Holding

A plaint that contains adequate averments regarding limitation cannot be rejected under Order 7 Rule 11(d); the entire plaint must be read, and the trial court’s dismissal on limitation grounds was erroneous.

Summary

Ram Prakash Gupta, a handicapped plaintiff, filed a suit in 1990 seeking declaration of ownership of his house and nullity of two decrees obtained fraudulently by his brothers' sons in 1976. He discovered the fraudulent decree only in 1986 when an interpleader suit disclosed it. After 15 years of litigation, the respondents moved an application under Order 7 Rule 11(d) of the CPC to reject the plaint on the ground of limitation. The trial court dismissed the suit, and the High Court affirmed. The Supreme Court held that the plaint must be read as a whole; the averments regarding knowledge of the decree and the three‑year limitation period under Article 59 of the Limitation Act were sufficient, and the application under Order 7 Rule 11(d) could not be entertained at such a late stage. Consequently, the Court set aside the lower courts' orders, restored the suit to its original file, and directed it to be decided on its merits.

Issues considered

Whether a plaint can be rejected under Order 7 Rule 11(d) CPC on the ground of limitation when the plaint contains sufficient averments relating to limitation.
Whether the suit filed in 1990 is barred by the three‑year limitation period under Article 59 of the Limitation Act, 1963, given the plaintiff's knowledge of the decree in 1986.
Whether an application for rejection of a plaint under Order 7 Rule 11(d) may be entertained after the filing of the written statement, framing of issues and taking of evidence.

Legislation cited

Code of Civil Procedure, 1908s. Order 7 Rule 11(d), s. Order 7 Rule 12
Limitation Act, 1963s. Article 59

Subjects

limitationOrder 7 Rule 11Civil Procedure Codeplaint rejectionreading plaint as a wholemixed question of law and factrestoration of suithandicapped plaintifffraudulent decree

Judgment

)... .
A RAM PRAKASH GUPTA
v.
RAJIV KUMAR GUPTA AND ORS.

OCTOBER 3, 2007
B
[TARUN CHATTERJEE AND P. SATHASIVAM, JJ.]

Code of Civil Procedure, 1908-0. 7 r. 11 (d)-Rejection of
Plaint-On the ground of limitation-After 15 years of institution of
c the suit-Propriety of-Held: While deciding the application under the
provision, pleadings in the plaint has to be read as a whole-In the
facts ofthe case, rejection was without adverting to all the materials
in the plaint and at belated stage-Hence rejection not proper-
Direction for restoration of suit-Limitation Act, 1963-Schedule,
D Article 59.

Appellant-Plaintiff filed a suit in 1990 making averments therein
that he was a handicapped person. His father bought a piece ofland in
his name. He constructed four storeys of building in question, from his
E own funds. He had leased the first floor thereof to a tenant and had
permitted the respondents' father (his brother) to use the second floor
therecf as a licencee. Respondents after death of their father, in 1986
claimed possession ofthe first floor ofthe building on the basis that they ,,...
had obtained some decree in that respect in 1976. Despite best efforts,
F appellant could not get details of the case. The tenant in the first floor
stopped paying rent to the appellant, and filed an interpleader suit in
1989 allegingthatthtrewas dispute aboutthe persons to whom the rent
was to be paid. In that suit details of the decree were disclosed.
Thereafter appellant filed the suit. After 15 years ofinstitution of the
)--
G suit, and also after filing of Written Statement, framing of issues
(including on limitation), closure of evidence, respondents moved
application under Order 7 Rule ll(d) CPC for rejection of plaint on the
ground ofsuit being barred by limitation. Trial Court dismissed the suit
on the ground offimitation. The order was confirmed by High Court.
H 520
,. RAM PRAKASH GUPTA v. RAJIV KUMAR GUPTA 521

