LawforAll

advocatemmmohan

My photo
since 1985 practicing as advocate in both civil & criminal laws. This blog is only for information but not for legal opinions

Just for legal information but not form as legal opinion

WELCOME TO MY LEGAL WORLD - SHARE THE KNOWLEDGE

Wednesday, May 6, 2026

Limitation — Suit challenging long-standing sale deeds — Delay defeats claim — Limitation to be strictly enforced (Paras 11–14) Issue: Whether suit filed in 2025 challenging sale deeds of 1988 was barred by limitation. Facts: Sale deeds in favour of Sridevi and family were executed on 19.04.1988 and remained unquestioned during lifetime of alleged co-sharer M.C.Chandrasekaran, who died in 1995; plaintiffs pleaded that fraud and patta entries came to knowledge only in 2023. Held: Mere plea of subsequent knowledge could not revive stale claims where registered transactions and possession remained open and continuous for decades; suit instituted after nearly 40 years was ex facie barred by limitation and liable to dismissal under Section 3 of the Limitation Act, 1963. (Paras 11–14)

MADRAS HIGH COURT HELD THAT 


Order VII Rule 11 CPC — Rejection of plaint — Illusory cause of action and barred claim — Plaint liable to be rejected (Paras 10–14)

Issue: Whether plaint in partition suit challenging 1988 sale deeds after nearly four decades disclosed a sustainable cause of action.
Facts: Plaintiffs claiming through late M.C.Chandrasekaran sought declaration that 1988 sale deeds executed in favour of actress Sridevi and her family members were null and void and also sought partition of 2.70 acres at Sholinganallur; defendants contended that plaintiffs were not Class-I heirs, that sale deeds stood unquestioned since 1988, and that plaintiffs falsely pleaded knowledge only in 2023 after patta mutation.
Held: Court found alleged cause of action to be illusory and vexatious, holding that plaintiffs had slept over alleged rights for nearly 40 years despite long-standing registered sale deeds and revenue records in defendants’ favour; plaint was liable to rejection under Order VII Rule 11 CPC. (Paras 10–14)


Limitation — Suit challenging long-standing sale deeds — Delay defeats claim — Limitation to be strictly enforced (Paras 11–14)

Issue: Whether suit filed in 2025 challenging sale deeds of 1988 was barred by limitation.
Facts: Sale deeds in favour of Sridevi and family were executed on 19.04.1988 and remained unquestioned during lifetime of alleged co-sharer M.C.Chandrasekaran, who died in 1995; plaintiffs pleaded that fraud and patta entries came to knowledge only in 2023.
Held: Mere plea of subsequent knowledge could not revive stale claims where registered transactions and possession remained open and continuous for decades; suit instituted after nearly 40 years was ex facie barred by limitation and liable to dismissal under Section 3 of the Limitation Act, 1963. (Paras 11–14)


Order VII Rule 11 CPC — Scope of enquiry — Court need not entertain patently meritless litigation (Paras 13–14)

Issue: Whether Court must mechanically proceed to trial merely because plaint contains formal averments.
Facts: Trial Court dismissed application for rejection of plaint holding that only plaint averments could be examined and disputed questions required trial. Defendants relied upon prior litigation, revenue proceedings and admitted dates appearing from plaint itself to show suit was barred and frivolous.
Held: Though ordinarily only plaint averments are examined under Order VII Rule 11 CPC, Court is not bound to proceed with manifestly vexatious, legally barred and meritless litigation; judicial time should not be wasted on frivolous claims. Trial Court order refusing rejection of plaint was set aside and plaint rejected. (Paras 13–14)


RATIO

While deciding an application under Order VII Rule 11 CPC, the Court is ordinarily confined to plaint averments; however, where the plaint itself discloses that the claim is manifestly vexatious, illusory and ex facie barred by limitation, the Court is not bound to drive parties to trial merely on formal pleadings. Long-settled registered transactions and accrued rights cannot be unsettled after decades by pleading belated knowledge or vague allegations of fraud. 

ADVOCATEMMMOHAN: Registry practice — Numbering of petitions — “Subj...

ADVOCATEMMMOHAN: Registry practice — Numbering of petitions — “Subj...: advocatemmmohan High Court Registry — Maintainability of case — Judicial function — Registry cannot refuse numbering of petition (Paras 3, 1...

MADARAS HIGH COURT 

High Court Registry — Maintainability of case — Judicial function — Registry cannot refuse numbering of petition (Paras 3, 11)

Issue: Whether High Court Registry can refuse to number a petition on ground of maintainability.
Facts: Writ petition at SR stage was listed before Court under caption “for maintainability” following objections raised by Registry regarding maintainability of reliefs sought against Income Tax authorities and third respondent. Court examined continued practice of Registry refusing numbering of petitions despite earlier Supreme Court directions.
Held: Determination of maintainability is a judicial function falling exclusively within domain of Court; Registry cannot refuse numbering of petitions on maintainability grounds and can only scrutinize procedural compliance. (Paras 3, 11)


Registry practice — Numbering of petitions — “Subject to maintainability” endorsement — Mandatory procedure (Paras 5–6, 9–13)

