Citation : 2025 Latest Caselaw 4858 Gua
Judgement Date : 21 May, 2025
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GAHC010090022025
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THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Case No. : RSA/53/2025
NARAYAN DEKA
S/O. LT. NABIN CH. DEKA, R/O. SOURAV NAGER, GOLAP PATH, BELTOLA,
HOUSE NO. 148, GUWAHATI-28, P/S. BASISTHA, DIST. KAMRUP (M0,
ASSAM.
VERSUS
SANGEETA GOGOI AND ANR
D/O. LT. KAMAL CH. GOGOI, R/O. FLAT NO. 102 C, NABARUN APARTMENT,
S.K. BARUA PATH, DISPUR, GUWAHATI-06, DIST. KAMRUP (M), ASSAM.
2:MINU GOGOI
W/O. LT. KAMAL CH. GOGOI
R/O. FLAT NO. 102 C
NABARUN PATH
DISPUR
GUWAHATI-06
DIST. KAMRUP (M)
ASSAM
Advocate for the Petitioner : MR J H SAIKIA, MR. S DUTTA
Advocate for the Respondent : ,
BEFORE
HONOURABLE MR. JUSTICE ROBIN PHUKAN
ORDER
21.05.2025
Heard Mr. S. Dutta, learned senior counsel assisted by Mr. J.H. Saikia, learned counsel for the appellant.
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2. This appeal, under Section 100 of the C.P.C., is directed against the Judgment and Order dated 05.02.2025, passed by the learned Additional District Judge (FTC) No. 3, Kamrup (M) at Guwahati (first appellate court hereinafter), in Title Appeal No. 32/2023.
3. Notably, vide Judgment and Order dated 05.02.2025, the learned first appellate court has upheld the Judgment dated 23.06.2023, passed by the learned Civil Judge (Senior Division) No. 2, Kamrup (M) at Guwahati (trial court hereinafter), in Title Suit No. 110/2020.
4. It is to be noted here that vide Judgment dated 23.06.2023, the learned trial court has rejected the plaint under Order 7 Rule 11 (d) of the C.P.C.
5. Mr. Dutta, learned senior counsel appearing for the appellant submits that the appellant herein and the respondents entered into an agreement on 14.10.2007, for selling a plot of land measuring 1 Bigha, covered by Dag No. 476/150 (new) of Patta No. 20 of village Sarusojai, under Beltola Mouza, fixing the sell price at Rs. 15,00,000/- and on the date of execution of the agreement, the appellant paid a sum of Rs. 5,00,000/- to the respondents and the remaining amount, as per Clause No. 4 of the agreement, has to be paid after obtaining necessary sell permission from the concerned authority or within three months from that day, whichever is earlier. But, the respondents herein failed to obtain sell permission and also failed to show her willingness to perform her part of contract and ultimately on 25.03.2019, the appellant herein through his counsel issued one notice and in reply to the said notice, the counsel for the respondents has stated that there was no readiness and willingness on the part of the appellant to perform his part of contract and then, the appellant herein, as plaintiff, instituted a suit for specific performance of the contract, being Title Suit No. 110/2020, in the month of March, 2020, before the learned trial court Page No.# 3/14
for:-
(a) a decree for a direction to the defendants to execute and register a Sale Deed in favour of the plaintiff in respect of scheduled plot of land and accepting the contracted purchase money less the amount already been paid as advance/earnest;
(b) a decree for a direction to the defendants to execute and register the Sale Deed in question within a specified time, failing which the Sale Deed be executed and registered according to the provisions of Order 21 Rule 34 (4) of the C.P.C.;
(c) in alternative, a decree for refund of the earnest/advance amount in the event of the plaintiff's failure to obtain the decree as aforesaid with interest @ 12% per annum from 07.12.2007, till realization;
(d) a decree for permanent injunction restraining the defendants from selling/alienating or otherwise disposal of the suit land to others;
(e) a temporary ad-interim injunction in terms of prayer (d) above;
(f) a decree for all costs against the defendants; and
(g) any other reliefs.
