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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 23 of the Contract Act
  • Article 59 of the Schedule to the Limitation Act, 1963
  • Section 92 of the Evidence Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 113
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 23 of the Contract Act
  • Article 59 of the Schedule to the Limitation Act, 1963
  • Section 92 of the Evidence Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 113
Smart Summary

Factual and Procedural Background

The matter arises from an appeal by special leave against the judgment and decree of the Delhi High Court in RFA No. 59 of 1978 dated 26-2-1979, affirming the trial court’s dismissal of the plaintiff-appellant’s suit.

The plaintiff-appellant sought a declaration that she is the absolute owner and in possession of a house bearing old Municipal No. 5925 and new Municipal No. 4477, Ward No. XI, situated at Plot No. 7/18, Darya Ganj, Delhi. She asserted ownership based on a sale deed dated 11-5-1946 (registered on 29-5-1946) executed by Kaushalya Devi in her favor. She challenged a subsequent sale deed dated 29-1-1947 executed by Shri Ratti Ram, alleging that he had no right, title, or interest to alienate the property and that the 1947 sale deed was executed to stifle a prosecution intended to be lodged against him.

The trial court dismissed the suit, and the High Court confirmed that dismissal. The appellant had earlier filed a suit in 1959, which was dismissed as withdrawn with liberty to file a fresh suit. The present suit was filed on 30-7-1966.

Legal Issues Presented

  1. Whether the suit seeking to avoid the 29-1-1947 registered sale deed was within the period of limitation.
  2. Which article of the Limitation Act governs the claim—Article 59 (three years for suits to cancel or set aside an instrument) or Article 113 (residuary article)—in light of the relief sought.

Arguments of the Parties

Appellant's Arguments

  • Article 113 of the Limitation Act, not Article 59, is the applicable provision.
  • The impugned sale deed is void as it was executed to stifle a prosecution; hence limitation does not begin to run as for a void instrument.
  • Since the appellant remained in possession, the appropriate relief was a declaration of ownership and a finding that the 29-1-1947 document does not bind her.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court framed the controlling question as whether the suit was within limitation. It noted the appellant's admission that she had knowledge of the execution and registration of the sale deed. While one passage references knowledge on 29-1-1949, the court ultimately treated the cause of action as having arisen on 29-1-1947, the date of execution and registration.

Applying Article 59 of the Schedule to the Limitation Act, 1963—which prescribes a three-year limitation for suits to cancel or set aside an instrument, beginning when the plaintiff first becomes entitled to such relief or first knows of the grounds—the court held that because the appellant sought to avoid or cancel a registered sale deed, Article 59 governed. The court emphasized that until such a document is avoided or cancelled by a proper declaration, a duly registered deed remains valid and binds the parties.

The court rejected the appellant’s plea to proceed under Article 113 and her contention that the sale was void for stifling prosecution. It relied on the recitals of the registered deed, which reflected valuable consideration paid to discharge pre-existing debts. By virtue of Section 92 of the Evidence Act, oral evidence cannot be led to contradict the terms and recitals of such a written, registered instrument. Moreover, no specific issue was framed nor was any finding recorded that the sale deed was void under Section 23 of the Contract Act; the court stated that mere pleading is not sufficient.

Given the appellant’s knowledge and the nature of relief sought, the court concluded that the three-year limitation began from the date of execution and registration (29-1-1947). As the present suit was instituted on 30-7-1966, it was “hopelessly barred by limitation.” The lower courts were therefore correct to dismiss the suit.

Holding and Implications

DISMISSED with costs.

Implications: The dismissal upholds the trial court and High Court decisions that the suit was time-barred under Article 59 of the Limitation Act, 1963. The immediate consequence is that the registered sale deed dated 29-1-1947 remains effective and binding absent a timely and successful action to cancel or set it aside. The opinion addresses the parties’ dispute without articulating broader doctrinal changes or setting out new precedent.

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    Ramti Devi (Smt) v. Union Of India .

    Order

    1. This appeal by special leave arises against the judgment and decree of the Delhi High Court in RFA No. 59 of 1978 dated 26-2-1979. The plaintiff-appellant filed the suit for declaration that she is the absolute owner and is in possession of the house bearing old Municipal No. 5925 and new Municipal No. 4477, Ward No. XI, situated at Plot No. 7/18, Darya Ganj, Delhi. She claimed to have purchased the property from one Kaushalya Devi under a sale deed dated 11-5-1946 registered on 29-5-1946 and thereby she is said to be the owner. Shri Ratti Ram had no right title or interest to alienate the property by the sale deed dated 29-1-1947 which was said to have been executed to stifle the prosecution intended to be lodged against him. The trial court dismissed the suit. On appeal, the High Court confirmed it.

    2. The question is whether the suit is within limitation. In the evidence, it was admitted that she had knowledge of the execution and registration of the sale deed on 29-1-1947. Initially a suit was filed in 1959 but was dismissed as withdrawn with liberty to file fresh suit. Admittedly, the present suit was filed on 30-7-1966. The question, therefore, is whether the suit is within limitation. Article 59 of the Schedule to the Limitation Act, 1963, relied on by the appellant herself, postulates that to cancel or set aside an instrument or decree or for the rescission of a contract, the limitation is three years and it begins to run when the plaintiff entitles to have the instrument or the decree cancelled or set aside or when the contract rescinded first became known to him. As seen, when the appellant had knowledge of it on 29-1-1949 itself the limitation began to run from that date and the three years' limitation has hopelessly been barred on the date when the suit was filed. It is contended by Shri V.M Tarkunde, learned Senior Counsel for the appellant, that the counsel in the trial court was not right in relying upon Article 59. Article 113 is the relevant article. The limitation does not begin to run as the sale deed document is void as it was executed to stifle the prosecution. Since the appellant having been remained in possession, the only declaration that could be sought and obtained is that she is the owner and that the document does not bind the appellant. We are afraid that we cannot agree with the learned counsel. As seen, the recitals of the documents would show that the sale deed was executed for valuable consideration to discharge pre-existing debts and it is a registered document. Apart from the prohibition under Section 92 of the Evidence Act to adduce oral evidence to contradict the terms of the recital therein, no issue in this behalf on the voidity of the sale deed or its binding nature was raised nor a finding recorded that the sale deed is void under Section 23 of the Contract Act. Pleading itself is not sufficient. Since the appellant is seeking to have the document avoided or cancelled, necessarily, a declaration has to be given by the court in that behalf. Until the document is avoided or cancelled by proper declaration, the duly registered document remains valid and binds the parties. So the suit necessarily has to be laid within three years from the date when the cause of action had occurred. Since the cause of action had arisen on 29-1-1947, the date on which the sale deed was executed and registered and the suit was filed on 30-7-1966, the suit is hopelessly barred by limitation. The courts below, therefore, were right in dismissing the suit. The appeal is accordingly dismissed with costs.

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    Comments

    Ramti Devi (Smt) v. Union Of India .
    (Oct 20, 1994)