• ...J. Hence the present appeal. A
Allowing the appeal, the Court
HELD: 1. Clause (d) of Order 7 Rule 2 CPC makes it clear that if
the plaint does not contain necessary averments relating to limitation,
the same is liable to be rejected. For the said purpose, it is the duty of B
the person who files such an application to satisfy the Court that the
plaint does not disclose how the same is in time. In order to answer the
said question, it is incumbent on the part ofthe Court to verify the entire
plaint. Order 7 Rule 12 mandates where a plaint is rejected, the Court
has to record the order to that effect with the reasons for such order. c
[Para 17) [527-F, G)
2. In his plaint the appellant/plaintiff has specifically stated that
he is a handicapped person from the beginning and it is difficult for him
to move about freely. The averments in the plaint clearly show that the 0
decree passed in the year 1976 came to the knowledge of the plaintiff
in the year 1986, when the tenant had filed the interpleadersuit, in which
a copy ofthe earlier decree was placed on record and thereafter he took
steps at the earliest and filed the suit for declaration and in alternative
for possession. It is not in dispute that as per Article 59 ofthe Limitation E
Act, 1963, a suit ought to have been filed within a period of three years
from the date of the knowledge. The knowledge mentioned in the plaint
cannot be termed as inadequate and incomplete as observed by the High
_....
Court. While deciding the application under Order 7 Rule 11 CPC few
lines or passage should not be read in isolation and the pleadings have F
to be read as a whole to ascertain its true import. Both the trial Court
as well as the High Court failed to advert to the relevant averinents as
stated in the plaint. [Paras 17 and 18] [528-A, B; 529-G; 530-A, BJ

Saleem Bhai and Ors. v. State ofMaharashtra and Ors., [2003] 1
SCC 557; l TC Ltd v. Debts Recovery Appellate Tribunal and Ors., [1998] G
2 SCC 70; Roop Lal Sathiv. Nachhattar Singh Gill, [1982] 3 SCC 487;
Raptakos Brett and Co. Ltd v. Ganesh Property, [1998] 7 SCC 184 and
Sopan Sukhdeo Sable and Ors. v. Assistant Charity Commissioner and
Ors., [2004] 3SCC137, relied on.
H
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522 SUPREME COURT REPORTS [2007] 10 S.C.R.

A 3. It is also relevant to mention that after filing of the written . )- ,
statement, framing of the issues including on limitation, evidence was
led, plaintiff was cross-examined, thereafter before conclusion of the
trial, the application under Order 7Rule11 CPC was filed for rejection
of the plaint. It is also pertinent to mention that there was not even a
B suggestion to the plaintiff/appellant to the effect that the suit filed by
him is barred by limitation. Civil Judge is directed to restore the suit to
its original file and dispose of the same on merits. 4
[Paras 19 and 21] [530-C, D, F, G]

