REPORTABLE
2023 INSC 964
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No. 7413 of 2023
(Arising out of S.L.P. (C) No. 8147 of 2016)
KUM. GEETHA, D/O LATE KRISHNA & ORS. ....APPELLANT(S)
VERSUS
NANJUNDASWAMY & ORS. ...RESPONDENT(S)
JUDGMENT
PAMIDIGHANTAM SRI NARASIMHA, J.
1. Leave granted.
2. In this appeal, we are called upon to decide two questions. The
first relates to the true and correct application of the principle
underlying the ‘rejection of plaints’ under Order VII Rule 11, Code of
Civil Procedure, 19081, to the facts of the case. The second question
relates to the legality of rejection of a plaint in part. For the reasons
to follow, we have held that the High Court has committed an error
Signature Not Verified
in passing the order impugned, on both counts. First, by
Digitally signed by
Nisha Khulbey
Date: 2023.10.31
17:00:20 IST
Reason:
misapplying the well-established principles informing Order VII
1 Hereinafter referred to as ‘CPC’.
1
Rule 11 of the CPC, and second, by rejecting the plaint in part,
which is again contrary to the law on the subject. We have,
therefore, allowed the appeal and dismissed the application under
Order VII Rule 11, CPC. We will first indicate the necessary facts.
3. Mr. P V Yogeshwaran, learned counsel appearing for the
appellants, assisted by Mr. M.A. Chinnasamy, Mrs. C Rubavathi,
Mr. C Raghavendren, Mr. V Senthil Kumar, Mr. Devendra Pratap
Singh and Mr. Ashis Upadhay submitted that the Plaintiffs along
with the Defendants No. 1 to 3 are members of a joint family owning
properties mentioned in Schedule A and B of the plaint. He has
taken us through the plaint where it is averred that the karta of the
family, late Shri Munivenkata Bhovi had many properties and was
in a habit of temporarily mortgaging properties for raising finances
by executing what are referred to as ‘nominal sale deeds’. Once
dues were cleared, reconveyance deeds were executed. It is
specifically averred that this practice was adopted by the karta to
maintain the family and the persons in whose favour these
documents were executed were also close acquaintances of the
family. As such, the possession of the joint family properties was
never parted. It is also pleaded that when the Plaintiffs asked for
partition, initially the Defendants did not deny it, but instead, only
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asked the Plaintiffs to wait till the revenue records were updated so
that actual partition could be effected. Hence, Plaintiffs presented a
plaint for partition and separate possession.
4. Four years after the suit was instituted, the Defendants filed a
petition seeking rejection of the plaint under Order VII Rule 11,
CPC. While the Trial Court dismissed the application on the ground
that the plaint does disclose a cause of action, the High Court, by
the impugned order, observed that the property in survey No. 76/1
(described in schedule A of the plaint) was sold way back in 1919
via a registered Sale Deed. The High Court reasoned that the
Plaintiffs did not deny the sale, but only urged that there was a
subsequent re-conveyancing of the property back to the joint family,
without a corresponding mutation of revenue records. Impressed by
the fact that the Plaintiffs neither produced any evidence to
challenge the Sale Deed from 1919, nor sought any declaratory
relief against the Sale Deed, High Court proceeded to allow the
application under Order VII Rule 11, CPC in part, and rejected the
Plaint with respect to Schedule-A property. Shri Yogeshwaran
submitted that the High Court committed an error in allowing the
Revision and consequently, the application under Order VII Rule
11, CPC.
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5. Shri S. Nandakumar, learned counsel appearing for the
respondents, with the assistance of Ms. Deepika Nandakumar,
Mr. Ashok Kumar Singh, Mr. Rajeev Gupta and Mr. Naresh Kumar,
on the other hand, supported the reasoning and conclusion of the
High Court.
6. Before considering the legality of the approach adopted by the
High Court, it is necessary to consider Order VII Rule 11, CPC 2 and
the precedents on the subject. The relevant principles have been
succinctly explained in a recent decision of this Court in Dahiben v.
