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2025 Supreme(Bom) 1078

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ABHAY AHUJA, J.
Pfizer Limited - Plaintiff
Versus  
M/s. Shivalik Exports Corporation And Others - Defendants
Interim Application No. 58 of 2025 In Commercial Suit No. 46 of 2015
Decided on : 16-07-2025

Advocates:
Advocate Appeared:
For the Plaintiff :Mr. Kunal Dwarkadas alongwith Ms. Reha Parkash, Ms. Kshyama Daniel instructed by Crawford Bayley & Co., Advocate
For the Defendant :Mr. Anirudh Hariyani alongwith Mr. Niket Jani instructed by Jani & Parekh, Advocate

Substitution of deceased parties in civil proceedings requires adherence to strict timelines under the CPC and affording notice to legal representatives, failing which valuable rights may be compromised.

Headnote:(A) Code of Civil Procedure, 1908 - Order XXII Rule 4 - Limitation Act, 1963 - The Plaintiff sought to amend the plaint to substitute deceased Defendants and delete the name of a dissolved partnership firm, highlighting the breach of a carrying and forwarding agreement resulting in financial losses. The suit abated due to delays exceeding the permissible period following the deaths of Defendants. The court underscores the necessity of notifying proposed legal representatives before amending the record, as abatement secures valuable rights. (Paras 11, 12, 21, 24)

(B) The statutory limitation period for substitution of legal heirs is 90 days post-death, extendable within a total of 150 days under specific conditions, failing which the suit abates. The necessity for proper notification to heirs prior to substitution or amendment is emphasized to safeguard their rights. (Paras 12, 21, 22)

(C) Delay in application for substitution of 959 days and 797 days highlights the challenges around lapse in notifications and procedural adherence, necessitating judicial scrutiny to maintain equitable access to justice. (Paras 20, 23)

Judgement Key Points

Key Points: - (!) - (!) - (!) - (!) - (!) - (!)

Question 1?

How to substitute the legal representatives of deceased defendants under Order XXII Rule 4 CPC within the stipulated limitation periods?

Question 2?

What is the procedure and requirement for notifying proposed legal representatives before substituting or setting aside abatement?

Question 3?

What are the consequences and conditions for abatement when substitution is not filed within 90 days and how can abatement be set aside?


Table of Content
1. plaintiff's attempt to amend suit due to deceased defendants (Para 1 , 2 , 3 , 4 , 5 , 6)
2. opposition towards impleading new defendants without notice (Para 8 , 16 , 17)
3. analysis of substitution process under cpc (Para 10 , 11 , 12 , 18 , 20)
4. guidelines on abatement and substitution procedures (Para 13 , 15 , 22)
5. court order related to amendments and notification to legal representatives. (Para 19)
6. final order regarding amendments and notifications (Para 24 , 25)

ORDER. :

ABHAY AHUJA, J.

1. The Applicant/Plaintiff is a company incorporated under the Indian Companies Act, 1913, an existing company under the Companies Act, 1956 and 2013. The Plaintiff is a company stated to be engaged in the manufacture and marketing of pharmaceuticals and consumer healthcare products.

2. The Defendant No. 1 is a partnership firm whose services were requisitioned by the Plaintiff under the carrying and forwarding agreement dated 28th September, 2010 and the amendment thereto dated 2nd April, 2012 (the “CFA Agreement”). The Defendants No. 2 to 6 are the partners of the Defendant No. 1 firm.

3. The Applicant/Plaintiff by way of the suit is seeking a money decree against the Defendants for an amount of Rs. 8,10,19,029/- together with interest on the basis that the Defendants have inter alia breached the terms of the CFA Agreement., which breaches have allegedly resulted in losses to the Plaintiff.

4. It has been submitted that, unknown to the Applicant, during the pendency of the suit, on 31st March, 2016 the Defendant No. 1 firm was dissolved, on 6th October, 2021, the Defendant No. 2 passed away, and on 17th March, 2022, the Defendant No. 6 passed away. It is the case of the Applicant that these facts were known to the Defendants who are partners of the Defendant No.1 Firm and accordingly on the occurrence of each of the said incidents, although the Defendants were obligated to inform the Court about these developments at the time of the occurrences of these incidents itself, but the same was not done.

5. That it was only on 2nd August, 2024, after a considerable delay the Defendants brought the aforesaid facts to the notice of the Court pursuant to an affidavit dated 5th August, 2024 filed by Defendant no.4 pursuant to a hearing held on 2nd August, 2024 before the Court where the Defendants were directed to file an affidavit indicating as to whether the firm was a registered partnership firm or an unregistered partnership firm, the date on which the same was dissolved and the dates on which the Defendants No. 2 and 6 had passed away.

6. This Interim Application has been filed by the Applicant/Plaintiff on 18th October, 2024 seeking to amend the Plaint in the Suit inter alia to (i) to delete the name of Defendant No. 1 partnership firm viz. Shivalik Exports Corporation, submitting that the firm has been dissolved; (ii) substitute the name of the deceased-Defendant No. 2 viz. Mr. Vinod Kumar with the name of his legal heirs viz. Mr. Harsh Kumar Gupta, Ms. Kalika Garg, Ms. Preeti Garg, Ms. Varsha Agarwal, as Defendants No. 2 (a) to 2 (d) respectively; and substitute the name of the deceased Defendant No. 6 viz. Dr. Jai Hari Har Lal, with the name of his legal heir, viz. Ms. Rachna Synghal, as Defendant No. 6(a) under Order XXII Rule 4 of the Code of Civil Procedure, 1908 (“CPC”) in addition to insertion of averments in paragraphs 3 and 15 of the Plaint and consequential amendments. It has been submitted that the Defendant No. 6 has passed away on 17th March, 2022 leaving behind one son and one daughter viz. the Defendant No.5, who is already a Defendant in the Suit and the proposed Defendant No.6(a), as his only legal heirs.

7. It is the case of the Applicant/Plaintiff that owing to the circumstances beyond the control of the Applicant, the interim application has been filed with the delay of 959 days from the date of death of Defendant No. 2 and of 797 days from the date of death of Defendant No. 6. The Applicant has also filed

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