5.1. Mr. Dutta further submits that on receipt of the said title suit, the learned trial court had issued summon to the respondents herein and thereafter, the respondents herein entered appearance and file their written statements. Thereafter, the respondents had preferred an application, on 22.08.2022, under Order 7 Rule 11 of the C.P.C. for rejection of the plaint and the appellant herein filed objection in the said petition. Thereafter, hearing learned counsel for both the parties, the learned trial court, vide impugned order, dated 23.06.2023, held Page No.# 4/14
that agreement for sell was executed between the parties on 14.10.2007, and perusal of the said agreement, it reveals that the second party had paid an amount of Rs. 5,00,000/- on the date of agreement, out of total sale consideration of Rs. 15,00,000/-, on stipulated condition that second party, i.e. the plaintiff/appellant, would pay the remaining amount within 3 months from the date of execution of the agreement or after obtaining necessary sale permission, whichever is earlier and from the agreement, it appears that there is no specific obligation vested upon any of the parties for obtaining sale permission and even if it is considered that the obligation was on the defendant, i.e. the seller, then on his failure to obtain the sale permission within the time stipulated in the agreement, plaintiff should have turned up within three years from 14.01.2008, to claim specific performance of contract and the record reveals that he has remained silent for almost 8 years and thereafter, has turned up only on 25.03.2019, by way of issuing a notice of demand to make the sale complete, which is apparently beyond the period of limitation and as such, the issuance of notice on 25.3.2019, would not bring fresh cause of action to place time barred claim. Therefore, the suit of the plaintiff is found palpably barred by limitation and as such, the plaint is liable to be rejected under the provision of Order 7 Rule 11(d) of the C.P.C., being the plaint barred by law.
5.2. Mr. Dutta further submits that being aggrieved, the appellant herein had preferred a regular first appeal, being Title Appeal No. 32/2023, before the learned first appellate court and vide Judgment and Order dated 05.02.2025, the learned first appellate court had dismissed the appeal and affirmed the order passed by the learned trial court on 23.06.2023. And being aggrieved, the appellant approached this court by filing the present appeal suggesting three substantial questions of law, being as under:-
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"1. Whether, the Clause No. 4 of the contract being relatable to the payment of consideration money, the appreciation of the agreement for sale by the learned courts below is perverse?
2. Whether, in absence of any time stipulated in the contract for completion/registration of sale, the findings of the learned courts below that the suit brought by the plaintiff is barred by limitation is perverse? and
3. Whether, in view of the law laid down by the Hon'ble Supreme Court to the effect that time is presumed not to be essence of the contract relating to immovable property, the findings of the learned courts below to the contrary are legal and justified?"
5.3. Mr. Dutta further submits that before the learned first appellate court, the appellant herein had referred several decisions, including the decision in Balasaheb Dayandeo Naik (dead, through LRS) and Others vs. Appasaheb Dattatraya Pawar, reported in (2008) 4 SCC 464 and Swarnam Ramachandran (SMT) and Another vs. Aravacode Chakungal Jayapalan, reported in (2004) 8 SCC 689. But, the learned first appellate court had not directed any discussions about the same in the impugned judgment and order.
5.4. Mr. Dutta further submits that if time is not essence of the contract, then whether the appellant is willing and ready to perform his part of contract, is a question of fact which is to be decided only after taking evidence during the trial and since such an endeavor has not been made by both the learned courts below, the impugned judgment and order of the both the courts below are Page No.# 6/14
perverse and as such, substantial questions of law are involved in this appeal and the same have to be adjudicated on merit and therefore, it is contended to admit the appeal.
6. Having heard the submission of learned counsel for the appellant, I have carefully gone through the judgments and orders of both the learned courts below as well as the agreement of the parties, which is enclosed with the petition at page No. 21 of this petition and also gone through the suggested substantial questions of law.
7. It appears from the documents placed on record that the Deed of Agreement between the appellant and the respondents was executed on 14.10.2007. As discussed herein above, in Clause No. 2 of the aforementioned Deed, it is stated that the sale price for 1 Bigha of land was Rs. 15,00,000/- and Clause No. 3 indicates that on that day the appellant had paid a sum of Rs. 5,00,000/- in cash as advance and Clause No. 4 indicates that the remaining amount shall be paid by the appellant, after obtaining necessary sale permission from the concerned authority or within 3 months from that day, whichever is earlier and Clause No. 5 indicates that in case of unnecessary delay, regarding the payment by the appellant, the advance amount can be forfeited.
8. A careful perusal of the Clause No. 4 of the agreement, reveals that the remaining amount shall be paid by the appellant herein after obtaining necessary sale permission from the concerned authority or within 3 months from that day, whichever is earlier. So, the wording of this Clause is not clear to show, as to who has to obtain the sale permission. But, it was stipulated that within 3 months from the date of execution of the agreement, the amount has to be paid. But, none of the parties come forward to complete the sale process after obtaining sale permission from the concerned authority.
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8.1. Thereafter, only on 25.03.2019, the appellant herein had sent one legal notice to the respondents, expressing his readiness and willingness to complete the process, by paying the rest of the amount, i.e. Rs. 10,00,000/- and thereafter, on 11.04.2019, the respondents sent her reply through her counsel. Thereafter, in the month of March, 2020, the appellant herein had instituted the suit. The respondents, thereafter, entered appearance and contested the suit on different grounds.
