Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2023 (3) TMI SC This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2023 (3) TMI 166 - SC - Indian Laws


Issues Involved:
1. Jurisdiction under Order VII Rule 10 CPC
2. Rejection of plaint under Order VII Rule 11 CPC
3. Applicability of Section 16 CPC
4. Declaratory and injunctive reliefs
5. Interim vs. permanent reliefs
6. Leave under Order II Rule 2(3) CPC

Issue-wise Detailed Analysis:

1. Jurisdiction under Order VII Rule 10 CPC:
The appellants filed a civil suit in Pune against 141 defendants seeking various reliefs. Defendants 66, 67, 139, and 117 filed applications under Order VII Rule 10 CPC for the return of the plaint, arguing that the properties in question were situated within the jurisdiction of the courts in Bengaluru. The Trial Court dismissed these applications, but the High Court allowed the civil revision applications, directing the return of the plaint for presentation to the appropriate court in Bengaluru. The Supreme Court upheld the High Court's decision, noting that the suit concerns immovable properties and falls under Section 16(d) CPC, which mandates that such suits be filed where the property is situated.

2. Rejection of plaint under Order VII Rule 11 CPC:
Defendant 117 also filed an application under Order VII Rule 11(a) and (d) CPC, seeking rejection of the plaint on grounds of lack of territorial jurisdiction and the suit being barred by the Companies Act, 2013. The Trial Court dismissed this application, but the High Court allowed it. The Supreme Court found this contradictory, as the High Court's analysis focused only on Order VII Rule 10 CPC. The Supreme Court set aside the portion of the High Court's order that allowed the application under Order VII Rule 11 CPC, clarifying that the rejection of a plaint under this rule precludes presenting the same plaint in another court.

3. Applicability of Section 16 CPC:
The appellants argued that the reliefs sought did not fall under Section 16 CPC, which pertains to suits involving immovable property. However, the Supreme Court found that the suit indeed concerned immovable properties, as the plaintiffs were questioning the right, title, and interest of the defendants in these properties. The Court held that the suit fell under Section 16(d) CPC, which requires such suits to be filed where the property is situated, thus supporting the High Court's decision to return the plaint.

4. Declaratory and injunctive reliefs:
The reliefs sought by the appellants included both declaratory and injunctive reliefs. The Supreme Court noted that these reliefs were intricately linked to the immovable properties in question. The declaratory reliefs sought to nullify certain deeds and confirm that the defendants had no rights to the properties, while the injunctive reliefs sought to prevent the defendants from transferring or dealing with the properties. The Court found that these reliefs required a determination of rights to immovable property, thus falling under Section 16(d) CPC.

5. Interim vs. permanent reliefs:
The appellants sought interim reliefs in the form of permanent injunctions while reserving the right to file a suit for specific performance and possession later. The Supreme Court criticized this approach, stating that it would force the defendants to litigate in multiple jurisdictions. The Court emphasized that litigants should not use one court for temporary reliefs and another for permanent reliefs, as this would be unfair to the defendants and inefficient for the judicial system.

6. Leave under Order II Rule 2(3) CPC:
The Trial Court had granted the appellants leave under Order II Rule 2(3) CPC to seek larger reliefs in the future. The Supreme Court clarified that this leave did not affect the defendants' right to seek the return of the plaint under Order VII Rule 10 CPC. The Court upheld the High Court's decision to return the plaint, allowing the appellants to represent it before the jurisdictional court in Bengaluru within four weeks.

Conclusion:
The Supreme Court partly allowed the appeals, setting aside the portion of the High Court's order that allowed the application under Order VII Rule 11 CPC. The Court confirmed the High Court's decision to return the plaint under Order VII Rule 10 CPC, directing the appellants to represent the plaint before the appropriate court in Bengaluru. Pending applications were disposed of accordingly.

 

 

 

 

Quick Updates:Latest Updates