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Supreme Court of India

DAHIBENversusARVINDBHAI KALYANJI BHANUSALI (GAJRA) (D) THR LRS & ORS.

Citation
2020 INSC 450
Decided
9 July 2020
Disposal
Dismissed

Holding

The suit is barred by limitation and fails to disclose a cause of action, so the plaint must be rejected under Order VII Rule 11(a) and (d).

Summary

The plaintiffs sold agricultural land to respondent No.1 in 2009 and alleged that only a small part of the sale consideration was paid, seeking cancellation of the sale deed. They filed the suit in December 2014, more than five years after the deed, claiming the cause of action arose only when they discovered alleged fraud in 2014. The trial court and the Gujarat High Court held that the plaintiffs had acknowledged full payment in the deed, that the cause of action arose in 2009, and that the suit was therefore barred by the three‑year limitation period under Articles 58 and 59 of the Limitation Act, 1963. The Supreme Court affirmed that the plaint neither disclosed a genuine cause of action nor complied with the limitation period, and that non‑payment of consideration cannot invalidate a registered sale deed. Consequently, the plaint was rightly rejected under Order VII Rule 11(a) and (d) of the CPC and the appeal was dismissed.

Issues considered

  • The plaint discloses a cause of action for cancellation of the sale deed.
  • The suit is barred by limitation under Articles 58 and 59 of the Limitation Act, 1963.
  • Whether non‑payment of the full sale consideration can be a ground to set aside a registered sale deed.
  • The applicability of Order VII Rule 11(a) and (d) of the CPC to reject the plaint.

Legislation cited

Subjects

Order VII Rule 11Limitation ActSale deed cancellationCause of actionVexatious litigationTransfer of Property Act

Judgment

694                    [2020]REPORTS
             SUPREME COURT    5 S.C.R. 694              [2020] 5 S.C.R.


A                               DAHIBEN
                                     v.
                ARVINDBHAI KALYANJI BHANUSALI
                     (GAJRA) (D) THR LRS & ORS.
B                     (Civil Appeal No. 9519 of 2019)
                              JULY 09, 2020
        [L. NAGESWARA RAO AND INDU MALHOTRA, JJ.]
         Code of Civil Procedure, 1908 – Or.VII, r. 11 (a) & (d) –
C Rejection of plaint, if suit is barred by Limitation and does not
  disclose cause of action – The plaintiffs sold the suit property to
  respondent no.1-purchaser vide registered sale deed dated
  02.07.2009 – The respondent had issued 36 cheques for
  Rs.1,74,02,000/- towards payment of the sale consideration in favour
  of the plaintiffs, the details of which were set out in the sale deed
D
  dated 02.07.2009 – The respondent no.1 subsequently sold the suit
  property to respondent nos.2 and 3 vide registered sale deed dated
  01.04.2013 – In 2014, the plaintiffs filed a suit against the
  respondent no.1 and also impleaded respondent nos.2 & 3 as
  defendants and sought cancellation of the sale deed dated
E 02.07.2009 as the sale consideration fixed was not paid in entirety
  by respondent no.1 – It was alleged that respondent no.1 had paid
  only Rs. 40,000/- through 6 cheques and remaining 30 cheques for
  Rs. 1,73,62,000 were ‘bogus’ cheques – Respondent Nos. 2 & 3
  filed an application for rejection of plaint u/or.VII,r.11(a) & (d) of
  the CPC contending that the suit filed by the plaintiffs was barred
F
  by limitation and no cause of action was disclosed in the plaint –
  The Trial Court on perusal of the registered sale deed dated
  02.07.2009 noted that the plaintiffs had in fact accepted and
  acknowledged the payment of the full sale consideration from
  respondent no.1, through cheques which were issued prior to the
G execution of the sale deed – The Trial Court held that period of
  limitation for filing the suit was 3 years from the date of execution
  of the sale deed dated 02.07.2009, however, the suit was filed on
  15.12.2014, which was barred by limitation – The High Court
  affirmed the findings of the Trial Court and held that the suit was
  barred by Limitation – On appeal, held: In the Sale Deed dated
H
                                     694
     DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                           695
             (GAJRA) (D) THR LRS. & ORS.

02.07.2009, the plaintiffs had expressly and unequivocally              A
acknowledged that the entire sale consideration was ‘paid’ by
defendant no. 1/respondent no. 1 herein to the plaintiffs – The
conduct of the plaintiffs in not taking recourse to legal action for
over a period of 5 and ½ years from the execution of the Sale Deed
in 2009, for payment of the balance sale consideration, also reflects   B
that the institution of the present suit was an after-thought – The
plaintiffs by clever drafting of the plaint, attempted to make out an
illusory cause of action and bring the suit within the period of
limitation – The plaintiffs deliberately did not mention the date of
the registered sale deed dated 02.07.2009 in the prayer, since it
would have become evident that suit was barred by limitation – The      C
omission was made to mislead the Court – Thus, plaintiffs failed to
discharge the onus of proof that the suit was filed within the period
of limitation – Besides, in view of the law laid down by the Supreme
Court, even if averments of the plaintiffs are taken to be true that
the entire sale consideration was not paid, it could not be a ground    D
for cancellation of the sale deed – The Plaintiffs may have other
remedies in law for recovery of the balance consideration, but could
not be granted the relief of cancellation of the registered Sale Deed
– Thus, the plaint was rightly rejected by the Trial Court u/Or. VII,
r.11 CPC.
                                                                        E
      Dismissing the appeal, the Court
       HELD: 1. If the case made out in the Plaint is to be believed,
it would mean that almost 99% of the sale consideration i.e.
Rs.1,73,62,000 allegedly remained unpaid throughout. It is,
however inconceivable that if the payments had remained unpaid,
the Plaintiffs would have remained completely silent for a period       F
of over 5 and ½ years, without even issuing a legal notice for
payment of the unpaid sale consideration, or instituting any
proceeding for recovery of the amount, till the filing of the present
suit in December 2014. [Para 15.2][712-D-E]
      2.1 In Vidyadhar v. Manikrao & Anr. this Court held that          G
the words “price paid or promised or part paid and part promised”
indicates that actual payment of the whole of the price at the time
of the execution of the Sale Deed is not a sine qua non for
completion of the sale. Even if the whole of the price is not paid,
                                                                        H
696            SUPREME COURT REPORTS                      [2020] 5 S.C.R.