c to. Arivandandamv. TV. Satyapal andAnr., [1977] 4 SCC 467, referred
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4626 of
2007.
From the Judgment and final Order dated 27.04.2006 of the High
D Court of Delhi at New Delhi in RF.A. No. 188of2006.
Vinay Garg for the Appellant.
Shalini Kapoor (for Ms. Madhu Sikri) for the Respondents.
E The Judgment of the Court was delivered by
P. SATHASIVAM, J. (1) Leave granted.
(2) This appeal is directed against the judgment dated 27.4.2006
passed by the High Court of Delhi in Regular First Appeal No. 188 of
F 2006 whereby the High Court dismissed the appeal filed by the appellant
herein. The respondents are the sons of the appellant's elder brother who
died in the year 1986.
(3) The brief facts are as under:
G In the year 1957, since the appellant was a handicapped person,
the father of the appellant purchased a piece of land in the name of and
for the benefit of the appellant herein, who was minor at that time by way
of registered sale deed dated 02.09.1957. The father of the appellant died
in the year 1965 and at the time of his death, the plot underneath the house
H
RAM PRAKASH GUPTA v. RAJIV KUMAR GUPTA 523
[SATHASIVAM, J.]
, _._ in question was lying vacant. The appellant was actively engaged in the A
business, therefore, in the year 1966 he raised a full fledged 3 storey
house on the said plot with his funds. Moreover, a loan of Rs.30,000/-
was also taken from the Life Insurance Corporation by the appellant for
construction of the house and later on it was repaid. After constructing
the house, the first floor of the building was let out to one Aseema Architect B
by the appellant in the year 1969. The appellant and his family and the
respondents' father and his family were living together in House No.107,
Chawri Bazar, Delhi. Since relations between the brothers were cordial,
on request of the respondents' father, the appellant allowed him to use
the second floor of the house as a licensee. In the year 1974, respondents' C
father played a fraud and filed two suits in the name of his sons -
respondents herein, bearing Suit No.183of1974 and 133of1974 for
declaration and possession of the ground/first floor. There is no dispute
of ownership of the appellant as far as the second and third floors of the
house are concerned. In September 1986, after the death of their father, D
the respondents claimed the possession of the first floor of the building
on the basis that they had obtained some decree from the Court, the
particulars of which were not disclosed. In spite of best effmis, the
appellant could not obtain the details of the case, therefore, no action could
be taken. Aseema Architect, who was paying rent to the appellant, E
stopped payment of rent and in the year 1989, filed interpleader suit No.
424 of 1989 alleging therein that there is a bona fide dispute about the
person(s) to whom the rent is payable. In that suit, the details of the decree
obtained fraudently in the year 1976 was disclosed. On 7.2.1990, the
appellant herein filed Suit No. 378 of 1993 before the Additional Dist. F
Judge, Delhi praying for the following reliefs:
(a) declare plaintiff (appellant herein) as absolute and exclusive
owner of H.No.8, Nizamuddin Basti, N.D. and to declare the
decrees dated 5.2.1976 in Suit No.183/74 and dated
19.1.1976 in Suit No. 133/74 as null and void. G
(b) Grant decree for possession of 2nd floor of H.No.8,
Niz.amuddin Basti, New Delhi in favour ofthe appellant herein.
Written statement was filed by the respondents herein in which the
H
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524 SUPREME COURT REPORTS [2007] 10 S.C.R.

