judicature at Madras in
respective C.R.P. Nos. 1931, 1921, 1973, 1968, 1975, 1976 and 1922 of
2019 by which the High Court has dismissed the said civil revision
petitions and has confirmed the orders passed by the learned Trial Court
rejecting the applications filed under Order VII Rule 11 of Code of Civil
G Procedure (hereinafter referred to as “CPC”) to reject the respective
plaints filed by the appellant herein – original defendant, who has preferred
the present appeals.
2. That the respondents herein – original plaintiffs have filed the
respective suits before the learned Trial Court for cancellation of the
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 225
[M.R. SHAH, J.]
sale deed executed by the plaintiffs in favour of the appellant – original A
defendant as null and void and also to declare that the plaintiffs are the
absolute owners of the suit schedule property and consequently restrain
the defendant from in any manner alienating the suit schedule property.
2.1 Having been served with summons of the suit, the original
defendant – appellant herein filed applications before the learned Trial B
Court to reject the respective plaints in exercise of powers under Order
VII Rule 11(d) of the CPC mainly on the ground that the respective suits
were clearly barred by the law of limitation. The said applications were
resisted by the plaintiffs by submitting that the Sale Deeds dated
12.09.2005, 19.09.2005, 22.09.2005, 29.09.2005 and 30.09.2005 for which
the relief to cancel the same has been prayed in the suit was obtained by C
fraudulent misrepresentation and it was obtained by fraud. According
to the plaintiffs, by fraudulent misrepresentation of the character of the
document, i.e., as if it is a Joint Development Project, the defendant got
the sale deeds and the plaintiffs without knowing the contents of the
documents have executed the said deeds. According to the plaintiffs, D
they came to know about the same only in April, 2015 and immediately
thereafter they had filed the present suits.
2.2 The learned Trial Court dismissed the applications under Order
VII Rule 11 CPC by observing that the issue of limitation is a mixed
question of law and facts and therefore, the respective prayers are not E
required to be rejected at this stage in exercise of powers under Order
VII Rule 11(d) of the C.P.C.
2.3 Feeling aggrieved and dissatisfied with the orders passed by
the learned Trial Court rejecting the applications under Order VII Rule
11(d) CPC and refusing to reject the plaints, the defendant filed the F
revision petitions before the High court.
2.4 By the impugned judgment and order, the High Court has
dismissed the said civil revision petitions, which has given rise to the
present appeals at the instance of the original defendant.
3. Shri Kapil Sibal, learned Senior Advocate has appeared on behalf G
of the appellant – original defendant and Shri Sushil Kumar Jain, learned
Senior Advocate has appeared on behalf of the contesting respondents
– original plaintiffs.
H
226 SUPREME COURT REPORTS [2022] 18 S.C.R.
A 4. Shri Sibal, learned Senior Advocate appearing on behalf of the
appellant – original defendant has vehemently submitted that in the facts
and circumstances of the case, both, the learned Trial Court as well as
the High Court have erred in not allowing the applications under Order
VII Rule 11(d) CPC and in not rejecting the respective plaints as the
same were barred by limitation. It is vehemently submitted that in the
B
present case, the sale deeds, which are now sought to be cancelled
were executed in the year 2005 and the sale consideration was paid by
demand drafts and the same were credited into the bank accounts of the
plaintiffs. It is submitted that the said sale deeds are registered sale
deeds. It is submitted that the suits have been filed in the year 2016, i.e.,
C after a lapse of more than 10 years and so the said suits are clearly
barred by the law of limitation. The learned Trial Court ought to have
rejected the plaints in exercise of powers under Order VII Rule 11(d)
CPC.
4.1 It is vehemently submitted by Shri Sibal, learned Senior
D Advocate appearing on behalf of the appellant – original defendant that
even on bare looking on the averments in the plaint and there are vague
averments with respect to the date of knowledge of the alleged fraud
and the documents and the respective suits have been filed after a period
of 10 years from the date of execution, which is a fit case to exercise
the powers under Order VII Rule 11(d) CPC. It is vehemently submitted
E that merely by making some vague averments with respect to fraud, the
plaintiffs cannot be permitted to bring the suits within the period of
limitation. It is submitted that there must be specific allegations and
averments in the suit, how the fraud has been committed. It is submitted
that mere stating in the plaint that the registered sale deeds were executed
F by playing the fraud is not sufficient to file the suits after a period of 10
years.
