T R ANAND Vs. RAMESH KUMARI

JUDGEMENT

(1.) This appeal challenges the order dated 8.8.2006 passed by the learned Single Judge deciding the preliminary issue of limitation against the appellants.

(2.) Briefly the facts are that the respondents-plaintiffs (hereinafter referred to as plaintiffs) filed a suit for recovery of Rs.60 lacs with pendente lite and future interest against appellants-defendants (hereinafter referred to as defendants). The defendants as General Power of Attorneys transferred a property to the plaintiffs for consideration. One of the conditions of transfer/alleged sale was that the property was free from all encumbrances, mortgages, loans, disputes, attachments, decrees etc. and indemnified the plaintiffs against any loss or damages resulting from undisclosed facts. On 28.9.1996 it came to the knowledge of the plaintiffs that the said properties stood mortgaged with Canara Bank for a sum of Rs.40 lacs. The plaintiffs demanded the said amount from the defendants but in vain. In these circumstances the defendants had to pay to Canara Bank a sum of Rs.40 lacs in installments from Dec.,1999 to March, 2000 to get the property released from mortgage. There are allegations of fraud and cheating against the defendants.

(3.) As per plaint the cause of action accrued from 26.6.1996 till 8th March, 2000 when the plaintiffs completed the payments to Canara Bank. The defendants raised inter alia a preliminary objection regarding the suit being barred under the Limitation Act as it was filed on 6th March, 2003. The learned Single Judge framed the following issue :-