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citation codes
Case Number
Attorney(S)
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  • Order VII Rule 11(a) (c) and (d) of the Code of Civil Procedure in O.S.25299/2017. CRP 157/2019
  • provisions of Order VII Rule 11 of the Code of Civil Procedure,
  • Order VI Rule 2(1) of the Code of Civil Procedure
  • Order VII Rule 11 of the Code of Civil Procedure
  • Order VI Rule 2 of the Code of Civil Procedure,
  • Article 58 of the Limitation Act
  • Article 120 of the 1908 Act.
  • Order VII Rule 11(a) of CPC
  • Article 58 of the 1963 Act,
  • Order 7 Rule 11(d) CPC.10.
  • Order VII Rule 11 (a)(c)
  • Order VII Rule 11 (a).
  • Order 7 Rule 11 CPC,
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Order VII Rule 11(a) (c) and (d) of the Code of Civil Procedure in O.S.25299/2017. CRP 157/2019
  • provisions of Order VII Rule 11 of the Code of Civil Procedure,
  • Order VI Rule 2(1) of the Code of Civil Procedure
  • Order VII Rule 11 of the Code of Civil Procedure
  • Order VI Rule 2 of the Code of Civil Procedure,
  • Article 58 of the Limitation Act
  • Article 120 of the 1908 Act.
  • Order VII Rule 11(a) of CPC
  • Article 58 of the 1963 Act,
  • Order 7 Rule 11(d) CPC.10.
  • Order VII Rule 11 (a)(c)
  • Order VII Rule 11 (a).
  • Order 7 Rule 11 CPC,
Smart Summary

Factual and Procedural Background

Two revision petitions (CRP 157/2019 filed by defendants No.1, 2 & 3; and CRP 168/2019 filed by defendant No.5) arise from the dismissal by the Additional City Civil and Sessions Judge, Court Hall No.58, Bengaluru, of applications I.A.2 and I.A.3 under Order VII Rule 11 (a), (c) and (d) of the Code of Civil Procedure in O.S.25299/2017. The defendants sought rejection of the plaint under those provisions; the trial court dismissed the applications, prompting these revision petitions.

The plaint (filed in 2017) seeks (inter alia) a declaration that the plaintiffs are absolute owners of an undivided one-third share in the schedule property, that registered sale deeds dated 18.03.2005, 29.03.2007 and 15.06.2016 are void ab initio and do not bind the plaintiffs' interest, and possession of the one-third share. The plaintiffs' pleading states that a registered general power of attorney (GPA) was executed on 23.01.2002; the plaintiffs' father, E. Shankarappa Reddy, died on 21.04.2003; a sale deed was executed by the first defendant on 18.03.2005 in favour of the third defendant; that third defendant sold to the fourth defendant on 29.03.2007; and on 15.06.2016 the fourth defendant sold to the fifth defendant. The plaintiffs contend the post-death transfers are void and do not affect their title.

Legal Issues Presented

  1. Whether the plaint should be rejected under Order VII Rule 11 of the Code of Civil Procedure on the ground that it does not disclose a cause of action (including because of alleged suppression of material facts).
  2. Whether the suit is barred by limitation, specifically whether Article 58 of the Limitation Act requires reckoning limitation from the first date of accrual (18.03.2005) and renders the suit time-barred.
  3. Whether the trial court erred in dismissing the defendants' applications under Order VII Rule 11 and thereby requiring a full trial despite the defendants' contentions on suppression and limitation.

Arguments of the Parties

Petitioners' (Defendants') Arguments

  • The trial court erred in holding that the pleadings require a trial; the plaint is prima facie time-barred because the cause of action first arose on 18.03.2005 and the suit was filed in 2017, well beyond three years for a declaration suit.
  • The trial court wrongly treated limitation as a mixed question of law and fact; the suit should have been rejected on limitation grounds at the threshold.
  • The plaintiffs suppressed material contemporaneous transactions — specifically, an agreement of sale and an affidavit — which, if considered, would show the plaint fails to disclose the true cause of action; these suppressed documents were produced by petitioners' counsel.
  • Because the plaintiffs were aware of the transactions while their father was alive, and were parties to some documents, they cannot now claim the reliefs; the plaint should have been rejected under Order VII Rule 11 for non-disclosure of cause of action.