A respondents had taken the plea that the appellant appeared in the suits
and as such he had full knowledge of the case. The following issues were
framed by the trial Court:
(1) Whether the suit is barred by limitation?
B (2) Whether Plaintiff is entitled for a decree of declaration that the
plaintiff is absolute and exclusive owner of the suit property in
question?
(3) Whether plaintiff is entitled fora decree of declaration declaring
the decree dated 5.2.1976 in Suit No. 183/74 as null and void?
c (4) Whether the plaintiff is entitled for a decree of possession as
prayed for?
Evidence by way of affidavit of the plaintiff (appellant herein) was filed
on which cross examination of the appellant was closed. In the cross-
D examination, no question on limitation was asked by the respondents. It
is at this stage, the respondent moved an application under Order 7 Rule
11 (d) C.P .C. forrejection of the plaint on the ground of suit being barred
by law of limitation. Reply to the said application was filed. The trial Court
dismissed the suit of the appellant herein merely on the basis of the
E limitation holding that since partial rejection of the plaint is not permitted
in law, the entire plaint has to be rejected.
(4) Aggrieved by the order of the trial Court, the appellant preferred
an appeal before the High Court of Delhi. The High Court dismissed the
F appeal recording that since there cannot be a partial rejection of suit, hence
the entire suit has to be dismissed. Being aggrieved by the said order, the
present appeal has been filed by the appellant before this Court. ·
(5) We have heard Mr. Vinay Garg, learned counsel appearing for
the appellant and Ms. Shalini Kapoor, learned counsel appearing for the
G respondents.
(6) Learned counsel appearing for the appellant submitted that the
approach of the High Court is against the settled principle oflaw that when
there are numerous cause of action joined in one claim, it is not pennissible
H to the Court to reject the claim under Order VII Rule 11 C.P.C. if it is
j
I
RAM PRAKASH GUPTA v. RAJIV KUMAR GUPTA 525
[SATHASIVAM, J.]
possible to give a decree for some of the cause of action. He also A
submitted that the trial Court entertained the application of the respondents
herein under Order VII Rule ll(d) C.P.C. filed after 15 years of institution
of the suit that too after filing of written statement, framing of issues, cross-
examination of the plaintiff-appellant herein and resultantly permitted the
respondents to circumvent the case to avoid decision on the specific issue B
of limitation, framed as one of the issues by the Court, on the basis of
)
evidence produced on record. He further submitted that the application
has been allowed by reading one para in isolation and ignoring other
relevant paras of the plaint which specifically deal with the date of
knowledge of the fraudulent decree obtained by the respondent on the C
basis of which ownership rights in the property were claimed. Learned
counsel submitted that the point oflimitation being a mixed question of
law and fact should have been decided after appreciation of evidence
already on record and not summarily under Order VII Rule 11 CPC.
(7) On the other hand, learned counsel appearing for the respondents p
submitted that inasmuch as the trial Court and the High Court, on proper
verification of the plaint averments and finding that there is no material
for delay in filing the suit, rightly rejected the plaint and allowed the
application prayed for dismissal of the above appeal.
E
(8) We have perused the relevant materials and considered the rival
contentions.
(9) The only question to be considered in this appeal is whether the
defendants/respondents herein made out a case for rejection of the plaint F
under Order VII Rule 1l(d) of the C.P.C.
(10) As per Order VII Rule 11, the plaint is liable to be rejected in
the following cases:
"(a) where it does not disclose a cause of action;
G
(b) where the relief claimed is undervalued, and the plaintiff, on
being required by the Court to correct the valuation within a time
to be fixed by the court, fails to do so;
(c) where the relief claimed is properly valued but the plaint is H
526 SUPREME COURT REPORTS [2007] 10 S.C.R.
\
A written upon paper insufficiently stamped, and the plaintiff, on being
required by the Court to supply the requisite stamp-paper ,within
a time to be fixed by the Court, fails to do so;
(d) where the suit appears from the statement in the plaint to be
barred by any law:
B
(e) where it is not filed in duplicate;
(f) where the plaintiff fails to comply with the provisions of rule 9;"

(11) In Saleem Bhai and Ors. v. State ofMaharashtra and Ors.,
C [2003] 1 SCC 557 it was held with reference to Order VII Rule 11 of
the Code that the relevant facts which need to be looked into for deciding
an application thereunder are the averments in the plaint. The trial court
can exercise the power at any stage of the suit - before registering the
plaint or after issuing summons to the defendant at any time before the
D conclusion of the trial. For the purposes of deciding an application under
Clauses (a) and (d) of OrdefVII Rule 11 of the Code, the averments in
the plaint are the germane: the pleas taken by the defendant in the written
statement would be wholly irrelevant at that stage.
E (12) In 1 TC. Ltd v. Debts Recovery Appellate Tribunal and Ors.,
[1998] 2 sec 70, it was held that the basic question to be decided while
dealing with an application filed under Order VII 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 VII Rule >-
p 11 of the Code.
(13) The trial Court must remember that if on a meaningful 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 VII Rule 11 of the Code taking care to see that the ground
G mentioned therein is fulfilled. If clever drafting has created the illusion of a
cause of actiorr, it has to be nipped in the bud at the first hearing by
examining the party searchingly under Order X of the Code. (See T.
Arivandandam v. T. V. Satyapal and Anr., [1977] 4 SCC 467).
H (14) It is trite law that not any particular plea has' to be considered,
,
--1

