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2003 Supreme(SC) 1459

SUPREME COURT OF INDIA
S.N. Variava, H.K. Sema, JJ.
Lakha Ram Sharma - Appellant
Versus
Balar Marketing Pvt. Ltd. - Respondents
Civil Appeal No. of 2003. [Arising out of SLP (Civil) No. 16097 of 2002.]
Decided On : 1-8-2003

Advocates Appeared:
For the Appellant :- Mr. Manmohan Singh, Mr. Manish Kumar Choudhary, Mr. Surinder Singh and Mr. S.K. Verma, Advocates.
For the Respondents:- Ms. S. Janani, Advocate.

The court does not go into the merits of the matter while considering an amendment, and merely raising the valuation is not a ground for refusal.

Headnote:

Amendment - Valuation of Suit - The court held that the refusal of the amendment to raise the valuation of the suit was unjustified as the court does not go into the merits of the matter while considering an amendment and merely raising the valuation is not a ground for refusal.

Fact of the Case:

The appellant claimed to be the proprietor of a trademark and filed a Suit against the respondent for using the trademark. The appellant sought an amendment to raise the valuation of the Suit, which was granted by the trial court but disallowed by the High Court.

Finding of the Court:

The court set aside the High Court's decision and restored that of the trial court, clarifying that the trial court will determine whether court fees are correctly paid due to the raised claim.

Issues: Refusal of amendment to raise valuation of the Suit.

Ratio Decidendi: The court does not go into the merits of the matter while considering an amendment, and merely raising the valuation is not a ground for refusal.

Final Decision: The impugned order was set aside, and the trial court's decision was restored. The appeal was disposed of accordingly with no order as to costs.

ORDER :

1. Leave granted.

2. Heard parties.

3. A very short question is involved in this appeal. The appellant had filed a Suit claiming that he is a proprietor of a trademark 'KUNDAN' and 'KUNDAN CAB' in respect of PVC Wires and Cables and that the respondent was using the appellant's trademark. Permanent injunction, rendition of accounts and other reliefs were claimed. The appellant applied for an amendment of the Suit. The application for amendment was granted by the trial court. The High Court, however, by the impugned order, has disallowed only one portion of the amendment, namely, where the appellant sought to raise the valuation of the Suit from Rs. 1,00,000/- (Rupees One Lac) to Rs. 10,00,000/- (Rupees Ten Lac). The High Court has held that such a claim is arbitrary and not based on any cogent material. The High Court has held that the application to raise valuation is not bona fide as it is done with the purpose of taking the suit out of the jurisdiction of that court.

4. It is settled law that while considering whether the amendment is to be granted or not, the Court does not go into the merits of the matter and decide whether or not the claim made therein is bona fide or not. That is a question which can only be decided at the trial of the Suit. It is also settled law that merely because an amendment may take the suit out of the jurisdiction of that Court is no ground for refusing that amendment. We, therefore, do not find any justifiable reason on which the High Court has refused this amendment. Accordingly, the impugned order is set aside and that of the trial court is restored. We, however, clarify that as the appellant has now raised the claim from Rs. 1Lakh to Rs. 10 Lakh, the trial court will determine, whether or not Court Fees are correctly paid.

5. The appeal stands disposed of accordingly. No order as to costs.

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