8.2. During the pendency of the said suit, the respondents herein had filed a petition, under Order 7 Rule 11 of the C.P.C. for rejection of the plaint and the said petition was filed on the ground that the limitation period for filing the suit is 3 years and the same is barred by time and notice and therefore, it was contended to reject the plaint. The appellant herein had filed written objection in the said petition, stating that as per stipulation made in the agreement, the respondent No. 1 was supposed to apply and obtain the necessary sale permission by signing all the relevant papers before the competent authority. But, the respondents never applied for sale permission and also refused to sign the necessary papers and affidavit for the said purpose and as such, the delay has been caused due to deliberate negligence on the part of the respondents. Further, it is stated that in spite of specific stipulation, the respondents never made any attempt to obtain the sale permission and from the terms of the contract it is very much clear that time was never intended by the parties to make as an essence of contract.
8.3 Thereafter, hearing learned counsel for both the parties, the learned trial court has allowed the petition and rejected the plaint on the ground that the agreement was executed between the parties on 14.10.2007 and thereafter, within the stipulated period of 3 months, the appellant had failed to make Page No.# 8/14
necessary payment and there is no specific obligation vested upon any of the parties for obtaining sale permission. Even if it is considered that the obligation was on the respondents, i.e. the seller, then, on their failure to obtain the sale permission within the time stipulated in the agreement, the appellant should have turned up within three years from 14.01.2008, to claim specific performance of contract. But, the appellant remained silent for almost 8 years and thereafter, he had issued legal notice on 25.03.2019, demanding to make the sale process complete, which is apparently beyond the period of limitation and issuance of notice on 25.03.2019, would not bring fresh cause of action to place time barred claim and therefore, the learned trial court has rejected the plaint.
9. It also appears that the learned first appellate court in the impugned judgment has discussed the Article 54 of the Limitation Act, which provides for limitation of specific performance of contract and as per said Article, limitation to bring the suit is 3 years and the limitation begins to run from the date fixed for the performance or if no such date is fixed, when the plaintiff has noticed that performance is refused. Thereafter, the learned first appellate court recorded that the limitation period begins from 15.01.2008, as 14.01.2008 was the deadline for performance of the contract, as per the agreement itself. Thereafter, it has discussed the effect of filing the suit beyond the period of limitation as provided in Section 3 of the Limitation Act and thereafter, it has held that the plaint itself clarifies that the claim of the plaintiff is time barred. The alleged agreement for sale was executed on 14.10.2007 and the sale of the same was to be completed within 3 months and as such, the limitation would definitely begin to run from 15.01.2008, as the date of performance would have been completed on 14.01.2008, and there is no requirement of proof of any Page No.# 9/14
facts to apply law of limitation in the present case, as the plaint is very much clear to decide the same and as such, there is no question of involvement of facts and law and therefore, the Order 7 Rule 11(d) of the C.P.C. squarely applicable in this case, without the proof of any other facts. Thereafter, the learned first appellate court had arrived at a finding that the suit of the appellant herein is barred, from the averments made in the plaint and therefore, affirmed the order dated 23.06.2023, passed by the learned trial court, whereby the learned trial court had rejected the plaint by invoking Order 7 Rule 11(d) of the C.P.C.
10. It is to be noted here that Order 7 Rule 11 of the C.P.C. mandates rejection of a plaint 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 so 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; and
(f) Where the plaintiff fails to comply with the provisions Page No.# 10/14
of Rule 9?"
11. It is to be noted here that Hon'ble Supreme Court has dealt with the Order 7 Rule 11 of the C.P.C. in the following decision:-
(i) Raghabendra Sharan Singh vs. Ram Prassana Singh (Dead by Legal Representative), reported in (2020) 16 SCC 601, wherein it has been held that considering the averments in the plaint if it is found that the suit is clearly barred by the law of limitation, the same can be rejected in exercise of power under Order 7 Rule 11 (d) of the C.P.C.
(ii) Saleem Bhai and Others vs. State of Maharashtra and Others, reported in (2003) 1 SCC 557, wherein it has been held that with reference to Order 7 Rule 11 of the C.P.C. that the relevant facts which need to be looked into for deciding an application there under are the averments in the plaint.
(iii) Liverpool and London S.P. and I Association Limited vs. M.V. Sea Success, reported in (2004) 9 SCC 512, wherein it has been held that the courts, while dealing with such an application seeking rejection of a plaint, the courts have to determine whether the plaint discloses a cause of action by scrutinizing the averments made in the plaint, read in conjunction with the documents relied upon.
