Sunday, 8 December 2013

Cause of action in suit against municipal council challenging auction of house-issue of limitation



The appellants­plaintiffs stated in paragraph 

No.5 of plaint that the cause of action arose on 12th 

August,   1968,   and   thereafter   arose   every   day.     The 
question is, whether the cause of action continued to 
arise after 12th  August, 1968 every day?   On the face 
of   it,   this   statement   is   made   only   to   prevent   the 
plaint getting rejected. This statement has no meaning 
in the eye of law.   The cause of action in this suit 
certainly   arose   on   12th  August,   1968.   The   action 
concluded   on   that   day   when   the   Municipal   Council 
completed the process of auction, therefore, there was 
no   question   of   accrual   of   cause   of   action   every   day 
thereafter.  Therefore,  on  the  face   of  it,  the  plaint 
filed in this manner ought to have been rejected.   If 
that was not done earlier, it can be done at the next 
available  stage.    The  next   available   stage   was  Order 
XIV   of   the   Code   of   Civil   Procedure.   Indeed,   the 
learned   judge   rightly   raised   this   as   a   preliminary 
issue   and   made   endeavour   to   dispose   of   the   suit 
without   recording   evidence   as   early   as   possible. 
Atleast   in   this   case,   issue   of   limitation   was   not   a 

question   of   fact   at   all,   because   the   appellants­
plaintiffs   themselves   did   not   plead   it.     Apparently, 
the   draftman   of   the   plaint   did   not   look   into   the 
provisions of Section 304 of the MMC Act.   So, since 
the   plaint   itself   was   defective,   the   defect   was 
sufficient   to   bring   this   within   the   parameters   of 
clause   (b)   of   sub­rule   (2)   of   Order   XIV   of   Code   of 
Civil  Procedure.    Clause   (b)  provides  that   the  Court 
can decide the suit on the basis of preliminary issue 

if   such   issue   relates   to   either   jurisdiction   of   the 
Court or to a bar created by any law.   The plaint of 
this suit was drafted in such a manner that it stood 
barred   by   Section   304   of   the   MMC   Act.     In   view   of 
this,   though   technically   the   issue   of   limitation   is 
generally a question of law and fact, atleast in this 
case could have been decided as preliminary issue.


  BENCH AT AURANGABAD
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SECOND APPEAL NO. 185 OF 1998

Narayan Ganpat Dalwale 
V E R S U S
The   Municipal   Council   Jalgaon,   District 
    Jalgaon



    CORAM  : A. V. NIRGUDE, J.  
    DATE  :  1st February, 2013
Citation; 2013 (5) ALL M R 670

Following   substantial   question   of   law   was 
recorded   by   my   learned   brother   earlier   in   this 
appeal:­
“Whether   in   the   facts   and   circumstances   of 
the present case, the question of limitation  
could be decided as a preliminary issue when 
Section   304   of   the   Maharashtra   Municipal  
Councils,   Nagar   Panchayats   and   Industrial  
Townships   Act,   1965   would   make   it   explicit 
that the suit is required to be filed within 
six months from date of accrual of the cause 
of   action   and   that   in   the   present   case   the  
accrual   of   the   cause   of   action   as   on 
effecting auction of the house property or on  
receiving   of   knowledge   by   the   plaintiffs   as  
claimed by them and whether without recording  

2.
of evidence.   Such issue could be decided by 
the trial and the first appellate Court ?”
The   appellants   were   plaintiffs.     Their   case 
was as under.
3.
One   Dagdabai   was   their   ancestor.     She   was 
owner of the suit house which is situated within the 
local limits of Municipal Council, Jalgaon.  Dagdabai, 
probably   did   not   pay   property   tax,   and   so,   in   March 

