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2003 Supreme(SC) 493

2003(3) Supreme 607
SUPREME COURT OF INDIA
(From Delhi High Court)
Brijesh Kumar and B.N. Srikrishna, JJ.
Punjab National Bank -Appellant
versus
Indian Bank & Anr. -Respondents
Civil Appeal No. 7072 of 2001
Decided on 22-4-2003
Counsel for the Parties :
For the Appellant : Soli J. Sorabjee, Attorney General, Mohit Chaudhary, Dhruv Mehta, Jagat Arora, Anand Misra, Ashim Sood, Advocates for M/s. K.L. Mehta & Co., Advocates.
For the Respondents : K.K. Venugopal, Sr. Advocate, B.R. Narang and Balraj Dewan, Advocates.

IMPORTANT POINT
When there is some vagueness in the plaintiff s case regarding the claim and decree in terms of dollar or rupee, there can always be an amendment of the pleading to clear such confusions and vagueness.

Headnote:Civil Procedure Code, 1908-Order VI Rule 17 read with Section 151-Recovery of Debts Due to Banks and Financial Institutions Act, 1993-Section 22-Amendment of plaint-Suit for money decree-Prayer for decree in foreign currency-Vagueness in plaintiff s plaint regarding claim and decree in terms of dollar or rupee-Amendment to clarify existing pleadings-Only rupee equivalent of dollar, is sought to be deleted-Amendment being more clarificatory in nature should be allowed-Delay in moving application would also not be material since proceedings are still not at trial stage.

       Held : The terms of the bank guarantee provide that US Dollar is the currency of account and payment in dollars for each and every sum at any time due from guarantor. The said bank guarantee was assigned in favour of the plaintiff appellant by Indo Europe. Notice of demand given by the plaintiff by letter dated 14.8.1996 also called upon the defendant No. 1 to pay the outstanding amount of USD 5,237,284.54. Again the demand was reiterated for payment in USD 5,237,284.54, the demand was repeated subsequently also for payment in dollars. Para 42 of the plaint quoted earlier clearly indicates that plaintiff is entitled to receive, recover and decree for USD 5,237,284.54. Again the appellant refers to para 46 of the plaint which has also been quoted earlier, praying for decree in USD and in the alternative, if not so decreed in dollars, then it may be allowed in equivalent value in rupees. Prayer (v) seeks a direction that decreetal amount be paid in US Dollars. In the background indicated above and the categorical averments made in the plaint including the prayer in Clause (v), it has been submitted that in effect and for all purposes, decree in dollars has been prayed for, which fact is very much in the knowledge of the defendant. True, as we feel, in some paragraphs and in the caption of the cause title of the suit, rupee equivalent of USD has been indicated first and dollar later as well as in prayer No. (i) and (ii) but that would not mean that there is no claim and prayer for decree in terms of dollars at all. We find it to be so by reading the plaint as a whole. It can, however, be said that there is some vagueness in the plaintiff s case regarding the claim and decree in terms of dollar or rupee but there can always be an amendment of the pleading to clear such confusions and vagueness. (Paras 13 & 14)

       Where the amendment merely clarifies an existing pleading and does not in substance add to or alter it, there is no good reason not to allow the same nor even the bar of limitation would come in the way. No fresh allegations of facts have been introduced/or added nor any fresh cause of action or new relief is sought to be added. A matter already contained in the original pleading can always be clarified and such an amendment should ordinarily be allowed and in such a case the question of bar of limitation would not be attracted. The case in hand is not one in which something fresh or new is sought to be added. The claim in terms of dollars has been made in different paragraphs of the plaint as well as in Clause (v) of the prayer clause, no new relief is sought to be added, only rupee equivalent of the dollar, is sought to be deleted and a clear prayer for decree in dollars would, resultantly remain there, by deletion of rupee component equivalent to the dollars. In our view, no question of introducing any new case, a new cause of action or seeking new relief which may be barred by limitation arises. It is an amendment more clarificatory in nature. (Para 14)