A     but the document is executed, and thereafter registered, the sale
      would be complete, and the title would pass on to the transferee
      under the transaction. The non-payment of a part of the sale price
      would not affect the validity of the sale. Once the title in the
      property has already passed, even if the balance sale consideration
      is not paid, the sale could not be invalidated on this ground. In
B
      order to constitute a “sale”, the parties must intend to transfer
      the ownership of the property, on the agreement to pay the price
      either in praesenti, or in future. The intention is to be gathered
      from the recitals of the sale deed, the conduct of the parties, and
      the evidence on record. [Para 15.3][713-B-E]
C           2.2 In view of the law laid down by this Court, even if the
      averments of the Plaintiffs are taken to be true, that the entire
      sale consideration had not in fact been paid, it could not be a
      ground for cancellation of the Sale Deed. The Plaintiffs may have
      other remedies in law for recovery of the balance consideration,
D     but could not be granted the relief of cancellation of the registered
      Sale Deed. [Para 15.3][713-F-G]
            3. This Court finds that the suit filed by the Plaintiffs is
      vexatious, meritless, and does not disclose a right to sue. The
      plaint is liable to be rejected under Order VII Rule 11 (a). [Para
E     15.3][713-G-H]
             4. The conduct of the Plaintiffs in not taking recourse to
      legal action for over a period of 5 and ½ years from the execution
      of the Sale Deed in 2009, for payment of the balance sale
      consideration, also reflects that the institution of the present suit
F     is an after-thought. The Plaintiffs apparently filed the suit after
      the property was further sold by Respondent No.1 to Respondent
      Nos. 2 and 3, to cast a doubt on the title of Respondent No.1 to
      the suit property. [Para 15.5][715-C-D]
            5. The present case is a classic case, where the plaintiffs
G     by clever drafting of the plaint, attempted to make out an illusory
      cause of action, and bring the suit within the period of limitation.
      The Plaintiffs deliberately did not mention the date of the
      registered Sale Deed dated 02.07.2009 executed by them in
      favour of Respondent No.1, since it would be evident that the
      suit was barred by limitation. The prayer however mentions the
H
     DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                            697
             (GAJRA) (D) THR LRS & ORS.

date of the subsequent Sale Deed i.e. 01.04.2013 when the suit           A
property was further sold by Respondent No.1 to Respondent
Nos. 2 & 3. The omission of the date of execution of the Sale
Deed on 02.07.2009 in the prayer clause, was done deliberately
and knowingly, so as to mislead the Court on the issue of limitation.
[Para 15.7][716-B; F-H]
                                                                         B
      6. The delay of over 5 and ½ years after the alleged cause
of action arose in 2009, shows that the suit was clearly barred by
limitation as per Article 59 of the Limitation Act, 1963. The suit
was instituted on 15.12.2014, even though the alleged cause of
action arose in 2009, when the last cheque was delivered to the
Plaintiffs. The Plaintiffs have failed to discharge the onus of proof    C
that the suit was filed within the period of limitation. The plaint is
therefore, liable to be rejected under Order VII Rule 11 (d) of
CPC. [Para 15.8][717-A-B]
      Azhar Hussain v. Rajiv (1986) Suppl. SCC 315 : [1986]
      2 SCR 782; Liverpool & London S.P. & I Assn. Ltd. v.               D
      M.V. Sea Success I & Anr. (2004) 9 SCC 512 : [2003] 5
      Suppl. SCR 851; Swamy Atmanand v. Sri Ramakrishna
      Tapovanam (2005) 10 SCC 51 : [2005] 3 SCR 556; T.
      Arivandandam v. T.V. Satyapal & Anr. (1977) 4 SCC
      467 : [1978] 1 SCR 742 – relied on.                                E
      Maharaj Shri Manvendrasinhji Jadeja v. Rajmata
      Vijaykunverba w/o Late Maharaja Mahedrasinhji
      (1998) 2 GLH 823; Sopan Sukhdeo Sable v. Assistant
      Charity Commissioner (2004) 3 SCC 137 : [2004] 1
      SCR 1004; Hardesh Ores (P.) Ltd. v. Hede & Co. (2007)              F
      5 SCC 614 : [2007] 6 SCR 608; D. Ramachandran v.
      R.V. Janakiraman (1999) 3 SCC 267 : [1999] 1 SCR
      983; Vijay Pratap Singh v. DukhHaran Nath Singh AIR
      1962 SC 941 : [1962] Suppl. SCR 675; Saleem Bhai v.
      State of Maharashtra (2003) 1 SCC 557 : [2002] 5
      Suppl. SCR 491; I.T.C. Ltd. v. Debt Recovery Appellate             G
      Tribunal (1998) 2 SCC 170; Madanuri Sri
      Ramachandra Murthy v. Syed Jalal (2017) 13 SCC 174
      : [2017] 5 SCR 294; Khatri Hotels Pvt. Ltd. & Anr. v.
      Union of India & Anr. (2011) 9 SCC 126 : [2011] 15
                                                                         H
698            SUPREME COURT REPORTS                      [2020] 5 S.C.R.


