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Supreme Court of India

LACHHMAN SINGH (DECEASED) THROUGH LEGAL REPRESENTATIVES & ORS.versusHAZARA SINGH (DECEASED) THROUGH LEGAL REPRESENTATIVES & ORS.

Citation
2008 INSC 591
Decided
6 May 2008
Disposal
Case Partly allowed

Holding

Limitation is a question of jurisdiction; the plaintiff must prove the suit is within the limitation period, and the court may admit additional evidence under Order 41 Rule 27 when required for a just decision.

Summary

The appellant sought a decree for redemption of a mortgage whose deed was registered in 1913, but the exact execution date was unknown. The suit was filed on 30 December 1970 and was dismissed by the trial court and first appellate court as barred by limitation. The High Court reversed, holding that the relationship between mortgagor and mortgagee was proved and that the onus to show limitation was on the defendants. The Supreme Court held that limitation is a question of jurisdiction; under Section 3 of the Limitation Act the plaintiff must establish that the suit is within the prescribed period, and the court may admit additional evidence under Order 41 Rule 27 when necessary. Assuming the mortgage was executed on 20 February 1913, the suit filed in 1970 fell within the seven‑year limitation period applicable after the 1963 Act, so the appeal was partly allowed and the matter remitted to the High Court to record the additional evidence.

Issues considered

  • Whether limitation is a question of jurisdiction and the onus to prove a suit is within the limitation period lies on the plaintiff.
  • Whether the suit for redemption of mortgage filed in 1970 is barred by limitation given the unknown exact date of the mortgage but a mutation date of 1913.
  • Whether additional evidence, namely the registered mortgage deed, can be adduced under Order 41 Rule 27 of the CPC in appellate proceedings.

Legislation cited

Subjects

limitationjurisdictionmortgage redemptionadditional evidenceOrder 41 Rule 27civil procedureburden of proof

Judgment

                           (2008] 7 S.C.R. 828


A             LACHHMAN SINGH (DECEASED)                                  . ._ •
         THROUGH LEGAL REPRESENTATIVES & ORS.
                              v.
               HAZARA SINGH (DECEASED)
         THROUGH LEGAL REPRESENTATIVES & ORS.
B              (Civil Appeal No. 3322 of 2008)
                             MAY 6, 2008                                 ~~

      [S.B. SINHA AND LOKESHWAR SINGH PANTA, JJ.]

c        Limitation Act, 1963:
        s.3 - Suit - Barred by limitation - Onus of proof - High
  Court held that onus to prove that suit was filed beyond the
  period of limitation, was on the defendants - Correctness of -
  Held: Not correct - Limitation is a question of jurisdiction -
D s. 3 puts an embargo on the Court to entertain a suit if it is
  found to be barred by limitation - Code of Civil Procedure,
  1908- s.9.
         Code of Civil Proceaure, 1908:
E        0. 41 r. 27 (1 )(a) and (aa) -Additional evidence -Adducing
  of - Suit for redemption filed in 1970 - Plea of respondent
  that a registered mortgage deed was executed in 1913 -
  Respondent seeking permission for production of mortgage                        r
  deed in order to establish that suit was within period of limitation
F - Held: In peculiar facts and circumstances of the case,
  respondent permitted to adduce evidence.
       A transaction of mortgage in respect of the suit
  property was entered into by and between the
  predecessors in interest of the parties. The actual date of
G execution of the deed of mortgage was not known to the
  plaintiffs-respondents. However, the said mortgaged
  properties were mutated in the name of the mortgagee
  on or about 19.3.1913.
         A suit for redemption of the said mortgage was filed
H                              828
              LACHHMAN S. (0) TH. LEGAL REP. & ORS. v. HAZARA        829
                      S. (0) TH. LEGAL REP. & ORS.
i )!          by the respondents on 30.12.1970. The trial court, as also A
              the First Appellate Court, dismissed the said suit as being
              barred by limitation opining that the actual date of
              mortgage being not known, a decree for redemption of
              mortgage could not be passed.
                   High Court allowed the appeal holding that in view B
    I .. ~    of the fact that the relationship between the parties as
              mortgagor and mortgagee was proved, the onus to prove
              that suit was barred by limitation was on the defendants.
                   In appeal to this Court, appellant contended that the   c
              question of limitation being one of jurisdiction, the High
              court committed a serious error in allowing the second
              appeal and that as the date of mutation was not the date
              of mortgage, the suit should have been held to be barred
              by limitation.
                                                                           0
                   Respondents contended than an application was
    ~ )'!-"
              filed by the respondent for adduction of additional
              evidence, as envisaged under Order 41 Rule 27 CPC on
              premise that the deed of mortgage which was registered
              could be procured by the respondents which, if taken into    E
              consideration, would clearly establish that the suit was
              within the prescribed period of limitation having been
              executed on 20.2.1913.
                   Partly allowing the appeal, the Court
                                                                            F
                    HELD: 1. The High Court was entirely wrong in
'      "Y     holding that the onus to prove that the suit was beyond
              the period of limitation was on the defendants. Limitation
              is a question of jurisdiction. S.3 of the Limitation Act puts
              an embargo on the court to entertain a suit if it is found to G
              be barred by limitation. [Para 9] [833-C]
                   2.1. No order was passed by High Court on an
'             application for adduction of additional evidence.
        ~
              Respondents have made out a case for adduction of
              additional evidence. It was stated that the mortgage deed H
    830      SUPREME COURT REPORTS               [2008] 7 S. C.R.


