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  • article 91 of the second schedule to the Limit-ation Act.
  • section 562 of the Code of Civil Procedure,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • article 91 of the second schedule to the Limit-ation Act.
  • section 562 of the Code of Civil Procedure,
Smart Summary

Factual and Procedural Background

The plaintiff and his nephew Ramdeo executed a sale deed of zamindari property in favour of the defendant Musammat Phuljhari on 27 June 1899. The plaintiff alleged the sale was fictitious and never acted upon; that it was agreed Phuljhari would execute a deed of relinquishment; that a relinquishment deed was drawn and signed by her but she refused registration; and that the plaintiff's application to the District Registrar for registration was refused. The plaintiff sued for a decree directing registration of the relinquishment deed (this part was later withdrawn) and for a declaration that the 27 June 1899 sale was a fictitious transaction and without consideration, alternatively claiming Rs. 800 if the sale were held genuine. The trial court held the sale fictitious but dismissed the claim. On appeal the learned Judge held the suit time-barred under article 91 of the Second Schedule to the Limitation Act (three years from execution). The present court considered whether article 91 governed the suit, allowed the appeal, set aside the decree of the court below and remanded the case under section 562 of the Code of Civil Procedure with directions to re-admit and decide on the merits. The appellant was awarded costs of the appeal.

Legal Issues Presented

  1. Whether Article 91 of the Second Schedule to the Limitation Act governs the plaintiff's suit.

Arguments of the Parties

Appellant's Arguments

  • The sale deed dated 27 June 1899 was a fictitious transaction from its inception and never given effect to.
  • It was agreed the defendant would execute a deed of relinquishment; a deed was drawn and signed by her but she refused registration and the District Registrar refused the plaintiff's application for registration.
  • The proper relief was a declaration that the sale was sham (and alternatively recovery of Rs. 800), not a suit to cancel or set aside the instrument.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sham Lall Mitra v. Amarendro Nath Bose That Article 91 of the Second Schedule to the Limitation Act has no application where the suit seeks a declaration that an instrument was a sham transaction from its inception rather than seeking to set it aside. The court relied on this authority to conclude Article 91 did not govern the present suit.
T.P Petherpermal Chetty v. R. Muniandy Servai Recent ruling of the Privy Council cited in support of the view concerning the inapplicability of Article 91 in appropriate cases. The court referred to this ruling as further support for holding Article 91 inapplicable to the plaintiff's claim.

Court's Reasoning and Analysis

The court identified the sole question as whether Article 91 governed the suit. It distinguished a suit to set aside or cancel an instrument from a suit seeking a declaration that the instrument was a sham from its inception. The plaintiff's claim was for a declaration that the sale was fictitious (and alternatively for monetary relief), not for setting aside the deed; hence there was no necessity to apply Article 91. The court relied on the Calcutta High Court decision in Sham Lall Mitra v. Amarendro Nath Bose and a recent Privy Council ruling (T.P Petherpermal Chetty v. R. Muniandy Servai) in support. The court further observed that, had Article 91 been applicable, the learned Judge should have determined when the plaintiff became aware of facts entitling him to have the instrument cancelled or set aside, which was not done. Because the lower court dismissed the suit on this preliminary limitation ground and that ground was found untenable, the appellate court allowed the appeal, set aside the decree and remanded the case under section 562 of the Code of Civil Procedure to be re-admitted and decided on the merits.

Holding and Implications

Appeal allowed; decree of the court below set aside and the case remanded for adjudication on the merits.

Direct consequences: the lower court is directed to re-admit the suit under its original number and dispose of it according to law on the merits. The appellant is awarded the costs of this appeal; other costs will follow the event. The opinion does not purport to establish a new precedent beyond applying existing authorities to the facts.

    Jagardeo Singh v. Phuljhari And Another

    Banerji, J.:— The court below has dismissed the suit of the plaintiff appellant on the ground that it is barred by limitation, under article 91 of the second schedule to the Limit-ation Act. The only question for determination in this appeal is whether that article governs the suit. The plaintiff's case was that he and his nephew Ramdeo executed a sale deed of certain zamindari property in favour of the defendant Musammat Phuljhari, on the 27th of June, 1899; that the sale was a fictitious transaction and was never given effect to; that it was agreed that Musammat Phuljhari should execute a deed of relinquishment; that a deed was drawn up and signed by her, but she refused to have it registered, and that an application for the registration of the deed, made by the plaintiff to the District Registrar, was refused. The plaintiff, accordingly brought the present suit for a decree directing the registration of the deed of relinquishment. This part of the claim was subsequently withdrawn. He further prayed that it may be declared that the sale of the 27th of June, 1899, is a fictitious transaction and without consideration. In the alternative, he prayed that if the sale transaction was held to be genuine Rs. 800, the amount of consideration mentioned in the sale deed, should be awarded to him against the defendant. The court of first instance held that the sale was a fictitious transaction and dismissed the claim. On appeal, the learned Judge came to the conclusion that the suit was time-barred, having been brought after three years from the date of its execution. This view of the learned Judge appears to us to be erroneous. The claim was not to set aside the sale deed, but for a declaration that from its very inception, it was a sham transaction. If this was so, there was no necessity for the plaintiff to have the deed set aside, and therefore article 91 of the second schedule to the Limitation Act had no application. This was so held by the Calcutta High Court in Sham Lall Mitra v. Amarendro Nath Bose(1). We may also refer to the recent ruling of their Lordships of the Privy Council in the case of T.P Petherpermal Chetty v. R. Muniandy Servai(2). If article 91 was applicable, the learned Judge should also have determined when the facts entitling the plaintiff to have the instrument cancelled or set aside became known to him. This he has not done. As the suit was dismissed on a preliminary ground, and in our opinion, that ground is untenable, we allow the appeal, set aside the decree of the court below, and remand the case to that court under section 562 of the Code of Civil Procedure, with directions to re-admit it under its original number in the register, and dispose of it according to law on the merits. The appellant will have his costs of this appeal. Other costs will follow the event.

    2. Appeal decreed.

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    Jagardeo Singh v. Phuljhari And Another
    (May 14, 1908)