A           SCR 299; State of Punjab v. Gurdev Singh (1991) 4
            SCC 1 : [1991] 3 SCR 663; Vidyadhar v. Manikrao &
            Anr. (1999) 3 SCC 573 : [1999] 1 SCR 1168;
            Raghwendra Sharan Singh v. Ram Prasanna Singh
            (Dead) by LRs. [2019] 4 SCR 1069 – referred to.
B                            Case Law Reference
      [1986] 2 SCR 782                     relied on          Para 12.1
      [2003] 5 Suppl. SCR 851             relied on           Para 12.3
      [2004] 1 SCR 1004                    referred to        Para 12.6
C     [2007] 6 SCR 608                     referred to        Para 12.7
      [1999] 1 SCR 983                     referred to        Para 12.7
      [1962] Suppl. SCR 675                referred to        Para 12.9
      [2002] 5 Suppl. SCR 491             referred to         Para 12.9
D     [2005] 3 SCR 556                     relied on          Para 12.10
      [1978] 1 SCR 742                     relied on          Para 12.10
      (1998) 2 SCC 170                     referred to        Para 13
      [2017] 5 SCR 294                     referred to        Para 13
E     [2011] 15 SCR 299                    referred to        Para 14
      [1991] 3 SCR 663                     referred to        Para 13
      [1999] 1 SCR 1168                    referred to        Para 15.3
      [2019] 4 SCR 1069                    referred to        Para 15.8

F           CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9519
      of 2019.
            From the Judgment and Order dated 19.10.2016 of the High Court
      of Gujarat at Ahmedabad in First Appeal No. 2324 of 2016.
           Harin P. Raval, Sr. Adv., Gaurav Agrawal, Nipun Saxena, Kartikey
G     Kanojiya, Ms. Sukanya Singh, Advs. for the Appellant.
            Nakul Dewan, Sr. Adv., Pradhuman Gohil, Ms. Taruna Singh Gohil,
      Ms. Ranu Purohit, Shiva P., Sambit Nanda, Praveen Kumar Rai, Hemal
      Kiritkumar Sheth, P.S. Sudheer, Rishi Maheshwari, Ms. Mayuri Nayyar
      Chawla, Ms. Anne Mathew, Bharat Sood, Ms. Shruti Jose, Advs. for
H     the Respondents.
      DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                      699
              (GAJRA) (D) THR LRS. & ORS.

       The Judgment of the Court was delivered by                                   A
       INDU MALHOTRA, J.
        1. The present Civil Appealhas been filed to challenge the impugned
Judgment and Order dated 19.10.2016 passedby a Division Bench of
the Gujarat High Court, which affirmed the Order of the Trial Court,
allowing the application filed by Defendant Nos. 2 and 3/Respondent                 B
Nos. 2 and 3 herein under Order VII Rule 11(d), CPC holding that the
suit filed by the Appellant and Respondent Nos. 9 to 13 herein(hereinafter
referred to as the “Plaintiffs”) was barred by limitation.
       2. The subject-matter of the present proceedings pertains to a
plot of agricultural land of old tenure, admeasuring approximately 8701             C
sq.mtrs. in Revenue Survey No.610, Block No.573 situated in village
MotaVarachha, Sub-District Surat (hereinafter referred to as the “suit
property”) which was in the ownership of the Plaintiffs.
       3. The land was under restrictive tenure as per Section 73AA of
the Land Revenue Code. The Plaintiffs filed an application dated                    D
13.05.2008 before the Collector, Surat to obtain permission for selling
the suit property to Respondent No.1/Defendant No.1, which was non-
irrigated, and stated that they had no objection to the sale of the suit
property.
       4. The Collector vide Order dated 19.06.2009, after carrying out             E
verification of the title of the Plaintiffs, permitted sale of the suit property,
and fixed the sale price of the suit property as per the jantri issued by
the State Government @ Rs.2000/- per sq.mtr., which would work out
to Rs.1,74,02,000/-. The Collector granted permission for the sale subject
to the terms and conditions contained in Section 73AA of the Land                   F
Revenue Code. It was stipulated that the purchaser shall make the
payment by cheque, and reference of the payment shall be made in the
Sale Deed.
       5. After obtaining permission from the Collector, the Plaintiffs
sold the suit property to Respondent No.1 herein vide registered Sale
                                                                                    G
Deed dated 02.07.2009.
      Respondent No.1 - purchaser issued 36 cheques for
Rs.1,74,02,000 towards payment of the sale consideration in favour of
the Plaintiffs, the details of which were set out in the registered Sale
Deed dated 02.07.2009.
                                                                                    H
700             SUPREME COURT REPORTS                           [2020] 5 S.C.R.


