CPC Case Brief – Church of Christ Charitable Trust v. M/s Ponniamman Educational Trust

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Facts: – In this case basically the appeal was filed against the order of rejection of plaint against the appellant.

The appellant-Society, the owner of the property entered into an Agreement for Sale of the property in favor of one S. Velayutham – 2nd defendant in the suit on the condition that the transaction should be completed within 6 months after obtaining clearance from Income Tax and other departments and also received an amount of Rs. 5 lakhs as an advance.

Issue: – Whether the Judge of the High Court was justified in ordering rejection of the plaint?

Holding: – Power under Order VII Rule 11 of the Code can be exercised at any stage of the suit either before registering the plaint or after the issuance of summons to the defendants or at any time before the conclusion of the trial.   In view of Order VII Rule 11(a) and 11(d), the Court has to satisfy that the plaint discloses a cause of action and does not appear to be barred by any law.

In the absence of any cause of action shown against the defendant, the suit cannot be preceded either for specific performance or for the recovery of money advanced. Therefore the judge rightly rejected the plaint for non-disclosure of the cause of action.

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