VidhiSangh

Supreme Court of India · 17/09/2021

SALIM D. AGBOATWALA AND ORS. versus SHAMALJI ODDHAVJI THAKKAR AND ORS.

[2021] 9 S.C.R. 103 · 2021 INSC 486

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Summary

The Court restored a suit challenging agricultural-tenancy orders and a purchase certificate on pleaded fraud, collusion and absence of notice. At plaint-rejection stage, the alleged later discovery could not be displaced by contested assertions of actual or constructive knowledge. The statutory civil-court bar had to be considered with the reference procedure under Section 85A and the unexamined receiver-management exemption issue. Rejection under Order VII Rule 11(d) was premature; neither fraud, limitation nor the exemption’s merits were finally determined. The appeal was allowed without costs.

Issues

  1. Whether limitation could defeat the plaint despite pleaded lack of notice and later discovery.
  2. Whether Sections 85 and 85A excluded the suit at the threshold despite the fraud allegations and receiver-management issue.

Provisions considered

Held

Result

Appeal allowed without costs; plaint-rejection judgments set aside and suit restored for adjudication of the unresolved issues.

Judgment PDF: Supreme Court of India, [2021] 9 S.C.R. 103.