A           6. The Respondent No.1 subsequently sold the suit property to
      Respondent Nos. 2 and 3 herein vide registered Sale Deed dated
      01.04.2013, for a sale consideration of Rs.2,01,00,000/-.
             7. On 15.12.2014, the Plaintiffs filed Special Civil Suit No.718/
      2014 before the Principal Civil Judge, Surat against the original purchaser
B     i.e. Respondent No. 1, and also impleaded the subsequent purchasers
      i.e. Respondent Nos. 2 and 3 as defendants. It was inter alia prayed
      that the Sale Deed dated 02.07.2009 be cancelled and declared as being
      illegal, void, ineffective and not binding on them, on the ground that the
      sale consideration fixed by the Collector,had not been paid in entirety by
      Respondent No. 1.
C
             The Plaintiffs contended that they were totally illiterate, and were
      not able to read and write, and were only able to put their thumb impression
      on the Sale Deed dated 02.07.2009. The Sale Deed was obtained without
      payment of full consideration. The Respondent No.1 had paid only
      Rs. 40,000 through 6 cheques, and remaining 30 cheques for Rs.1,73,62,000
D     were “bogus” cheques. The Plaintiffs prayed for cancellation of the
      Sale Deed dated 02.07.2009, and also prayed that the subsequent Sale
      Deed dated 01.04.2013 be declared as illegal, void and ineffective; and,the
      physical possession of the suit property be restored to the Plaintiffs.
             8. Respondent Nos.2 and 3 filed an Application for Rejection of
E     the Plaint under Order VII Rule 11 (a) and (d) of the CPC, contending
      that the suit filed by the Plaintiffs was barred by limitation, and that no
      cause of action had been disclosed in the plaint.
             It was inter alia submitted that the Plaintiffs had admitted the
      execution of the Sale Deed dated 02.07.2009 in favour of Respondent
F     No.1 before the Sub-Registrar, Surat. The only dispute now sought to be
      raised was that they had not received a part of the sale consideration.
      This plea was denied as being incorrect.
             It was further submitted that if the Sale Deed dated 02.07.2009
      was being challenged, then the suit ought to have been filed within three
G     years i.e. on or before 02.07.2012.
             It was further submitted that pursuant to the execution of the
      registered Sale Deed dated 02.07.2009, the Plaintiffs had participated in
      the proceedings before the Revenue Officer for transfer of the suit
      property in the revenue records in favour of Respondent No.1. On that
H
     DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                   701
    (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

basis, the suit property had been transferred to Respondent No.1 vide           A
Hakk Patrak Entry No. 6517 dated 24.07.2009. Before certifying the
said entry, notice under Section 135D of the Land Revenue Code had
been duly served on the Plaintiffs, and ever since, Respondent No. 1
had been paying the land revenue on the suit property, and taking the
produce therefrom.
                                                                                B
      Respondent Nos. 2 and 3 further submitted that they had purchased
the suit property from Respondent No.1 after verifying the title, and
inspecting the revenue records. The Respondent No.1 had sold the suit
property vide a registered Sale Deed dated 01.04.2013, on payment of
valuable consideration of Rs. 2,01,00,000/-. Pursuant thereto, the suit
property was transferred in the name of Respondent Nos. 2 and 3 in the          C
revenue records.
       It was further submitted that the Plaintiffs, with a view to mislead
the Court, had deliberately filed copies of the 7/12 extracts dated
20.07.2009, which was prior to the mutation being effected in the name
of Respondent No.1. It was submitted that the suit was devoid of any            D
merit, and clearly time-barred, and liable to be rejected.
       9. The Trial Court carried out a detailed analysis of the averments
in the plaint alongwith the documents filed with the plaint, including the
registered Sale Deed dated 02.07.2009, executed by the Plaintiffs. The
undisputed facts which emerged from the averments in the plaint was             E
that the suit property was of restrictive tenure under Section 73AA of
the Land Revenue Code. Since the Plaintiffs were in dire need of money,
and wanted to sell the suit property to Respondent No. 1, they had filed
an application before the Collector, Surat on 13.05.2008 to obtain
permission for sale of the suit property. The Collector vide Order dated        F
19.06.2009 granted permission to the Plaintiffs and fixed the sale price
at Rs. 1,74,02,000/- which was to be paid through cheques. It was
contended in the plaint that the Respondent No. 1 had in fact paid only
Rs. 40,000/-, and false cheques of Rs. 1,73,62,000/- were issued, which
remained unpaid.
                                                                                G
      On a perusal of the registered Sale Deed dated 02.07.2009,
[marked as Exhibit 3/9] it was noted that the Plaintiffs had in fact accepted
and acknowledged the payment of the full sale consideration from
Respondent No.1, through cheques which were issued prior to the
execution of the Sale Deed, during the period 07.07.2008 to 02.07.2009.
                                                                                H
702             SUPREME COURT REPORTS                            [2020] 5 S.C.R.


A            As per the Plaintiffs, the Sale Deed was executed on 02.07.2009
      in favour of Respondent No.1, which was registered before the Office
      of the Sub-Registrar, for which the Plaintiffs would have remained
      personally present.The transaction having been executed through a
      registered document, was in the public domain, and in the knowledge of
      the Plaintiffs right from the beginning.
B
             The Trial Court noted that there was no averment in the plaint
      that the cheques had not been received by them. Once the cheques
      were received by them, in the normal course, they would have presented
      the cheques for encashment within 6 months.The Court held that had
      the Plaintiffs not been able to encash 30 cheques, a complaint ought to
C     have been filed, or proceedings initiated for recovery of the unpaid sale
      consideration. There was however, nothing on record to show that the
      Plaintiffs had made any complaint in this regard for a period of over 5
      years.
            The Plaintiffs also failed to produce the returned cheques, their
D     passbooks, bank statements, or any other document to support their
      averments in the plaint.
            A notice for transfer of the suit property in the revenue records
      under Section 135D was served on the Plaintiffs, to which no objection
      was raised. The name of Respondent No. 1 was entered into the revenue
E     records, which was certified by the Revenue Officer.
             The Trial Court held that the period of limitation for filing the suit
      was 3 years from the date of execution of the Sale Deed dated 02.07.2009.
      The suit was filed on 15.12.2014. The cause of action as per the averments
      in the plaint had arisen when the Defendant No.1/Respondent No.1 had
      issued ‘false’ or ‘bogus’ cheques to the Plaintiffs in 2009. The suit for
F
      cancellation of the Sale Deed dated 02.07.2009 could have been filed by
      2012, as per Articles 58 and 59 of the Limitation Act, 1963.The suit was
      however filed on 15.12.2014, which was barred by limitation.
            The suit property was subsequently sold by Respondent No.1 to
      Respondent Nos. 2 and 3 by a registered Sale Deed dated 01.04.2013.
G     Before purchasing the suit property, the Respondent Nos. 2 and 3 had
      issued a public notice on 14.08.2012. The Plaintiffs did not raise any
      objection to the same.
             The Trial Court, on the basis of the settled position in law, held
      that the suit of the Plaintiffs was barred by limitation, and allowed the
H     application under Order VII Rule 11(d) CPC.
     DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                       703
    (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