Arvindbhai Kalyanji Bhanusali,3 as follows:
“23.2. The remedy under Order 7 Rule 11 is an independent
and special remedy, wherein the court is empowered to
summarily dismiss a suit at the threshold, without
proceeding to record evidence, and conducting a trial, on the
basis of the evidence adduced, if it is satisfied that the action
2 11. Rejection of plaint.—The plaint shall be rejected in the following
cases—
(a) where it does not disclose a cause of action;
(b) where the relief claimed is undervalued, and the plaintiff, on being
required by the court to correct the valuation within a time to be fixed by the
court, fails to do so;
(c) where the relief claimed is properly valued but the plaint is written upon
paper insufficiently stamped, and the plaintiff, on being required by the court to
supply the requisite stamp paper within a time to be fixed by the court, fails to do
so;
(d) where the suit appears from the statement in the plaint to be barred by
any law;
(e) where it is not filed in duplicate;
(f) where the plaintiff fails to comply with the provisions of Rule 9:
Provided that the time fixed by the court for the correction of the valuation
or supplying of the requisite stamp-papers shall not be extended unless the court,
for reasons to be recorded, is satisfied that the plaintiff was prevented by any
cause of an exceptional nature from correcting the valuation or supplying the
requisite stamp-paper, as the case may be, within the time fixed by the court and
that refusal to extend such time would cause grave injustice to the plaintiff.
3 (2020) 7 SCC 366.
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should be terminated on any of the grounds contained in this
provision.
23.3. The underlying object of Order 7 Rule 11(a) is that if in
a suit, no cause of action is disclosed, or the suit is barred by
limitation under Rule 11(d), the court would not permit the
plaintiff to unnecessarily protract the proceedings in the suit.
In such a case, it would be necessary to put an end to the
sham litigation, so that further judicial time is not wasted.
23.4. In Azhar Hussain v. Rajiv Gandhi [Azhar Hussain v.
Rajiv Gandhi, 1986 Supp SCC 315. Followed in
Manvendrasinhji Ranjitsinhji Jadeja v. Vijaykunverba, 1998
SCC OnLine Guj 281 : (1998) 2 GLH 823] this Court held that
the whole purpose of conferment of powers under this
provision is to ensure that a litigation which is meaningless,
and bound to prove abortive, should not be permitted to
waste judicial time of the court, in the following words : (SCC
p. 324, para 12)
“12. … The whole purpose of conferment of such powers
is to ensure that a litigation which is meaningless, and
bound to prove abortive should not be permitted to
occupy the time of the court, and exercise the mind of the
respondent. The sword of Damocles need not be kept
hanging over his head unnecessarily without point or
purpose. Even in an ordinary civil litigation, the court
readily exercises the power to reject a plaint, if it does not
disclose any cause of action.”
23.5. The power conferred on the court to terminate a civil
action is, however, a drastic one, and the conditions
enumerated in Order 7 Rule 11 are required to be strictly
adhered to.
23.6. Under Order 7 Rule 11, a duty is cast on the court to
determine whether the plaint discloses a cause of action by
scrutinising the averments in the plaint [Liverpool & London
S.P. & I Assn. Ltd. v. M.V. Sea Success I, (2004) 9 SCC 512] ,
read in conjunction with the documents relied upon, or
whether the suit is barred by any law.
...
23.9. In exercise of power under this provision, the court
would determine if the assertions made in the plaint are
contrary to statutory law, or judicial dicta, for deciding
whether a case for rejecting the plaint at the threshold is
made out.
23.10. At this stage, the pleas taken by the defendant in the
written statement and application for rejection of the plaint on
the merits, would be irrelevant, and cannot be adverted to, or
taken into consideration. [Sopan Sukhdeo Sable v. Charity
Commr., (2004) 3 SCC 137]
23.11. The test for exercising the power under Order 7 Rule
11 is that if the averments made in the plaint are taken in
entirety, in conjunction with the documents relied upon,
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would the same result in a decree being passed. This test
was laid down in Liverpool & London S.P. & I Assn. Ltd. v.
M.V. Sea Success I [Liverpool & London S.P. & I Assn. Ltd. v.
M.V. Sea Success I, (2004) 9 SCC 512] which reads as : (SCC
p. 562, para 139)
“139. Whether a plaint discloses a cause of action or not
is essentially a question of fact. But whether it does or
does not must be found out from reading the plaint itself.
For the said purpose, the averments made in the plaint in
their entirety must be held to be correct. The test is as to
whether if the averments made in the plaint are taken to
be correct in their entirety, a decree would be passed.”
23.12. In Hardesh Ores (P) Ltd. v. Hede & Co. [Hardesh Ores
(P) Ltd. v. Hede & Co., (2007) 5 SCC 614] the Court further
held that it is not permissible to cull out a sentence or a
passage, and to read it in isolation. It is the substance, and
not merely the form, which has to be looked into. The plaint
has to be construed as it stands, without addition or
subtraction of words. If the allegations in the plaint prima
facie show a cause of action, the court cannot embark upon
an enquiry whether the allegations are true in fact. D.