1968,   the   suit   house   was   attached   by   the   Municipal 
Council.     On   4th  July,   1968,   the   Municipal   Council 
offered   the   suit   house   to   public   at   large   in   an 
auction   sale.     The   house   was   sold   ultimately   to 
respondent   No.2.     The   sale   stood   confirmed   on   12th 
August, 1968, after following due process of law.  The 
appellants­plaintiffs   asserted   that   the   auction   was 
bad   because   the   mandatory   notice   was   not   given   to 
Dagdabai.  
4.
The   appellants   ­   plaintiffs     drafted   the 
plaint   of   this   suit   saying   that   the   cause   of   action 
for the suit arose on 12th  August, 1968, and the same 
continued   to   arise   every   day   thereafter.     They   also 
made   prayer   for     possession   of   the   suit   house   along 
with declaration that the auction was bad in law and 
not  binding  on   them.   While   drafting  the  plaint,  they 
further   mentioned   that   they   would   seek   possession   of 
the   suit   house   in   this   suit,   but   would   pay   required 

court   fee   (on   the   basis   of   market   value   of   the   suit 
house)   subsequently.    But,  before  the  suit   was  filed 
in the office of the Court, the prayer clause (B) for 
possession of the suit house was removed. The question 
is, what is the effect of such removal of prayer?  On 
the   face   of   it,   the   appellants­plaintiffs   at   the 
eleventh   hour   decided   not   to   seek   possession.     They 
were   certain   about   it   when   they   removed   original 
prayer clause (B).  If they did not want possession of 

the suit house, then whatever stated in respect of the 
possession of the suit house else where in the plaint 
stood   automatically   removed   though   it   is   not 
physically removed from the plaint.  
Despite   of   removal   of   the   prayer   of 
5.
possession,   the   suit   was   registered   and   summons   were 
issued.     The   respondents­defendants   took  inter   alia 
two important objections; first was that the suit was 
not   maintainable   without   consequential   relief   of 
possession;   and   second   was,   the   suit   was   hopelessly 
barred   by   limitation,   as   provided   in   Section   304   of 
the   Maharashtra   Municipal   Councils,   Nagar   Panchayats 
and   Industrial   Townships   Act,   1965   (for   short   ‘MMC 
Act’). 
6.
The   learned   judge   of   the   trial   Court   framed 
several   issues   and   said   that   these   all   issues   are 
preliminary issues and then dismissed the suit without 

recording evidence of the parties.   He held that the 
suit was not maintainable because there was no prayer 
of consequential relief of possession etc.   Secondly, 
he   held   that   the   suit   is   barred   by   limitation   as 
provided in Section 304 of the MMC Act.  
7.
The   learned   judge   of   the   trial   Court 
undertook   this   exercise   probably   under   Order   XIV   of 
Code   of   Civil   Procedure.   The   objection   of   such 

disposal of the suit is raised saying that the issue 
of   limitation   could   not   have   been   decided   as 
preliminary  issue  because  it   was  a  mixed  question  of 
law and fact and ought to have been decided only after 
recording   evidence.     Technically   this   objection   is 
maintainable,   but   probably   the   facts   that   are 
mentioned   in   the   plaint   and   which   is   case   of   the 
plaintiffs themselves, would prevent them from filing 
this suit at belated stage, in the light of peculiar 
provisions of Section 304 of the MMC Act.  Section 304 
of the MMC Act, reads as under :­
304.  Limitation of suits against Council, its committees, officers 
and   servants   for   acts   done   in   pursuance   of   execution   of   this 
Act.­   (1)   No   suit   shall   lie   against   a   Council   or   against   any 
committee   constituted   under   this   Act,   or   against   any   officer   or 
servant of a Council in respect of any act done in  pursuance or 
executing or intended execution of this Act, or in respect of any 
alleged neglect or default in the execution of this Act.
(a)
unless it is commenced within six months next after 
the accrual of the cause of action; and

until   the   expiration   of   one   month   after   notice   in 
writing   has   been,   in   the   case   of   a   Council   or   its 
committee, delivered or left at the municipal office, 
and, in the case of an officer or servant of a Council, 
delivered to him or left at his office or place of abode; 
and   all   such   notices   shall   state   with   reasonable 
particularity the causes of action and the name and 
place of abode of the intending plaintiff and of the 
advocate, pleader or agent, if any, for the purpose of 
the suit.
(2)
At the trial of any such suit,­
(a) the plaintiff shall not be permitted to adduce evidence 
relating to any cause of action save such as is set forth 
in the notice delivered or left by him as aforesaid;
(b) if the suit be for damages and if tender of sufficient 
amends shall have been made before the action was 
brought, the plaintiff shall not recover more than the 
amount so tendered and shall pay all costs incurred by 
the defendant after such tender.
(3)
If the defendant in any such suit is an officer or servant of a 
Council, payment of any sum or part thereof payable by him in or in 
consequence of the suit may, with the sanction of the Council, be 
made from the municipal fund.
(4)
Nothing in clauses (a) and (b) of sub­section (1) shall apply 
to any suit under section 38 of the Specific Relief Act, 1963 [XLVII 
of 1963] or under sub­sections (1) or (2) of Section 96 of this Act.