       10. Aggrieved by the Judgment dated 12.08.2016 passed by the                 A
Sr. Civil Judge, Surat, the Plaintiffs filed First Appeal No.2324/2016 before
the High Court of Gujarat at Ahmedabad.
        The Division Bench of the High Court took note of the fact that
the Plaintiffs did not deny having executed the registered Sale Deed
dated 02.07.2009 in favour of Respondent No.1. In the said Sale Deed,               B
it was specifically admitted and acknowledged by the Plaintiffs that they
had received the full sale consideration. The Sale Deed contained the
complete particulars with respect to the payment of sale consideration
by Respondent No. 1 through 36 cheques, the particulars of which were
recorded therein. Since the execution of the Sale Deed was not disputed,
and the conveyance was duly registered in the presence of the Plaintiffs            C
before the Sub-Registrar, the Sale Deed could not be declared to be
void, illegal, or ineffective.
      The suit property was subsequently sold by Respondent No. 1 in
favour of Respondent Nos. 2 and 3 vide registered Sale Deed dated
01.04.2013 for a sale consideration of Rs. 2,01,00,000/-. Respondent                D
Nos. 2 and 3 were bona fide purchasers for valuable consideration.
       The present suit for cancellation of the Sale Deed was filed by
the Plaintiffs after a period of over 5 years after the execution of the
Sale Deed dated 02.07.2009, and 1 year after the execution of the Sale
Deed dated 01.04.2013 by Respondent No.1. It was noted that prior to                E
the institution of the suit on 15.12.2014, at no point of time did the Plaintiffs
raise any grievance whatsoever,of not having received the full sale
consideration mentioned in the Sale Deed dated 02.07.2009. It was for
the first time that such an allegation was made after over 5 years from
the date of execution of the Sale Deed dated 02.07.2009.                            F
       Since the suit in respect of the Sale Deed dated 02.07.2009 was
held to be barred by law of limitation, the High Court was of the view
that the suit could not be permitted to be continued even with respect to
the subsequent Sale Deed dated 01.04.2013. The Plaintiffs had not raised
any allegation against Respondent Nos. 2 and 3, and there was no privity            G
of contract between the Plaintiffs and Respondent Nos. 2 and 3.
       The High Court rightly affirmed the findings of the Trial Court,
and held that the suit was barred by limitation, since it was filed beyond
the period of limitation of three years.
                                                                                    H
704            SUPREME COURT REPORTS                         [2020] 5 S.C.R.


A             11. Aggrieved by the impugned Judgment and Order dated
      12.08.2016 passed by the High Court, the original Plaintiff No.1 has
      filed the present Civil Appeal.
             12. We have heard the learned Counsel for the parties, perused
      the plaint and documents filed therewith, as also the written submissions
B     filed on behalf of the parties.
            12.1 We will first briefly touch upon the law applicable for
                 deciding an application under Order VII Rule 11CPC, which
                 reads as under:
                   “11. Rejection of plaint.– The plaint shall be rejected
C                  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
D                  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
E                  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
F                  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
G                  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.”

H                                                         (emphasis supplied)
      DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                        705
     (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

        The remedy under Order VII Rule 11 is an independent and special              A
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.
       The underlying object of Order VII Rule 11 (a) is that if in a suit,           B
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.
                                                                                      C
        In Azhar Hussain v. Rajiv Gandhi1 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 :
       “12. …The whole purpose of conferment of such power is to                      D
       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              E
       a plaint, if it does not disclose any cause of action.”
       12.2 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.
                                                                                      F
       12.3 Under Order VII Rule 11, a duty is cast on the Court to
            determine whether the plaint discloses a cause of action by
            scrutinizing the averments in the plaint2, read in conjunction
            with the documents relied upon, or whether the suit is barred
            by any law.
                                                                                      G

1
  1986 Supp. SCC 315
Followed in Maharaj Shri Manvendrasinhji Jadeja v. Rajmata Vijaykunverba w/o Late
Maharaja Mahedrasinhji, (1998) 2 GLH 823
2
  Liverpool & London S.P. & I Assn. Ltd. v. M.V. Sea Success I & Anr., (2004) 9 SCC
512.                                                                                  H
706      SUPREME COURT REPORTS                          [2020] 5 S.C.R.


A     12.4 Order VII Rule 14(1) provides for production of documents,
           on which the plaintiff places reliance in his suit, which reads
           as under :
            “Order 7 Rule 14: Production of document on which
            plaintiff sues or relies.–
B           (1)Where a 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
C           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
D           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.
E           (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)
F
                   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
G           of the plaint.
      12.5 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.
H
     DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                    707
    (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

       12.6 At this stage, the pleas taken by the defendant in the written       A
            statement and application for rejection of the plaint on the
            merits,would be irrelevant, and cannot be adverted to, or
            taken into consideration.3
       12.7 The test for exercising the power under Order VII Rule 11
            is that if the averments made in the plaint are taken in             B
            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&Anr.,4 which reads as :
              “139. Whether a plaint discloses a cause of action or              C
              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
              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          D
              be passed.”
                    In Hardesh Ores (P.) Ltd. v. Hede & Co.5 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          E
              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.6
       12.8 If on a meaningful reading of the plaint, it is found that the       F
            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.
       12.9 The power under Order VII Rule 11 CPC may be exercised
            by the Court at any stage of the suit, either before registering     G

3
  Sopan Sukhdeo Sable v. Assistant Charity Commissioner, (2004) 3 SCC 137
4
  (2004) 9 SCC 512.
5
  (2007) 5 SCC 614.
6
  D. Ramachandran v. R.V. Janakiraman, (1999) 3 SCC 267; See also Vijay Pratap
Singh v. Dukh Haran Nath Singh, AIR 1962 SC 941.                                 H
708               SUPREME COURT REPORTS                            [2020] 5 S.C.R.