Ramachandran v. R.V. Janakiraman [D. Ramachandran v.
R.V. Janakiraman, (1999) 3 SCC 267; See also Vijay Pratap
Singh v. Dukh Haran Nath Singh, AIR 1962 SC 941] .
23.13. If on a meaningful reading of the plaint, it is found
that the suit is manifestly vexatious and without any merit,
and does not disclose a right to sue, the court would be
justified in exercising the power under Order 7 Rule 11 CPC.
23.14. The power under Order 7 Rule 11 CPC may be
exercised by the court at any stage of the suit, either before
registering the plaint, or after issuing summons to the
defendant, or before conclusion of the trial, as held by this
Court in the judgment of Saleem Bhai v. State of
Maharashtra [Saleem Bhai v. State of Maharashtra, (2003) 1
SCC 557] . The plea that once issues are framed, the matter
must necessarily go to trial was repelled by this Court in
Azhar Hussain case [Azhar Hussain v. Rajiv Gandhi, 1986
Supp SCC 315. Followed in Manvendrasinhji Ranjitsinhji
Jadeja v. Vijaykunverba, 1998 SCC OnLine Guj 281 : (1998)
2 GLH 823].
23.15. The provision of Order 7 Rule 11 is mandatory in
nature. It states that the plaint “shall” be rejected if any of
the grounds specified in clauses (a) to (e) are made out. If the
court finds that the plaint does not disclose a cause of action,
or that the suit is barred by any law, the court has no option,
but to reject the plaint”
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7. In simple terms, the true test is first to read the plaint
meaningfully and as a whole, taking it to be true. Upon such
reading, if the plaint discloses a cause of action, then the application
under Order VII Rule 11 of the CPC must fail. To put it negatively,
where it does not disclose a cause of action, the plaint shall be
rejected.
8. Following this clear principle, we will now consider the
averments made in the plaint. The relevant portions of the plaint are
as follows:
“The plaintiffs submit that the said joint family of late
Muniventkata Bhovi was in the habit of raising finance
whenever it was needed on the strength of the said land in
survey number 76/1 later renumbered as 76/2 by executing
nominal sale deeds and used to clear the same and used to
get necessary reconveying documents... the same habit
continued even after the death of late Munivenkata Bhovi by
his wives... the said landing survey number 76/2 always
continued to be and is in possession of the joint family of the
plaintiffs...
The plaintiffs submit that many times even after clearing the
debts due to the said financiers, there was reconveyance
deeds or release deeds in favour of the plaintiffs joint family
in its favour since they had immense confidence in
Karibasappa’s family and there was no trouble regarding
their joint possession of the said joint family properties...
The plaintiffs submit that the attitude of defendants 1 to 3
towards plaintiffs’ welfare became disinterested and they
started neglecting them ... some of the plaintiffs tried to make
the defendants 1 to 3 to take some steps ... the said
defendants 1 to 3 advised them and other plaintiffs to have
patience as lot of documents and revenue entries have to be
updated before dividing the suit schedule properties and give
separate possession to each sharers including plaintiffs ...
The plaintiffs submit that the said joint family has no debts
and the suit schedule properties are available for partition ...
Plaintiffs 1 to 6 submit that instead of partitioning the said
suit schedule properties among the plaintiffs and the
defendants 1 to 3, the said defendants have started making
efforts to alienate the same to others in the month of May
2005 ... they even made it clear that the heirs of Karibasappa
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and themselves will create all sorts of problems to the
plaintiffs for daring to question them and they claimed that
several documents have been created in respect of the suit
schedule properties and revenue records and built up in the
names of their own man and they will cause all sorts of
obstructions to the plaintiffs in realising their shares and
even create third party interests therein and induct others
into the possession thereof...”
It is apparent from the above that, the Plaintiffs specifically pleaded
that various sales were executed through ‘nominal sale deeds’, but
were not acted upon. The plaint of the joint family property
specifically addressed the issue of the revenue records and averred
that although the RTC records stood in the name of the financiers,
the joint family continued to be in undisrupted possession of the
property.
9. If the statements in the plaint are taken to be true, the joint
family properties may enure to the benefit of its members and they
may well be available for partition. This is a matter of trial, the result
of which would depend upon the evidence adduced by the Plaintiff.
At this stage, we are not concerned with the correctness of the
averments, except to state that the Plaintiffs have the carriage of the
proceedings, and have to discharge the heavy burden of proving their
case. In so far as the application under Order VII Rule 11 of CPC is
concerned, this Court will proceed only that far, to examine whether
the plaint discloses a cause of action, and no further.