A was registered in the year 1913 in the District of Lahore.        "'
  There cannot be any doubt whatsoever that the court
  should be loathed to entertain such an application but
  the respondents have made out adequate grounds
  therefor. As it is a registered document, this Court in a
B situation of this nature, keeping in view the findings of
  the courts below, should allow the said application.
  [Paras 10, 11] [833-D, E]
        2.2 The jurisdiction of the Appellate Court is to be
  exercised not only when clause (a) or clause (aa) of sub-
C rule (1) of Rule 27 of Order 41 is attracted but also when
  such a document is required by the appellate Court itself
  to pronounce judgment or for any other substantial cause.
  If what the respondents contended is correct, namely, the
  mortgage was executed in 1913, the period of limitation
D having been prescribed under the old Limitation Act,
  namely, 60 years being the period of limitation having
  regard to the provisions of the new Limitation Act, the suit
  could be filed within a period of seven years from 1.1.1964,
  i.e. upto 1.1.1971. As the suit was filed on 30.12.1970, it
E may be held to be within the prescribed period of limitation.
  Keeping in view the peculiar facts and circumstances of
  the case, the respondents should be permitted to adduce
  evidence. [Paras 11, 12] [833-G-H; 834-A-C]
       CIVILAPPELLATE JURISDICTION: Civil Appeal No. 3322
F of 2008.
         From the Judgment and Order dated 19.7.2006 of the High
    Court of Pubjab and Haryana at Chandigarh in RSA No. 1340/
    1980.
G         Shambhu Prasad Singh, Prem Sunder Jha and K.C. Maini
    for the Appellants.
          Manoj Swarup for the Respondents.
          The Judgment of the Court was delivered by
H
               iAC!iHMAN S (DJ TH. LEGAL REP. & ORS. v. HAZARA               831
                  S. (D) tli LEGAL REP. & ORS. [S.S. SINHA, J.)

                    S.B. SINHA, J. 1. Leave granted.                                A
                    2. What would be the period of limitation in a suit for
               redemption of mortgage in the factual matrix involved in the
               present case is the question in this appeal which arises out of a
               judgment and order dated 19. 7 .2006 passed by the High Court
               of Punjab and Haryana in RSA No.1340 of 1980.                        B

                    3. A transaction of mortgage in respect of the suit property
               admeasuring 58 kanals 11 marlas was entered into by and
               between the predecessors in the interest of the parties herein.
               The actual date of execution of the deed of mortgage was not         c
               known to the plaintiffs-respondents. However, the said
               mortgaged properties were mutated in the name of the
               mortgagees on or about 19.3.1913.
                     4. A suit for redemption of the said mortgage was filed by
               the respondents on or about 30.12.1970. The learned trial court, D
    t ~        as also the First Appellate Court, dismissed the said suit as
               being barred by limitation opining that the actual date of
               mortgage being not known, a decree for redemption of mortgage
               could not be passed.
                    5. The High Court, however, in the second appeal preferred      E
               thereagainst by the respondent herein, formulated the following
               substantial questions of law :
f
                    "1.   Whether the finding recorded by the learned first
                          Appellate Court regarding relationship is                 F
,,..   ~..,.
                          sustainable?
                    2.    Whether the suit for possession by way of redemption
                          is within the period of limitation?"
                    6. It was held that in view of the fact that the relationship   G
               between the parties as mortgagor and mortgagee was proved,
               the onus to prove that suit was barred by limitation was on the
               defendants.
                    The said Second Appeal on the said finding was allowed.
                                                                                    H
    832       SUPREME COURT REPORTS                   [2008] 7 S.C.R.


