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2017 Supreme(Bom) 2252

IN THE HIGH COURT OF BOMBAY
S. C. Gupte, J.
CHANDRAKANT RAMBHAU KHACHANE AND OTHERS - Petitioner
Vs.
NANDLAL GOVARDHANDAS CHANDAK - Respondent
W. P. No. 6761 of 2016
Decided On : 13-09-2017

Advocates Appeared:
For the Petitioner: R. G. Kavimandan
For the Respondent: Bhushan Mohta

The main legal point established in the judgment is that all amendments necessary to bring out the real controversy between the parties to the suit are permissible, as long as they do not change the nature of the suit or take away any substantive right accrued to the opponent.

Headnote:

Amendment Application - Perpetual Injunction - Code of Civil Procedure, Order VI Rule 17 - The amendment sought by the plaintiff in the present case satisfies the principles laid down by the Supreme Court in Revajeetu Builders and Developers vs. Narayanaswamy and Sons and ors. (2009) 10 SCC 84. The District Court committed a grave illegality in rejecting the amendment, whilst exercising jurisdiction under Order VI, Rule 17 of the Code of Civil Procedure.

Fact of the Case:

The plaintiff's suit for a perpetual injunction was dismissed by the trial Court. During the appeal, the plaintiff moved an application for amendment of the plaint, seeking a declaration that a sale deed was nominal, sham, and bogus. The District Court rejected the application, citing the issue of the nature of the transaction and delay.

Finding of the Court:

The District Court's rejection of the amendment application was quashed and set aside. The Court held that the amendment was necessary for proper and effective adjudication of the case and did not cause prejudice to the respondent. The Court also emphasized that the amendment did not change the nature of the suit or take away any substantive right accrued to the opponent.

Issues: The main issue was the rejection of the plaintiff's amendment application by the District Court, based on the nature of the transaction and delay.

Ratio Decidendi: The Court emphasized that all amendments necessary to bring out the real controversy between the parties to the suit are permissible. The amendment proposed in the present suit was allowed as it did not change the nature of the suit or take away any substantive right accrued to the opponent.

Final Decision: The petition was allowed, and the impugned order of the District Court was quashed and set aside. The Court allowed the amendment application of the petitioner, keeping all rights and contentions of the parties on the merits of the amended plaint, including the issue of limitation, open to be decided in the pending civil appeal.

JUDGMENT :

Heard learned counsel for the parties.

2. Rule. Taken up for hearing forthwith by consent of counsel.

3. The subject matter of challenge in the present petition is the rejection of an amendment application moved by the plaintiff at the appellate stage. The petitioners herein are legal heirs of the original plaintiff, since deceased, substituted in his place. The plaintiff’s suit is for a perpetual injunction. He claims to be the owner of the suit property. It is his case that on the basis of an alleged sale deed dated 14th August, 1989, which was nominally executed by him, the defendant was trying to interfere with his peaceful possession and as a result, he was constrained to file the present suit seeking a perpetual injunction against the defendant. The suit was heard and dismissed by the trial Court. Being aggrieved, the plaintiff filed an appeal before the District Court at Buldhana. During the pendency of that appeal, the plaintiff moved the present application for amendment of the plaint, seeking a declaration that the sale deed dated 14th August, 1989 was nominal, sham and bogus and represented a money lending transaction and not a genuine sale in the eyes of law and hence, not binding upon the plaintiff. The District Court rejected that application. Hence the present writ petition.

4. The District Court rejected the application on two grounds. Firstly, it held that the issue of the sham and bogus nature of the transaction of sale was held by the trial Court against the plaintiff. The second ground was of delay.

5. All amendments which are necessary to bring out the real controversy between the parties to the suit are permissible. The amendment proposed in the present suit being prior to the introduction of the proviso to Order VI, Rule 17 of the Code of Civil Procedure, the amendment could be allowed at any stage of the suit (the appeal being nothing but a continuation of the suit) unless it changes the nature of the appeal or the suit, as the case may be. In the present case, the very relief of perpetual injunction originally claimed in the suit was based on an alleged invalid sale transaction. The sale transaction was even originally termed as a nominal, sham and bogus and money lending transaction. What was implicit earlier in the relief claimed in the suit is now being sought to be made explicit. There is no reason why such amendment should not be allowed. The amendment does not change the nature of the suit or take away any substantive right accrued to the opponent in defending the suit. As long as the merits of the amendment are open to debate including the issue of limitation, the respondent need not have any apprehension of being prejudiced at the trial by reason of the amendment. In the premises, the impugned order of the District Court cannot be sustained.

6. Learned counsel for the respondent relies on the judgment of the Supreme Court in the case of Revajeetu Builders and Developers vs. Narayanaswamy and Sons and ors., reported in (2009) 10 SCC 84. Relying on this judgment, it is submitted that the amendment sought by the plaintiff in the present case does not satisfy the principles laid down by the Supreme Court. In Revajeetu Builders and Developers vs. Narayanaswamy and Sons and ors. (supra), the Supreme Court, after analyzing English and Indian cases, laid down the following six basic principles, which ought to be taken into consideration whilst allowing or rejecting an amendment. These principles are as follows :

“(1) Whether the amendment sought is imperative for proper and effective adjudication of the case?

(2) Whether the application for amendment is bona fide or mala fide?

(3) The amendment should not cause such prejudice to the other side which cannot be compensated adequately in terms of money;

(4) Refusing amendment would in fact lead to injustice or lead to multiple litigation;

(5) Whether the proposed amendment constitutionally or fundamentally changes the nature and character of the case? And





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