4.2 Shri Sibal, learned Senior Advocate appearing on behalf of
the appellant has vehemently submitted that in the present case, with
respect to the very sale deeds, earlier a suit was filed by the minor to
G which some of the original plaintiffs were also parties and the said suits
came to be dismissed in the year 2014. It is submitted that immediately
thereafter the present suits were filed in the year 2015/2016. It is
submitted that therefore, it cannot be said that the plaintiffs were not
having the knowledge of the nature of the respective sale deeds and/or
the contents of the sale deeds.
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 227
[M.R. SHAH, J.]
4.3 Making above submissions and relying upon the decision of A
this Court in the case of Raghwendra Sharan Singh Vs. Ram
Prasanna Singh (Dead) by Legal Representatives, (2020) 16 SCC
601, it is prayed to allow the present revision petitions and consequently
allow the application submitted by the appellant – original defendant and
to reject the respective plaints in exercise of the powers under Order
B
VII Rule 11(d) of the CPC.
5. Present appeals are vehemently opposed by Shri Sushil Kumar
Jain, learned Senior Advocate appearing on behalf of the respondents -
original plaintiffs.
5.1 It is submitted that there is specific cause of action pleaded in C
the respective plaints and there are allegations of fraud and it is the case
on behalf of the plaintiffs that the sale deeds/documents are the result of
fraud and sham and from the date of knowledge in the year 2015
thereafter immediately the respective suits were filed, it cannot be said
that the respective suits are barred by limitation.
D
5.2 It is submitted that as rightly observed and held by the Trial
Court as well as the High Court that in the facts and circumstances of
the case, the issue with respect to limitation is a mixed question of law
and facts and therefore, such an issue of limitation is required to be
considered at the time of trial, no error has been committed by the learned
Trial Court and/or the High Court in refusing to reject the plaints in E
exercise of powers under Order VII Rule 11(d) CPC.
5.3 It is submitted that as per the settled position of law, while
considering and/or deciding the application under Order VII Rule 11
CPC, only the averments and allegations in the plaint are required to be
considered. Reliance is placed on the decisions of this Court in the case F
of Sopan Sukhdeo Sable & Ors. Vs. Assistant Charity
Commissioner & Ors., (2004) 3 SCC 137; Srihari Hanumandas
Totala Vs. Hemant Vithal Kamat & Ors., (2021) 9 SCC 99; and
Ram Prakash Gupta Vs. Rajiv Kumar Gupta & Ors., (2007) 10
SCC 59. G
5.4 It is submitted that as held by this Hon’ble Court in the case of
Church of Christ Charitable Trust and Educational Charitable
Society Vs. Ponniamman Educational Trust, (2012) 8 SCC 706,
the cause of action is bundle of facts where all the events are required
to be pleaded. It is submitted that therefore on considering the necessary
H
averments in the plaint disclosing the cause of action and considering
228 SUPREME COURT REPORTS [2022] 18 S.C.R.
A the averments and allegations in the entire plaint, it cannot be said that
the suits are barred by limitation.
5.5 It is submitted that in the plaint, it is specifically averred that
the plaintiffs came to know about the contents of the sale deeds only in
the year 2015 and having come to know in the year 2015 that the Sale
B Deeds were got executed by the defendant by fraud and misrepresentation
as the plaintiffs had signed the said documents believing the same as
Joint Development Agreement and therefore, it cannot be said that the
suits are clearly barred by the law of limitation.
5.6 It is submitted that the question of limitation is a mixed question
C of fact and law. It is submitted that in the present matter, the plaintiffs
are required to prove during the trial that the facts so alleged in paras 11-
19, if those facts are established, then the plaintiffs are entitled to benefit
of Section 17 of the Limitation Act.
5.7 It is submitted that considering Section 17 of the Limitation
D Act, the period of limitation shall begin to run only from the date of
discovery of such fraud. It is submitted that as per the averments and
allegations in the plaints, the plaintiffs came to know about the fraud in
the year 2015 and therefore, considering Section 17 of the Limitation
Act, the suits cannot be said to be barred by limitation. Reliance is
placed on the decision of this Court in the case of Salim D. Agboatwala
E & Ors. Vs. Shamalji Oddhavji Thakkar & Ors., 2021 SCC Online
SC 735.