A       7. Mr. Shambhu Prasad Singh, learned counsel appearing
  on behalf of the appellant, would submit that the question of
  limitation being one of jurisdiction, the High Court committed a
  serious error in allowing the said second appeal. It was
  submitted that as the date of mutation was not the date of
B mortgage, the suit should have been held to be barred by
  limitation.

        8. Mr. Manoj Swarup, learned counsel appearing on behalf
  of the respondents, on the other hand, has drawn our attention
  to an application filed by the respondent for adduction of
C additional evidence, as envisaged under Order 41 Rule 27 of
  the Code of Civil Procedure and submitted that the deed of
  mortgage which was registered in Village Pangota, Tehsil Taran
  Taran in the District of Amritsar, now in Pakistan, could be
  procured by the respondents which, if taken into consideration,
D would clearly establish that the suit was within the prescribed
  period of limitation having been executed on 20.2.1913.
        The relationship between the parties is not in dispute.
  Respondents filed the aforementioned suit for a decree for
  redemption of mortgage on payment of a sum as may be found
E due to the appellants herein. The details of the mortgage were
  furnished but the actual date of mortgage being not known could
  not be furnished.
        Sohan Singh and Bahadur Singh were the original
F mortgagors. Sohan Singh is said to have been not seen 10
  years prior to the institution of the suit and, thus, presumed to
  be dead. Respondents are said to have inherited the properties
  of the said mortgagors and, thus, stepped into their shoes. In
  the written statement, the respondent denied and disputed the
G relationship between the parties, stating :
          "1. Para No.1 of the plaint is wrong and incorrect. The
          suit land is not of the plaintiffs. Rather the total land is
          under the permanent continuing possession of defendant
          No.1. The land in dispute as mentioned in para No.1 of
H         the plaint filed by the plaintiffs never mortgaged with the
                     LACHHMAN S. (D) TH. LEGAL REP. & ORS. v. HAZARA                    833
                        S. (D) TH. LEGAL REP. & ORS. [S.8. SINHA, J.]
'        .A
                           defendants and the facts mentioned in para No.1 of the               A
                           plaint regarding the alleged mortgaged are forged and
                           fictitious one and the plaint is not with me."
                           9. The defendant claimed the ownership as also
                     possession of the suit land in himself. The courts below, as
                     noticed hereinbefore, found that there existed a relationship of           8
    I . .I.
                     mortgagor and mortgagee between the parties to the lis. The
                     suit was dismissed only on the ground of being barred by
                     limitation.
                           The High Court was, in our opinion, entirely wrong in holding        c
                     that the onus to prove that the suit was beyond the period of
                     limitation was on the defendants. Limitation is a question of
                     jurisdiction. Section 3 of the Limitation Act puts an embargo on
                     the court to entertain a suit if it is found to be barred by limitation.
                           10. It appears that before the High Court also, an                   D
     ~ /"'           application for adduction of additional evidence was filed. No
                     order thereupon was passed. Respondents, in our opinion, have
                     made out a case for adduction of additional evidence.
                          It was stated that the mortgage deed was registered in
                     the year 1913 in the District of Lahore. As it is a registered             E
                     document, this Court in a situation of this nature, keeping in
                     view the findings of the courts below, should allow the said
                     application.
                          11. There cannot be any doubt whatsoever that the court               F
     .    ~
                     should be loathed to entertain such an application but the
                     respondents have herein made out adequate grounds therefor.
                          The jurisdiction of the Appellate Court is to be exercised
                     not only when clause (a) or clause (aa) of sub-rule (1) of Rule 27
                     of Order 41 of the Code is attracted but also when such a                  G
                     document is required by the appellate Court itself to pronounce
     I
                     judgment or for any other substantial cause. If what the
              ...(   respondents contended is correct, namely, the mortgage was
                     executed in 1913, the period of limitation having been
                                                                                                H
    834       SUPREME COURT REPORTS                   [2008] 7 S.C.R.


A prescribed under the old Limitation Act, namely, 60 years being
  the period of limitation having regard to the provisions of the
  new Limitation Act, the suit could be filed within a period of seven
  years from 1.1.1964, i.e. upto 1.1.1971. As the suit was filed on
  30.12.1970, it may be held to be within the prescribed period
B of limitation.
                                                                         .... . i
        12. We are of the opinion that keeping in view the peculiar
  facts and circumstances of this case, the respondents should
  be permitted to adduce evidence. We, therefore, set aside the
  impugned judgment and rt:imit the matter back to the High Court
C directing it to take the additional evidence on record either
  allowing the parties to adduce evidence before it or to prove
  the said documents by ti1e trial judge in terms of Order 41 Rule
  28 of the Code. Appeal is allowed to the above extent. No costs.
    D.G.                                     Appeal partly allowed.
0




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