HIGH COURT OF CALCUTTA
A. N. RAY, S. K. MUKHERJEE
SETH NANAK CHAND SHADIRAM - Appellant
Versus
AMIN CHAND PYARILAL - Respondent
A. F. O. D. 132 Of 1967
Decided On : JUNE 04, 1968
AMENDMENT OF PLAINT - LIMITATION - ACKNOWLEDGMENT - EXTENSION OF TIME - CIVIL PROCEDURE CODE, 1908 - SECTION 105 - ORDER REFUSING AMENDMENT - APPEALABILITY - SCOPE AND MEANING - INTERLOCUTORY ORDER - CHALLENGE IN APPEAL FROM FINAL DECREE - GENUINENESS OF LETTER - BONA FIDE OF APPLICATION - NEW CASE - PERFECTING CAUSE OF ACTION - SAME CAUSE OF ACTION - NEW CLAIM ON NEW BASIS - AMPLIFICATION OF CASE ALREADY PLEADED.
Fact of the Case:
Plaintiff filed a suit for recovery of money arising out of a contract for the sale of steel rails. The defendant failed to deliver the goods in time. The plaintiff sought to amend the plaint by alleging an acknowledgment of liability by the defendant and extension of time for delivery. The trial court dismissed the application for amendment and the suit on the ground of limitation.
Finding of the Court:
The court held that the order refusing amendment could be challenged in appeal from the final decree. The proposed amendment with regard to the acknowledgment of liability by the alleged letter dated 24 July 1957 was not bona fide and suffered from the infirmity of suppressing the same from the court. The proposed amendments with regard to paragraphs 9, 12, and 20 of the plaint were allowed as they were amplifications of the case of extension already pleaded.
Issues: 1. Whether the order refusing amendment could be challenged in appeal from the final decree? 2. Whether the proposed amendment with regard to the acknowledgment of liability was bona fide? 3. Whether the proposed amendments with regard to paragraphs 9, 12, and 20 of the plaint were new cases or inconsistent cases?
Ratio Decidendi: 1. The Supreme Court decision in Satyadhyan Ghosal v. Smt. Deorajin Debi held that an interlocutory order which had not been appealed from could be challenged in an appeal from the final decree or order. 2. The plaintiff failed to establish the claim for amendment based on the letter dated 24 July 1957. The application for amendment was not a matter of right and the petitioner had to allege facts. The plaintiff failed to do so. 3. The proposed amendments with regard to paragraphs 9, 12, and 20 of the plaint were not new cases or inconsistent cases. They were amplifications of the case of extension already pleaded.
Final Decision: The appeal was allowed and the order of dismissal of the suit was set aside. The proposed amendments were allowed and the defendant was given time to file an additional written statement and for additional discovery. The suit was to be brought to hearing immediately thereafter.
( 1 ) THIS appeal is from the decree dated 7 February 1966 passed by A. K. Mukherjea J.
( 2 ) THE plaintiff Is the appellant.
( 3 ) ON 7 February 1966 the suit was dismissed with costs.
( 4 ) THE suit was filed on 8 June 1960. The plaintiff asked for a decree for Rs. 2,74,178-12-3.
( 5 ) ON 29 July 1965 a summons was taken out by the plaintiff for amendment of the plaint The application for amendment was heard by S. P. Mitra J. on 21 September 1965 and the application was dismissed. There is no judgment to find out the reasons for dismissal of the application. It was contended that amendments should have been allowed.
( 6 ) IN the application for amendment the plaintiff alleged that the defendant by letter dated 24 July 1957 written and signed by the defendant and/or its agents duly authorised in that behalf duly acknowledged its liability to deliver the balance quantity of the goods under the contract and also acknowledged that the time for delivery and/or performance had not expired. In the subsequent paragraph the plaintiff alleged that the plaint should be amended in the manner as indicated in red ink in a copy of the plaint annexed thereto and that the proposed amendments were by way of elucidation of the allegations and further that by mistake and/or through inadvertence the petitioner failed to incorporate the elucidation and/or particulars in the original plaint.
( 7 ) THE plaintiffs claim arose out of a contract in writing dated 5 January 1956 whereby the defendant sold and/or delivered to the plaintiff certain quantities of steel rails at rates mentioned in the plaint and delivery was immediate. The plaintiff alleged that the defendant was unable to effect delivery in terms of the contract and that pursuant to the defendant's request time for delivery was extended.
( 8 ) IN the proposed amendment the plaintiff alleged that time for delivery was extended till a reasonable time after 24 July 1957 which was a period of three weeks from 24 July that is to say, 16 August 1957 in the facts and circumstances of the case. In paragraph 20 (a) of the plaint the proposed amendment was that the defendant by letter dated 24 July 1957 acknowledged its liability to deliver the balance quantity of goods and also acknowledged that time for delivery and/or performance had not expired. The other proposed amendments sought for are in paragraphs 9, 12 and 20 of the plaint.
( 9 ) AT the trial it appears from the judgment, counsel appearing for the plaintiff stated that on the basis of the plaint the claim was time barred and counsel further invited the attention of the court to the fact that the plaintiff had sought to amend the plaint by pleading acknowledgment but the application for amendment was dismissed and in view of these facts counsel conceded that he could not proceed with the suit as on the face of the plaint the suit ought to be dismissed for limitation.
( 10 ) COUNSEL for the respondent contended that the dismissal of the application for amendment left the plaint in a form that disclosed no cause of action and that it was barred by limitation. Counsel for the respondent emphasized on the statement of counsel before the court on 7 February 1966 that counsel could not proceed with the suit by reason of the dismissal of the application for amendment and contended that all that happened at the trial on 7 February 1966 was that the plaintiff did not proceed with the suit and there was no decision or adjudication of the suit. On that reasoning counsel for the respondent contended that the appellant really appealed against the order of dismissal of the application for amendment but that the trial on 7 February 1966 was not a decision or adjudication on the question of limitation of the claim in the suit.
( 11 ) THE recent decision of the Supreme Court in Satyadhyan Ghosal v. Smt. Deorajin Debi, considered the scope and meaning of Section 105 of the Code of Civil Procedure. The Supreme Court said that an interlocut
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