Sunday, 25 August 2013

Application for rejection of plaint on the ground of limitation

  There can be no doubt
that if a suit is on  the  face of it barred by limitation it can be rejected
under Order VII Rule 11(d) of the Code.  In such a case it is not necessary
to push the parties to trial merely because limitation is mixed question of
fact and law. But it does not follow that the objections of the defendant to
the date shown in the plaint as the date of accrual of cause of action can
be looked into  at  that  stage.   The  question whether  the  suit is within
limitation or not would have to be considered by the Court for the purpose
of application for rejection of plaint only on the basis of averments in the
plaint.  Therefore, it cannot be said that the learned trial Judge erred in
refusing   to   reject   the   plaint   at   the   threshold.     The   impugned   order,
therefore, does not call for any interference. 

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR.
CIVIL REVISION APPLICATION NO.10 OF 2009.
Sundeep Polymers Private Limited, 
// VERSUS //
Maharashtra State Electricity Distribution
Company Limited (formerly known as 
Maharashtra State Electricity Board),

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
CORAM : R.C.CHAVAN, J.

Judgment Pronounced on: 07.07.2009.
Citation; 2009(5) MH L J 327 bombay

1. This revision is directed against an order passed by learned Second Joint
Civil Judge Senior Division, Nagpur refusing to reject plaint under Order
VII Rule 11 of the Code of Civil Procedure. 
2. The respondent /plaintiff had filed suit for recovery of arrears of energy
charges amounting to Rs.1,90,927/­ from the defendant.  According to the
plaint, arrears as on the date of permanent disconnection, effected on 31st
October, 2002, were Rs.2,77,384.24ps.  The plaintiff claimed to have given
credit to the defendant on 31st December, 2003 of a sum of Rs.86,547/­
and then filed suit for balance on 15th September, 2005. 
3. The defendant filed application under Order VII Rule 11 of the Code of
Civil Procedure contending that temporary disconnection had occurred on
18.07.2002 and since the defendant did not pay any electricity bills after
April,   2002,   the   suit   filed   on   15th  September,   2005   was   barred   by
limitation.     It   was   pointed   out   from   the   plaint   averments   itself,   the
defendant   was   not   paying   any   bills   even   before   August,   2001.     The
defendant   contended   that   the   date   of   permanent   disconnection   31st
October, 2002 was deliberately alleged by the plaintiff to bring  the suit
within   limitation.     The   defendant   also   claimed   that   last   credit   of   Rs.
86,547/­ allegedly made on 31st December, 2003 had nothing to do with
the amount of bills of the plaintiff which was sought to be recovered by the

suit and therefore, the suit which was barred by limitation, ought to have
been rejected under Order VII Rule 11 of the Code of Civil Procedure. 
4. This   application   was   opposed   by   the   plaintiff.   After   hearing   both   the
parties.  The learned trial Judge came to pass the impugned order rejecting
the application.   Aggrieved thereby  the original defendant is before this
Court.  
5. The learned counsel for the applicant submitted that the suit was liable to
be rejected under Order VII Rule 11(d) as it was barred by limitation.  He
submitted   that   it   was   the   duty   of   the   Court   under   Section   3   of   the
Limitation  Act  to  dismiss  the  actions  which  were  barred  by limitation
prescribed  under  the  Limitation Act.   He  submitted  that electricity  has
been  held  to  be  goods  or movable  property in  a judgment  of Madhya
Pradesh   High   Court   in  Harda   Municipality   Vs.   H.   Electric   Supply   Co.,
reported at AIR 1964 MP 101.   Relying  on the judgment of the Supreme
Court in Hardesh Ores (P) Ltd. Vs. Hede and Company, reported at (2007)5
SCC 614 the learned counsel submitted that language of Order VII Rule 11
of  the Code of Civil Procedure is quite clear and plaint can be rejected
even on  the ground of limitation only, when  the suit appears  from  the
statement in the plaint to be barred any law.  Therefore, he submitted that
it is not open  to contend  that  the question of limitation would have  to

await full trial, if it is possible to show on the basis of averments in the
plaint that the suit was liable to be dismissed on the ground of limitation.  
6. The learned counsel for the respondent/ plaintiff submitted that in Elmano
Menino Vs. Archbishop, reported at 2008(5) Mh.L.J. 18 this Court has held
that it was well settled that for rejecting plaint under Order VII Rule 11 of
the Code of Civil Procedure the only averments in the plaint are to be seen
and if there is any slightest doubt, or an arguable point, the plaint cannot
be rejected under Order VII Rule 11 (d) of the Code of Civil Procedure. In
that case the Court had held that on reading the averments in the plaint
that  the suit could not be held to have been barred by limitation.   The
learned counsel for the respondent/ plaintiff submitted that in this case,
the plaint averments show  that  the credit of a sum of Rs.86,547/­ was
given on 31st December, 2003.  Whether this was justifiably given or not,
or could have been given on that date or not, would be a question which
would require evidence to be taken and therefore, on the averments in the
plaint it could not be said that the suit was barred by limitation.
7. Relying   on   a   judgment   of   the   Supreme   Court   in  Popat   and   Kotecha
Property Vs. State Bank of India Staff Assn., reported at (2005) 7 SCC 510
the learned counsel submitted that Order VII Rule 11(d) would apply only
when the statement in the plaint, without any doubt or dispute, shows that

