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Issues Involved:
1. Rejection of the plaint under Order VII Rule 11 of the Code of Civil Procedure. 2. Validity of the partition decree based on the arbitration award. 3. Allegation of fraud in obtaining the partition decree. 4. Whether the suit is barred by limitation. 5. Applicability of Sections 32 and 33 of the Arbitration Act. 6. Whether the plaintiff needs to seek cancellation of the decree. Issue-wise Detailed Analysis: 1. Rejection of the plaint under Order VII Rule 11 of the Code of Civil Procedure: The defendants sought rejection of the plaint under Order VII Rule 11, arguing that the suit did not disclose a cause of action and was barred by limitation. The Court noted that the plaintiff's averments in the plaint must be presumed correct for the purpose of deciding the application. The plaintiff alleged that the partition decree was a sham and that the properties remained joint HUF properties. The Court held that the plaint disclosed a cause of action and the suit could not be rejected at this stage without recording evidence. 2. Validity of the partition decree based on the arbitration award: The plaintiff contended that the partition decree obtained in 1963 was a sham, intended only to defraud tax authorities, and that no actual partition took place. The defendants argued that the decree was valid and binding. The Court noted that the plaintiff was a minor at the time of the decree and claimed to have become aware of it only in 1984. The Court held that whether the decree was a sham and whether the partition actually took place were questions of fact that required evidence to be recorded. 3. Allegation of fraud in obtaining the partition decree: The plaintiff alleged that the partition decree was obtained fraudulently to reduce tax liabilities and that the properties continued to be treated as joint HUF properties. The Court referred to several precedents where fraudulent transactions were held to be sham and nominal, not affecting the joint family status. The Court held that the allegations of fraud could not be dismissed without recording evidence and that the suit was maintainable on this ground. 4. Whether the suit is barred by limitation: The defendants argued that the suit was barred by limitation as it was filed in 1986, while the decree was passed in 1963. The plaintiff contended that he became aware of the decree only in 1984 and that the right to sue accrued when he was threatened with exclusion from the HUF properties in 1985. The Court held that the question of limitation could not be decided at this stage without recording evidence and that the suit appeared to be within time based on the plaintiff's averments. 5. Applicability of Sections 32 and 33 of the Arbitration Act: The defendants argued that the suit was barred by Sections 32 and 33 of the Arbitration Act, which preclude challenges to arbitration awards and agreements. The Court held that these sections did not apply as the plaintiff was not challenging the arbitration agreement or award per se but was alleging that the award and decree were sham and intended to defraud tax authorities. The Court cited precedents supporting the maintainability of a suit challenging a decree on grounds of fraud. 6. Whether the plaintiff needs to seek cancellation of the decree: The defendants contended that the plaintiff needed to seek cancellation of the decree to maintain the suit. The plaintiff argued that the decree was void and could be ignored without seeking its cancellation. The Court referred to several precedents where it was held that a void document could be ignored, and a suit for substantive relief could be maintained without seeking cancellation of the document. The Court held that the plaintiff was not legally bound to seek cancellation of the decree and could directly seek partition and other reliefs. Conclusion: The applications for rejection of the plaint were dismissed. The Court held that the plaint disclosed a cause of action, the suit was not barred by limitation, and the allegations of fraud required recording of evidence. The suit was maintainable, and the plaintiff was not required to seek cancellation of the decree. The issues raised by the defendants could not be decided without framing issues and recording evidence.
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