Respondents' (Plaintiffs') Arguments

  • The GPA dated 23.01.2002 did not and could not transfer the plaintiffs' father's one-third share after his death on 21.04.2003; the GPA was not enforceable in respect of that share.
  • Although a GPA may have been executed, the first defendant alone executed the sale deed (18.03.2005) and subsequent deeds are void ab initio; therefore the plaintiffs' title to one-third share remains intact.
  • The plaintiffs were required to join execution of the GPA and did so under insistence; given their pleaded contentions, the issues raised require a thorough trial and cannot be resolved at the threshold under Order VII Rule 11.
  • Simply seeking declaratory relief does not make the suit time-barred; the trial court correctly refused to reject the plaint.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
R. Satish Kumar Singh v. Sri Ram Singh & Another (RFA 653/2014) The view that suppression of facts by a plaintiff may be a ground for rejection of the plaint. The court relied on this view to support the proposition that deliberate suppression of material facts in the plaint can justify invoking Order VII Rule 11(a) to reject the plaint.
Bhagirath Prasad Singh @ Bachcha Babu v. Ram Narayan Rai @ Ram Narayan Singh & Another (2010) AIR Patna 189 (Manu/BH/1668/2010) Explains interaction between Order VII Rule 11 and Order VI Rule 2: where plaintiffs deliberately omit material facts required by law to be disclosed, the court may reject the plaint; emphasizes that pleadings must contain material facts. The court cited this authority to reinforce that omission of material facts required by Order VI Rule 2 can render a plaint bad and justify rejection under Order VII Rule 11.
Sopan Sukhdeo Sable & Others v. Assistant Charity Commissioner & Others, (2004) 3 SCC 137 Principle that omission of a single material fact can result in an incomplete cause of action and render a plaint bad. Quoted (via the Patna decision) to support the proposition that a single omitted material fact may invalidate the plaint's cause of action.
Khatri Hotels Pvt. Ltd. v. Union of India & Another, (2011) 9 SCC 126 Interpretation of Article 58 of the Limitation Act: where multiple causes of action exist, limitation runs from the date when the right to sue first accrues (the 'first' accrual). The court applied this principle to hold that limitation must be reckoned from the earliest date of accrual (18.03.2005), so subsequent dates do not extend the limitation period; hence the suit is time-barred.

Court's Reasoning and Analysis

The court examined the plaint's pleaded chronology and material averments. The plaint admits a registered general power of attorney (GPA) was executed on 23.01.2002, the plaintiffs' father died on 21.04.2003, and the first challenged sale deed was executed on 18.03.2005. The plaintiffs assert the GPA was an independent transaction not coupled with interest and that they joined execution on the insistence of defendants 1 & 2.

Two central clusters of legal concern guided the court's analysis:

  • Suppression of Material Facts: The petitioners produced contemporaneous documents (an agreement of sale and an affidavit) that, they asserted, were deliberately omitted from the plaint. The court acknowledged the settled principle (as reflected in the cited authorities) that when a plaint omits material facts required by Order VI Rule 2, such suppression can make the cause of action illusory and justify rejection under Order VII Rule 11. The court therefore treated the alleged suppression as a substantive matter in determining whether the plaint disclosed a cause of action.
  • Limitation: The plaint itself pleads multiple dates of alleged cause of action (18.03.2005; 29.03.2007; 15.06.2016). Applying Khatri Hotels (interpretation of Article 58 of the Limitation Act), the court explained that where multiple causes of action are pleaded, limitation runs from the date when the right to sue first accrues. The plaint admits the first date of accrual is 18.03.2005.

Combining these strands, the court found that (a) material facts were suppressed in the plaint (thus permitting invocation of Order VII Rule 11(a)), and (b) reckoning limitation from the earliest accrual date (18.03.2005) under Article 58 meant the suit — filed in 2017 — was beyond the applicable limitation period for the principal relief (a declaration), and thus the plaint was liable to be rejected under Order VII Rule 11(d).