A                     the plaint, or after issuing summons to the defendant, or
                      before conclusion of the trial, as held by this Court in the
                      judgment of Saleem Bhai v. State of Maharashtra.7 The
                      plea that once issues are framed, the matter must necessarily
                      go to trial was repelled by this Court in Azhar Hussain
                      (supra).
B
               12.10 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,
C                    but to reject the plaint.
             13. “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
D     the suit.
               In Swamy Atmanand v. Sri Ramakrishna Tapovanam8 this Court
      held :
               “24. A cause of action, thus, means every fact, which if
E              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 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
F              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)
            In T. Arivandandamv. T.V. Satyapal & Anr.9 this Court held that
G
      while considering an application under Order VII Rule 11 CPC what is


      7
        (2003) 1 SCC 557.
      8
        (2005) 10 SCC 51.
      9
        (1977) 4 SCC 467.
H
        DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                  709
       (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

required to be decided is whether the plaint discloses a real cause of            A
action, or something purely illusory, in the following words : -
          ‘‘5. …The learned Munsiff 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 O. VII, R. 11,         B
          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)
       Subsequently, in I.T.C. Ltd. v. Debt Recovery Appellate                    C
Tribunal,10 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.
         If, however, by clever drafting of the plaint, it has created the
illusion of a cause of action, this Court in Madanuri Sri Ramachandra             D
Murthy v. Syed Jalal11 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.                                         E
        14. 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        F
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.
      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          G
cancellation of an instrument, or rescission of a contract, which reads as
under :

10
     (1998) 2 SCC 170.
11
     (2017) 13 SCC 174.
                                                                                  H
710                  SUPREME COURT REPORTS                             [2020] 5 S.C.R.


A             Descrip tion of suit      Period of limitation    Time from which period
                                                                       begins to run
           58. To obtain any other          Three years        When the right to sue first
           declaration.                                        accrues.
           59. To cancel or set aside       Three years        When the facts entitling the
           an instrument or decree or                          plaintiff to have the
           for the rescission of a                             instrument      or    decree
B          contract.                                           cancelled or set aside or
                                                               the contract rescinded first
                                                               become known to 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.
C
                In Khatri Hotels Pvt. Ltd. & Anr. v. Union of India & Anr.,12
      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
D     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.
              A three-Judge Bench of this Court in State of Punjab v. Gurdev
                13
      Singh, held that the Court must examine the plaint and determine when
E     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
F     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.
                15. Analysis and Findings
G
            We have carefully perused the averments in the plaint read with
      the documents relied upon.
                15.1 On a reading of the plaint and the documents relied upon, it
                     is clear that the Plaintiffs have admitted the execution of
      12
           (2011) 9 SCC 126.
H     13
           (1991) 4 SCC 1.
 DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                           711
(GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

      the registered Sale Deed dated 02.07.2009 in favour of        A
      Defendant No.1/Respondent No.1 herein.
      Para 5 of the plaint reads as :
      “(5) …Thus, subject of the aforesaid terms the plaintiffs
      had executed sale deed selling the suit property to the
      opponent no.1 vide sale deed dated 02/07/2009 bearing         B
      Sr.No. 5158…”
            The case made out in the Plaint is that even though
      they had executed the registeredSale Deed dated
      02.07.2009 for a sale consideration of Rs.1,74,02,000,an
      amount of only Rs.40,000 was paid to them. The remaining      C
      31 cheques mentioned in the Sale Deed, which covered the
      balance amount of Rs.1,73,62,000 were alleged to be
      “bogus” or “false”, and allegedly remained unpaid.
            We find the averments in the Plaint completely
      contrary to the recitals in the Sale Deed dated 02.07.2009,   D
      which was admittedly executed by the Plaintiffs in favour
      of Respondent No.1. In the Sale Deed, the Plaintiffs have
      expressly and unequivocally acknowledged that the entire
      sale consideration was “paid” by Defendant No.1/
      Respondent No.1 herein to the Plaintiffs.                     E
            Clauses 3 and 4 of the Sale Deed are extracted
      hereinbelow for ready reference : -
      “Since the full amount of consideration of the sale as
      decided above, has since been paid by you the Vendees
      to we the Vendors of this sale deed, for which we the         F
      Vendors of this sale deed acknowledge the same so, we
      or our descendants, guardian or legal heirs is to take
      any dispute or objection in future that such amount is
      not received, or is received less, and if we do so then,
      the same shall be void by this deed and, if any loss or
                                                                    G
      damage occurs due to the same then, we the Vendors of
      this sale deed and descendants, guardians, legal heirs
      of we the vendors are liable to the pay the same to you
      the vendees or your descendants, guardian, legal heirs
      and you can recover the same by court proceedings.
                                                                    H
712      SUPREME COURT REPORTS                          [2020] 5 S.C.R.


