2016 (9) TMI 1581 - SC - Indian Laws

Rejection of application filed under Order VII, Rule 11, CPC - main grievance urged in the plaint is that the procedure under the Act has not been followed and, therefore, the appellants are entitled to file a suit. If that be so, the plaintiff is entitled to file a suit - HELD THAT - According to the appellants, the respondents have suppressed crucial facts in the plaint, which if seen, the suit is only to be dismissed at the threshold. Rejection of a plaint on institutional grounds is different from dismissal of a suit at pre-trial stage on the ground of maintainability. For dismissal on a preliminary issue, the Court is entitled and liable to look into the entire documents including those furnished by the defendant. Appeal dismissed.

Summary

Issues involved:
Application under Order VII, Rule 11, CPC rejected - Exhaustion of remedies under EPF Act - Scope of Civil Court's jurisdiction - Rejection of plaint on institutional grounds - Dismissal of suit at pre-trial stage - Preliminary issue on maintainability permitted.

Analysis:

The Supreme Court addressed the issue where the appellants were aggrieved by the rejection of their application under Order VII, Rule 11, CPC. The appellants argued that the respondents, having exhausted all remedies under the Employees Provident Funds and Miscellaneous Provisions Act, 1952, were barred from approaching the Civil Court as per Section 7L(4) of the said Act. The Court clarified that under Order VII, Rule 11, CPC, the Civil Court can only consider the pleadings in the plaint and not the written statement. The main grievance in the plaint was the alleged non-following of the Act's procedure, entitling the appellants to file a suit as established in a previous case.

Furthermore, the appellants contended that crucial facts were suppressed in the plaint, which, if revealed, would lead to the suit's dismissal at the threshold. The Court differentiated between rejection of a plaint on institutional grounds and dismissal of a suit at the pre-trial stage based on maintainability. It emphasized that for dismissal on a preliminary issue, the Court could examine all documents, including those provided by the defendant. Consequently, the Court dismissed the appeal but allowed the appellants to raise a preliminary issue on the suit's maintainability. The trial court was directed to address this issue before proceeding with the trial, ensuring compliance with the law. No costs were awarded in this matter.