5.8 Shri Jain, learned Senior Advocate appearing on behalf of the
respondents - original plaintiffs vehemently submitted that in the present
case, defendant himself filed the writ petition in the name of the plaintiffs
F and even in the names of the dead owners, which shows that the plaintiffs
not only got the sale deeds executed in the name of Joint Venture
Agreement but even got the blank documents, which were taken and
used for filing the writ petitions.
5.9 Making above submissions and relying upon the above
G decisions, it is prayed to dismiss the present appeals.
6. Heard the learned Senior Advocates appearing on behalf of
the respective parties at length.
7. We have gone through in detail the averments and allegations
in the plaints.
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 229
[M.R. SHAH, J.]
7.1 At the outset, it is required to be noted that by filing the respective A
suits, the original plaintiffs have prayed to cancel the registered Sale
Deeds, which were executed by the original plaintiffs. The respective
suits have been filed in the year 2015/2016, i.e., after a period of 10
years from the date of execution of such registered sale deeds.
Therefore, the defendant filed the applications and prayed to reject the
B
respective plaints in exercise of the powers under Order VII Rule 11(d)
CPC on the ground that the suits are clearly barred by the law of
limitation. On the other hand, it is the case on behalf of the plaintiffs that
as the sale deeds/documents were got executed by fraud and
misrepresentation and the plaintiffs signed the said documents believing
or treating it as Joint Venture Agreement and the plaintiffs did not go C
through the contents of the said documents and as in the year 2015, the
plaintiffs came to know about such fraud and obtaining the documents/
sale deeds by misrepresentation, considering Section 17 of the Limitation
Act, the said suits cannot be said to be barred by limitation. It is the case
on behalf of the plaintiffs that in any case, the question of limitation
D
being a mixed question of law and facts, and, therefore, in the facts and
circumstances of the case, the plaints may not be rejected in exercise of
the powers under Order VII Rule 11(d) CPC. It is the case on behalf of
the plaintiffs that while considering the application under Order VII Rule
11 CPC, the allegations and averments in the plaints are required to be
considered. E
7.2 While considering the issue/question whether the plaints filed
by the plaintiffs are required to be rejected on the ground of limitation in
exercise of powers under Order VII Rule 11(d) CPC, the cause of action
pleaded in the plaints is required to be referred to, which reads as under:-
“21. The cause of action for the suit arose on 19.09.2005 the F
date on which the plaintiffs executed the sale deed in
favour of the defendant registered as document No.
3555/2005, on 20.09.1983 the date when Government
of Tamil Nadu issued Sec. 4 (1) notice of Land
Acquisition Act in respect of the plaintiff’s lands, on G
20.09.1983 the date when after Section 4(1) notification
the Government of Tamil Nadu a declaration under
Section 6 was issued in G.O. No. 1426 by the Housing
and Urban Development Department, on subsequent
dates when land acquisition proceedings were initiated
H
230 SUPREME COURT REPORTS [2022] 18 S.C.R.
A by the Government of Tamil Nadu filed a writ petition in
W.P. No. 4079 of 1989 against the plaintiff and other
land owners, on 07. 07 .1989 the date when the stay
order in WMP No. 5983 of 1989 was given, on
07.01.1994 the date when stay order was vacated, on
01.04.1998 the date when the plaintiffs filed a writ appeal
B
questioning the said order in W.A. No. 258 of 1994, on
01.04.1998 the date when High Court quashed the entire
acquisition proceedings under the old land acquisition
act, on subsequent dates when the housing board has
filed SLP (C) No. 13458 to 13462 of 1998 which was
C subsequently withdrawn with liberty to approach the
Honorable High Court of Madras by filing the review
petition, on subsequent date when the housing board
filed a review petition before the High Court in Review
No. 68 of 1999 seeking to review the order dated
01.04.1998 passed in WA No. 258 of 1994 and W.P.