A           (4) We the party of Second part i.e. Vendors of the sale
            deed since received full consideration on the above
            facts, the physical possession, occupancy of the land
            or the property mentioned in this sale deed has been
            handed over to you the Vendee of this sale deed, and
            that has been occupied and taken in possession of the
B
            land or property mentioned in this sale deed by you the
            Vendee of this sale deed by coming at the site and
            therefore, we the Vendors of this sale deed have not to
            raise any dispute in the future that the possession of
            the land or the property has not been handed over to
C           you. …”
                                                     (emphasis supplied)
                   The Sale Deed records that the 36 cheques covering
            the entire sale consideration of Rs.1,74,02,000 were “paid”
            to the Plaintiffs, during the period between 07.07.2008 to
D           02.07.2009.
      15.2 If the case made out in the Plaint is to be believed, it would
           mean that almost 99% of the sale consideration i.e.
           Rs.1,73,62,000 allegedly remained unpaid throughout. It is,
           however inconceivable that if the payments had remained
E          unpaid, the Plaintiffs would have remained completely silent
           for a period of over 5 and ½ years, without even issuing a
           legal notice for payment of the unpaid sale consideration,
           or instituting any proceeding for recovery of the amount, till
           the filing of the present suit in December 2014.
F     15.3 The Plaintiffs have made out a case of alleged non-payment
           of a part of the sale consideration in the Plaint, and prayed
           for the relief of cancellation of the Sale Deed on this ground.
                Section 54 of the Transfer of Property Act, 1882 provides
            as under :
G
            “54. ‘Sale’ defined.—‘Sale’ is a transfer of ownership
            in exchange for a price paid or promised or part-paid
            and part-promised.”
                  The definition of “sale” indicates that there must be
            a transfer of ownership from one person to another i.e.
H
        DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                     713
       (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

                transfer of all rights and interest in the property, which was       A
                possessed by the transferor to the transferee. The transferor
                cannot retain any part of the interest or right in the property,
                or else it would not be a sale. The definition further indicates
                that the transfer of ownership has to be made for a “price
                paid or promised or part paid and part promised”. Price
                                                                                     B
                thus constitutes an essential ingredient of the transaction of
                sale.
                       In Vidyadhar v. Manikrao & Anr.14 this Court held
                that the words “price paid or promised or part paid and part
                promised” indicates that actual payment of the whole of
                the price at the time of the execution of the Sale Deed is           C
                not a sine qua non for completion of the sale. Even if the
                whole of the price is not paid, but the document is executed,
                and thereafter registered, the sale would be complete, and
                the title would pass on to the transferee under the
                transaction. The non-payment of a part of the sale price             D
                would not affect the validity of the sale. Once the title in
                the property has already passed, even if the balance sale
                consideration is not paid, the sale could not be invalidated
                on this ground. In order to constitute a “sale”, the parties
                must intend to transfer the ownership of the property, on
                the agreement to pay the price either in praesenti, or in            E
                future. The intention is to be gathered from the recitals of
                the sale deed, the conduct of the parties, and the evidence
                on record.
                       In view of the law laid down by this Court, even if
                the averments of the Plaintiffs are taken to be true, that the       F
                entire sale consideration had not in fact been paid, it could
                not be a ground for cancellation of the Sale Deed. The
                Plaintiffs may have other remedies in law for recovery of
                the balance consideration, but could not be granted the relief
                of cancellation of the registered Sale Deed.                         G
                       We find that the suit filed by the Plaintiffs is vexatious,
                meritless, and does not disclose a right to sue. The plaint is
                liable to be rejected under Order VII Rule 11 (a).

14
     (1999) 3 SCC 573.
                                                                                     H
714     SUPREME COURT REPORTS                           [2020] 5 S.C.R.


A     15.4 The Plaintiffs have averred in the plaint that the period of
           limitation commenced on 21.11.2014, when they obtained a
           copy of the index of the Sale Deed dated 02.07.2009, and
           discovered the alleged fraud committed by Defendant No.1.
                The relevant extract from the plaint in this regard is set
B           out hereinbelow :–
            “(7) … Not only that but also, on obtaining the copy of
            the index of the sale deed of the acts committed by the
            Opponent No.1, 4, 5 and on obtaining the certified copy
            of the sale deed, we the plaintiffs could come to know
C           on 21-11-2014 that, the Opponent No.1 had in collusion
            with Opponent No.4, 5 mentioned the false cheques
            stated below in the so called sale deed with intention to
            commit fraud and no any consents of we the plaintiffs
            have also been obtained in that regard. The said cheques
            have not been received to we the plaintiffs or no any
D           amounts of the said cheques have been credited in
            accounts of we the plaintiffs. Thus, the cheques which
            have been mentioned in the agreement caused to have
            been executed by the Opponent No.1, the false cheques
            have been mentioned of the said amounts. Not only that
E           but also, the agricultural land under the suit had been
            sold by the Opponent No.1 to the Opponent No.2
            Dillipbhai Gordhanbhai Sonani and the Opponent
            No.3, Laljibhai Gordhanbhai Sonani on 1-4-2013 for
            Rs.2,01,00,000/- as if the said sale deed was having
            clear title deeds. On taking out the copy of the said
F           sale deed with seal and signature on 21-11-2014, it could
            come to the knowledge of we the plaintiffs. We the
            plaintiffs have not done any signature or witness on
            the said agreement. The said agreement is not binding
            to we the plaintiffs. Since the said agreement is since
G           null, void and invalid as well as illegal, therefore, no
            any Court fee stamp duty is required to be paid by we
            the plaintiff on the said agreement and for that we the
            plaintiffs rely upon the judgment of the Supreme Court
            in A.I.R.2010, Supreme Court, Page No. 2807. …”

H                                                  (emphasis supplied)
 DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                 715
(GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

