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The HC allowed the appeal against dismissal of a recovery suit under Order VII Rule 11 CPC. The Trial Court incorrectly interpreted the Magistrate's judgment, which had clearly concluded that the appellant successfully rebutted the presumption of the cheque being issued for a legally enforceable debt. The Trial Court improperly rendered findings contrary to the pleadings by accepting the respondent's defense at the preliminary stage, exceeding the permissible scope of examination under Order VII Rule 11. Additionally, the Trial Court's determination that the suit was time-barred failed to consider whether the cause of action was established prior to the Magistrate's judgment dated 19.08.2017, necessitating reconsideration of the limitation issue.
The HC allowed the appeal against dismissal of a recovery suit under Order VII Rule 11 CPC. The Trial Court incorrectly interpreted the Magistrate's judgment, which had clearly concluded that the appellant successfully rebutted the presumption of the cheque being issued for a legally enforceable debt. The Trial Court improperly rendered findings contrary to the pleadings by accepting the respondent's defense at the preliminary stage, exceeding the permissible scope of examination under Order VII Rule 11. Additionally, the Trial Court's determination that the suit was time-barred failed to consider whether the cause of action was established prior to the Magistrate's judgment dated 19.08.2017, necessitating reconsideration of the limitation issue.
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