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KHATRI HOTELS PRIVATE LIMITED AND ANOTHER versus UNION OF INDIA AND ANOTHER

Citation: [2011] 15 S.C.R. 299 · Decided: 09-09-2011 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Dismissed

Cited by 6 judgment(s) · see the full citation network in Lexace

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Judgment (excerpt)

(2011] 15 (ADDL.) S.C.R. 299 
KHATRI HOTELS PRIVATE LIMITED AND ANOTHER 
A 
v. 
UNION OF INDIA AND ANOTHER 
(Civil Appeal No. 7773 of 2011) 
SEPTEMBER 09, 2011 
B 
[G.S. SINGHVI AND H.L. DATTU, JJ.] 
Limitation Act, 1963 - Article 58 - Suit for declaration of 
title and injunction - Period of limitation - Held: Period 
prescribed under Article 58 of the 1963 Act begins to run when 
C 
the right to sue first accrues - If a suit is based on multiple 
causes of action, the period of limitation will begin to run from 
the date when the right to sue first accrues - Successive 
violation of the right will not give rise to fresh cause and the 
suit will be liable to be dismissed if it is beyond the period of D 
limitation counted from the day when the right to sue first 
accrued - In the instant case, the right, if any, of the plaintiffs-
appellants over the suit land stood violated with the issue of 
notification uls.507ofthe DMC Act in 1966(whereby the same 
automatically vested in the Central Government) and, in any 
E 
case, with the issue of notification u/s.~2(1) of the DD Act in 
1974(whereby the Central Government transferred the suit 
land to DOA) - Even if the appellants were to plead 
ignorance about the two notifications, it is impossible to 
believe that they did not know about the violation of their so-
F 
called right over the suit land despite the receipt of copy of 
the written statement filed on behalf of the DOA in December, 
1990 - Therefore, the cause of action will be deemed to have 
accrued to the appellants in December, 1990 and the suit filed 
on 14.2.2000 was clearly barred by time - Although, the suit G 
of 2000 was cleverly drafted to convey an impression that the 
right to sue accrued to the appellants in November/December, 
1998 when they learnt about the wrong recorc!ing of entries in 
Khasra Girdawris/Revenue Records, but falsity of the 
299 
H 
300 
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R. 
A appellants claim that the cause of action accrued to them in 
November/December, 1998 is established beyond any doubt 
- The suit filed by the appellants on 14.2.2000 was clearly 
beyond the period of limitation of 3 years prescribed under 
Article 58 of the 1963 Act - The findings and conclusions 
B recorded by the trial Court that the appellants had not 
approached the Court with clean hands inasmuch as they 
withheld Aks Sijra, site plan and the demarcation report and 
award are also approved - Not only this, thpy raised illegal 
construction despite the injunction order pa~ed by the High 
C Court and that too without obtaining permission from the 
competent authority - The appellants, who not only made 
encroachment on the public land, but also abused the 
process of the Court are saddled with cost, which is quantified 
at Rs.5 lacs - Delhi Municipal Corporation Act, 1957 -
D s.507 - Delhi Development Act, 1957 - s.22(1). 
E 
Limitation Act, 1963 - Article 58 - Differences between 
Art.58 of the 1963 Limitation Act and Art.120 of the 1908 
Limitation Act - Discussed - Indian Limitation Act, 1908 -
Article 120. 
Appellant No.2-'L' and his three brothers, who claim 
to have purchased land comprised in khasra Nos.27281 
167412 and 27281167413 total measuring 4 bighas 4 biswas 
by a registered sale deed dated 15-10-1963, raised 
F construction thereon and started a restaurant. With a 
view to secure judicial approval of such occupation of 
land, appellant No.2 - 'L' filed Suit No. 257611990 in the 
High Court for grant of permanent injunction against the 
MCD and the DDA by asserting that he was co-owner of 
G house No.SO, Ward No.IX, Kishangarh, Mehrauli, which 
formed part of khasra No.1674 and was purchased vide 
registered sale deed and that the officials of MCD and the 
ODA came to the suit premises along with the Tahsildar 
on 10.8.1990 without serving any notice and threatened 
H to demolish the superstructure on the ground that the 
KHATRI HOTELS PRIVATE LIMITED AND ANR. v. 
301 
UNION OF INDIA 
same was unauthorized. In the written statement filed on 
A 
behalf of the DOA, it was averred that the suit land 
belonged to Gaon Sabha and with the urbanization of 
rural areas of Kishangarh, the same automatically vested 
in the Central Government and further that vide 
notification dated 20.8.1974 issued under Section 22(1) of B 
the Delhi Development Act, 1957, the Central Government 
had transferred the suit land to the ODA and the plaintiff 
had no right, title or interest in the same. The 

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