Supreme Court Allows Appeal, Rejects Plaint in Gift Deed Challenge Due to Limitation Bar. Registered Gift Deed Executed in 1981 Challenged After 22 Years; Suit Held Barred by Article 59 of Limitation Act, 1963.

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Case Note & Summary

The Supreme Court allowed the appeal filed by the original defendant, Raghwendra Sharan Singh, against the judgment of the Patna High Court which had dismissed his revision petition and confirmed the trial court's order rejecting his application under Order 7 Rule 11 CPC for rejection of the plaint. The dispute arose from a suit filed by the plaintiff, Ram Prasanna Singh (since deceased, represented by LRs), seeking a declaration that a registered deed of gift dated 06.03.1981 executed by him and his brother in favor of the defendant was a sham transaction and not binding. The plaintiff also sought confirmation of possession or recovery of possession. The defendant filed an application under Order 7 Rule 11 read with Order XIV Rule 2 CPC for rejection of the plaint on the ground that the suit was barred by limitation under Article 59 of the Limitation Act, 1963, as the gift deed was executed in 1981 and the suit was filed in 2003, after 22 years. The trial court rejected the application, holding that the question of limitation required oral evidence. The High Court upheld this order. The Supreme Court, however, reversed both orders. The Court held that for considering an application under Order 7 Rule 11 CPC, only the averments in the plaint are to be considered, not the defence. The plaint itself stated that the plaintiff came to know about the gift deed in 2001 when the defendant instituted a partition suit and asserted his rights based on the deed. The suit was filed in 2003, which is beyond three years from 2001, thus barred by Article 59. The Court emphasized that clever drafting cannot create an illusion of a cause of action, and the court must nip such meritless suits in the bud. Relying on precedents like T. Arivandandam v. T.V. Satyapal, the Court allowed the appeal, set aside the impugned orders, and rejected the plaint under Order 7 Rule 11(d) CPC.

Headnote

A) Civil Procedure - Rejection of Plaint - Order 7 Rule 11(d) CPC - Limitation - Suit for declaration that gift deed is sham and not binding filed 22 years after execution - Plaintiff pleaded knowledge in 2001 - Held that for considering Order 7 Rule 11 application, only plaint averments are relevant; if from plaint it appears that suit is barred by limitation, plaint must be rejected - The court must nip clever drafting in the bud (Paras 6.1-6.4).

B) Limitation Act - Article 59 - Suit to set aside gift deed - Three years from knowledge - Plaintiff's own averments show knowledge of gift deed in 2001 when defendant asserted rights in partition suit - Suit filed in 2003 beyond three years from 2001 - Held that suit is barred by limitation and plaint liable to be rejected under Order 7 Rule 11(d) CPC (Paras 6.2-6.4).

C) Evidence Act - Sections 91, 92 - Bar against oral evidence to contradict registered document - Not applicable at stage of Order 7 Rule 11 CPC - However, court can consider plaint averments to determine if suit is barred by law (Para 3.1).

D) Registration Act - Section 47 - Effect of registration - Not relevant for limitation at Order 7 Rule 11 stage (Para 3.1).

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Issue of Consideration

Whether the plaint in a suit challenging a registered gift deed executed 22 years prior is liable to be rejected under Order 7 Rule 11(d) CPC as barred by limitation under Article 59 of the Limitation Act, 1963, even when the plaintiff pleads that he came to know of the deed only in 2001.

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Final Decision

Appeal allowed. Impugned judgment and order of the High Court dated 12.03.2013 and order of the trial court dated 28.08.2006 are set aside. The application under Order 7 Rule 11 CPC is allowed and the plaint in Title Suit No. 19 of 2003 is rejected.

Law Points

  • Order 7 Rule 11 CPC
  • Rejection of Plaint
  • Limitation
  • Article 59 Limitation Act
  • Clever Drafting
  • Mixed Question of Law and Fact
  • Averments in Plaint Only
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Case Details

2019 LawText (SC) (3) 54

Civil Appeal No. 2960 of 2019 (Arising out of SLP (C) No. 20068 of 2013)

2019-02-26

M. R. Shah

Raghwendra Sharan Singh

Ram Prasanna Singh (Dead) by LRs

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Nature of Litigation

Civil appeal against High Court order dismissing revision and confirming trial court's rejection of application under Order 7 Rule 11 CPC for rejection of plaint in a suit for declaration that a gift deed is sham and not binding.

Remedy Sought

Appellant (original defendant) sought rejection of plaint under Order 7 Rule 11(d) CPC on ground of limitation.

Filing Reason

Suit filed by respondent (original plaintiff) challenging a registered gift deed executed in 1981, claiming it was a sham transaction and not binding.

Previous Decisions

Trial court (Munsif, Danapur) rejected Order 7 Rule 11 application on 28.08.2006; High Court of Patna dismissed Civil Revision No. 1829 of 2006 on 12.03.2013, confirming trial court's order.

Issues

Whether the plaint is liable to be rejected under Order 7 Rule 11(d) CPC as barred by limitation under Article 59 of the Limitation Act, 1963. Whether the question of limitation is a mixed question of law and fact requiring evidence, or can be decided on plaint averments alone.

Submissions/Arguments

Appellant: Suit filed 22 years after gift deed is barred by limitation under Article 59; clever drafting cannot create cause of action; plaint must be rejected. Respondent: Limitation is a mixed question of law and fact; plaintiff came to know of gift deed only in 2001; suit filed in 2003 is within limitation.

Ratio Decidendi

For considering an application under Order 7 Rule 11 CPC, only the averments in the plaint are to be considered. If from the plaint it appears that the suit is barred by limitation, the plaint must be rejected. Clever drafting cannot create an illusion of a cause of action. The court must nip such meritless suits in the bud.

Judgment Excerpts

For considering the application under Order 7 Rule 11 of the CPC, only the averments in the plaint are required to be considered and not the defence and/or the written statement filed by the defendant. If clever drafting has created the illusion of a cause of action, as observed by this Court in a catena of decisions, the Court must nip it in the bud at the first hearing by examining the party searchingly under Order 10 of the CPC. The suit is clearly barred by law of limitation, more particularly, considering Article 59 of the Limitation Act.

Procedural History

Original plaintiff filed Title Suit No. 19 of 2003 in the Court of Munsif, Danapur. Defendant filed application under Order 7 Rule 11 CPC for rejection of plaint. Trial court rejected application on 28.08.2006. Defendant filed Civil Revision No. 1829 of 2006 before Patna High Court, which was dismissed on 12.03.2013. Defendant then filed SLP (C) No. 20068 of 2013 before Supreme Court, which was converted into Civil Appeal No. 2960 of 2019.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 7 Rule 11, Order XIV Rule 2, Order 10
  • Limitation Act, 1963: Article 59
  • Indian Evidence Act, 1872: Sections 91, 92
  • Registration Act, 1908: Section 47
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Supreme Court Supreme Court Allows Appeal, Rejects Plaint in Gift Deed Challenge Due to Limitation Bar. Registered Gift Deed Executed in 1981 Challenged After 22 Years; Suit Held Barred by Article 59 of Limitation Act, 1963.
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