Issue: Procedure to be followed where Registry entertains doubt regarding maintainability of case.
Facts: Despite resolutions of Grievance Redressal Committee, Supreme Court directions in P. Surendran v. State and subsequent Circular dated 28.08.2025, Registry continued practice of not numbering petitions and listing them at SR stage.
Held: If papers are otherwise in order but Registry doubts maintainability, petition must still be numbered with endorsement “numbered subject to maintainability” and thereafter placed before concerned Roster Judge for judicial determination. (Paras 5–6, 9–13)


Administrative instructions — Compliance by Registry — Binding nature of Supreme Court directions (Paras 7–12)

Issue: Whether Registry can continue contrary practice despite Supreme Court orders and administrative circulars.
Facts: Supreme Court in S. Balakrishnan v. State of Tamil Nadu and Grievance Redressal Committee resolutions directed that all petitions should be numbered first and maintainability decided only by Roster Judge; nevertheless Registry persisted with earlier practice.
Held: Directions issued by Supreme Court, Grievance Redressal Committee and Registrar General are binding on Registry and must be scrupulously followed; Registrar General directed to circulate order to all Registry sections for strict compliance. (Paras 7–12)


RATIO

Power to decide maintainability of a case is a judicial function which cannot be delegated to the High Court Registry. Therefore, where petition papers are otherwise in order, the Registry is bound to number the case and, if any doubt regarding maintainability exists, place it before the competent Roster Judge with an endorsement “subject to maintainability”, instead of refusing registration itself.

A corporate guarantee which only obligates the guarantor to infuse equity/share capital or meet project cost overruns, without undertaking repayment of the loan liability of the principal borrower, does not create a “financial debt” within the meaning of Section 5(8) of the Insolvency and Bankruptcy Code, 2016 and cannot form basis for initiation of CIRP under Section 7. Further, default of a corporate guarantor arises only upon invocation of guarantee and failure to honour the demand; therefore, where guarantee was invoked during the Section 10A suspension period, the Section 7 application is barred.

 

IBC — Section 7 application — Corporate guarantee confined to equity infusion — No financial debt for repayment of loan — CIRP not maintainable (Paras 9–21, 29, 36)

Issue: Whether corporate guarantee dated 30.06.2010 executed by Corporate Debtor created liability to repay loan of principal borrower so as to constitute “financial debt” under Section 5(8) of the Insolvency and Bankruptcy Code, 2016.
Facts: Canara Bank sanctioned term loans aggregating ₹144.40 crores to principal borrower for thermal power project; Corporate Debtor/Indiabulls Real Estate Ltd. executed guarantee dated 30.06.2010 undertaking timely infusion of equity and meeting cost overruns. Bank later invoked guarantee by recall notice dated 30.09.2020 demanding repayment of entire outstanding dues of ₹202.03 crores and filed Section 7 application alleging default by Corporate Debtor.
Held: Guarantee deed dated 30.06.2010 only obligated Corporate Debtor to infuse equity/share capital and meet cost overruns, and did not undertake repayment of financial debt of principal borrower. Invocation demanding repayment of entire loan amount was contrary to guarantee terms; consequently, no “financial debt” or default was established against Corporate Debtor and Section 7 application was not maintainable. (Paras 9–21, 29, 36)


Corporate guarantee — Subsequent substitution deed — Discharge of earlier guarantor — Suppression of material document by Financial Creditor (Paras 14–20, 35)

Issue: Effect of subsequent guarantee deed dated 11.01.2012 substituting guarantors and discharging Corporate Debtor.
Facts: After scheme of arrangement approved by Delhi High Court, power business and obligations of Corporate Debtor stood transferred to new entities; subsequent guarantee deed dated 11.01.2012 expressly recorded release of Corporate Debtor from earlier guarantee obligations except limited contingent obligations if substituted guarantors failed. Financial Creditor omitted reference to subsequent deed in Section 7 application.
Held: Subsequent guarantee deed clearly discharged Corporate Debtor from original guarantee obligations except limited contingent obligations; suppression of this material document and filing Section 7 proceedings without proper examination of contractual documents reflected casual and improper approach by Financial Creditor. (Paras 14–20, 35)


IBC — Section 10A — Corporate guarantor default arises only upon invocation of guarantee — Application barred (Paras 30–32)

Issue: Whether Section 7 application against Corporate Debtor was barred by Section 10A IBC.
Facts: Principal borrower account was classified NPA on 28.09.2017, but guarantee against Corporate Debtor was invoked only through recall notice dated 30.09.2020 granting three days’ time for payment. NCLT treated NPA date as date of default and rejected Section 10A objection.
Held: Default of corporate guarantor arises only upon invocation of guarantee and failure to pay within stipulated period; therefore, default occurred on 04.10.2020, falling within Section 10A suspension period. NCLT erred in treating NPA date of principal borrower as default date of guarantor; Section 7 application was barred by Section 10A. (Paras 30–32)


Adjudicating Authority — Contradictory orders by same Bench on same date — Non-application of mind (Paras 33–34)

Issue: Whether NCLT could admit Section 7 application against one corporate guarantor after rejecting identical application against another guarantor on same facts and same recall notice.
Facts: On same date, same NCLT Bench dismissed Section 7 application against another corporate guarantor (RattanIndia Enterprises Ltd.) holding that no financial debt existed, but admitted present Section 7 application arising out of same debt, same recall notice and identical contractual framework.
Held: Passing contradictory orders on same date by same Bench on identical facts demonstrated clear non-application of mind and rendered impugned admission order unsustainable. (Paras 33–34) 

ADVOCATEMMMOHAN: Lok Adalat Award — Partition suit — Non-impleadmen...