RAM PRAKASH GUPTA v. RAJIV KUMAR GUPTA 527
[SATHASIVAM, J.]
~ and the whole plaint has to be read. As was observed by this Court in A
Roop Lal Sathi v. Nachhattar Singh Gill, [1982] 3 SCC 487 only a
part of the plaint cannot be rejected and if no cause of action is disclosed,
the plaint as a whole must be rejected.
(15) In Raptakos Brett & Co. Ltd. v. Ganesh Property, [1998] 7 B
sec 184, it was observed that the averments in the plaint as a whole
have to be seen to find out whether clause (d) of Rule 11 of Order VII
)
was applicable.
(16) In Sopan Sukhdeo Sable and Ors. v. Assistant Charity
Commissioner and Ors., (2004] 3 SCC 137, this Court held thus: c
• "15. There cannot be any compartmentalization, dissection,
segregation and inversions of the language of various paragraphs
in the plaint. If such a course is adopted it would run counter to
the cardinal canon of interpretation according to which a pleading D
_,. has to be read as a whole to ascertain its true import. It is not
permissible to cull out a sentence or a passage and to read it out
of the context in isolation. Although it is the substance and not
merely the form that has to be looked into, the pleading has to be
construed as it stands without addition or subtraction or words or E
change of its apparent grammatical sense. The intention of the party
concerned is to be gathered primarily from the tenor and terms of
his pleadings taken as a whole. At the same time it should be borne
...... in mind that no pedantic approach should be adopted to defeat
justice on hair-splitting technicalities."
F
. ( 17) For our purpose, clause (d) is relevant. It makes it clear that if
the plaint does not contain necessary avennents relating to limitation, the
same is liable to be rejected. For the said purpose, it is the duty of the
person who files such an application to satisfy the Court that the plaint
does not disclose how the same is in time. In order to answer the said G
question, it is incumbent on the part of the Court to verify the entire plaint.
Order VII Rule 12 mandates where a plaint is rejected, the Court has to
record the order to that effect with the reasons for such order. Inasmuch
as the learned trial Judge rejected the plaint only on the ground oflimitation,
H
528 SUPREME COURT REPORTS (2007] 10 S.C.R.

A it is useful to refer the averments relating to the same. Learned counsel >- .
appearing for the appellant, by taking us through the entire plaint, submitted
that inasmuch as sufficient materials are available in the plaint, it is proper
on the part of the trial Court to decide the suit on merits and not justified
in rejecting the plaint that too after the evidence of the plaintiff. In the
B light ofthe assertion of the counsel for the appellant, we carefully verified
the plaint averments. In paragraph 5, the appellant/plaintiff has specifically
stated that he is a handicapped person from the beginning and it is difficult
for him to move about freely. The following averments in the plaint are
relevant to answer the point determined in this appeal:
c
"(a) That without any intimation to the Plaintiff, said Rajeev Kumar
Gupta got decreed the said suit. It seems that the said Rajeev
Kumar Gupta in collusion with his father Shri Inder Prakash Gupta
produced some-one-else under the pretext of Shri Ram Prakash
D Gupta, the present Plaintiff in the court and got the said decree in
his favour on the said false pretext by .playing a fraud upon the
Plaintiff as well as upon the court. The Plaintiff never appeared in
the above said cases before the High Court nor ever made any
statement to the effect that the suit of the Plaintiff may/might be
decreed and as such the judgment and decree dated 05.02.1976
E
passed in the above said suit No. 183174 entitled as Rajeev
Kumar v. Ram Prakash Gupta is totally false, baseless, nullity
and void in the eyes of law and is not at all binding upon the Plaintiff
and the same has been procured by fraud and mis~representation
as submitted above."
F
"(b) That the Plaintiff came to know for the first time about the
passing of the above said decree in favour of said Rajeev Kumar
Gupta by the High Court of Delhi, in the above said suit No. 183/
74 in the month of October, 1986. It is submitted that Shri Inder
G Prakash Gupta, the elder brother of the Plaintiff died at Delhi in
the month of September, 1986 and after his death Shri Rajeev
Kumar Gupta asked the Plaintiff to give first floor portion of the
above building No. 8, Nizamuddin Basti to them and alleged that
there was a High Court judgment in their favour. However, no
H

