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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Corporation Act, 1959
  • Corporation Act, 1959 stood repealed by Act No.06
  • Order VII Rule 11(d) of the Code of Civil Procedure.
  • provisions of Order VII Rule 11(d) of the Code of Civil Procedure.
  • provisions of Order VIII Rule 11(d) of the Code
  • Order VII Rule 11 of the Code of Civil Procedure.
  • Order VII Rule 11(d) of the Code of the Civil Procedure
  • provisions of Order VII Rule 11(d) of the Code. Order VII Rule 11(d)
  • Order VII Rule 11(d) of the Code. Right
  • provisions of Order VII Rule 11(d) of the Code
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Corporation Act, 1959
  • Corporation Act, 1959 stood repealed by Act No.06
  • Order VII Rule 11(d) of the Code of Civil Procedure.
  • provisions of Order VII Rule 11(d) of the Code of Civil Procedure.
  • provisions of Order VIII Rule 11(d) of the Code
  • Order VII Rule 11 of the Code of Civil Procedure.
  • Order VII Rule 11(d) of the Code of the Civil Procedure
  • provisions of Order VII Rule 11(d) of the Code. Order VII Rule 11(d)
  • Order VII Rule 11(d) of the Code. Right
  • provisions of Order VII Rule 11(d) of the Code
Smart Summary

Factual and Procedural Background

The appellant (original plaintiff), described as the Chairman of Aman Apartment Owners Association (registered on 24.09.1992 under the Bombay Non-trading Corporation Act, Regn. No. NTCG5404), filed Civil Suit No.606 of 2021 seeking declaration and permanent injunction. The plaint alleged that the defendant (allotted Flat No.3 and a member) had illegally occupied the common terrace of the apartment, installed a solar panel without permission and restrained other members from using the common terrace. A legal notice was issued on 28.02.2021 prior to filing the suit.

The defendant filed an application (Ex.25) under Order VII Rule 11(d) of the Code of Civil Procedure, contending that the plaint was not maintainable because the Non-trading Corporation Act, 1959 had been repealed by Act No.06 of 2005 and therefore the plaintiff lacked locus to represent the association. The learned City Civil & Sessions Court, Ahmedabad rejected the plaint on 28.12.2023. The present First Appeal (R/First Appeal No.1067 of 2024) challenges that order. The appeal was heard on 23.04.2024.

Legal Issues Presented

  1. Whether the plaint was correctly rejected under Order VII Rule 11(d) of the Code of Civil Procedure on the ground that the Non-trading Corporation Act, 1959 stood repealed and, therefore, the plaintiff (as Chairman) had no locus to sue on behalf of the association.
  2. Whether the question of the plaintiff's locus to represent the association (and the effect of the repeal of the Non-trading Corporation Act) is a matter that can be decided at the stage of an Order VII Rule 11(d) application or requires trial and evidence.

Arguments of the Parties

Appellant's Arguments

  • The appellant is the Chairman of Aman Apartment Owners Association, a registered association (24.09.1992, NTCG5404), and the association owns/common users the terrace where the trespass and solar panel installation occurred.
  • The defendant illegally occupied the common terrace and installed a solar system without permission; a legal notice was served on 28.02.2021 and, on failure to remove the panel, the suit for declaration and removal was filed.
  • The issue of whether the appellant has the right to represent the association is a question of fact requiring trial and cannot be decided under Order VII Rule 11(d) at the preliminary stage.
  • The appellant relied on a decision of this Court in Appeal From Order No.216 of 2013 and allied matters dated 08.07.2013 (as authority in support of his position).