the suit is barred by a law in force.  In this case, according to the learned
counsel,  the plaint averments are sought  to be assailed as untenable or
incorrect,   which   cannot   be   looked   into   at   the   stage   of   consideration
application for rejection of plaint.  The learned counsel for the respondent
also placed reliance on the judgment of the Supreme Court in  Balasaria
Construction (P) Ltd. Vs. Hanuman Seva Trust, reported at (2006) 5  SCC
658 where the Court held in paragraph 8 as under :
“8. After hearing counsel for the parties, going through the plaint,
application under Order 7 Rule 11(d) CPC and the judgments of
the trial court and the High Court, we are of the opinion that the
present suit could not be dismissed as barred by limitation without
proper pleadings, framing of an issue of limitation and taking of
evidence.   Question of limitation is a mixed question of law and
fact.   Ex facie in the present case on the reading of the plaint it
cannot   be   held   that   the   suit  is   barred   by   time.     The  findings
recorded by the High Court touching upon the merits of the dispute
are set aside but the conclusion arrived at by  the High Court is
affirmed.  We agree with the view taken by the trial court that a
plaint cannot be rejected under Order 7 Rule 11(d) of the Code of
Civil Procedure.” 
8.   The   learned   counsel   submitted   that   in   view   of   this,   the   question   of
limitation  would  have  to  be  decided  only  after  taking  evidence  which
would indicate whether  the credit of Rs.86,547/­ or date of permanent
disconnection could bring the case within limitation.  In Mayar (H.K.) Ltd.
Vs. Owners & Parties, Vessel M.V. Fortune Express, reported at AIR 2006 SC
1828 the Court held in paragraph 11 as under :

“11.  From the aforesaid, it is apparent that the plaint cannot be
rejected on the basis of the allegations made by the defendant in
his  written   statement   or  in  an  application  for  rejection   of   the
plaint.  The Court has to read the entire plaint as a whole to find
out whether it discloses a cause of action and if it does, then the
plaint cannot be rejected by the Court exercising the powers under
Order VII, Rule 11 of  the Code.   Essentially, whether  the plaint
discloses a cause of action, is a question of fact which has to be
gathered on  the basis of the averments made in the plaint in its
entirety taking those averments to be correct.  A cause of action is
a bundle of facts which are required  to be proved for obtaining
relief and for the said purpose, the material facts are required to be
stated   but   not   the   evidence   except   in   certain   cases   where   the
pleadings   relied   on   are   in   regard   to   misrepresentation,   fraud,
willful default, undue influence or of the same nature.  So long as
the   plaint   discloses   some   cause   of   action   which   requires
determination by the Court, mere fact that in the opinion of the
Judge   the   plaintiff   may   not   succeed   cannot   be   a   ground   for
rejection of the plaint.  In the present case, the averments made in
the plaint, as has been noticed by us, do disclose the cause of action
and,  therefore,  the High Court has rightly  said  that  the powers
under  Order   VII,   Rule   11  of   the   Code   cannot   be  exercised  for
rejection of the suit filed by the plaintiff­appellants.”
9. The learned counsel, therefore, submitted that whether the plaintiff was
justified in giving credit of Rs.86,547/­ for taking the date for accrual of
cause of action as 31st December, 2003, would have to be gone into at the
trial.   He  submitted  that  the  defence  raised  or  objection  raised  by  the
defendant cannot be a valid consideration for deciding whether the plaint
ought to be rejected or not since at that stage the defence or the written
statement cannot be looked into.  

10.I have carefully considered the rival contentions.  There can be no doubt
that if a suit is on  the  face of it barred by limitation it can be rejected
under Order VII Rule 11(d) of the Code.  In such a case it is not necessary
to push the parties to trial merely because limitation is mixed question of
fact and law. But it does not follow that the objections of the defendant to
the date shown in the plaint as the date of accrual of cause of action can
be looked into  at  that  stage.   The  question whether  the  suit is within
limitation or not would have to be considered by the Court for the purpose
of application for rejection of plaint only on the basis of averments in the
plaint.  Therefore, it cannot be said that the learned trial Judge erred in
refusing   to   reject   the   plaint   at   the   threshold.     The   impugned   order,
therefore, does not call for any interference. 
11.The revision application is, therefore, rejected. 
12.In the circumstances of the case, there shall be no order as to costs.  


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