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2022 (10) TMI 627 - SC - Indian Laws


Issues Involved:
1. Whether the issue of limitation can be determined as a preliminary issue under Order XIV, Rule 2(2) of the Code of Civil Procedure (CPC)?
2. Whether a larger period of limitation of 12 years would be available to the Plaintiffs by virtue of Article 136 of the Limitation Act, 1963?
3. Whether Article 17 or Article 65 of the Limitation Act applies to the case?

Issue-wise Detailed Analysis:

1. Preliminary Issue of Limitation under Order XIV, Rule 2(2) of CPC
The Court examined whether the issue of limitation could be determined as a preliminary issue under Order XIV, Rule 2(2) of the CPC. The Appellants contended that limitation is a mixed question of law and facts and should not have been decided preliminarily. They argued that if it were to be considered preliminarily, it should have been under Rule 11, Order VII of the CPC, potentially leading to the rejection of the plaint under Clause (d) of Rule 11. The Respondents argued that the foundational facts for determining the nature of the suit and the starting point of limitation were available in the plaint itself, making it permissible to decide the limitation issue preliminarily. The Court referred to precedents, including Nusli Neville Wadia v. Ivory Properties and Mongin Realty and Build Well Private Limited v. Manik Sethi, which established that limitation can be decided as a preliminary issue if it is based on admitted facts. The Court concluded that the Trial Court's approach was permissible and legal under Order XIV, Rule 2(2)(b) of the CPC.

2. Larger Period of Limitation under Article 136 of the Limitation Act
The Appellants contended that a larger period of limitation of 12 years should be available under Article 136 of the Limitation Act. The Court found this contention to be without merit, noting that Article 136 applies only to applications for execution of decrees or orders of Civil Courts. Since the case at hand did not involve such an application, Article 136 was inapplicable. The Court referred to the decision in Bikoba Deora Gaikwad and Ors. v. Hirabai Marutirao Ghorgare and Ors., which clarified the scope of Article 136. Consequently, the Court concluded that the Appellants could not claim a 12-year limitation period.

3. Applicability of Articles 17 and 65 of the Limitation Act
The Appellants argued that Articles 17 or 65 of the Limitation Act should apply. The Court found these arguments to be irrelevant in the context of the case. The Trial Court had determined the preliminary issue of limitation based on the specific dates mentioned in the plaint, which indicated that the suit was filed beyond the prescribed limitation period. The Court noted that the Plaintiffs had not sought to set aside the Relinquishment Deed within the limitation period, despite being aware of its alleged fraudulent nature since 1991. The Court upheld the concurrent findings of the lower courts that the suit was barred by limitation, emphasizing that the nature of the suit was declaratory and the relief sought was consequential to the declaratory relief.

Conclusion
The Supreme Court dismissed the appeal, affirming the concurrent findings of the lower courts that the suit was barred by limitation. The Court found no perversity or illegality in the judgments of the lower courts and concluded that the Appellants' contentions regarding the applicability of Articles 17, 65, and 136 of the Limitation Act were without merit. The appeal was dismissed with costs, and all pending applications were disposed of.

 

 

 

 

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