ADVOCATEMMMOHAN: Lok Adalat Award — Partition suit — Non-impleadmen...: advocatemmmohan AP HIGH COURT HELD THAT  Lok Adalat Award — Partition suit — Non-impleadment of necessary sharers — Allegation of fraud — Pr...

Lok Adalat Award — Partition suit — Non-impleadment of necessary sharers — Allegation of fraud — Prima facie case made out (Interim Order)

Issue: Whether Lok Adalat award in partition suit is liable to be questioned for non-impleadment of necessary legal heirs.
Facts: Suit for partition relating to property of a female who died intestate was referred to Lok Adalat and award dated 29.06.2024 was passed in O.S.No.92 of 2023; petitioner contended that he, being son of deceased female, and her husband were legal heirs entitled to shares under Section 15 of the Hindu Succession Act, 1956, but were deliberately not impleaded and award was obtained behind their back by fraud.
Held: Since all co-sharers are necessary parties in a partition suit and omission to implead persons entitled to share is fatal, petitioner established a prima facie case warranting examination of validity of Lok Adalat award on allegations of fraud.


Legal Services Authorities Act — Challenge to Lok Adalat award — Civil suit barred — Writ petition maintainable on allegation of fraud (Interim Order)

Issue: Whether separate civil suit is maintainable to challenge Lok Adalat award obtained by fraud.
Facts: Petitioner challenged Lok Adalat award contending that award was obtained by suppressing existence of necessary sharers and without impleading them in partition proceedings.
Held: Since challenge to Lok Adalat award by separate civil suit is barred under the Legal Services Authorities Act, 1987, writ petition is maintainable to question validity of award, particularly on ground of fraud.


Partition suit — Necessary parties — Failure to implead co-sharers — Effect (Interim Order)

Issue: Effect of non-impleadment of persons entitled to share in partition property.
Facts: Petitioner alleged that despite entitlement under Section 15 Hindu Succession Act, neither he nor husband of deceased female owner was impleaded in suit culminating in Lok Adalat award.
Held: It is settled law that every person entitled to share in partition property is a necessary party, and failure to implead such co-sharers is fatal to maintainability and validity of partition proceedings. Consequently, interim stay of execution of Lok Adalat award was granted.

Police inaction — Alleged trespass into property — Dispute found civil in nature (Paras 3–4) Issue: Whether police were bound to take criminal action on petitioner’s complaints alleging trespass into house plot. Facts: Petitioner, a physically differently-abled person, complained that certain persons trespassed into his house plot at Panchalingala Village during night hours, erected stones and attempted further construction; representations dated 31.03.2026, 06.04.2026 and 13.04.2026 were submitted to police and district authorities. Police conducted preliminary enquiry and opined that dispute was civil in nature and petitioner had not approached competent civil Court. Held: In view of preliminary enquiry indicating existence of civil dispute relating to property possession, police did not proceed with criminal action. (Paras 3–4)

 AP HIGH COURT HELD THAT 


Police inaction — Alleged trespass into property — Dispute found civil in nature (Paras 3–4)

Issue: Whether police were bound to take criminal action on petitioner’s complaints alleging trespass into house plot.
Facts: Petitioner, a physically differently-abled person, complained that certain persons trespassed into his house plot at Panchalingala Village during night hours, erected stones and attempted further construction; representations dated 31.03.2026, 06.04.2026 and 13.04.2026 were submitted to police and district authorities. Police conducted preliminary enquiry and opined that dispute was civil in nature and petitioner had not approached competent civil Court.
Held: In view of preliminary enquiry indicating existence of civil dispute relating to property possession, police did not proceed with criminal action. (Paras 3–4)


Criminal procedure — Police inaction on complaint — Remedy of private complaint before Magistrate (Paras 5–7)

Issue: Remedy available when police fail to act on complaint.
Facts: Petitioner sought writ direction compelling police authorities to act upon his complaints regarding alleged trespass.
Held: When police do not act on complaint, complainant has efficacious alternative remedy of filing private complaint before jurisdictional Magistrate under Section 190 r/w 200 Cr.P.C./Section 210 r/w 223 BNSS; petitioner was granted liberty accordingly. (Paras 5–7)


Jurisdictional Magistrate — Duty upon presentation of private complaint (Para 7)

Issue: Obligation of Magistrate upon receipt of private complaint.
Facts: High Court granted liberty to petitioner to institute private complaint before jurisdictional Magistrate regarding alleged trespass and illegal construction.
Held: Upon filing of private complaint, jurisdictional Magistrate shall bestow attention to complaint and deal with same strictly in accordance with law. (Para 7)