Respondent's Arguments

  • The learned trial Court did not err in rejecting the plaint: the plaintiff sued as a Non-trading Corporation registered under the Non-trading Corporation Act, 1959, which was repealed by Act No.06 of 2005, and therefore the plaintiff lacks the right to represent or sue in that capacity.
  • Because there was no existence of the Non-trading Corporation at the time of filing the suit, the plaint is not maintainable and is barred by law; Order VII Rule 11(d) applies.
  • The respondent relied on authorities, including Mohsin Habibkhan Malek Vs. Asanskar Owners Association (Paldi) (Appeal From Order No.189 of 2013 dated 08.08.2013) and Gujarat Institute of Housing & Estate Developers & 2 Vs. Gujarat Institute of Housing & Estate Developers Ltd (Appeal From Order No.21 of 2010 dated 21.04.2010), to support the contention that the repeal affects maintainability/representation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Appeal From Order No.216 of 2013 and allied matters (08.07.2013) Relied upon by the appellant (the opinion states the appellant relied on this decision). The Court noted the appellant's reliance but the opinion does not describe the principle adopted from this decision; the Court's decision turned on the factual nature of locus and the inapplicability of Order VII Rule 11(d) to decide such factual disputes.
Mohsin Habibkhan Malek Vs. Asanskar Owners Association (Paldi) & others (Appeal From Order No.189 of 2013 dated 08.08.2013) Relied upon by the respondent to support the contention that repeal of the Non-trading Corporation Act affects maintainability/representation. The Court recorded that the respondent relied on this decision but concluded that the contention that repeal itself bars the suit was not shown to be a specific bar under law and that locus is a question of fact requiring trial; the precedent was not treated as conclusive to decide the Order VII Rule 11(d) application.
Gujarat Institute of Housing & Estate Developers & 2 Vs. Gujarat Institute of Housing & Estate Developers Ltd & others (Appeal From Order No.21 of 2010 dated 21.04.2010) Relied upon by the respondent in support of the maintainability/locus contention arising from repeal. The Court noted reliance on this decision but held that the plea of a statutory repeal did not, on the pleadings alone, establish a legal bar under Order VII Rule 11(d); factual questions remain for trial.

Court's Reasoning and Analysis

The Court examined the plaint's averments: that the defendant trespassed on the common terrace, installed a solar panel without permission, and thereby infringed the equal rights of association members to use the terrace; the terrace also contains common amenities (water tank and lift gearbox). The learned trial Court had allowed the defendant's Order VII Rule 11(d) application on the basis that the Non-trading Corporation Act, 1959 had been repealed by Act No.06 of 2005 and therefore the plaintiff lacked locus to sue.

The appellate Court analyzed the scope of Order VII Rule 11(d), observing that this provision applies where "from the averments and statements made in the plaint, it appears that the suit is barred by any law." The Court found that whether the plaintiff has locus to sue and whether Mr. Arvindsinh K. Rehevar can represent the association are questions of fact. The Court noted that the repeal (Act No.06 of 2005) does not, by itself as pleaded, specify a bar to filing the suit. Because the contention about representation and existence/standing involves evidentiary matters, it falls outside the scope of being decided summarily under Order VII Rule 11(d).

Concluding that the learned trial Court misapplied Order VII Rule 11(d) and erred in holding that the plaintiff had no locus to file the suit at the preliminary stage, the appellate Court held that the pleadings required a trial to determine those factual questions.

Holding and Implications

Holding: The First Appeal is allowed. The judgment and order dated 28.12.2023 passed by the learned City Civil & Sessions Court, Ahmedabad in Civil Suit No.606 of 2021 is quashed and set aside, and Civil Suit No.606 of 2021 is restored to the file.

Implications:

  • The suit is restored and will proceed to trial on the merits; factual issues (including the plaintiff's locus and the right of the appellant to represent the association) must be decided on evidence at trial.
  • The appellate Court directed the learned trial Court not to be influenced by the appellate observations and to decide the suit strictly in accordance with law and evidence.
  • The Court did not adjudicate the rival factual contentions between the parties and therefore did not lay down a new conclusive rule of law beyond the immediate decision to restore the suit. The related Civil Application (for stay) was disposed of as it did not survive the main order.

