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Issues: Whether the plaint disclosed a cause of action for a mere injunction enforcing negative covenants, or was in substance a claim for declaration and specific performance of renewal of the agreement, and whether the suit was barred by limitation so as to warrant rejection of the plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908.
Analysis: The plaint had to be read as a whole and its substance, not its form, was decisive. The pleadings showed that the agreement had been acted upon, that the appellant had exercised the contractual option to renew, and that the respondent had expressly denied any renewal. In law, renewal of a lease or agreement requires execution of a fresh document evidencing renewal; there is no concept of automatic renewal merely because the option is exercised. On the plaint averments, the right to seek a declaration that the agreement stood renewed arose when renewal was denied in December 2001. The suit filed in August 2005 did not seek the necessary declaratory relief and proceeded as if a subsisting renewed agreement already existed. In those circumstances, the relief of injunction based on the negative covenants could not be granted, and the plaint itself showed that the real foundation of the suit was time-barred.
Conclusion: The suit was correctly treated as barred by limitation and the plaint was liable to rejection under Order VII Rule 11.
Ratio Decidendi: Where the plaint, read as a whole, shows that enforceable relief depends on recognition of a renewed agreement or lease, and the asserted renewal was categorically denied more than three years earlier, the suit cannot be maintained by merely styling it as one for injunction; the plaint may be rejected if it is barred on its face by limitation.