       The amendment would generally not be disallowed except where a time barred claim is sought to be introduced, there too it would be one of the factors for consideration or where it changes the nature of the suit itself or it is malafide or the other party cannot be placed in the same position had the plaint been originally filed correctly, that is to say, the other side has lost right of a valid defence by subsequent amendment. We find that no such element is present in the case in hand so as to disallow the amendment in the plaint. No undue advantage is sought to be taken as the claim in terms of dollars is mentioned in the plaint and the relief clause and the defendants are not to be taken by surprise. The amendment only clears the confusion, if any, as to the terms in which relief is sought. It does not revive a time barred and dead claim, nor changes the nature of the suit. In the facts and circumstances, it cannot be said to be malafide either. (Para 16)

       

JUDGMENT

Brijesh Kumar, J.-The dispute brought before this Court by means of instant appeal relates to refusal to allow amendment of the plaint, in the suit for money decree filed by the appellant against the respondents in Delhi High Court, which later on has been transferred to the Debt Recovery Tribunal, Delhi.

2. The main contesting respondent is Indian Bank and respondent No.2 - M/s Indo-Europ Foods Ltd. has been impleaded as Proforma Respondent in this appeal. The reference of respondent wherever made in this judgment is for respondent No.1 - Indian Bank and wherever the word USD has been used it stands for U.S. Dollars.

3. As a brief background, to better understand the controversy involved, it may only be indicated that a contract was entered into between Oswal Agro Mills Limited and Indo Europe Foods Limited of United Kingdom. An amount of USD 6.00 million was advanced to Oswal Agro by Indo Europe which was liable to be adjusted against bills of Oswal Agro on export of agro products by Oswal Agro to Indo Europe. Oswal Agro furnished a Bank Guarantee of Indian Bank to the extent of USD 6.00 million, in favour of Indo Europe to cover the advance made by Indo Europe. The Bank guarantee dated February 3, 1983 was executed by Indian Bank in favour of Indo Europe Foods Limited, who is the beneficiary of the guarantee. A few relevant clauses of the Bank Guarantee are quoted below:

"GUARANTEE

(A) In consideration of the Beneficiary entering into the contract and making the advance payment, the guarantor hereby irrevocably and unconditionally guarantees to the beneficiary the due and punctual repayment, whether at stated maturity or acceleration or otherwise of the advance payment of OAML under or pursuant to the contract in accordance with its terms and agrees that if and whenever OAML shall fail to pay any part of such sum when due, as stated above, the Guarantor shall forthwith on written demand by the Beneficiary pay an amount equal to such sum to the Beneficiary in the currency and in the manner required of OAML by the contract in respect of such sum.

Xxx xxx xxx

(G) The maximum contingent liability of the guarantor hereunder shall not exceed USD 6,000,000 (United States Dollars Six million only)

xxx xxx xxx

GENERAL

Xxx xxx xxx

(C) The united States Dollar is the currency of the account and payment for each and every sum at any time due from the Guarantor hereunder.

(D) On each date on which an amount is due from the Guarantor hereunder the Guarantor shall make the same available to the Beneficiary by payment in dollars in immediately available and freely transferable funds to the Beneficiary s account No. 36020 with Punjab National Bank, Moor House, 119 London Wall, London B024-5HJ, (U.K.).

xxx xxx xxx"

4. Later, Indo Europe took a loan of USD 6.00 million from Punjab National Bank, assigning its rights under the above said Bank Guarantee in favour of Punjab National Bank. The notice of assignment of Bank Guarantee given by Indian Bank in favour of Indo Europe to the appellant- Punjab National Bank was intimated to the Indian Bank. It appears that in 1986 the contract between Oswal Agro Mills and Indo Europe came to an end, as a result of which on 14.8.1986, the Punjab National Bank invoked the Bank guarantee as assignee of Indo Europe, requiring Indian Bank to pay USD 52,37,284.54 as balance of unrecovered advance. The amount having not been paid, the Punjab National Bank ultimately filed a suit against the Indian Bank and M/s. Indo-Europe Foods Ltd. impleading them as Defendants No.1 and 2 respectively. The following prayers were made as per paragraph 50 of the plaint which is quoted below:-

"The plaintiff prays for a decree against the defendants jointly and severally for:

(i) Rs. 8,79,86,380.27 equivalent US dollars 5,237,284.54;

(ii) Rs. 2,87,47,590.48 equivalent US dollars 17,11,166.10 on account of interest upto the date of the suit;

(iii) Future int












































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