The Delhi High Court while determining the limitation in a suit for cancellation distinguished between the documents which are void and voidable. It was held that no limitation was prescribed in case of cancellation of a void document is prayed for. The starting point of limitation for cancellation of voidable documents is from the date of knowledge of alleged fraud.
The said ratio was delivered by the High Court of Delhi in the matter of Anita Rani Mangla Vs. Bhagwat Dayal and Others, RFA No. 332/2018 decided on 11.10.2018.
The issue before the Hon’ble Court was that whether the Trial Court was justified in dismissing the suit of the appellant/ plaintiff as the same was barred by time.
The Hon’ble High Court of Delhi after relying upon Prem Singh and Others v. Birbal and Others (2006) 5 SCC 353 and Mohd. Noorul Hoda v. Bibi Raifunnisa and Others (1996) 7 SCC 767 held that the period of limitation for challenging the cancellation of voidable documents can only start when the contents of the same are in knowledge of the Plaintiff, who is seeking the cancellation of the documents. The documents which are void are not subject to the cancellation, hence the scope of article 59 of the limitation act would not apply on the same.
The court further observed that for computing the limitation under the act, knowledge of the contents of the documents cannot be imputed as the same is a disputed question of fact which has to be decided after trial.