(b)
The provision is very stringent and it is drafted with 
a view to prevent unnecessary litigation. This Section 
enjoins   a   litigant   who   intends   to   file   suit   against 
Council   for   any   act   done   in   pursuance   of   the 
provisions   of   this   Act,   he   must   do   so   within   six 
months next after the accrual of cause of action.   He 
must   not   do   so   without   giving   necessary   notice 

contemplated under clause (b) of sub­section (1).   In 
this case, the cause of action admittedly arose on 12th 
August,   1968,   as   pleaded   by   them,   and   admittedly, 
without   any   notice   contemplated   under   clause   (b)   of 
sub­section (1) above, this suit was filed way beyond 
six months.  
The appellants­plaintiffs stated in paragraph 
8.
No.5 of plaint that the cause of action arose on 12th 

August,   1968,   and   thereafter   arose   every   day.     The 
question is, whether the cause of action continued to 
arise after 12th  August, 1968 every day?   On the face 
of   it,   this   statement   is   made   only   to   prevent   the 
plaint getting rejected. This statement has no meaning 
in the eye of law.   The cause of action in this suit 
certainly   arose   on   12th  August,   1968.   The   action 
concluded   on   that   day   when   the   Municipal   Council 
completed the process of auction, therefore, there was 
no   question   of   accrual   of   cause   of   action   every   day 
thereafter.  Therefore,  on  the  face   of  it,  the  plaint 
filed in this manner ought to have been rejected.   If 
that was not done earlier, it can be done at the next 
available  stage.    The  next   available   stage   was  Order 
XIV   of   the   Code   of   Civil   Procedure.   Indeed,   the 
learned   judge   rightly   raised   this   as   a   preliminary 
issue   and   made   endeavour   to   dispose   of   the   suit 
without   recording   evidence   as   early   as   possible. 
Atleast   in   this   case,   issue   of   limitation   was   not   a 

question   of   fact   at   all,   because   the   appellants­
plaintiffs   themselves   did   not   plead   it.     Apparently, 
the   draftman   of   the   plaint   did   not   look   into   the 
provisions of Section 304 of the MMC Act.   So, since 
the   plaint   itself   was   defective,   the   defect   was 
sufficient   to   bring   this   within   the   parameters   of 
clause   (b)   of   sub­rule   (2)   of   Order   XIV   of   Code   of 
Civil  Procedure.    Clause   (b)  provides  that   the  Court 
can decide the suit on the basis of preliminary issue 

if   such   issue   relates   to   either   jurisdiction   of   the 
Court or to a bar created by any law.   The plaint of 
this suit was drafted in such a manner that it stood 
barred   by   Section   304   of   the   MMC   Act.     In   view   of 
this,   though   technically   the   issue   of   limitation   is 
generally a question of law and fact, atleast in this 
case could have been decided as preliminary issue.
9.
As  explained  above, the suit  did  not  have  a 
prayer   of   consequential   nature   after   declaration   was 
sought   in   respect   of   legality   of   the   auction   sale. 
Section   34   of   the   Specific   Relief   Act   apparently 
prohibits   filing   of   such   suit.     The   learned   judge 
rightly decided this issue at preliminary stage.  This 
objection   again   goes   to   the   route   of   the   case   and 
would also come within the parameters of clause (b) of 
Rule   2   of   Order   XIV   of   the   Code   of   Civil   Procedure. 
In   view   of   this,   atleast   in   this   case,   the   judgment 
given   by   the   trial   Court   in   this   suit   without 

recording  evidence  does  not  look  illegal.    Thus,   the 
   

appeal stands dismissed.
( A. V. NIRGUDE, J. )


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