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2012 Supreme(SC) 270

2012 (2) Supreme 593
SUPREME COURT OF INDIA
P. Sathasivam and J. Chelameswar, JJ.
Rameshkumar Agarwal — Appellant(s)
versus
Rajmala Exports Pvt. Ltd. & Ors. — Respondent(s)
Civil Appeal No. 3295 of 2012
(Arising out of S.L.P. (Civil) No. 27961 of 2010)
Decided on : 30-3-2012

IMPORTANT POINT
Amendment of plaint should normally be allowed.

Headnote:Code of Civil Procedure, 1908 – Order VI Rule 17 – Amendment cannot be claimed as a matter of right and under all circumstances – However, liberal approach should be the general rule – Amendment not altering the cause of action and not prejudicing defendants in any way should be allowed to avoid multiplicity of litigations. (Para 11)

        (2008) 14 SCC 364; (2009) 10 SCC 84 – Relied upon

       Facts of the case:

        In this case scope of Order VI Rule 17, CPC is under consideration.

       Finding of the Court:

        There is no infirmity in the impugned order.

       

JUDGMENT

P.Sathasivam,J.

1) Leave granted.

2) This appeal is directed against the final judgment and order dated 08.06.2010 passed by the High Court of Judicature at Bombay in Appeal No. 40 of 2010 in Chamber Summons No. 1233 of 2008 in Suit No. 2374 of 2007 whereby the High Court disposed of the appeal filed by the appellant herein by partly allowing Chamber Summons No. 1233 of 2008 filed by respondent No.1 herein for amendment in the plaint.

3) Brief facts:

(a) The property (Bungalow) in question was constructed by the late Ganpatrai Agarwal, father of the appellant herein. Vipin Kumar Agarwal, respondent No.4 is the brother of the appellant. The land on which the said bungalow is constructed is a leasehold property and belongs to Hatkesh Co-operative Housing Society Limited (hereinafter referred to as “the Society”). The Society granted leasehold rights in respect of the said plot by indenture of lease dated 22.02.1976. The mother of the appellant passed away in 1991 and his father also passed away in 2002. After the death of the parents, the appellant holds 50% share in the suit property and his brother, respondent No.4 herein, also holds remaining 50% share in the suit property.

(b) According to the appellant, in the year 2002, for setting up a new business, he was in need of substantial finance and for that purpose, he approached respondent No.1-Company through its Director Mr. Rajendra Kumar Aggarwal, who is his co-brother. Respondent No.2 agreed to finance the proposed projects on the condition that some documents are required to be executed as security. In 2006, the appellant signed an agreement with the Company promising to give his share in the bungalow as a security for the loan. The said agreement was to be acted only when the Company will give an advance loan of Rs.1,85,00,000/- and further upon failure of the appellant to repay the same within a period of two years from the date of disbursement of the full amount of loan with interest @ 12% p.a. Even before getting the loan amount, the appellant herein signed the agreement. Due to adverse market conditions, the appellant did not go ahead with the proposed project and did not take any kind of financial assistance from respondent No.1 - Company and respondent No.2 - co-brother of the appellant.

(c) According to respondent No.2, the appellant signed an agreement for sale on 02.02.2006 for selling 50% of his undivided right, title and interest in the suit property. On 16.08.2007, respondent No.1-Company filed a suit for specific performance being Suit No.2374 of 2007 before the High Court of Bombay alleging that the appellant herein had agreed to sell his 50% share in the suit property to the Company for a consideration of Rs.1,85,00,000/- and also alleged that the appellant ensured that respondent No.4 - the brother of the appellant would sell his 50% undivided share in the property to the Company for Rs.3,00,00,000/- and represented him as an agent of respondent No.4. On 06.09.2007, respondent No.1 - Company took out Notice of Motion No.3241 of 2007 in which an ex-parte ad interim order was passed in their favour.

(d) The appellant herein sent a letter dated 10.09.2007 through his advocate to respondent Nos. 1 & 2 for seeking details of the consideration of Rs.1,85,00,000/- and also for inspection of various documents referred to and relied on by them in the plaint as well as in the Notice of Motion. After inspecting the documents, the appellant filed a reply and prayed for vacating of the ex-parte ad interim order dated 06.09.2007. After hearing the parties, the High Court, by order dated 26.11.2007, vacated the ex- parte ad interim order. On 20.08.2008, respondent No.1-Company took out Chamber Summons No. 1233 of 2008 in Suit No. 2374 of 2007 with a prayer to amend the plaint by impleading other parties. The appellant herein opposed the same. However, by order dated 21.11.2009, learned Single Judge of the High Court partly allowed the Chamber Summons.

(e) Against the
























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