    CHAIRMAN OF AMAN APARTMENT ARVINDSINH K RAHEVAR v. ILAXIBEN DASHRATHBHAI MODI

    C/FA/1067/2024 ORDER DATED: 23/04/2024

    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

    R/FIRST APPEAL NO. 1067 of 2024 With

    CIVIL APPLICATION (FOR STAY) NO. 1 of 2024 In R/FIRST APPEAL NO. 1067 of 2024

    ==========================================================

    CHAIRMAN OF AMAN APARTMENT ARVINDSINH K RAHEVAR

    Versus

    ILAXIBEN DASHRATHBHAI MODI

    ========================================================== Appearance:

    KHYATI J ADHYARU(7877) for the Appellant(s) No. 1 MS RAKSHA S DIKSHIT(5568) for the Appellant(s) No. 1 MR.MANAV MEHTA WITH MR DARSHANKUMAR R KABRA(11246) for the Defendant(s) No. 1

    ==========================================================

    CORAM:HONOURABLE MR. JUSTICE DEVAN M. DESAI

    Date : 23/04/2024

    ORAL ORDER

    1. At the joint request of learned advocates for the parties, the present First Appeal is taken up for final hearing.

    2. By way of the present First Appeal, the appellant - original plaintiff has challenged the judgment and order dated 28.12.2023 passed by the learned City Civil & Sessions Court, Ahmedabad in Civil Suit No.606 of

    Page 1 of 9

    2021, wherein the plaint is rejected under Order VII Rule 11 of the Code of Civil Procedure.

    2. Heard learned advocates for the parties.

    3. Learned advocate for the appellant has submitted that the present appellant is the Chairman of Aman Apartment Owners Association. The said association is registered on 24.09.1992 under the Bombay Non-trading Corporation Act bearing registration No.NTCG5404. The residential flats were constructed by the said association on the land bearing T.P. Scheme No.20, Final Plot No.233 of Sub-plot No.9 & 13 admeasuring about 753 sq.mts.

    3.1 It is further submitted that the defendant was allotted Flat No.3 and became a member of the said association. The terrace over the flats is a common terrace. However, defendant has occupied the common terrace illegally and restrained the other members of the

    Page 2 of 9

    association to use the common terrace. It is further submitted that the respondent placed a solar system on the said common terrace. A legal notice was also given by the plaintiff on 28.02.2021. Since the defendant did not remove the solar panel, the plaintiff - appellant was constrained to file the suit for declaration and removal of the solar panel from the common terrace. A declaration was also sought for to the effect that, the members of the association have a right in the disputed property i.e. the common terrace.

    3.2 It is further submitted that the defendant - Respondent appeared and filed an application Ex.25 under Order VII Rule 11(d) of the Code of Civil Procedure. The learned trial Court after hearing the parties allowed application Ex.25 and rejected the plaint.

    3.3 Learned advocate for the appellant has relied upon the decision passed by this Court in Appeal From

    Page 3 of 9

    Order No.216 of 2013 and allied matters on 08.07.2013.

    4. Learned advocate Mr.Manv Mehta for the respondent has submitted that the learned trial Court has not committed any error by rejecting the plaint. It is submitted that the suit has been filed by the plaintiff as a Non-trading Corporation registered under the Non-trading Corporation Act, 1959. The Non-trading Corporation Act, 1959 stood repealed by Act No.06 of 2005. Therefore, Arvindsinh K. Rehever has no right to represent himself as a Chairman of Aman Apartment Owners Associations. After the repeal of the Non-trading Corporation Act, 1959 plaintiff is not entitled to file any such suit for and on behalf of Non Trading Corporation. Since the suit itself is not maintainable, the provisions of Order VIII Rule 11(d) of the Code are applicable, and the learned trial Court has rightly rejected the plaint.

    Page 4 of 9

    4.1 It is further submitted that when the suit was filed, there was no existence of Non-trading Corporation. Hence, the rejection of the plaint was sought for by the defendant.