(iv) Sopan Sukhdeo Sable vs. Assistant Charity Commissioner, reported in (2004) 2 SCC 137, wherein it has been clarified that while making such a determination, courts would have to disregard the pleas taken by the defendant in the Page No.# 11/14
written statement and decide the application for rejection of the plaint on merit. Therefore, it was clarified that while determining any application filed under Order 7 Rule 11 of the C.P.C., the courts should restrict itself to the plaint and should not go into the detail facts as provided under the written statement or even the application filed under Order 7 Rule 11 of the C.P.C.
12. In the case in hand, admittedly, the agreement was executed between the parties on 14.10.2007, and legal notice was issued to the respondents on 25.03.2019, expressing his willingness to perform his part of the contract. But, in between, from 14.10.2007 - 25.03.2019, the appellant herein had not taken any steps, rather he has thrown the burden of failure to perform their part of the contract upon the respondents.
13. That, a careful perusal of the stipulation in Clause No. 4, reveals that it is not clear as to who has to obtain the sale permission. It is stated that the remaining amount shall be paid by the second party after obtaining permission from the concerned authority. Even if it is accepted that the respondent being the seller, has to obtain the permission from the concerned authority, yet, the appellant ought to have been paid the remaining amount, within 3 months from 14.10.2007, or after obtaining sale permission, whichever is earlier.
14. The learned first appellate court, considering the statement and averment made in the plaint had held that the limitation begins to run from 15.01.2008, as the period of 3 months elapsed on 14.01.2008, from the date of execution of the agreement dated 14.10.2007. The learned first appellate court had also discussed Article 54 of the Limitation Act, which provides that the period of limitation for specific performance of a contract, to bring the suit is 3 years and the same begins to run from the date fixed for the performance, or if no such Page No.# 12/14
date is fixed, when the plaintiff/appellant has noticed that performance is refused. And later on, the appellant herein issued legal notice to the respondents on 25.03.2019. But, the limitation is ended on 14.01.2011, which begin to run from 15.01.2008. So, the appellant herein ought to have preferred the suit on or before 14.01.2011. But, he remained silent till 23.03.2019, for long 8 years and on that day he had issued legal notice and filed the suit in the month of March, 2020.
15. Though Mr. Dutta, learned senior counsel for the appellant submits that the case of the appellant is covered by the second part of the Article 54 of the Limitation Act, yet, the said submission of Mr. Dutta left this court unimpressed, inasmuch as the said Article provides that the period of limitation for specific performance of a contract to bring the suit is 3 years and the same begins to run from the date fixed for the performance, or if no such date is fixed, when the plaintiff has noticed that performance is refused. If the argument of Mr. Dutta is accepted that as per Clause No. 4, the burden to obtain the necessary sale permission lies upon the respondents, being the seller and within the period of 3 months the respondents had failed to obtain the same, yet, the appellant herein had noticed the absence of readiness and willingness on the part of the respondent on 14.01.2011, itself, as the respondents had not obtained any sell permission and as such, he could have approached the learned trial court for specific performance of the contract, within the period of 3 years from 15.01.2008. But, the appellant herein failed to do the same within the aforementioned period.
16. It is to be noted here that in the case of Dahiben vs. Arvindbhai Kalyanji Bhanusali, reported in 2020 SCC Online SC 562, it has clarified that the power of the courts under Order 7 Rule 11 of the C.P.C is mandatory in Page No.# 13/14
nature and may be exercised at any stage of the suit, either before registering the plaint, or after issuing summons to the defendant, or before conclusion of the trial. However, it has also clarified that the power conferred under Order 7 Rule 11 is a drastic one and that the requirements enumerated therein should be strictly adhered to.
17. Thus, having examined the facts and circumstances on the record and also taking note of the submission of Mr. Dutta, learned senior counsel appearing for the appellant, this court is unable to agree with his submission that any of the suggested substantial questions of law, as mentioned in the memo of appeal, is involved herein.
18. It is, however, a fact that both the courts below had taken into account three months, from the date of agreement, for specific performance of the contract. But, after perusal of the Article 54 of the Limitation Act, it cannot be said that the limitation will continue for indefinite period and it will begin to run at the sweet will of the appellant herein. And as such, it cannot be accepted that the limitation will start from the date of issuance of legal notice. Therefore, to the considered opinion of this court, the limitation starts from when the appellant herein had noticed absence of readiness and willingness to perform their part of the contract by the respondent as the respondents had failed to obtain sale permission on or within three months.
19. I have carefully gone through the decisions referred by Mr. Dutta and I find that the decision so referred by him would not advance his argument, inasmuch as the suit itself is barred by law of limitation. Had it not been the case of limitation, then the ratio laid down in the aforementioned cases would perhaps come into aid of Mr. Dutta.
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20. In the result and for the reason mentioned herein above, I find that no substantial question of law is involved herein and accordingly, the same stands dismissed at this motion stage itself.
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