SUPREME COURT OF INDIA
A.N. RAY, C.J.I., M.H. BEG AND P.N. SHINGHAL, JJ.
M/s. Modi Spinning & Weaving Mills Co. Ltd., and another, Appellants
Versus
M/s. Ladha Ram & Co., Respondent.
Civil Appeal No. 190 of 1976,
D/- 23-9-1976.
Advocates appeared
Mr. S. C. Manchanda, Sr. Advocate, for Appellants; Mr. O. P. Malhotra, N. S. Das Bahl., Y. P. Chandha and Sat Pal Advocates, for Respondent.
Claim of compensation - Non-supply of its own goods for sale - Plaintiffs suit is for a decree on cause of action as laid in plaint - Suit was instituted sometime in month of May - Defendants filed written statement - Two paragraphs of written statement contained additional please - Paragraph states that the agreement dated April is applicable to transactions in which plaintiff works as stockiest-cum-distributor of defendants - Defendants further allege in paragraph that agreement is not applicable to transactions in which plaintiff acts as a principal - In paragraph defendants/appellants in alternative allege that even if agreement is applied to dealings in suit plaintiffs position is merely that of an agent of defendants and as such plaintiff is not entitled to claim any damages from defendants for non-supply of its own goods for sale through plaintiff – Held, Defendants cannot be allowed to change completely the case made in paragraphs of written statement and substitute an entirely different and new case - It is true that inconsistent pleas can be made in pleadings but the effect of substitution of paragraphs is not making inconsistent and alternative pleadings but it is seeking to displace plaintiff completely from admissions made by defendants in the written statement - If such amendments are allowed the plaintiff will be irretrievably prejudiced by being denied opportunity of extracting admission from the defendants - High Court rightly rejected application for amendment and agreed with the trial Court - Court are told that the defendants proposed amendments to two other paragraphs of written statement - These are paragraphs of written statement - These amendments also rightly rejected - For foregoing reasons the appeal must fail - Defendants/appellants cannot be allowed to amend written statement in the manner suggested - Two alternative pleas of defendants as alleged in paragraphs of written statement are there - Parties will be able to make their rival contentions on the pleadings as to the issues to be raised - Defendants wish to raise issues on those paragraphs - Counsel for plaintiff states that it is open to defendants to apply for framing of the issues - They will be at liberty to do so - Appeal dismissed
Judgment
RAY, C.J.I. :- This appeal is by Special Leave from the judgment dated 8 August 1975 of the High Court of Allahabad. The appellants are defendants and the respondent is the plaintiff in suit out of which this appeal arises.
2. The plaintiffs suit is for a decree for Rs. 1,30,000/- on the cause of action as laid in the plaint.
3. The suit was instituted sometime in the month of May, 1971.
4. The defendants filed written statement.
5. Two paragraphs of the written statement contained additional please. Paragraph 25 states that the agreement dated 7 April, 1967 is applicable to the transactions in which the plaintiff works as stockist-cum-distributor of the defendants. The defendants further allege in paragraph 25 that the agreement is not applicable to transactions in which the plaintiff acts as a principal. In paragraph 26 the defendants/appellants in the alternative allege that even if agreement dated 7 April, 1967 is applied to the dealings in suit, plaintiffs position is merely that of an agent of the defendants and as such plaintiff is not entitled to claim any damages from the defendants for non-supply of its own goods for sale through the plaintiff.
6. The defendant/s appellants approximately 3 years after the filing of the written statement made an application for amendment of the written statement. The proposed amendments were for deletion of paragraphs 25 and 26 and for sub-stitution of two new paragraphs 25 and 26. The proposed amendment in para 25 was that by virtue of the agreement the plaintiff was appointed a mercantile agent and the plaintiff acted in that capacity in placing orders on the defendants. The defendants further denied the allegation of the plaintiff that the plaintiff placed orders with the defendants in the plaintiffs capacity as a purchaser. The defendants also alleged that the plaintiff throughout acted as an agent of the defendants. In paragraph 26 of the proposed amendment it was alleged by the defendants that being a mercantile agent and an agent of the defendants in accordance with the terms of the agreement the plaintiff has no locus standi to file the suit.
7. The trial Court rejected the application of the defendants for amendment. One of the reasons given by the trial Court is that the defendants wanted to resile from admission made in paragraph 25 of the written statement. The trial Court said that "the repudiation of the clear admission is motivated to deprive the plaintiff of the valuable right accrued to him and it is against law." The trial Court held the application for amendment to be not bonafide.
8. The High Court on revision affirmed the judgment of the trial Court and said that by means of amendment the defendants wanted to introduce an entirely different case and if such amendments were permitted it would prejudice the other side.
9. The decision of the trial Court is correct. The defendants cannot be allowed to change completely the case made in paragraphs 25 and 26 of the written statement and substitute an entirely different and new case.
10. It is true that inconsistent pleas can be made in pleadings but the effect of substitution of paragraphs 25 and 26 is not making inconsistent and alternative pleadings but it is seeking to displace the plaintiff completely from the admissions made by the defendants in the written statement. If such amendments are allowed the plaintiff will be irretrievably prejudiced by being denied the opportunity of extracting the admission from the defendants. The High Court rightly rejected the application for amendment and agreed with the trial Court.
11. We are told that the defendants proposed amendments to two other paragraphs of written statement. These are paragraphs 4 and 19 of the written statement. These amendments also rightly rejected.
12. For the foregoing reasons the appeal must fail. The defendants/appellants cannot be allowed to amend the written statement in the manner suggested .
13. The two alternative pleas of the defendants as all
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