Supreme Court reverses High Court decision on suit for declaration under Transfer of Property Act

The Supreme Court overturned the High Court's decision to reject the plaint on the grounds of limitation and maintainability of a suit for a declaration simpliciter under Section 53A of the Transfer of Property Act against the actual owner. The Supreme Court emphasized that the entire plaint must be considered, and the cause of action for the suit arose in 2010, not in 2004 as determined by the High Court. The Court held that the High Court's judgment was legally unsustainable and directed the trial court to proceed further in accordance with the law.

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Issues Involved:
1. Whether the suit is barred by limitation.
2. Whether a suit for a declaration simpliciter under Section 53A of the Transfer of Property Act is maintainable against the actual owner.

Issue-wise Detailed Analysis:

1. Whether the suit is barred by limitation:

The High Court had quashed the trial court's order and rejected the plaint under Order VII Rule 11 of the Code of Civil Procedure (CPC) on the ground that the suit was barred by limitation. The trial court had initially refused to reject the plaint, but the High Court found that the suit, filed in 2010, was barred by limitation as the cause of action had arisen in 2004. The Supreme Court, however, emphasized that while considering an application under Order VII Rule 11 CPC, the court must examine the entire plaint and not just isolated paragraphs. The Supreme Court highlighted that the relevant averments in the plaint indicated that the cause of action arose in August 2010 when the defendants attempted to transfer the property and dispossess the plaintiffs. Therefore, the Supreme Court concluded that the High Court erred in rejecting the plaint on the ground of limitation without considering the entire plaint.

2. Whether a suit for a declaration simpliciter under Section 53A of the Transfer of Property Act is maintainable against the actual owner:

The High Court also held that a suit for a declaration simpliciter under Section 53A of the Transfer of Property Act was not maintainable against the actual owner, relying on the decision in Delhi Motor Co. v. U.A. Basrurkar. The Supreme Court, however, noted that the plaintiffs had also sought a decree for permanent injunction, claiming to be in possession of the suit property pursuant to an agreement and continuous possession for over twelve years. The Supreme Court stated that when a suit seeks a decree for permanent injunction and the plaintiffs claim possession, the cause of action arises when the possession is disturbed. Thus, the suit for a decree for permanent injunction could not be said to be barred by limitation. The Supreme Court further asserted that whether the plaintiffs are entitled to relief under Section 53A should be determined at trial, and it cannot be concluded at this stage that the suit for relief under Section 53A is not maintainable.

Conclusion:

The Supreme Court found that the High Court had committed a grave error in allowing the application under Order VII Rule 11 CPC and rejecting the plaint. The High Court exceeded its jurisdiction, and its judgment was unsustainable both in law and on facts. The Supreme Court quashed the High Court's judgment, restored the trial court's order, and directed the trial to proceed further in accordance with law and on its own merits. The appeal was allowed without any order as to costs.

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