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10. The High Court committed an error by examining the merits of
the matter. It pre-judged the truth, legality and validity of the sale
deed under which the Defendants No. 4 to 14 claim title. This is not
to say that the Plaintiffs have any less burden to prove their case or
even that their case is probable. Simply put, the High Court could
not have anticipated the truth of the averments by assuming that
the alleged previous sale of the property is complete or that it has
been acted upon. The approach adopted by the High Court is
incorrect and contrary to the well-entrenched principles of
considering an application under Order VII Rule 11, CPC. Under
these circumstances, we set aside the judgment and the order
passed by the High Court and dismiss the application under Order
VII Rule 11, CPC, and restore the suit even with respect to properties
mentioned under Schedule A of the Plaint.
11. There is yet another reason why the judgment of the High Court
is not sustainable. In an application under Order VII Rule 11, CPC a
plaint cannot be rejected in part. This principle is well established and
has been continuously followed since the 1936 decision in Maqsud
Ahmad v. Mathra Datt & Co4. This principle is also explained in a
recent decision of this Court in Sejal Glass Ltd. v. Navilan Merchants
4 AIR 1936 Lahore 1021
9
(P) Ltd,5 which was again followed in Madhav Prasad Aggarwal v. Axis
Bank Ltd.6 The relevant portion of Madhav Prasad (supra) is
extracted hereinunder:
“10. We do not deem it necessary to elaborate on all other
arguments as we are inclined to accept the objection of the
appellant(s) that the relief of rejection of plaint in exercise of
powers under Order 7 Rule 11(d) CPC cannot be pursued
only in respect of one of the defendant(s). In other words, the
plaint has to be rejected as a whole or not at all, in exercise
of power under Order 7 Rule 11(d) CPC. Indeed, the learned
Single Judge rejected this objection raised by the appellant(s)
by relying on the decision of the Division Bench of the same
High Court. However, we find that the decision of this Court
in Sejal Glass Ltd. [Sejal Glass Ltd. v. Navilan Merchants (P)
Ltd., (2018) 11 SCC 780 : (2018) 5 SCC (Civ) 256] is directly
on the point. In that case, an application was filed by the
defendant(s) under Order 7 Rule 11(d) CPC stating that the
plaint disclosed no cause of action. The civil court held that
the plaint is to be bifurcated as it did not disclose any cause
of action against the Director's Defendant(s) 2 to 4 therein. On
that basis, the High Court had opined that the suit can
continue against Defendant 1 company alone. The question
considered by this Court was whether such a course is open
to the civil court in exercise of powers under Order 7 Rule
11(d) CPC. The Court answered the said question in the
negative by adverting to several decisions on the point which
had consistently held that the plaint can either be rejected as
a whole or not at all. The Court held that it is not permissible
to reject plaint qua any particular portion of a plaint including
against some of the defendant(s) and continue the same
against the others. In no uncertain terms the Court has held
that if the plaint survives against certain defendant(s) and/or
properties, Order 7 Rule 11(d) CPC will have no application at
all, and the suit as a whole must then proceed to trial.
...
12. Indubitably, the plaint can and must be rejected in
exercise of powers under Order 7 Rule 11(d) CPC on account
of non-compliance with mandatory requirements or being
replete with any institutional deficiency at the time of
presentation of the plaint, ascribable to clauses (a) to (f) of
Rule 11 of Order 7 CPC. In other words, the plaint as
5 (2018) 11 SCC 780.
6 (2019) 7 SCC 158.
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presented must proceed as a whole or can be rejected as a
whole but not in part...”
(emphasis supplied)
12. In view of the above referred principle, we have no hesitation in
holding that the High Court committed an error in rejecting the
plaint in part with respect to Schedule-A property and permitting the
Plaintiffs to prosecute the case only with respect to Schedule-B
property. This approach while considering an application under
Order VII Rule 11, CPC is impermissible. We, therefore, set aside the
judgment and order of the High Court even on this ground.
13. For the reasons stated above, the Civil Appeal arising out of
SLP (C) No. 8147 of 2016 is allowed and the impugned judgment and
order of the High Court of Karnataka in Civil Revision Petition No.
158 of 2010 dated 09.11.2015, is set-aside.
14. In view of the fact that the present proceedings arise out of a
suit instituted in 2005, we request the Trial Court to take up the
trial and dispose of the suit expeditiously.
15. Parties will bear their own costs.
……………….………………………….J.
[Pamidighantam Sri Narasimha]
……………….………………………….J.
[Sudhanshu Dhulia]
New Delhi
October 31, 2023
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