Case Note & Summary
The dispute arose from a commercial suit filed by the plaintiff, against Applicant, seeking specific performance of a contract dated 2nd February 2008 and damages. The applicant, defendant no.1, filed an interim application under Order VII Rule 11(a) and (d) of the Code of Civil Procedure, 1908, seeking rejection of the plaint on grounds that the suit was time-barred and disclosed no cause of action. The defendant argued that the suit, filed in 2015, was barred by limitation as possession was to be handed over by 31st March 2008, and the plaintiff failed to seek leave under Order II Rule 4 CPC for joining causes of action. Additionally, the defendant contended that the plaintiff, as sole trustee, lacked standing to sue. The plaintiff countered that the suit was maintainable under Order XXXI Rule 1 CPC due to a trust deed executed in 2014, and that the limitation period was extended under Section 22 of the Limitation Act, 1963, due to continuing breach of obligations, including non-compliance with the Maharashtra Ownership of Flats Act, 1963. The plaintiff cited the Supreme Court decision in Samruddhi Cooperative Housing Society v. Mumbai Mahalaxmi Construction Private Limited to support the principle of continuing wrong. The court analyzed the pleadings and documents, noting that the plaintiff had amended the plaint after partial possession was handed over, and that interim orders had addressed some grievances. The court held that the plaint disclosed a cause of action through the trust and partition deeds, and the plaintiff was entitled to lead evidence on the cause of action and limitation. It found that objections regarding joinder of causes of action and limitation raised triable issues, not warranting rejection at the threshold. The application was dismissed, allowing the suit to proceed.
Headnote
A) Civil Procedure - Rejection of Plaint - Order VII Rule 11(a) and (d) CPC - Code of Civil Procedure, 1908, Order VII Rule 11(a) and (d) - Defendant sought rejection of plaint alleging suit barred by limitation and no cause of action - Court held plaint discloses cause of action through pleadings and documents including partition deed and trust deed - Plaintiff entitled to lead evidence to support cause of action - Rejection at threshold not warranted as triable issues exist (Paras 9, 12). B) Limitation Law - Continuing Breach - Section 22 Limitation Act - Limitation Act, 1963, Section 22 - Plaintiff alleged non-compliance with agreement obligations since 2008, with notices in 2015 - Court applied principle of continuing breach from Supreme Court precedent - Held plaintiff entitled to rely on Section 22 to compute limitation, fresh period runs during breach - Suit not time-barred at threshold stage (Paras 10-11). C) Trust Law - Trustee's Right to Sue - Order XXXI Rule 1 CPC - Code of Civil Procedure, 1908, Order XXXI Rule 1 - Plaintiff claimed as trustee under discretionary trust deed executed by mother of defendants - Court found plaintiff entitled to maintain suit as trustee under Order XXXI Rule 1 - Documents supported pleadings, no merit in objection regarding cause of action (Para 9). D) Civil Procedure - Joinder of Causes of Action - Order II Rule 4 CPC - Code of Civil Procedure, 1908, Order II Rule 4 - Defendant argued plaintiff required leave under Order II Rule 4 to join causes of action for specific performance and damages - Court held objection to joinder raises triable issue, not ground for rejection under Order VII Rule 11(a) - Plaintiff may lead evidence on entitlement to reliefs (Para 9). E) Property Law - MOFA Compliance - Continuing Wrong - Maharashtra Ownership of Flats Act, 1963, Sections 3 and 6 - Plaintiff pleaded non-compliance with agreement obligations under MOFA - Court cited Supreme Court precedent that non-compliance with MOFA obligations amounts to continuing breach - Fresh limitation period runs at every moment of breach, supporting suit's maintainability (Para 11).
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Issue of Consideration: Whether the plaint should be rejected under Order VII Rule 11(a) and (d) of the Code of Civil Procedure, 1908 on grounds of being time-barred and disclosing no cause of action
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Final Decision
The court dismissed the interim application (IA No. 7964 of 2025) filed by defendant no.1 for rejection of the plaint, holding that the plaint discloses a cause of action and raises triable issues on limitation and joinder of causes of action, allowing the suit to proceed.
