NDLI: Eldeco Housing and Industries Limited Vs. Ashok Vidyarthi and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Code of Civil Procedure
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Code of Civil Procedure, 1908 (5 of 1908)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Issue for consideration: A suit for specific performance was filed seeking enforcement of MoU dated 31.08.1998. It is in the aforesaid suit that application was filed by respondent No. 1 under Order VII Rule 11(d) CPC for rejection of the plaint on the ground that in terms of Order II Rule 2 C.P.C., the suit was barred by law. In the review application filed by the respondent no.1, an application filed under Order VII Rule 11(d) CPC by the High Court was allowed and the suit filed by the appellant was rejected. Whether the order passed by the High Court in review application be legally sustained. Code of Civil Procedure, 1908 – Order VII Rule 11(d) – Whether evidence or merits of the controversy can be examined at the stage of decision of the application under Order VII Rule 11 CPC:Held: If the facts of the case are examined in the light of settled position of law, the order passed by the High Court in review application cannot be legally sustained – The suit for specific performance was filed by the appellant on the basis of MoU dated 31.08.1998 (registered on 01.09.1998) – In terms of the clauses in the agreement, it was pleaded that there was dispute pending amongst the family members of the vendor – After the same is decided and right of the vendor is crystalized, he will get the sale deed registered – The rights of the vendor were finally crystalized when the issue was decided by Supreme Court in Shreya Vidyarthi’s case on 16.12.1995 – Suit for specific performance was filed on 03.08.2017 stating that the appellant-plaintiff came to know about the disposal of the litigation amongst the family members just before filing the suit – Earlier suit for injunction was filed on 22.01.2009 pleading that the appellant-vendee came to know that the vendor was trying to create third party rights in the property while agreeing to sell the same to some other parties At that stage cause of act to file suit for specific performance had not arisen – The application for rejection of the plaint was filed by the respondent claiming that prior to MoU registered on 01.09.1998, the MoU was entered into between the parties on 15.04.1998 and subsequent to the aforesaid MoUs, an agreement was executed on 02.09.1998 – In the aforesaid agreement, it was clearly mentioned that in case the litigation of the vendor regarding the property in question is not decided after one year, the vendee will have the right to get his earnest money back along with interest @ 18% p.a. – However, the fact remains that all the aforesaid documents, referred to by the respondent in support of his plea for rejection of the plaint, cannot be considered at this stage as these are not part of the record with the Court filed along with the plaint – No amount of evidence or merits of the controversy can be examined at the stage of decision of the application under Order VII Rule 11 CPC – Thus, the impugned order of the High Court passed in the Review Application is set aside – Trial Court directed to proceed with the suit. [Paras 23, 25, 26 and 27]
Judge	Hon'ble Mr. Justice Rajesh Bindal
Neutral Citation	2023 INSC 872
Petitioner	Eldeco Housing And Industries Limited
Respondent	Ashok Vidyarthi And Others
SCR	[2023] 16 S.C.R. 872
Judgement Date	2023-11-30
Case Number	7891

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