D
No. 4079 of 1989, on 04.10.2007 the date when the
review petition was allowed thereby setting aside the
order dated 01.04.1998, on 05.01.2009 the date when
the M.P. 1 of 2008 was dismissed by the High Court
Division Bench, on 09.07.2012 the date when the
E petitioners in writ petition preferred a SLP (C) No. 15932
and 15933 of 2020 before Supreme Court and an order
of status quo was granted and the same is pending on
23.06.2014 the date when the defendant obtained a
fraudulent decree by filing a writ petition before High
Court Madras under new land acquisition act, on
F
04.04.2015 the date when the plaintiff wrote letter to
advocate who alleged to have represented on behalf of
the plaintiff, on 19.04.2015 the date when the plaintiff
received the reply admitting that plaintiffs and other land
owners, during the month of November when the
G plaintiffs came to know about the fraudulent sale and
on all other subsequent where the suit properties are
satiated within the jurisdiction of this Hon’ble Court at
Coimbatore.”
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 231
[M.R. SHAH, J.]
7.3 In paragraph 19, the plaintiffs have made averments with A
respect to the date of knowledge. Paragraph 19 reads as under:-
“”19. The plaintiffs humbly submit that the plaintiffs and other
land owners have not sold the properties to the defendant
at all. They did not receive any consideration from the
defendant at all they did not hand over any possession B
also and the alleged fraudulent sale came to the
knowledge of the plaintiffs only when the plaintiffs
visited the suit properties. Hence, immediately the
plaintiffs and other land owners took steps to engage
their own advocates and now the plaintiffs and other
land owners are being represented by their own counsel C
at Chennai. Hence, the plaintiffs in order to remove the
could cover the title of the land have filed the suit to
cancel the alleged sale deeds executed by the plaintiffs
in favour of the defendant through fraudulent means.”
7.4 Thereafter, in paragraph 20, it is averred and alleged as under:- D
“20. The plaintiffs humbly submit that the defendant has
obtained the sale deed from the plaintiffs by fraudulent
means therefore the alleged sale deed executed by
plaintiffs in favour of the defendant as document No.
3555/2005 dated 19.09.2005 has to be cancelled.” E
7.5 Therefore, even considering the averments and allegations in
the plaints only, it can be seen that even according to the plaintiffs, the
cause of action for the suit arose on 19.09.2005, the date on which the
plaintiffs executed the sale deed in favour of the defendant. In paragraph
21, while considering the cause of action, it is further averred that the F
cause of action has arisen on:-
(i) 20.09.1983 – when Section 4 Notification was issued
by the Government of Tamil Nadu;
(ii) when the Writ Petition No. 4079 of 1989 was filed;
G
(iii) 07.07.1989 – the date when the said order in W.M.P.
No. 5983 of 1989 was given;
(iv) 07.01.1994 – the date when the said order was vacated;
H
232 SUPREME COURT REPORTS [2022] 18 S.C.R.
A (v) 01.04.1998 – the date when the plaintiffs filed a writ
appeal;
(vi) 01.04.1998- when the High Court quashed the entire
acquisition proceedings and on subsequent dates when
the Housing Board filed the special leave petitions before
B this Court.
7.6 From the aforesaid, it can be seen that most of the cause of
actions alleged are much prior to /prior to the execution of the registered
Sale Deeds.
7.7 Even the averments and allegations with respect to knowledge
C of the plaintiffs averred in paragraph 19 can be said to be too vague.
Nothing has been mentioned on which date and how the plaintiffs had
the knowledge that the document was obtained by fraud and/or
misrepresentation. It is averred that the alleged fraudulent sale came to
the knowledge of the plaintiffs only when the plaintiffs visited the suit
D property. Nothing has been mentioned when the plaintiffs visited the suit
property. It is not understandable how on visiting the suit property, the
plaintiffs could have known the contents of the sale deed and/or the
knowledge about the alleged fraudulent sale.
7.8 Even the averments and allegations in the plaint with respect
E to fraud are not supported by any further averments and allegations how
the fraud has been committed/played. Mere stating in the plaint that a
fraud has been played is not enough and the allegations of fraud must be
specifically averred in the plaint, otherwise merely by using the word
“fraud”, the plaintiffs would try to get the suits within the limitation,
which otherwise may be barred by limitation. Therefore, even if the
F submission on behalf of the respondents – original plaintiffs that only the
averments and allegations in the plaints are required to be considered at
the time of deciding the application under Order VII Rule 11 CPC is
accepted, in that case also by such vague allegations with respect to the
date of knowledge, the plaintiffs cannot be permitted to challenge the
G documents after a period of 10 years. By such a clever drafting and
using the word “fraud”, the plaintiffs have tried to bring the suits within
the period of limitation invoking Section 17 of the limitation Act. The
plaintiffs cannot be permitted to bring the suits within the period of
limitation by clever drafting, which otherwise is barred by limitation. At
this stage, a recent decision of this Court in the case of Raghwendra
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 233
[M.R. SHAH, J.]
