Aggrieved with the same, the respondent approached the Gujarat High Court, which allowed their appeal. Against the decision of High Court, the appellants filed the present appeal before the Supreme Court.

The Supreme Court in the case Daliben Valjibhai Versus Prajapati Kodarbhai Kachrabhai observed and has reiterated that the period of limitation in such cases begins from the date when knowledge of fraud (underlying the challenged sale deed) is acquired, and not the date of registration.

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The Supreme Court in the case was dealing with the dismissal of suit filed seeking cancellation of a sale deed, on the ground of limitation.

The bench comprising of Justice PS Narasimha and Justice Manoj Misra was hearing the present matter.

The bench in the case stated that while the High Court came to the correct conclusion that under Article 59 of the Limitation Act, a suit can be instituted within 3 years of the knowledge, it proceeded to return a finding that in cases where the document is registered, the knowledge must be presumed from the date of registration. There being no justification for the High Court in allowing the application under Order 7 Rule 11, on issues that were not evident from the plaint averments itself.

The High Court was also not justified in holding that the limitation period commences from the date of registration itself.