Defendant making payments towards amount claimed does not vanish cause of action; rejection of plaint under Order VII Rule 11 CPC reversed: Del HC

Delhi High Court: A Single Judge Bench comprising of Valmiki Mehta, J. allowed an appeal filed against the order of the trial court whereby the appellant’s plaint was rejected under Order VII Rule 11 CPC.

The appellant had brought a suit against the respondent for recovery of a certain amount. The trial court rejected his plaint mainly on the ground that the respondent was making payments during pendency of the suit, therefore, the amount as claimed by the appellant had vanished. In such circumstance, trial court held that the cause of action did not survive. Aggrieved thereby, the appellant preferred the instant appeal.

The High Court, on perusal of the record, was of the view that the trial court completely erred in rejecting the appellant’s plaint. It was observed that during pendency of a suit, a defendant may always keep on making payments towards the amount claimed in the suit; however, that does not mean that the cause of action in the suit will vanish. In such circumstances, it was furtehr observed, the Court under Order VII Rule 11 will take notice of the subsequent event of repayments and will amend the suit amount and will decree the suit for lesser amount after making necessary adjustments. In view of the aforementioned, the High Court set aside the order impugned and directed the trial court to hear and decide the suit in accordance with law. [ICICI Bank Ltd. v. Vikas Kumar Thakur, RFA No. 901 of 2018, decided on 01-11-2018]

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