The court also characterized the trial court's conclusions as "routine" and lacking evidence of application of mind, and therefore not sustainable.

Holding and Implications

Revision petitions allowed and the plaint is rejected.

Implications:

  • Direct effect: The plaint in O.S.25299/2017 is rejected on the combined grounds of non-disclosure / suppression of material facts (invoking Order VII Rule 11(a)) and being time-barred (under Article 58 of the Limitation Act, effecting Order VII Rule 11(d)).
  • The court recorded that there is no order as to costs.
  • The opinion does not purport to set any new legal precedent; it applies established principles from the authorities cited to the facts and pleadings before it.

    Durga Projects And Infrastructure Pvt. Ltd. v. S. Rajagopala Reddy And Others

    1. These two petitions are disposed of by a common order as they arise from the common order passed by the Additional City Civil and Sessions Judge, Court Hall No. 58, Bengaluru, on the applications I.A2 and 3 filed under Order VII Rule 11(a) (c) and (d) of the Code of Civil Procedure in O.S.25299/2017. CRP 157/2019 is filed by defendants no.1, 2 and 3 and CRP 168/2019 is filed by defendant no.5. If defendants 1 to 3 sought rejection of plaint under Order VII Rule 11 (a)(c) and (d), the fifth defendant sought rejection of plaint under Order VII Rule 11 (a). Since the trial court dismissed these applications, these revision petitions are filed.

    2. I have heard arguments of the learned counsel for the petitioners and the respondents. The learned counsel for the petitioners argued that the trial court has come to an erroneous conclusion that trial requires to be held in view of the material facts pleaded by the plaintiffs in the suit. Even with regard to limitation, a wrong finding has been given that it is also a mixed question of law and fact. The suit is for declaration that the plaintiffs are the absolute owners of their undivided 1/3rd share in the schedule property, to declare that the registered sale deeds dated 18.3.2005, 29.3.2007 and 15.6.2016 are void ab initio and do not bind the plaintiffs' interest and for possession of their 1/3rd share. In para 38 of the plaint, the cause of action is shown to have arisen first on 18.3.2005. The suit was filed in the year 2017. Without declaring the sale deeds as null and void, the plaintiffs will not be entitled to 1/3rd share. Therefore, the suit should have been filed within three years from 18.3.2005. Prima facie the suit appears to be time barred. The trial court should have rejected the plaint. He argued that even going by the plaint averments, it can very well be said that the plaintiffs were very much aware of all the transactions that took place when their father was alive. They have suppressed the material fact of execution of an agreement of sale and an affidavit in favour of first and second defendants. They should have disclosed these transactions. They did not challenge all those transactions for a quite long time. They were parties to some of the documents. Therefore, they do not get a right to sue for the reliefs that they have claimed in the plaint. In this view, the trial court should have come to conclusion that the plaint does not disclose cause of action. He argued for allowing the revision petitions and rejecting the plaint.

    3. Per contra, the learned counsel for respondents argued that the plaintiffs' father, E.Shankarappa Reddy along with his brothers might have executed power of attorney in favour of defendants 1 and 2. But all three brothers jointly purchased the property. Shankarappa Reddy had 1/3rd share. He died on 21.4.2003. After his death, the power of attorney could not be enforced by the defendants 1 and 2 in so far as 1/3rd share of Shankarappa Reddy was concerned. Moreover defendant No.1 alone executed the sale deed though the power of attorney was executed jointly in favour of defendants 1 and 2. The subsequent sale deeds are void ab initio. The plaintiffs succeeded to 1/3rd share of their father. When the sale deed was bad in law, their right and title remains in tact. The plaintiffs had to join with their father at the time of executing the power of attorney as the defendants 1 and 2 insisted that the plaintiffs should also execute power of attorney along with their father. In view of the pleadings put forth by the plaintiffs, a thorough trial requires to be held. Just because the plaintiffs have sought declaration of their title, it cannot be said that the suit is time barred and that the plaint does not disclose cause of action. The trial court has come to right conclusion.