Sharan Singh (supra) is required to be referred to. In the said decision, A
this Court had occasion to consider all earlier decisions on exercise of
powers under Order VII Rule 11 CPC, which are considered by this
Court in paragraphs 6.4 to 6.9 as under:-
“6.4. In T. Arivandandam [T. Arivandandam v. T.V. Satyapal,
(1977) 4 SCC 467], while considering the very same provision B
i.e. Order 7 Rule 11 CPC and the decree of the trial court in
considering such application, this Court in para 5 has observed
and held as under: (SCC p. 470)
“5. We have not the slightest hesitation in condemning
the petitioner for the gross abuse of the process of the C
court repeatedly and unrepentantly 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 D
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 E
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 answer to irresponsible law suits.”
6.5. In Church of Christ Charitable Trust & Educational F
Charitable Society [Church of Christ Charitable Trust &
Educational Charitable Society v. Ponniamman Educational
Trust, (2012) 8 SCC 706], this Court in para 13 has observed
and held as under: (SCC p. 715)
“13. While scrutinising the plaint averments, it is the G
bounden duty of the trial court to ascertain the materials
for cause of action. The cause of action is a bundle of
facts which taken with the law applicable to them gives
the plaintiff the right to relief against the defendant. Every
fact which is necessary for the plaintiff to prove to enable
H
234 SUPREME COURT REPORTS [2022] 18 S.C.R.
A him to get a decree should be set out in clear terms. It is
worthwhile to find out the meaning of the words “cause
of action”. A cause of action must include some act
done by the defendant since in the absence of such an
act no cause of action can possibly accrue.”
B 6.6. In ABC Laminart (P) Ltd. v. A.P. Agencies [(1989) 2 SCC
163], this Court explained the meaning of “cause of action” as
follows: (SCC p. 170, para 12)
“12. A cause of action means every fact, which if
traversed, it would be necessary for the plaintiff to prove
C in order to support his right to a judgment of the court.
In other words, it is a bundle of facts which taken 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
D limited to the actual infringement of the right sued on
but includes all the material facts on which it is founded.
It does not comprise evidence necessary to prove such
facts, but every fact necessary for the plaintiff to prove
to enable him to obtain a decree. Everything which if
E not proved would give the defendant a right to immediate
judgment must be part of the cause of action. But it has
no relation whatever to the defence which may be set
up by the defendant nor does it depend upon the
character of the relief prayed for by the plaintiff.”
F 6.7. In Sopan Sukhdeo Sable [Sopan Sukhdeo Sable v. Charity
Commr., (2004) 3 SCC 137] in paras 11 and 12, this Court has
observed as under: (SCC p. 146)
“11. In ITC Ltd. v. Debts Recovery Appellate
Tribunal [ITC Ltd. v. Debts Recovery Appellate
G Tribunal, (1998) 2 SCC 70] it was held that the basic
question to be decided while dealing with an application
filed under Order 7 Rule 11 of the Code is whether a
real cause of action has been set out in the plaint or
something purely illusory has been stated with a view to
get out of Order 7 Rule 11 of the Code.
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 235
[M.R. SHAH, J.]
12. The trial court must remember that if on a meaningful A
and not formal reading of the plaint it is manifestly
vexatious and meritless in the sense of not disclosing a
clear right to sue, it should exercise the power under
Order 7 Rule 11 of the Code taking care to see that the
ground mentioned therein is fulfilled. If clever drafting
B
has created the illusion of a cause of action, it has to be
nipped in the bud at the first hearing by examining the
party searchingly under Order 10 of the Code. (See T.
Arivandandam v. T.V. Satyapal [(1977) 4 SCC 467].)”