    4.2 Learned advocate for the respondent has relied upon the following decisions:-

    (i) Mohsin Habibkhan Malek Vs. Asanskar Owners Association (Paldi) & 7 passed by this Court in Appeal From Order No.189 of 2013 with allied matter on 08.08.2013.

    (ii) Gujarat Institute of Housing & Estate Developers & 2 Vs. Gujarat Institute of Housing & Estate Developers Ltd & 7 passed by this Court in Appeal From Order No.21 of 2010 on

    21.04.2010.

    5. This Court has considered the submissions and the averments made in the plaint. The suit is for the declaration and permanent injunction. The allegation of the plaintiff is that the defendant has committed a tress-pass and occupied the common terrace of Aman Apartment and the defendant has installed a Solar panel in the common

    Page 5 of 9

    terrace without any permission from Association. It is also the case of the plaintiff that no prior permission was sought for by the defendant before installation of the solar system. It is also the case of the plaintiff that the other members of the association have equal right to use the common terrace and defendant has illegally occupied the common terrace. It is also averred in the plaint that, in the terrace portion, common water tank and gearbox of the lift is also installed which is part of common amenities. The learned trial Court has while deciding the application under Order VII Rule 11(d) of the Code of the Civil Procedure has taken into consideration the fact that the Non-trading Corporation has been repealed and the plaintiff has no locus standi to file the suit. In my opinion, whether the plaintiff has locus standi/ right to file a suit is a question of fact. The contention raised by the defendant that, Mr.Arvindsinh K. Rehevar, has no right to represent himself as a Chairman of Aman Apartment Owners

    Page 6 of 9

    Associations, is also question of fact which cannot be decided by invoking the provisions of Order VII Rule 11(d) of the Code of Civil Procedure. The Repealed by Act No.06 of 2005 also does not speak about any bar to file the suit. The question of fact which is involved in the present case that whether Arvindsinh K. Rehevar can represent himself as a Chairman of the Aman Apartment Owners Association cannot be gone into by invoking the provisions of Order VII Rule 11(d) of the Code. Order VII Rule 11(d) speaks about that when from the averments and statements made in the plaint, it appears that the suit is barred by any law.

    6. In the present case, nothing could be pointed out from the learned Advocate for respondent that there is a bar in filing a suit under the Repealed Act. Thus, the averments made in the plaint requires a trial to be undergone. Whether plaintiff has a right to represent Chairman of a Non Trading Corporation is a matter of

    Page 7 of 9

    evidence and thus, outside the scope of Order VII Rule 11(d) of the Code. Right to represent a Non Trading Corporation, which has been repealed by Act No.06 of 2005 is a question of fact in absence of any specific bar under the Repealed Act. More particularly, the plaintiff is required to prove the association made in the plaint during the trial. Thus, in the totality of the facts and circumstances of the case, I am of the opinion that the learned trial Court has committed an error by misreading the provisions of Order VII Rule 11(d) of the Code and also by committed an error by holding that the plaintiff has no locus standi to file the suit. Locus to file a suit is a pure question of fact.

    7. In view of the above, the present First Appeal, is allowed accordingly. The judgment and order dated 28.12.2023 passed by the learned City Civil & Sessions Court, Ahmedabad in Civil Suit No.606 of 2021, is hereby

    Page 8 of 9

    quashed and set aside. Hence, Civil Suit No.606, is restored to its file.

    8. The learned trial Court shall not be influenced by the observations made hereinabove and shall decide the suit strictly in accordance with the law and the evidence that may be adduced by both the parties.

    9. This Court has not gone into the rival contentions of the parties on facts. Order in Civil Application

    In view of the order passed in the main matter i.e. First Appeal No.1067 of 2024, the present Civil Application, does not survive and stands disposed of accordingly.

    (D. M. DESAI,J)

    MANOJ

    Page 9 of 9

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    CHAIRMAN OF AMAN APARTMENT ARVINDSINH K RAHEVAR v. ILAXIBEN DASHRATHBHAI MODI
    (Apr 23, 2024)