Mayar (H.K.) Ltd. and Ors. vs. Owners and Parties, Vessel M.V. Fortune Express and Ors. [AIR 2006 SC 1828]
Plaint cannot be rejected on the basis of the allegations made by the defendant in his written statement or in application for rejection of the plaint
8. …… The case is not so much on the terms of Order
VII Rule 11 of the Code as upon the inherent jurisdiction of the Court, which
it always possesses to reject or stay, a plaint by treating it as complete and
by notionally removing the suppression for that purpose. After treating the
plaint as complete in that manner, if the Court finds that the cause of action
is lacking, it can reject the plaint just as it could reject a plaint had it
been properly presented along with all relevant and necessary materials. It can
also similarly stay a suit permanently.
11. From the aforesaid, it is apparent that the
plaint cannot be rejected on the basis of the allegations made by the defendant
in his written statement or in an application for rejection of the plaint. The
Court has to read the entire plaint as a whole to find out whether it discloses
a cause of action and if it does, then the plaint cannot be rejected by the
Court exercising the powers under Order VII Rule 11 of the Code. Essentially,
whether the plaint discloses a cause of action, is a question of fact which has
to be gathered on the basis of the averments made in the plaint in its entirety
taking those averments to be correct. A cause of action is a bundle of facts
which are required to be proved for obtaining relief and for the said purpose,
the material facts are required to be stated but not the evidence except in
certain cases where the pleadings relied on are in regard to misrepresentation,
fraud, wilful default, undue influence or of the same nature. So long as the
plaint discloses some cause of action which requires determination by the
court, mere fact that in the opinion of the Judge the plaintiff may not succeed
cannot be a ground for rejection of the plaint. In the present case, the
averments made in the plaint, as has been noticed by us, do disclose the cause
of action and, therefore, the High Court has rightly said that the powers under
Order VII Rule 11 of the Code cannot be exercised for rejection of the suit filed
by the plaintiff-appellants.