1982 Supreme(Kar) 70
Karnataka High Court
SHA BABULAL and CO. - Appellant
Versus
B.NAGAPPA - Respondent
Decided On : 03-09-82
R.S.A. : 825 of 1975
B.K.RAMACHANDRA RAO, C.R.Shivaswamy, R.GOPAL
The main legal point established in the judgment is that the substitution of a party in a suit, if resulting in the addition of a new party rather than a mere correction of the party's description, may be subject to the provisions of Section 21 of the Limitation Act, leading to the bar of time for the suit.
Headnote:
Limitation Act - Substitution of Party - The court held that the substitution of a joint family firm with a registered partnership firm amounted to the addition of a new party, and not merely a correction of the party's description. The court applied Section 21 of the Limitation Act to determine that the suit was barred by time due to the amendment made after three years of the suit's institution.
Fact of the Case:
The plaintiff filed a suit for recovery of a sum along with interest. The trial court decreed the suit, but the defendant appealed, raising points regarding the genuineness of entries, liability for past interest, and the applicability of Section 21 of the Limitation Act after an amendment to the plaint. The appellate court allowed the appeal, holding that the suit was barred by time due to the amendment.
Finding of the Court:
The court found that the amendment substituting a joint family firm with a registered partnership firm amounted to the addition of a new party, and not merely a correction of the party's description. It held that Section 21 of the Limitation Act applied, and the suit was barred by time due to the amendment made after three years of the suit's institution.
Issues: The issues raised included the genuineness of entries, liability for past interest, and the applicability of Section 21 of the Limitation Act after an amendment to the plaint.
Ratio Decidendi: The court's decision was based on the interpretation of Section 21 of the Limitation Act, which deemed the suit to have been instituted when the new party was added. The court concluded that the amendment substituting a joint family firm with a registered partnership firm constituted the addition of a new party, leading to the application of Section 21 and the bar of time for the suit.
Final Decision: The court dismissed the appeal, holding it devoid of merits and liable to be dismissed. No costs were awarded throughout the case.
( 1 ) THIS appeal by the plaintiff is directed against the judgment and decree dated 19-3-1974 made by the Civil Judge, bellary in RA No. 9 of 1974 on his file, allowing the appeal on reversing the judg ment and decree dated 11-12-1973 passed by the Munsiff, Kudligi, in OS No. 28/70 on his file, decreeing the suit of the plaintiff.
( 2 ) THE plaintiff instituted a suit for recovery of Rs. 1,090 25 P. along with interest at 12% per annum. The plaintiff described himself as a joint family firm. Subsequently, however, by an amendment, the plaintiff was changed as a partnership act and the trial Court decreed the suit holding that the suit even after the amendment was not barred by time. The defendant took up the matter in appeal and the learned Civil Judge raised the following points as arising for his consideration in the appeal : (1) Whether the entries made in the day Book Ex. P 2 as in Exs. P 2 (a) and (b) are genuine ? (2) Whether the defendant is liable to pay the past interest at 12% per annum ? (3) Whether S. 21 of the Limitation act is applicable to the case after the amendment of the plaint on 21 11-1973 ? (4) What order ?
( 3 ) THE learned Civil Judge, reassessing the evidence on record, answered Point No. 1 in the affirmative. Under Point No. 2 he held that the plaintiff would be awarded interest only at 6%. Under Point No. 3 he held that S. 21 of the Limitation Act was applicable and the suit after amendment was barred by time and in that view he allowed the appeal, set aside the judgment and decree of the trial Court and dismissed the suit of the plaintiff. Aggrieved by the said judgment and decree the plaintiff has instituted the above second appeal before this Court.
( 4 ) THE learned Advocate appearing for the appellant strenuously urged before me that the learned Civil Judge was not justified in holding that the suit after amendment was barred by time. He submitted that what was amended was only the description of the party and not the substitution of a new party.
( 5 ) THE sole point, therefore, that arises for my consideration in this appeal is : whether the learned Civil Judge was justified in holding that by the amendment, a new plaintiff was substituted in place of the original plaintiff.
( 6 ) S. 21 of the Limitation Act reads :"effect of substituting or adding new plaintiff or defendant :- (1) Where after the institution of a suit, a new plaintiff or defendent is substituted or added, the suit shall as regards him, be deemed to have bten instituted when he was so made a party : provided that where the Court is satisfied that the omission to include a new plaintiff or defendent was due to a mistake made in good faith, it may direct that the suit as regards such plaintiff or defendant shall be deemed to have been instituted on any earlier date".
( 7 ) IN this case, there is no dispute that the suit was originally instituted in the name of "shah Babulal Sohanlal and Co. ," a joint family firm, Bangle Merchant, B. P. Road, Davangere City by partner rathanchand. Subsequently, by an amendment it is changed into "shah Babulal Sohanlal and Co. , Partnership Firm", Bangle Merchant, B. P. Road, Davangere City by partner rathanchand. Thus, it is obvious that a joint family firm is substituted by a registered partnership firm. The question is whether that would amount, merely to correcting the description of the plaintiff or substitution of a new party as contemplated under S. 21 of the Limitation Act ?
( 8 ) THE Supreme Court of India in ramaprasad Dagaduram v Vijayakumar motilal (1), has held,"the High Court erred in assuming that addition of parties under Or. 1, R. 10 (1), CPC did not attract S. 22 of the limitation Act. The present suit was not a continuation of the original suit"it is true that if the original party was described as joint family firm and subsequently the description was got changed stating that the suit was by the manager of the joint family as such, there would be an amendment w