Supreme Court civil appeal concerning the rejection of a plaint due to limitation. The core dispute revolves around whether a lawsuit challenging sale deeds executed under a power of attorney was filed within the legally mandated timeframe. The Trial Court initially found the suit time-barred, a decision that was reversed by the High Court, which incorrectly determined that the limitation period began upon the cancellation of the power of attorney. The Supreme Court ultimately overturned the High Court’s ruling, asserting that the cancellation of the power of attorney does not negate prior, valid conveyances, thus affirming the original rejection of the plaint.
Civil Procedure Code, 1908, Order 7 Rule 11 read with Sections 10, 11 and 150 – Rejection of plaint – Limitation – Rejection of a plaint on the ground of limitation was reversed by the High Court – Respondent-plaintiff does not at all dispute the execution of the general power of attorney, which was also executed as far back as in the year 2004 – There were conveyances made by the power holder clearly on the strength of the power conferred on him – The attempt of the plaintiff is to unsettle settled matters especially on the plea that the power of attorney granted in the year 2004 was cancelled in the year 2015 – Held that the cancellation does not affect the prior conveyances made which are clearly on the strength of the power conferred on the appellant – There is no contention raised as to the power of attorney having not conferred the power to enter into conveyances or that such power of attorney was executed by reason of a fraud or coercion employed on the executant – The power holder having exercised the authority conferred; to convey the properties in the name of the purchasers, the cancellation of the power of attorney will have no effect on the conveyances carried out under the valid power conferred – Nor would it confer the person who executed the power of attorney any cause of action, by virtue of a cancellation of the power conferred by a subsequent document, to challenge the valid exercise of the power when it existed – High Court had erroneously treated the cancellation as the point of commencement of limitation – The power of attorney has been executed in 2004 and the conveyances having been made in the years between 2004-09, there cannot be any cause of action ferreted out on the basis of the cancellation of the power of attorney, after more than 11 years – Impugned order of the High Court liable to be set aside and the rejection of the plaint as ordered by the Trial Court affirmed.
(Para 8 and 9)
V. Ravikumar V. S. Kumar
Supreme Court: 2025 INSC 343: (DoJ 03-03-2025)