             The plea taken in the plaint that they learnt of the         A
       alleged fraud in 2014, on receipt of the index of the Sale
       Deed, is wholly misconceived, since the receipt of the index
       would not constitute the cause of action for filing the suit.
              On a reading of the plaint, it is clear that the cause of
       action arose on the non-payment of the bulk of the sale            B
       consideration, which event occurred in the year 2009. The
       plea taken by the Plaintiffs is to create an illusory cause of
       action, so as to overcome the period of limitation. The plea
       raised is rejected as being meritless and devoid of any truth.
 15.5 The conduct of the Plaintiffs in not taking recourse to legal       C
      action for over a period of 5 and ½ years from the execution
      of the Sale Deed in 2009, for payment of the balance sale
      consideration, also reflects that the institution of the present
      suit is an after-thought. The Plaintiffs apparently filed the
      suit after the property was further sold by Respondent No.1
      to Respondent Nos. 2 and 3, to cast a doubt on the title of         D
      Respondent No.1 to the suit property.
 15.6 The Plaintiffs have placed reliance on the Order of the
      Collector dated 19.06.2009 with the plaint. The Order
      reveals that the permission was granted subject to the
      fulfilment of certain conditions. Clause 4 of the permission        E
      states that :
       “(4) The purchaser of the land/property, shall have to
       make the payment of the price of the land by cheque
       and its reference shall require to be made in the Sale
       Deed.”                                                             F
              If the Plaintiffs had a genuine grievance of non-
       payment of the balance sale consideration, the Plaintiffs
       could have moved for revocation of the permission granted
       by the Collector on 19.06.2009.
                                                                          G
       Clause 6 of the Order provided that :
       “(6) On making violation of any of the aforesaid terms,
       the permission shall automatically be treated as
       cancelled and, separate proceeding shall be taken up
       for the violation of the terms and conditions.”
                                                                          H
716      SUPREME COURT REPORTS                           [2020] 5 S.C.R.


A                  The Plaintiffs did not make any complaint whatsoever
            to the Collector at any point of time. The conduct of the
            Plaintiffs is reflective of lack of bona fide.
      15.7 The present case is a classic case, where the plaintiffs by
           clever drafting of the plaint, attempted to make out an illusory
B          cause of action, and bring the suit within the period of
           limitation.
            Prayer 1 of the plaint reads as :
            “1) The suit property being agricultural land of old
            tenure of Revenue Survey No.610 whose block Number
C           is 573 situated at village Mota Varachha, Sub-district :
            Surat city, Dis : Surat has been registered by the
            opponent No.1 of this case in office of the Sub-Registrar
            (Katar Gam) at Surat vide Serial No.5158 in book No.1.
            Since, the same is illegal, void, in-effective and since
            the amount of consideration is received by the plaintiffs,
D           and by holding that it is not binding to the plaintiffs
            and to cancel the same, and since the sale deed as
            aforesaid suit property has been executed by the
            opponent No.1 to the opponent No.2,3, it is registered
            in the office of Sub-registrar, Surat (Rander) on 01/04/
E           2013 vide serial No.443 which is not binding to we the
            plaintiffs. Since, it is illegal, void, in-effective and
            therefore, this Hon’ble Court may be pleased to cancel
            the same and this Hon’ble Court may be pleased to send
            the Yadi in that regard to the Sub-registrar, Surat (Karat
            Gam) and the Sub-Registrar (Rander) in regard to the
F           cancellation of both the aforesaid documents.”
                         The Plaintiffs deliberately did not mention the
            date of the registered Sale Deed dated 02.07.2009 executed
            by them in favour of Respondent No.1, since it would be
            evident that the suit was barred by limitation. The prayer
G           however mentions the date of the subsequent Sale Deed
            i.e. 01.04.2013 when the suit property was further sold by
            Respondent No.1 to Respondent Nos. 2 & 3.
                   The omission of the date of execution of the Sale
            Deed on 02.07.2009 in the prayer clause, was done
H           deliberately and knowingly, so as to mislead the Court on
            the issue of limitation.
        DAHIBEN v. ARVINDBHAI KALYANJI BHANUSALI                                   717
       (GAJRA) (D) THR LRS. & ORS. [INDU MALHOTRA, J.]

          15.8 The delay of over 5 and½ years after the alleged cause of           A
               action arose in 2009,shows that the suit was clearly barred
               by limitation as per Article 59 of the Limitation Act, 1963.
               The suit was instituted on 15.12.2014, even though the alleged
               cause of action arose in 2009, when the last cheque was
               delivered to the Plaintiffs.
                                                                                   B
                     The Plaintiffs have failed to discharge the onus of proof
                 that the suit was filed within the period of limitation. The
                 plaint is therefore, liable to be rejected under Order VII
                 Rule 11 (d) of CPC.
                    Reliance is placed on the recent judgment of this Court        C
                 rendered in Raghwendra Sharan Singh v. Ram Prasanna
                 Singh (Dead) by LRs.15 whereinthis Court held the suit
                 would be barred by limitation under Article 59 of the
                 Limitation Act, if it was filed beyond three years of the
                 execution of the registered deed.
          15.9 The Plaintiffs have also prayed for cancellation of the             D
               subsequent Sale Deed dated 01.04.2013 executed by
               Respondent No.1 in favour of Respondent Nos. 2 and 3;
               since the suit in respect of the 1 st Sale Deed dated
               02.07.2009 is rejected both under clauses (a) and (d) of
               Order VII Rule 11, the prayer with respect to the 2nd Sale          E
               Deed dated 01.04.2003 cannot be entertained.
      16. The present suit filed by the Plaintiffs is clearly an abuse of
the process of the court, and bereft of any merit.
      The Trial Court has rightly exercised the power under Order VII
Rule 11 CPC, by allowing the application filed by Respondent Nos.2 &               F
3, which was affirmed by the High Court.
       In view of the aforesaid discussion, the present Civil Appeal is
dismissed with costs of Rs. 1,00,000/- payable by the Appellant to
Respondent Nos. 2 and 3, within a period of twelve weeks from the date
of this Judgment.                                                                  G
          Pending applications, if any, are accordingly disposed of.


Ankit Gyan                                                     Appeal dismissed.

15
     Civil Appeal No.2960/2019 decided on 13.03.2019.                              H


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