IN THE HIGH COURT OF BOMBAY
S.K. Desai, Ag. C.J. R.L. Aggarwal, J.
Dena Bank .... Appellant.
Versus
Gautam Ratilal Shah others .... Respondents.
Appeal No. 655 of 1982 in Chamber Summons No. 571 of 1982 in Suit No. 683 of 1975, decided on 15-6-87.
Advocates appeared :
J.B. Chinai with D.V. Merchant i/b I V. Merchant Co., for appellants.
Virendra V. Tulzapurkar with N.S. Datar i/b Dhruv Co., for respondent No. 1.
Rahimtoola with Miss Armin Wandrewalla i/b R.D. Sethna Co., for respondent No. 2.
P.L. Narain with S.Y. Amare i/b Daru Daru, for respondent Nos. 3 and 4.
Body of plaint containing. Loan was given to a Limited Company and in respect of certain credit facilities given to company said company and defendants had jointly and severally executed demand promissory notes. Plaintiffs taking out summons. Defendants contention. Suit simpliciter upon promisory note incompleted. They were guarantors, principal debtor being company. Application by plaintiff for plaints amendment for making reference of letters of continuity and guarantee and for seeking claim not only under promissory notes, but also under deed of guarantee and not only as principal debtors but alternatively as guarantors. Applications was rejected by single judge. Challenged. Essential nature of suit was not sought to be altered. Despite amendment sought for and even when amendment were allowed. suit would be for money decree. Prayer was not sought to be altered. What was sought to give support to that prayer by additional documents and additional facts to be taken into account which were in plaintiffs knowledge from the very beginning. Held, Interests of justice required that amendment to plaint should be allowed since this was not the case where defendants could not be compensated in terms of money.
2. In 1975 the appellants who are a nationalised Bank and who will hereinafter be referred to as the "Plaintiffs" filed a suit against the four Respondents who will hereinafter be referred to as "the Defendants" on promissory notes executed on 31st January, 1973 by the defendants .The suit was one under Order XXXVII of the Code of Civil Procedure and in the plaint an amount of Rs. 13,85,237.37 was claimed with further interest on a slightly lesser amount at 10 per cent per annum. In the body of the plaint it is set out that the loan was given to Shah Frozen Foods Private Ltd. and that in respect of certain credit facilities given to the said Company and money advanced thereon the said company as well as the defendants had jointly and severally executed a demand promissory note. Amounts due from the said Company in respect of two of its accounts have thereafter been mentioned and after setting out the correspondence the plaintiffs have claimed the aforesaid amount contending that the suit is one within Order XXXVII of the Code of Civil Procedure and the reliefs claimed therein fall totally within the ambit of the said Order. It may be mentioned further that in the list of documents annexed to the plaint one finds reference only to the promissory notes, letters between the plaintiffs and the said Company and thereafter between the legal advisers of the plaintiffs an the defendants and /or their legal advisers.
3. After the defendants to the suit were served with the writ of summons, they find their appearance within the time permitted by the rules with the result that the plaintiffs took out a Summons for judgment. The said summons for judgment was duly served upon the advocates representing the defendants and in those proceedings affidavits were filed by the several defendants. The stands taken by the defendants, were not identical but at least in the affidavit filed on behalf of the defendant No. 2 but more particularly in that filed on behalf of defendants No. 3 and 4 it was contended that the suit simpliciter upon the promissory notes was incomplete and that the defendants were in the position of guarantors, the principal debtor being the said Company. It was also urged in the affidavit in reply and particularly in that filed by defendants Nos. 3 and 4 that apart from the promissory notes the defendants had executed various documents, including a deed of guarantee and it was contended that the promissory notes and the deed of guarantee as well as the deed of hypothecation were required to be considered together. In their affidavit in rejoinder it was contended on behalf of the plaintiffs, by the Assistant General Manager that the suit was based on promissory notes only. The defendants' contention that they were entitled to inspection of the deed of hypothecation or the letter of continuity (guarantee) was disputed. It was emphasised that the plaintiffs' suit was based only on the negotiable instruments, viz.,the two promissory notes and not on the guarantee.
4. On the Summons for judgment unconditional leave was granted to the defendants to defend the suit and the suit was directed to stand transferred to the List of Commercial Causes. Further directions as regards filing of Written Statement and discovery were also given. It would appear that in pursuance of
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