Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Code of Civil Procedure Rejection of Plaint |
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 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Code of Civil Procedure, 1908 – Or.7, r.11 – Rejection of Plaint – The appellant-bank sanctioned and granted a term loan to a partnership firm – The said loan was secured by mortgage of immovable property belonging to the said firm and land of a Guarantor – The land of the guarantor are subject matter of dispute – A Guarantor had signed Guarantee Deed and created a equitable mortgage by deposit of title deeds – The original borrower failed to repay the loan amount – The DRT proceeded ex- parte against the Guarnator and directed the principal borrower, its partners and the Guarantor pay the sum of the term loan with interest – The Guarantor filed an I.A. in 2008 against the order of the DRT, for setting aside the ex-parte decree dated 27.8.2003, however, the same was dismissed – After seven years from the date of the decree dated 27.8.2003 passed by the DRT, the respondents-plaintiffs filed two suits to declare the order dated 27.8.2003 as non- est, ultra-vires, null and void and not binding on the suit property – In the said suits, the bank filed application u/Or. 7, r.11 to reject the respective plaints – The bank contended that as per s.20(1) of Recovery of Debts due to Banks and Financial Institutions Act, 1993 the appeal is provided to DRAT against the order of DRT and therefore, the Civil Court had no jurisdiction to entertain the suits – The respondents-plaintiffs opposed the applications stating that they have purchased the suit property from the original owner and that they are in possession and enjoyment of the suit property – The applications u/Or.7,r.11(d) were dismissed by the Trial Court – The High Court confirmed the orders passed by the Trial Court – On appeal, held: The decree passed by the DRT and even the order passed by the Recovery Officer are appealable u/s. 20 of the RDDBFI Act – The averments in suits, allege fraud with respect to the partnership deed and there are no allegations at all with respect to mortgage created by the guarantor – The suits are vexatious and are filed with malafide intention to get out of the judgment and decree passed by the DRT – The plaintiffs are claiming right, title on the basis of the sale deeds executed by the guarantor as power of attorney holder of the original vendor/original owner – According to the averments in the plaints that they have purchased the suit property from their vendor/original owner is factually incorrect – Before, the execution of sale deeds, the lands were already put as a security by way of mortgage – Further, the guarantor had filed I.A. in 2008 against the judgment and decree by the DRT, he did not disclose that he had already sold the property in favour of plaintiffs – Thus, considering the overall facts and circumstances of the case the suits filed by the plaintiffs are vexatious, frivolous and an abuse of process of law and Court – Therefore, considering the law laid down by the Supreme Court, the plaints are rejected u/Or. 7, r. 11 – Both the Courts below, materially erred in not rejecting the plaints in exercise of powers u/or. 7, r. 11(d) of the CPC. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2020 INSC 234 |
Petitioner | Canara Bank |
Respondent | P. Selathal And Ors. Etc.etc. |
SCR | [2020] 2 S.C.R. 944 |
Judgement Date | 2020-02-28 |
Case Number | 1863 |
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