1
I
/
RAM PRAKASH GUPTA v. RAJIV KUMAR GUPTA 529
[SATHASIVAM, J.]
particulars of the said judgment were given at that time by any of A·
the Defendants, and therefore, the Plaintiff could not take any action
at that time."
'
"(c) That the said tenant M/s Aseema Architect also stopped
payment of rent from the year 1985 and perhaps on the instructions B
or at the instance of said Indra Prakash Gupta, the elder brother
of the Plaintiff, he deposited the rent from July, 1985 to March,
1986 in the court of Rent Controller, Delhi. However, after the
· death of Shri Inder Prakash Gupta, the above said tenant refused
to pay the rent and ultimately he filed a inter-pleader suit being suit C
No. 424/89 entitled as Aseema Architect versus Ram Prakash
alleging therein that there is a bonafide dispute about the person/s
to whom the rent is payable. In fact, the said suit was and is not
maintainable because admittedly the said tenant took the above
said premises from the Plaintiff and he is stopped from denying D
the title of the Plaintiff under section 116 of the Indian Evidence
Act and for other reasons also."
"(d) That in any case, it is submitted that as on one of the dates,
the Plaintiff could not appear because of his illness, the learned trial
Court proceeded ex-parte and decreed the suit ex-parte in favour E
of said Shri Rajeev Kumar Gupta. It is submitted that the full details
of the above said judgment were given by the said Rajeev Kumar
in the said court as the copy of the said judgment of the High Court
was filed therein and thereafter taking the details from the same,
the High Court's file was inspected and the malafide motives and F
designs of the Defendants came to light and, therefore, the present
suit is being filed at the earliest possible challenging the said
judgment and the decree of the High Court of Delhi."

(18) As observed earlier, before passing an order in an application G
filed for rejection of the plaint under Order VII Rule 11 (d), it is but proper
to verify the entire plaint averments. The abovementioned materials clearly
show that the decree passed in Suit No. 183 of 1974 came to the
knowledge of the plaintiff in the year 1986, when Suit No.424of1989
titled Assema Architect v. Ram Prakash was filed in which a copy of H
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530 SUPREME COURT REPORTS [2007] 10 S.C.R.

A the earlier decree was placed on record and thereafter he took steps at
the earliest and filed the suit for declaration and in alternative for
possession. It is not in dispute that as per Article 59 of the Limitation
Act, 1963, a suit ought to have been filed within a period of three years
from the date of the knowledge. The knowledge mentioned in the plaint
B cannot be termed as inadequate and incomplete a3 observed by the High
Court. While deciding the application under Order VII Rule -11, few lines -
or passage should not be read in'isolation and the pleadings have to be -\
read as a whole to ascertain its true import. We are of the view that both
the trial Court as well as the High Court failed to advert to the relevant
C averments as stated in the plaint.

(19) It is also relevant to mention that after filing of the written
statement, framing of the issues including on liinitation, evidence was led,
plaintiff was cross-examined, thereafter before conclusion of the trial, the
D application under Order VII Rule 11 was filed for rejection of the plaint.
It is also pertinent to mention that there was not even a suggestion to the
plaintiff/appellant to the effect that the suit filed by him is barred by
limitation
(20) On going through the entire plaint averments, we are of the view
E that the trial Court has committed an error in rejecting the same at the
belated stage that too without adverting to all the materials which are
available in the plaint. The High Court has also committed the same error
in affirming the order of the trial Court.
F (21) In the light of our above discussion, we set aside the order of
the trial Court dat~a 20.2.2006 passed by the Civil Judge, Delhi in Suit
No. 318/2003 and the judgment dated 27.4.2006 passed by the High
Court of Delhi in R.F.A. No. 188 of2006. In the result, the civil appeal
is allowed and the Civil Judge is directedfu r~store the suit to its original
G file and dispose of the same on merits preferably within a period of six
months from the date of receipt of the copy of this judgment. It is made
clear that except on the question of limitation, we have not gone into the
merits of the claim made by both parties. No costs.
K.K.T. Appeal allowed.
H