Limitation in a Suit for Cancellation Starts from the Date of Knowledge, not the Date of Registration

The limitation in a suit for cancellation of an alleged registered sale deed arises from the date of knowledge but not the date of registration of the sale deed, says the Supreme Court (SC) in Daliben Valjibhai & Others v Prajapati Kodarbhai Kachrabhai & Another [ 2024 INSC 1049].

The Appellants had instituted a suit for cancellation of an alleged registered sale deed in 2004, which they executed by conveying the plaint scheduled property in favour of the respondents in 2017. It was alleged that the said sale deed was brought through fraudulent means and the Appellants came to know of it only in 2017, when the Deputy Collector issued notice to the Appellants on an application filed by the Respondents for correcting the revenue entries.

The Respondents filed an application on the grounds that the suit was barred by limitation as the registered sale deed was executed in 2004 and the suit came to be filed in 2017, after a period of 13 years.

The SC referred to its decision in Chhotanben v. Kirtibhai Jalkrushnabhai Thakkar [(2018) 6 SCC 422].

The SC says the issue regarding the suit being barred by limitation in the facts of the above case, is a triable issue and for which reason the plaint cannot be rejected at the threshold in exercise of the power under Order 7 Rule 11(d) CPC. Therefore, the appeal was allowed.

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