    4. In the light of the above arguments, given a plain reading to the plaint, what is forthcoming is that on 23.1.2002, E. Shankarappa Reddy, the plaintiffs, some of the legal heirs of Bankada Rayappa and Muniveerappa executed a power of attorney in favour of defendants 1 and 2 in respect of suit schedule property, i.e., 2 acres 2 guntas of land in Sy.No.20/2 of Doddanekkundi Village, Krishnarajapura Hobli, Bengaluru South Taluk, now situated in Bengaluru East Taluk. This was a registered power of attorney. According to the plaintiffs, they too joined in execution of the general power of attorney as the defendants 1 and 2 insisted on their joining with their father. Some of the legal heirs of Bankadarayappa and Muniveerappa did not join in execution of the power of attorney. The GPA was independent transaction and it was not coupled with interest and therefore it did not transfer or convey any right, title or interest in the schedule property in favour of defendants 1 and 2. On 21.4.2003, E.Shankarappareddy died and consequently the plaintiffs succeeded to 1/3rd share of their father. The first defendant who is one of the partners of M/s Ferns Builders and Developers claimed himself to be authorized person of the owners of the schedule property and sold the same to the firm, i.e., Ferns Builders and Developers, the third defendant by executing a sale deed on 18.3.2005. This sale deed was null and void. The third defendant sold this schedule property to fourth defendant on 29.3.2007. The fourth defendant is none other than the wife of the second defendant. Then on 15.6.2016 the fourth defendant sold the suit property to the fifth defendant. The plaintiffs learnt that fifth defendant obtained certain registered documents in the form of GPA and confirmationcum- lease deeds in respect of suit property from the daughter, son-in-law and grand children of Bankadarayappa.

    5. The plaintiffs have stated that the names of Sri E.Shankarappareddy, Smt. Jayamma, wife of Muniveerappa Reddy, Smt.Ramakka, wife of Bankadarayappa still find a place in the revenue records. Therefore, it is the case of the plaintiffs that all the registered documents that came into existence after demise of Shankarappareddy are null and void and that they do not convey any manner of right, title and interest in favour of the persons who are shown as transferees. The two daughters of Muniveerappareddy, namely Smt. M.Papamma and Smt. M.Padma have also filed suit for partition and in that suit they have sought a declaration that the sale deed dated 18.3.2005 executed by the first defendant in favour of defendant No.3 and the subsequent sale deeds do not bind their interest. Therefore, it is the plea of the plaintiffs that they have every right to claim 1/3rd of their father and the series of the transactions that took place do not bind their interest.

    6. If the plaint is subjected to scrutiny, it appears that the plaintiffs have founded the reliefs mainly contending that the GPA dated 23.01.2002 was the only document executed by them and their father in favour of defendants 1 & 2. They say that they had to join in execution of the GPA with their father on the insistence by the defendants 1 & 2. The argument of petitioners counsel is that the plaintiffs have deliberately suppressed two important transactions namely, execution of an agreement of sale and an affidavit, which were contemporaneous transactions. The petitioners counsel has produced these documents. In the background of well established principle that only plaint must be seen for deciding an application under Order 7 Rule 11 CPC, a question, whether these two transactions can be considered? would obviously arise. As has been pleaded by the plaintiffs, if GPA was the only document that came into existence as 23.01.2002, definitely, the plaintiffs case that they are entitled to 1/3rd share in the suit property becomes an issue to be decided after recording evidence, if not they must fail at the threshold. Now if para 10 of the plaint is meaningfully read, what the plaintiffs have stated is that GPA is an independent transaction and no consideration was paid for execution of the said GPA. That means they do not want to state anything about agreement of sale and the affidavit. The plaint appears to have been drafted cleverly suppressing the material facts. This court, in a situation like this, has already taken a view in the case of R.Satish Kumar Singh Vs. Sri. Ram Singh Another (RFA 653/2014) that suppression of facts by the plaintiff may be a ground for rejection of plaint. The High Court of Patna in the case of Bhagirath Prasad Singh @ Bachcha Babu Vs. Ram Narayan Rai @ Ram Narayan Singh and another, (2010) AIR Patna 189 (Manu/BH/1668/2010, ), has held as below:

    "9. I find no force in the submission raised on behalf of the plaintiffs - opposite parties. No doubt, as per the provisions of Order VII Rule 11 of the Code of Civil Procedure, for the purposes of determining the question of rejection of plaint on the other grounds mentioned therein, it is the plaint that has to be looked into, but the question is that if the plaintiffs have deliberately suppressed the material facts, the disclosure of which is required by law to be made in terms of Order VI Rule 2 of the Code of Civil Procedure, whether it was open for the court concerned to proceed with the trial and decide the suit after framing issues. The order dated 20.11.2006 was challenged by the plaintiffs-judgment debtors themselves before this Court and the civil revision was dismissed by a reasoned order dated 1.5.2008. Thus, this fact was well known to the plaintiffs and they were duty bound in law to disclose the same which they have not done. Order VI Rule 2(1) of the Code of Civil Procedure clearly stipulates that the pleadings should contain the material facts. It has been observed by the Apex Court in Sopan Sukhdeo Sable and others v. Assistant Charity Commissioner and others, (2004) 3 SCC 137] that omission of a single material fact leads to an incomplete cause of action and the statement or plaint becomes bad. Order VII Rule 11 of the Code of Civil Procedure lays down an independent remedy made available to the defendant to challenge the maintainability of the suit itself, irrespective of his right to contest the same on merits. The real object of Order VII Rule 11 of the Code of Civil Procedure is to keep out of courts irresponsible law suits and in case Court is prima facie persuaded of the view that the suit is an abuse of the process of the court, in the sense that it is a bogus and irresponsible litigation, the jurisdiction under Order VII Rule 11 of the Code of Civil Procedure can be exercised". (emphasis supplied)

    7. Therefore, in this case it is apparent that material facts are suppressed and the cause of action that the plaintiffs have claimed can be said to be illusionary and there by Order VII Rule 11(a) of CPC can be invoked.

    8. As regards limitation, in Para 38 of the plaint it is clearly stated that the cause of action arose on 18.03.2005, 29.03.2007 and 15.06.2016. 18.03.2005 is the date when the first defendant executed a sale deed in favour of third defendant. That means, the cause of action first arose on 18.03.2005. This is a suit for declaration and possession. Just because possession is claimed, 12 years period of limitation is not available. Unless the sale deeds are set aside and the plaintiffs' title is declared, they are not entitled to possession. Declaration is the main relief in the circumstances pleaded. Article 58 of the Limitation Act is applicable and therefore the limitation is to be reckoned from the first date; the subsequent dates pleaded do not extend the limitation period. In the case of Khatri Hotels Private Limited Vs. Union of India and another, (2011) 9 SCC 126, it is held as below.

    "30. While enacting Article 58 of the 1963 Act, the legislature has designedly made a departure from the language of Article 120 of the 1908 Act. The word 'first' has been used between the words 'sue' and 'accrued'. This would mean that if a suit is based on multiple causes of action, the period of limitation will begin to run from the date when the right to sue first accrues. To put it differently, successive violation of the right will not give rise to fresh cause and the suit will be liable to be dismissed if it is beyond the period of limitation counted from the day when the right to sue first accrued".

    9. In this case, it is stated in the plaint that the cause of action arose on 18.03.2005, which is the first date; and the suit having been not filed within three years, it is time barred. The plaint can be rejected under Order 7 Rule 11(d) CPC.

    10. The trial court's conclusions are just routine; they do not indicate application of mind. Therefore they are not sustainable; these revision petitions are allowed and the plaint in the suit is rejected. There is no order as to costs.

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    Durga Projects And Infrastructure Pvt. Ltd. v. S. Rajagopala Reddy And Others
    (Jul 5, 2019)