6.8. In Madanuri Sri Rama Chandra Murthy [Madanuri Sri
Rama Chandra Murthy v. Syed Jalal, (2017) 13 SCC 174], this C
Court has observed and held as under: (SCC pp. 178-79, para
7)
“7. The plaint can be rejected under Order 7 Rule 11 if
conditions enumerated in the said provision are fulfilled.
It is needless to observe that the power under Order 7 D
Rule 11 CPC can be exercised by the court at any stage
of the suit. The relevant facts which need to be looked
into for deciding the application are the averments of
the plaint only. If on an entire and meaningful reading
of the plaint, it is found that the suit is manifestly E
vexatious and meritless in the sense of not disclosing
any right to sue, the court should exercise power under
Order 7 Rule 11 CPC. Since the power conferred on
the court to terminate civil action at the threshold is
drastic, the conditions enumerated under Order 7 Rule
11 CPC to the exercise of power of rejection of plaint F
have to be strictly adhered to. The averments of the
plaint have to be read as a whole to find out whether
the averments disclose a cause of action or whether
the suit is barred by any law. It is needless to observe
that the question as to whether the suit is barred by any G
law, would always depend upon the facts and
circumstances of each case. The averments in the
written statement as well as the contentions of the
defendant are wholly immaterial while considering the
prayer of the defendant for rejection of the plaint. Even
H
236 SUPREME COURT REPORTS [2022] 18 S.C.R.
A when the allegations made in the plaint are taken to be
correct as a whole on their face value, if they show that
the suit is barred by any law, or do not disclose cause of
action, the application for rejection of plaint can be
entertained and the power under Order 7 Rule 11 CPC
can be exercised. If clever drafting of the plaint has
B
created the illusion of a cause of action, the court will
nip it in the bud at the earliest so that bogus litigation
will end at the earlier stage.”
6.9. In Ram Singh [Ram Singh v. Gram Panchayat Mehal Kalan,
(1986) 4 SCC 364], this Court has observed and held that when
C the suit is barred by any law, the plaintiff cannot be allowed to
circumvent that provision by means of clever drafting so as to
avoid mention of those circumstances, by which the suit is barred
by law of limitation.”
7.9 Applying the law laid down by this Court in the aforesaid
D decisions on exercise of powers under Order VII Rule 11 CPC to the
facts of the case on hand and the averments in the plaints, we are of the
opinion that both the Courts below have materially erred in not rejecting
the plaints in exercise of powers under Order VII Rule 11(d) CPC. The
respective suits have been filed after a period of 10 years from the date
E of execution of the registered sale deeds. It is to be noted that one suit
was filed by the minor, which was filed in the year 2006, in which some
of the plaintiffs herein were also party to the said suit and in the said suit,
there was a specific reference to the Sale Deed dated 19.09.2005 and
the said suit came to be dismissed in the year 2014 and immediately
thereafter the present suits have been filed. Thus, from the averments
F in the plaint and the bundle of facts stated in the plaint, we are of the
opinion that by clever drafting, the plaintiffs have tried to bring the suits
within the period of limitation, which otherwise are barred by limitation.
Therefore, considering the decisions of this Court in the case of T.
Arivandandam (supra) and other decision of Raghwendra Sharan
G Singh (supra), and as the respective suits are barred by the law of
limitation, the respective plaints are required to be rejected in exercise
of powers under Order VII Rule 11 CPC.
8. In view of the above and for the reasons stated above, all these
appeals succeed. The impugned common judgment and order passed
H
C.S. RAMASWAMY v. V. K. SENTHIL & ORS. 237
[M.R. SHAH, J.]
by the High Court rejecting the revision applications and the orders passed A
by the learned Trial Court rejecting the respective applications under
Order VII Rule 11 CPC and refusing to reject the plaints in exercise of
powers under Order VII Rule 11 CPC are hereby quashed and set aside.
The respective applications filed by the appellant herein – original
defendant to reject the respective plaints on the ground that the same
B
are barred by the law of limitation are hereby allowed. The respective
plaints are hereby rejected on the ground that the same are barred by
limitation.
Present appeals are accordingly allowed. However, in the facts
and circumstances of the case, there shall be no order as to costs.
C
Divya Pandey and Anurag Bhaskar Appeals allowed.
(Assisted by : Adnan Khan, LCRA)
D
E
F
G
H
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.